Costa Coffee is raising barista pay for the seventh time since 2021. Here’s why

£7m ($9.4m) extra labour costs are part of a bigger picture for the UK’s largest coffee-focused operator

Costa Coffee has drawn praise from the UK government after announcing its seventh staff pay rise since 2021.

The above-average increase will be welcome news for thousands of store staff. But as labour costs have become a central challenge for UK hospitality businesses, Costa Coffee is going against the grain in a market where many operators are turning to automation to stay competitive.