Starbucks is to open a further 100 stores in the UK following a strong trading performance in the year to 1 October 2023.
The coffee giant reported 22% year-on-year sales growth in the UK to £547.7m, with gross profit up 15% to £149m.
The US-based coffee chain currently has an estate of c1,260 UK stores, having achieved a target set in March 2023 to open 100 sites by the end of its financial year on 1 October.
It has invested significantly in its drive-thru network to reach an estate of 340 UK drive-thrus, and will continue to focus on key drive-thru sites as well as high footfall city centre locations.
”Company-operated growth in FY24 will focus on new store format innovation and high traffic count locations across the UK,” the business said.
Digital evolution has also driven growth, with investment in mobile order and pay systems, delivery services, and improvements to the loyalty program resulting in a 100% increase in 90-day active membership from 600,000 to 1.2 million.
The company’s summer campaigns performed strongly, with cold beverages continuing to see increased consumer appeal.
Despite a strong performance, Starbucks said store footfall continues to be pressured by the cost of living crisis.
The brand continues to grow in other markets within its EMEA division, with 31% sales growth driven by new store openings and its partnership with Alshaya Group,
The UK remains Starbucks’ largest market in EMEA.
Earlier this month, it appointed Darren King – formerly strategy and commercial director at Greene King – as UK store development director.
Duncan Moir, president Europe, Middle East and Africa, said: “We are pleased to have met our new store opening commitments during the year, opening more than 100 new stores in the UK. While we continue to navigate challenging market conditions, we are excited to work alongside our partners to continue growing our footprint in the region.”
