Starbucks plans to open 100 new UK sites in Europe expansion
The company reveals an investment in its UK operations in a move that will be seen as a firm commitment to its largest European market.
Starbucks has announced plans to open 100 new stores in the UK over the next 12 months as part of a Europe-wide investment programme.
The US coffee chain, which already has just over 1,000 sites in the country, said it was also aiming to complete a refurbishment of its store estate over the next three years as part of the £30m investment.
The new stores were expected to build on success in Drive Thru and digital channels.
The company's announcement will be seen as a firm commitment to its UK business, its largest within Europe and which is dominated by franchisees, after it considered a sale last year.
It revealed the investment while reporting that sales had recovered to pre-pandemic levels during its financial year to 22 October.
Starbucks said total revenues were 37% up on the same period a year ago at £449.3m - though operating profits slipped by almost a third to £12.6m.
It explained that staff pay increases and other inflationary pressures were largely responsible and left profit before tax at £10.4m compared to £13.3m 12 months previously.
It paid £4.6m in corporation tax, down from £5.4m.
Duncan Moir, president of Starbucks Europe, Middle East and Africa (EMEA), said: "Innovation remains key to Starbucks ability to meet our customers' changing needs and we're investing in our digital channels and developing new store formats such as digitally forward smaller stores and Drive Thrus.
"Whilst we are cautious about the macro-economic environment, we will continue to invest to grow the region this year."
Its plans included 300 new stores across the EMEA region "to continue this growth momentum", he added.
Starbucks has a total of 1,066 stores in the UK, of which 318 are company-owned and 748 run by licensees.
The US coffee chain, which already has just over 1,000 sites in the country, said it was also aiming to complete a refurbishment of its store estate over the next three years as part of the £30m investment.
The new stores were expected to build on success in Drive Thru and digital channels.
The company's announcement will be seen as a firm commitment to its UK business, its largest within Europe and which is dominated by franchisees, after it considered a sale last year.
It revealed the investment while reporting that sales had recovered to pre-pandemic levels during its financial year to 22 October.
Starbucks said total revenues were 37% up on the same period a year ago at £449.3m - though operating profits slipped by almost a third to £12.6m.
It explained that staff pay increases and other inflationary pressures were largely responsible and left profit before tax at £10.4m compared to £13.3m 12 months previously.
It paid £4.6m in corporation tax, down from £5.4m.
Duncan Moir, president of Starbucks Europe, Middle East and Africa (EMEA), said: "Innovation remains key to Starbucks ability to meet our customers' changing needs and we're investing in our digital channels and developing new store formats such as digitally forward smaller stores and Drive Thrus.
"Whilst we are cautious about the macro-economic environment, we will continue to invest to grow the region this year."
Its plans included 300 new stores across the EMEA region "to continue this growth momentum", he added.
Starbucks has a total of 1,066 stores in the UK, of which 318 are company-owned and 748 run by licensees.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
