Costa Coffee accelerates Welsh expansion with £1.5m investment
February 20 - 2026
Coffee Geography Magazine
Costa Coffee has begun a major Welsh expansion, opening the first of four new stores planned for 2026 at Sainsbury's Newport Superstore. The £1.5 million investment will create more than 40 jobs across South, Mid and North Wales, strengthening the brand's presence to 110 locations in the region.
The Newport store features 60 indoor seats and offers freshly baked pastries alongside handcrafted drinks. Further openings include drive-thru locations at Wrexham's Border Retail Park and Buttington Cross in Welshpool, plus another Sainsbury's store in Rhyl this summer.
The expansion reflects Costa's journey from humble beginnings to UK market leader. Italian brothers Bruno and Sergio Costa founded the company in London in 1971 after conducting 112 taste tests to perfect their signature Mocha Italia blend. They opened their first shop in 1978, and by 2010 Costa had surpassed Starbucks to become Britain's largest coffee chain.
Whitbread acquired the brand for £19 million in 1995, accelerating growth dramatically. In 2018, Coca-Cola purchased Costa for $5.1 billion (£3.9 billion), seeking to enter the hot drinks market. However, the partnership has faced challenges—Coca-Cola explored selling Costa in 2025 at around half the acquisition price, though the process was reportedly paused in January 2026 after insufficient buyer interest.
Despite corporate uncertainty, the Welsh rollout demonstrates continued confidence in Costa's physical footprint. The drive-thru openings respond to changing consumer habits, offering convenient options for commuters and families. Notably, the Welshpool location will sit opposite a Starbucks at the same retail development.
Matthew Cyprus, regional operations director, said: "Wales remains a key growth region for Costa Coffee. These new stores will provide greater choice and convenience while creating valuable local job opportunities."
The expansion builds on recent investment across existing Welsh stores, including a full refurbishment at Pwllheli in January as part of a £1 million improvement program. The Rhyl location is expected to open in summer 2026.