Starbucks To Open 100 New Sites In The UK

Namnews, 6th March 2023

Starbucks has revealed that it plans to open 100 new stores in the UK over the next year as part of a Europe-wide investment programme.

The US coffee chain, which currently has 1,066 sites in the country, also said it was aiming to complete a refurbishment of its store estate over the next three years as part of the £30m investment.

Starbucks revealed the investment programme while reporting that its sales had recovered to pre-pandemic levels during its financial year to 22 October 2022. The company said total revenues were up 37% year-on-year to £449.3m, although operating profits slipped by almost a third to £12.6m due to higher staff pay and other inflationary pressures.

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.”

The plans include 300 new stores across the EMEA region.

NAM Implications:

• This planned 10% increase in estate size appears to indicate that Starbucks have rebounded from Lockdown fallout.
• The key is the extent to which foodservice suppliers can invest to access their fair share of sales…
• …when rivals are eager/desperate for any growth…
• …given the state of the hospitality sector.