Starbucks plans 100 new store openings in the UK

Date:

Starbucks Corp (NASDAQ:SBUX) announced it plans to open 100 new sites across Britain this year as part of a new strategy to bolster its control of the European market.

The expansion will complement a £30mln project that aims to provide current stores with refurbishments increasing the digital technology used.

The coffee company cited that its biggest foothold in Europe is the UK, which is largely dominated by franchisees, and that it was the reason for further investment.

Of the current 1066 stores in Britain, 70% are licensed out whilst the remaining 318 are run by the company.

It is unconfirmed whether the new stores will be franchises or not.

The new shops are believed to reinforce the US company’s recent success from using digital sources such as virtual cashiers and drive-thrus.

“Innovation remains key to Starbucks’ ability to meet our customers’ changing needs,” said Duncan Moir, president of Starbucks Europe.

“We’re developing new store formats such as digitally forward smaller stores,” he added. “Whilst we are cautious about the macro-economic environment, we will continue to invest to grow the region this year.”

Today’s update follows news last week that chief executive officer Howard Schultz could be set to appear in front of the US senate for alleged union-busting.

Starbucks shares began trading at US$104.51 this morning and are up 0.9% since.

Share post:

Popular

More like this
Related