Starbucks explores sale of UK division

-

rpbi-openings.co.uk, 17 July 2022

Starbucks is exploring a potential sale of its UK operations as it faces rising costs and competition from newer operators, The Sunday Times has reported.

It is understood that the world’s largest coffee chain has asked its adviser, Houlihan Lokey, to canvass interest for its UK business, which oversees more than 1,000 coffee shops and employs 4,000 people. Of these, about 300 stores are operated by Starbucks, with the remainder owned and run by franchisees who pay royalties to the parent company.

Its UK arm, Starbucks Coffee Company UK, reported sales of £328 million for the year to October 2021, an increase of 35 per cent on the previous year when stores were forced to close due to Covid. Pre-tax profits were £13.3 million, compared with a loss of £40.9 million in 2020. The company attracted criticism for paying just £5.4 million in corporation tax, despite making gross profit of £95 million. Administrative expenses of £78 million resulted in lower pre-tax profits.

Popular posts from this blog

Savory, sweet, or something else? British snack preferences

-
Image
As  more Britons incorporate snacks into their daily routines , understanding their preferences could be essential for brands looking to capture a share of the market. From fruits and vegetables to indulgent confectionary and savoury treats, the snacking landscape in the UK is diverse. When it comes to daily snacking frequency, fruits and vegetables lead the way. Research shows that 57% of Britons snack on fruits daily, while 41% eat vegetables just as often. These healthy options are staples in the British diet; however, indulgence also has its place in the snacking routine.  Confectionary items are a popular choice, with 45% of Britons indulging weekly. Similarly, crisps (41%) and savoury biscuits (32%) are go-to snacks for many, highlighting the nation’s love for salty and crunchy treats.  Yogurt is another favoured option, with 24% of Britons enjoying it daily and 30% weekly. Despite being promoted as nutritious options, only a small percentage of respondents consume ...
Read more

Inside Lidl’s strategy for in-store bakery (and how suppliers can help)

-
Image
Lidl is making a major play for in-store bakery and it’s not afraid to shout about it. The discounter – which is currently the sixth largest grocer in the UK by market share [Statista] – recently overtook Tesco to secure the biggest slice of in-store bakery (ISB). Data from Kantar showed that Lidl, which was crowned  Bakery Retailer of the Year  at the 2023 Baking Industry Awards, had pipped the UK’s largest supermarket  with 18.2% of the ISB market compared to Tesco’s 18%. Speaking at the British Society of Baking conference earlier this year, Holly Bleach, head of buying at Lidl, described bakery as “critical” to Lidl as it’s one of the categories that drives overall customer satisfaction. “We’re set up to be really successful in bakery in the UK due to the prominence of our bakeries in store. More often than not, they’re right by the front door so every customer that walks in has to pass the bakery and not many can resist stopping and obviously picking up an item,” she...
Read more