Starbucks will open 100 new cafes in the United Kingdom this year, according to the world’s largest coffee chain. The company plans to open an additional 300 stores in Europe, the Middle East, and Africa and is investing an additional £30 million in the improvement of existing locations. Following the pandemic in 2022, Starbucks experienced an increase in sales, which led to the expansion.
The hospitality industry has struggled with higher inflation, energy costs, wage demands, and HGV driver shortages. In response, Pret A Manger recently announced a third salary increase for its employees in the past year. Starbucks has also adapted; as customers’ preferences have shifted as a result of the pandemic, the company plans to increase the number of drive-through locations and invest in digital capabilities for its stores.
London is an exception to the rule that foot traffic in city centre and train station cafes has not returned to pre-pandemic levels. Last year, the company continued to feel the effects of global restrictions and reportedly considered selling its UK operations. Nonetheless, it denied initiating a formal sales process.
Starbucks continues to invest in its United Kingdom business despite difficult economic conditions. The company has 1,066 locations in the United Kingdom, of which approximately 70% are franchises and the remainder are company-owned. Duncan Moir, president of Starbucks in the United Kingdom, Europe, and the Middle East, stated, “We remain cautious about the economic climate, but we are confident that our continued investment in store experience and digital capabilities will enable us to continue to meet customer demands.”
Starbucks plans to open 100 new cafes in the United Kingdom and 300 additional stores in Europe, the Middle East, and Africa despite the challenging economic climate. The company is investing an additional £30 million in the modernization of existing sites, the expansion of drive-through locations, and the development of digital capabilities. With inflation near a 40-year high and rising energy costs, hospitality companies are increasing wages to combat a labour shortage. Despite this, the company is confident that its investment will assist in satisfying customer requirements.
