Costa Coffee is to give a 5% pay rise to all 14,500 of its staff working in company-owned stores in the UK.
The chain is also looking to hire more than 2,000 new team members as it anticipates a busy festive period, with more store openings and greater consumer demand.
Costa said the pay rise was in recognition of the hard work its staff put in during the pandemic.
In September last year the group warned that around 1,650 roles were at risk of redundancy after trade failed to bounce back to pre-pandemic levels when lockdown restrictions were eased.
From 1 October all staff in company-owned stores will see wages rise at least 45p per hour, bringing the minimum pay from £8.81 to £9.36 per hour.
Fully trained baristas will see their pay increase 65p per hour, rising from £9.64 to £10.29 per hour. Top rates of pay for store team members will also rise, depending on location and experience, from £10.64 to £11.29 per hour.
Neil Lake, managing director Costa Coffee UK & Ireland, said: "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.
"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 runs around 1,600 company-owned stores, while more than 1,100 are franchise-owned. The pay rise will not impact staff at franchise-owned stores.
The Caterer has contacted Costa to confirm many staff were made redundant last year.