Costa’s coffee shops return to profit with iced drinks and matcha on the menu
Costa Coffee has returned to profitability in the UK, reporting a £20m operating profit for 2025 after previous losses. The turnaround is attributed to menu diversification, including iced drinks and matcha, alongside a strategic expansion of high street outlets.
Why it matters
This reflects shifting consumer preferences in the coffee industry, where younger demographics are increasingly seeking non-caffeinated and alternative beverage options.
‘People not only want caffeine but iced herbal teas and those drinks that people will drink in the afternoon and evening,’ says CEO. Photograph: Alex Tai/SOPA Images/Shutterstock ‘People not only want caffeine but iced herbal teas and those drinks that people will drink in the afternoon and evening,’ says CEO. Photograph: Alex Tai/SOPA Images/Shutterstock Retail industry Costa’s coffee shops return to profit with iced drinks and matcha on the menu Costa Limited reports operating profit of £20m in year to 31 December 2025 after losses of £13.5m in 2024
Prefer the Guardian on Google Costa’s main coffee shop arm has returned to the black after revamping its high street outlets and broadening its menu with iced drinks, matcha and fresher pastries.
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