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Customers’ fury as coffee giant Costa hikes prices of all drinks to cover increase in staff wages

The UK's biggest coffee chain previously claimed the move to pay staff the national live wage would not affect the cost of drinks

COFFEE giant Costa has been slammed after slapping customers with a 20p price hike on all drinks - after promising to raise staff wages but NOT prices.

To much fanfare, the UK’s biggest coffee chain announced it was set to lift employee pay above the minimum hourly rate without pushing up the cost of its lattes and cappuccinos.

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Costa Coffee has hiked the price of its in-store drinks by 20pCredit: Getty Images

But now The Sun can reveal the Whitbread-owned business has added 20p to the cost of favourites such as Americanos and flat whites bought in its 2,000-plus cafes.

And drinks purchased using Costa Express machines - there are more than 6,000 found on forecourts, train stations and corner shops - have risen by 10p.

The move has prompted outraged customers to take to social media to question whether they had been overcharged.

The cost increases are to cover an increase in staff pay to meet the national living wage

Alan McCluskie tweeted the firm: “Why has the price for a cappuccino at the Costa next to Swindon station gone up yet again? It’s time to go elsewhere.”

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The company replied: “This price increase aligns us in price with our nearest competitors, while remaining cheaper on a number of core drinks.”

On Facebook, Rob Thewlis added: “Another Costa price rise. £2.35 for a small latte!

“I think it’s time to find somewhere else to have a morning coffee.

“Such a shame cos the staff at my local Costa are lovely.”

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The firm announced in September 2015 it would pay its baristas more than the Government’s new £7.20 “national living wage” that came into force in April 2016.

At the time, Costa boss Chris Rogers said that the firm’s prices would not automatically rise in tandem with the chain’s new wage policy.

But last night the firm confirmed it had now hiked prices due to increased costs.

In 2015, the company's boss Chris Rogers claimed that the wage increase would not affect the price of drinksCredit: Splash News
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A spokeswoman said: “We have made a small increase on our prices to help us further invest heavily in our store refurbishments, barista training and new products.

“We remain highly competitive, with our large cappuccino retailing at up to 30p cheaper than our nearest competitor.”

Drinks in the Costa Express machines have also been hit by a 10p increaseCredit: Alamy

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While in a separate statement the firm added: “We can confirm that we increased the prices of beverages served via our Costa Express machines by 10p late last year.

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