Costa Coffee Sales Rise 7.1% in UK This Autumn

In the UK, a major tax row involving Starbucks has dominated headlines—but while protesters targeted the American chain, its biggest UK rival quietly posted strong sales growth. For coffee drinkers keeping score, the real story isn’t just who’s avoiding taxes, but which coffee chain is actually growing its business on British high streets.

Over the past three months, Costa Coffee reported a 7.1% year-on-year rise in UK sales. Earlier in the year, the brand achieved a 6.8% increase. These figures come as Starbucks faces criticism for paying just £8.6 million in UK corporation tax over 14 years, despite comparable revenue.

Costa Outpaces Rivals Amid Tax Protests

Last weekend, the activist group UK Uncut organized demonstrations outside 40 Starbucks locations in the UK, protesting the company’s tax practices. Meanwhile, Costa Coffee—seen as Starbucks’ main UK competitor—continued to post solid results. Whitbread CEO Andy Harrison remarked, “There was a time when we were the most popular coffee shop in the UK. Now, we’re the taxman’s favourite coffee shop.”

What the Numbers Show

According to Reuters, Starbucks UK paid only £8.6 million (approximately ¥86.33 million) in taxes over its 14 years operating in the country, despite generating revenues similar to Costa’s. In contrast, Costa paid £15 million (approximately ¥15.07 million) in the same period. Over the past three months, Costa’s UK sales rose 7.1% year-on-year, following a 6.8% increase earlier in 2023. Whitbread also revealed that last week, Costa Coffee stores in the UK served 3.8 million customers and achieved £10 million in sales—the highest weekly figures on record.

What Drives Costa’s Growth?

While Andy Harrison stated that Costa’s performance should not be attributed solely to the debate around Starbucks’ tax contributions, the timing of the sales boost is notable. The chain’s ability to maintain customer traffic—reaching 3.8 million visits in a single week—and drive £10 million in weekly revenue underscores its strong market position. This comes as protests against Starbucks highlight growing consumer awareness of corporate tax practices, potentially influencing brand loyalty among UK coffee drinkers.

Frequently Asked Questions

How much did Costa Coffee’s sales rise in the UK this autumn?

Costa Coffee’s UK sales rose 7.1% year-on-year over the past three months. Earlier in 2023, the brand recorded a 6.8% sales increase.

Why are protesters targeting Starbucks in the UK?

Protesters, organized by UK Uncut, targeted 40 Starbucks locations to protest the company’s UK tax practices, which have seen it pay only £8.6 million in corporation tax over 14 years despite significant revenues.

How does Costa’s tax contribution compare to Starbucks’?

Starbucks paid approximately £8.6 million in UK taxes over 14 years, while Costa Coffee paid around £15 million in the same period, despite having similar revenue levels.

What were Costa’s recent weekly sales and customer numbers?

Last week, Costa Coffee served 3.8 million customers in the UK and achieved £10 million in sales, marking its highest weekly figures on record.

Did Costa’s growth come from the Starbucks tax controversy?

Whitbread CEO Andy Harrison stated that Costa’s performance should not be attributed solely to the Starbucks tax issue, though the timing of the sales increase is notable.

Recommended FrontStreet Beans for Café Blends

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