Why are Costa Coffee's losses increasing?

Costa Coffee's losses have more than doubled due to increased competition from value-led rivals and higher operating costs.

What is Coca-Cola's plan for Costa Coffee?

Coca-Cola is reportedly looking to sell Costa Coffee for approximately £2 billion, a figure significantly lower than its original purchase price.

Who are Costa Coffee's main competitors?

Key competitors include Greggs, Pret, and newer brands like Blank Street and Black Sheep Coffee, which appeal to younger consumers.

Home / Business and Economy / Costa Coffee Losses Double Amidst Fierce Competition

Costa Coffee Losses Double Amidst Fierce Competition

1 Jan

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Summary

Operating loss more than doubled to £13.5m in the year to December 2024.
Sales saw a marginal increase of 1 per cent, reaching £1.2bn.
Coca-Cola seeks to sell the chain for £2bn, significantly less than its purchase price.

Costa Coffee Losses Double Amidst Fierce Competition

Costa Coffee has experienced a significant financial downturn, with its operating loss more than doubling to £13.5 million in the year ending December 2024. This sharp increase in losses is attributed to intense competition from budget-friendly alternatives and a general slowdown in customer footfall.

Despite the challenging environment, Costa Coffee reported a modest sales increase of 1 per cent, bringing its total revenue to £1.2 billion over the same period. The company, founded in London in 1971 and now operating 2,700 cafes across the UK and Ireland, faces pressure from competitors like Greggs and Pret, as well as newer brands catering to evolving consumer tastes.

Owner Coca-Cola is reportedly exploring a sale of Costa Coffee, with initial expectations of around £2 billion. However, negotiations with potential buyers, including TDR Capital, are said to be stalled over pricing, reflecting the difficulties the coffee chain has faced in meeting expectations since its £3.9 billion acquisition in 2018.