Costa Coffee lifts wages by 5 per cent amid staff shortages – CityAM : CityAM

Costa Coffee has boosted pay by 5 per cent and announced 2000 job vacancies as staff shortages hit the hospitality sector.

From October 01, the company’s 14,500-strong staff will be given a pay uplift as the company prepares for a busy festive season. Fully trained baristas will see their pay go up by 64p per hour, brining minimum pay to £10.29 per hour, while the worst paid staff will see an hourly wage uplift of 45p.

Commenting on the news, Neil Lake, Managing Director Costa Coffee UK & Ireland, said that the pay rise was in recognition of the “passion, resilience, and commitment” shown by workers as they continue to serve customers “through the most challenging year and a half in living memory.”

“Our team members are the heart of our business and as we continue to emerge stronger from the pandemic, this 5% pay increase is one way we are able to show our thanks to them,” Lake said.

The news comes as the UK economy is buffeted by staff shortages.The trade body UKHospitality estimates that 210,000 staff are missing from the sector, approximately 10 per cent of the workforce, pushing rival businesses to compete for employees with higher wages and benefits.

The successive lockdowns of 2020 have prompted many workers facing job insecurity to retrain in non customer facing roles.

Starbucks raised the pay of US employees hired before July 2021 by 5 per cent in an effort to hang onto staff and increased minimum wage for new joiners. McDonalds US raised staff pay by 10 per cent amid a labour crunch.

Read more: Costain swings to £96m loss in ‘exceptionally challenging’ year during pandemic