Brewing Up Expansion

Brewing Up Expansion

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  • Starbucks (SBUX) is giving the UK coffee market a £30 million ($36.1 million) caffeine boost, investing in new and renovated stores despite profit dips due to the increasing cost of coffee beans and labor. Rather than selling its owner-operated UK coffee shops, Starbucks has decided to perk up the market by opening 100 outlets in the country this year, after a plan to switch to a fully franchised business model caused an uproar among existing franchise partners.
  • Starbucks Europe, Middle East, and Africa is also stepping up their coffee game – with plans to open 300 new stores, plus smaller stores and drive-throughs, according to Starbucks EMEA President Duncan Moir. 

Why it matters

Nearly one-third of the company's UK stores are drive-throughs, while those in offices, at travel hubs, and in busy cities have been slower to bounce back, as the flexible work trend has kept people away from the workplace for some days. Starbucks is showing its faith in the UK by ramping up expansion – with 1,066 stores, 70% of which are franchised, it's the company's fifth-largest market.


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