Greggs has overtaken Costa Coffee to become the largest branded coffee chain operator in the UK by store count, according to data from the Allegra World Coffee Portal’s Project Cafe UK 2026 report cited by the Retail Gazette. The bakery chain added 34 shops to British high streets and shopping centers in the first half of the year to reach a total of 2,737 outlets, moving ahead of Costa’s 2,707 locations for the first time.
Shifting Consumer Tastes Drive Budget Coffee Growth
The rise of Greggs to the top of the UK coffee market underscores a broader consumer shift toward value offerings. According to Greggs’ annual financial report, the company ranked No.1 for value on YouGov’s Brand Index among quick-stop and coffee shop services. CEO commentary highlighted that the chain has grown its market share across categories including coffee, breakfast, vegan-friendly options, and iced drinks by pairing lower-priced beverages with traditional to-go food offerings like sausage rolls and pasties.
Costa losing the top spot to a budget-focused competitor highlights intensifying competition and consumer trade-down behavior. While the wider UK coffee shop economy grew to £6.8bn in 2025—an increase of more than 5 percent year-on-year—over 12,300 branded coffee outlets now operate across the country, marking a 3.5 percent increase from the prior year.
Did you know? A separate study found that Costa’s brew had the highest caffeine content when compared to rivals, with Greggs coming in second place.
Costa Coffee Faces Strategic Retrenchment and Financial Pressures
While Greggs plans to expand its footprint with more than 100 new shops scheduled to open across 2026 and a long-term target of 3,500 outlets, rival Costa Coffee is taking a different approach. Costa reported losses of more than £13m for 2024 and is planning a range refresh and store refurbishments rather than expansion.
An intended sale of the Costa brand by parent company Coca-Cola previously fell through after bids and interest were reportedly significantly lower than expected. Furthermore, the wider industry faces mounting pressure from commodity costs, with the price of coffee beans imported to the UK expected to increase further due to climate events such as El Nino.
Frequently Asked Questions
Who is the largest coffee chain in the UK now?
Greggs is now the largest branded coffee operator in the UK by store count, surpassing Costa Coffee with 2,737 outlets.
How many stores does Greggs operate?
Greggs operates 2,737 outlets across British high streets and shopping centers, with plans to expand further toward a long-term target of 3,500 stores.
Why did Costa Coffee lose the top spot?
Costa lost the top spot due to a combination of Greggs’ active store expansion, consumer shifts toward lower-priced value options, and Costa focusing on range refreshes rather than expansion following reported losses of over £13m for 2024.
What are your thoughts on the shifting UK coffee landscape? Do you prefer budget-friendly options like Greggs or traditional coffee-and-cake chains? Share your views in the comments below.
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