Costa Coffee’s operating losses more than doubled to £13.5 million in 2024, according to new filings at Companies House. The figure is a significant increase from the £5.8 million loss recorded the previous year and marks a stark contrast to the chain’s pre-pandemic performance, when it regularly posted annual profits of up to £100 million.
The deteriorating finances come amid intense competition from cheaper rivals and independent coffee shops. Analyst Clive Black of Shore Capital suggested the UK market may have reached “peak Costa”, leaving the chain particularly vulnerable to competitive pressures. He noted that a “whole plethora of independent, often artisanal players offering a better experience, a better ambience, a better story” have eroded Costa’s market position.
Costa attributed the losses to lower high street footfall, rising coffee bean costs, and broader inflationary pressures. The average price of a cup of coffee has risen by about 80p since 2022 to over £4, and in many locations it can exceed £5. In response, Costa ran a limited-time £1 deal with Co-op last autumn.
Parent company Coca-Cola, which acquired Costa for nearly £4 billion in 2019, has been seeking to sell the brand. Analysts expect a sale to fetch less than £2 billion, with preferred bidder TDR Capital expressing concerns over the price. Costa’s statement highlighted like-for-like revenue growth and global expansion, adding that the results are reported as part of Coca-Cola’s wider beverage strategy.
