Starbucks has announced a notable 22% year-over-year sales growth in the UK for the 12 months ending on 1 October 2023, amounting to £547.7 million ($693 million).
The company also experienced a 15% increase in gross profit, reaching £149 million ($188.5 million).
This growth is credited to a significant rise in loyalty membership in the UK, now totaling 1.2 million members, as well as an increase in cold beverage sales.
The UK continues to be Starbucks’ leading market in Europe, the Middle East, and Africa (EMEA region), with the coffee chain recording a 31% sales growth in 2023, amounting to $425.4 million.
This expansion was fueled by new store launches, resulting in a 37% increase in EMEA gross profit to $321.7 million and a remarkable 72% surge in operating profit to $125.5 million.
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Starbucks successfully met its goal set in March 2023 to inaugurate 100 new stores in the UK within the upcoming fiscal year.
After substantial investment in its drive-through infrastructure, the company concluded the period with 1,168 stores in the UK and has subsequently grown to 1,260 outlets across the country.
Starbucks has revealed intentions to launch an additional 100 stores, prioritizing drive-through facilities and prime city center locations with high foot traffic. Presently, the company manages 340 drive-through sites in the UK.
Starbucks named Darren King as director of retail development in the United Kingdom in March 2024. King, a commercial and real estate specialist, will be in charge of the acquisition, design, and construction divisions as part of the company’s ongoing expansion.
Starbucks’ expansion in the EMEA region is anticipated to be spearheaded by the brand’s licensing partners, Alshaya Group and Alsea.
In October 2023, John Hadden, the CEO of Alshaya Group, revealed plans to launch 250 net new Starbucks stores each year, aiming for a total of 3,000 outlets by 2028, up from the existing 2,000. The Alshaya Group manages stores across several Middle Eastern countries.
Based in Mexico City, Alsea manages 576 Starbucks outlets across various European countries.
In March 2024, Alsea earmarked 25% of a proposed €329 million ($356 million) investment to enhance its footprint of Starbucks outlets in Europe.
The President of Starbucks Europe, Middle East, and Africa (EMEA), Duncan Moir, said, “We are happy to have opened over 100 new stores in the UK this year, fulfilling our new store opening commitments.”
“Despite navigating through challenging market conditions, we are enthusiastic about collaborating with our partners to further expand our presence in the region.”
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