Starbucks sites in the UK are now dominated by franchised or licensed outlets, which soared in number by more than 100 in the year ending 2 October 2016, amid the closure or sale of dozens of company-owned sites.

Franchised or licensed Starbucks outlets increased from 345 to 459 over the year, taking their share of the total store portfolio to 56% from 45% in 2015.

In contrast, Starbucks Coffee Company (UK) sold or closed 62 company-owned stores, transferring many of these to third party partners.

As a result turnover from company-owned stores fell over 15% to £284m from £336m in 2015.

“Going forward this element of the Starbucks UK business will continue to shrink as it focuses away from directly operating coffee shops, and towards developing the brand as a package to meet the needs of a growing range of locations and partners,” IGD said.

Revenue from franchised and licensed outlets increased by 37.4% in 2016.

Topics