Starbucks Coffee Company has acquired franchisee 23.5 Degrees in a move which will significantly expand its company-owned footprint in the UK.
The acquisition, the financial details of which have not been disclosed, brings on board the largest Starbucks-licensed business partner in the market, encompassing around 113 stores and 1,650 employees. This increases the total number of Starbucks company-operated locations in the UK to almost 500.
It means that around 40% of Starbucks portfolio in the UK is now company operated with 1,156 stores in operation as of the start of the year.
23.5 Degrees was Starbucks’ first UK franchised business partner, opening its original store in February 2013. It has expanded its estate over the last decade with a focus on drive-thru stores, which represent more than 70 of its existing locations.
Drive-thru is a model the coffee giant is investing in alongside delivery services and digital channels, such as mobile order and pay systems, contributing to a 21.9% growth in revenue over the past year.
“I want to acknowledge the important contributions of 23.5 Degrees and the dedicated green apron partners,” said Alex Rayner, general manager, UK, Switzerland and Austria, for Starbucks. “This strategic move will enable us to enhance our investment in new locations, elevate our in-store experience, and drive innovation for our UK customers.”
Starbucks is on a rapid growth trajectory with plans to expand its UK shop estate by 100 new locations in its 2024 financial year. According to British Baker’s Bakery Market Report, the business added 90 stores to its estate during 2023 meaning it had the second largest net store gain for out of home bakery operators that year, beaten only by Greggs which added 145 sites to its portfolio.
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