Costa Coffee, once a dominant force on the UK high street, is facing a generational shift in taste that threatens its place in a rapidly evolving coffee culture. While younger consumers chase health-conscious and visually appealing drinks like iced strawberry matcha, Costa has lagged behind, missing out on trends that are driving the success of newer chains like Blank Street Coffee.
Blank Street, which started as a coffee cart in Brooklyn in 2020, has expanded rapidly—now boasting around 35 London stores and others in cities like Manchester and Edinburgh. Its rise is closely linked to TikTok, where its pastel-coloured matcha drinks and free tattoo pop-ups generate viral appeal. For many young consumers, going out for a trendy matcha isn’t just about the taste—it’s an experience. Australian tourists Bree Taylor and Rebecca Trow said visiting Blank Street in London was a priority on their trip, thanks to its online buzz.
This enthusiasm hasn’t translated to legacy brands like Costa. Despite daily home coffee habits, many young adults no longer see Costa as a “treat” destination. The chain’s sugary frappés and fruit coolers don’t match the “clean” aesthetic associated with matcha, which is often viewed as a healthier, lower-caffeine alternative to coffee. In contrast, competitors like Starbucks, Pret, and Nero have already incorporated matcha options into their menus.
The issue isn’t just about drinks. Gen Z and younger millennials now gravitate toward smaller, independent cafes or unique chains that reflect their values—health, sustainability, and individuality. Analysts say this shift, combined with the rise of home coffee machines and rising costs, puts pressure on large chains to reinvent themselves.
Costa, owned by Coca-Cola since 2019, was acquired for £4.9bn but is now reportedly valued at less than half that. The brand recently posted a £14m operating loss despite generating £1.2bn in revenue. Coca-Cola is now exploring a potential sale of the chain.
While Costa still has loyal customers who value convenience, like Rafik Khezmadji who enjoys relaxing outside his local branch, many younger consumers are opting for brands that deliver more than just a caffeine fix—they want style, health benefits, and shareable moments.
Retail experts warn that brands that fail to adapt to shifting consumer behaviours risk becoming irrelevant. For Costa, the challenge is clear: catch up with the matcha generation or continue losing ground to more agile rivals.
