Coffee chain Costa Coffee has announced a 5% pay rise for 14,500 staff working at its company-owned stores in the UK.
The coffee chain is also recruiting 2,000 more people due to rising demand following the ease of Covid restrictions.
Costa said the pay rise was to thank staff for their hard work during the pandemic.
This follows redundancies last year when the coffee chain was forced to cut costs.
In September 2020, Costa put up to 1,650 jobs at risk after demand failed to rebound following the first coronavirus lockdown. In the end it made 609 people redundant.
The coffee chain said it now needs more staff to support new stores and rising demand as it prepares for the typically-busy festive period.
On average, store team members will take home £500-£900 more per year once the wage increase comes into effect from 1 October.
Costa owns 1,500 stores in the UK, while another 1,200 stores are franchise-owned.
The pay rise does not include workers at franchise-owned stores.
“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,” said Neil Lake, managing director of Costa Coffee UK & Ireland.
“Our teams have been through the most challenging year and a half in living memory and have shown incredible passion, resilience, and commitment as they continue to serve perfectly crafted cups of Costa coffee to consumers across the country.”
Costa said all store team members would receive a pay increase of at least 45p per hour, meaning minimum pay for the role will rise from £8.91 to £9.36 per hour.
Staff at the rank of “Barista Maestro”, who oversee how the coffee is made and manage branches, will receive a pay rise of 65p per hour, bringing their minimum pay up from £9.64 to £10.29 per hour.
While top rates of pay vary according to location and experience, Costa said the top rate for store staff would go up from £10.64 to £11.29 per hour.