Popular coffee chain faces backlash over charging customers a 'sickness tax' as it hikes prices at hospital branches

Costa Coffee is facing backlash for charging more for drinks at hospital stores compared to those on the high street. UK branches located in hospitals are reportedly charging up to 20p more for dozens of hot and cold beverages. The price hike, which has been branded a 'sickness tax' by critics, is said to see multiple beverages cost five per cent more compared to prices at high street stores.

Research conducted by The Sun found that a small latte or cappuccino costs £3.60 in Newcastle's Northumberland Street but £3.80 at nearby hospital, Medivest's Royal Victoria Infirmary. It wasn't the only place charging different amounts for drinks purchased in a hospital, with the news outlet finding examples from across the country, including in Sheffield, London, and Chichester.

The price differences have sparked outrage, with independent consumer champion, Martyn James, saying: 'It is reprehensible that companies do this while people experience some of the most distressing times in their lives.'. Elsewhere, Dennis Reed from an over 60's campaign group, Silver Voices, said: 'Costa Coffee should be ashamed of itself for putting a tax on illness and injury'.

A Costa Coffee spokesperson told MailOnline: 'We collaborate with various partners across the UK to offer Costa Coffee in different settings, including hospitals. Costa Coffee is facing backlash for charging more for drinks at hospital cafes compared to stores on the high street (pictured: Costa coffee in Birmingham's Queen Elizabeth Hospital).

'Each partner establishes their own pricing, which can result in some Costa Coffee items being priced differently due to the operating costs of those locations. 'We regularly assess pricing with our partners to ensure it remains competitive within the relevant retail environment, while maintaining a focus on quality and value.'.

It comes after Pret A Manger scrapped plans to double the cost of their £5 monthly subscription for up to five coffees a day - and fans could not be happier. The sandwich chain wrote to subscribers to tell them the Club Pret monthly subscription fee will remain at £5.

The announcement said: 'At Pret, we believe in offering high-quality, organic coffee and barista-made drinks at fantastic value. 'With Club Pret, you'll continue to enjoy great savings on up to five barista-made drinks per day. The popular coffee chain was found to surge prices by five per cent on certain items (stock image).

Pret had previously told subscribers that their subscription would increase to £10 a month from March 31, when a 50 per cent off deal ended. It followed Pret overhauling its £360-a-year subscription in July last year in favour of 50 per cent off up to five coffees a day for £10 a month.

One X user tagged the coffee shop and said: 'Congratulations for keeping your membership fee at £5, whilst [I am] unhappy at the original changes, this goes a little way to mending that bridge!'. The chain also removed a 20 per cent discount on food for subscribers to end dual pricing - 'something we never really got comfortable with', the chain said at the time.

Under the old deal which lasted for almost four years, Club Pret membership offered up to five barista-made drinks daily for a monthly fee of £30. Launched at the height of the pandemic in September 2020, the deal aimed to entice customers working from their homes back out and into the store.

In March last year, the chain implemented a crackdown to prevent Club Pret subscribers from sharing free drinks with others. Some customers were exploiting loopholes by sharing subscription benefits, prompting the changes. It comes after Pret A Manger scrapped plans to double the cost of their £5 monthly subscription for up to five coffees a day - and fans could not be happier (stock photo).

The announcement followed coffee bean prices reaching an all-time high of $4,300 (£3,356) a tonne last week. Poor harvests in the major production areas of Brazil and Vietnam, geopolitical conflict, and supply chain disruption, have meant prices continued to soar to record heights.

There are also concerns about low stocks in Brazil, which supplies almost half of the world's Arabica, the beans favoured by coffee shop chains. As of April 2024, there were 498 Pret stores in the UK, with 291 in London. The chain has also entered Africa with a new store opening in Johannesburg.