High street coffee giant Starbucks has reported a profit of £1.1m in the year to September 2014 in its first profit recorded in Britain.
This compared to a £20m loss in the previous year. The coffee chain said its growth was due to the closure of stores with expensive rent and moving to cheaper locations.
Mark Fox, Starbucks UK managing director, said: “The company’s strong performance is the result of a turnaround strategy that has focused on engaging with our employers, giving customers more, growing the business and improving our model by rebalancing the store portfolio and carefully managing costs.”
Since a three-year plan announced in 2011, Starbucks has closed 67 unprofitable stores and opened 121 new stores in more profitable locations, bringing its UK total to 791.
Drive-thru stores have also been introduced, but have resulted in mixed success.
Starbucks this week announced the opening of its 100th franchise store in the UK. It will be on London’s Mile End Road.