Starbucks UK reports £35.2m loss in 2024

Yahoo

10-04-2025

Starbucks UK has reported a £35.2m ($44.8m) pre-tax loss for the 12 months ended 29 September 2024, a contrast to the £16.9m profit posted the previous year.
The downturn is accompanied by a 9% fall in gross profit and a 4% year-on-year decline in UK revenues to £525.6m.
The coffee giant attributed its performance to factors such as high raw material costs, reduced consumer spending and "widely discussed misperceptions" about the company's stance on the Israel-Gaza conflict.
Starbucks also noted the impact of a highly competitive branded coffee shop market in the UK, which has seen increased investment in domestic speciality coffee chains. This surge in investment has intensified the competition for Starbucks in the UK.
Despite these challenges, Starbucks ended the year with 1,240 stores - an increase of 100 net new sites.
It also expanded its company-owned UK estate by acquiring its largest UK franchisee, 23.5 Degrees, adding 113 stores.
Starbucks plans to open an additional 80 net new UK stores by the end of September 2025.
Starbucks Europe, Middle East and Africa president Duncan Moir stated: 'It has been a difficult period for the sector. We navigated significant macro-economic pressures, including inflationary headwinds, which have also had an impact on consumer confidence. Despite this, we achieved our goal of opening 100 new stores in the UK.
'We remain committed to further expanding our presence and are today announcing that we will open an additional 80 stores in the UK this year.
'We are focused on regaining momentum by strengthening and scaling how we integrate technology across the business, building on the popularity of our Starbucks Rewards programme, and further optimising our menu to ensure we continue delivering on our core offering every time.'
In March 2025, Starbucks revealed plans to expand seating options and power outlets to charge devices, seeking to become more customer-friendly and boost sales. The coffee chain is testing new store designs in the US to reverse its sales slump.
"Starbucks UK reports £35.2m loss in 2024" was originally created and published by Verdict Food Service, a GlobalData owned brand.
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