Greggs overtakes Costa Coffee as UK’s largest coffee chain

Greggs has become the largest branded coffee chain in the United Kingdom, overtaking Costa Coffee in total outlet numbers. According to the Allegra World Coffee Portal’s Project Cafe UK 2026 report, Greggs reached a total of 2,737 stores following the opening of 34 new locations in the first half of the year. This surpasses Costa Coffee, which currently operates 2,707 outlets.

While Greggs is traditionally recognized for its bakery items like sausage rolls, the company has successfully expanded its market share in coffee, breakfast, vegan options, and iced drinks. The shift is attributed to consumer demand for value-driven, lower-priced coffee options compared to traditional coffee-and-cake chains.

The UK coffee shop economy grew to £6.8 billion in 2025, a year-on-year increase of over 5 percent. Despite the growing market, competition is intensifying, with branded coffee outlets in the country exceeding 12,300. Greggs plans to continue its expansion with over 100 new store openings scheduled for 2026, aiming for a long-term target of 3,500 outlets, including smaller ‘Bitesize’ formats.