Starbucks plans to open 100 new stores across the UK this year, while investing millions of pounds in upgrading existing cafes.

It comes as the world's largest coffee chain reported a big jump in sales in the UK for 2022, continuing its recovery from the pandemic.

Starbucks, which launched in the UK in 1998, has over 1,000 outlets in the country.

There are currently 11 Starbucks in the Aberdeen area.

Its UK expansion comes despite inflation being near a 40-year-high, pushing up the cost of ingredients for the firm and eating into its profits.

The BBC says the firm also plans to open 300 new stores in the rest of Europe, the Middle East and Africa (EMEA).

Economic outlook

However, Duncan Moir, who lead's firm's EMEA business, said he remained "cautious" about the economic outlook.

Like many other businesses, he said Starbucks had faced challenges including shortages of HGV drivers, rising supplier costs and shipping delays.

It is also struggling with higher energy bills and demands for higher wages from staff.

Hospitality companies across the UK have been putting up pay as they face a shortage of workers and the cost-of-living rises.

Starbucks reported that, since the pandemic, its customers' habits had changed and, as a result, the firm would seek to increase its number of drive-through branches, and invest in digital capabilities in its stores.

It added that, as many people continued to work from home, footfall at cafes in city centres and train stations had been slower to recover, with London being the exception.

Comptition

Starbucks last year was reportedly considering selling its UK business as it faced rising competition from other chains.

The firm, which denied it ever began a formal sales process, had also been hit hard by pandemic restrictions around the world.

About 70% of its UK shops are run as franchises, with the remainder owned by the company, and Starbucks said the new stores will be a mixture of both.

  • Costa Coffee is to give its staff their third pay rise in a year.

The increase will apply to about 16,000 of Costa's UK workers. It will be between 6.1% and 7.3% from April 1, depending on experience and location.

The BBC says the announcement comes days after Pret A Manger said it was giving its staff a similar pay rise within the same time frame.

Costa Coffee has around 1,520 company-owned branches across the UK.

The coffee chain said the increase meant that all its staff would be paid at least £10.70 per hour - up from £10 - and amounts to a year-on-year increase of around 14% by the time the pay rise is implemented.

FTSE 100

The UK's top share index, the FTSE 100, was down two points at 7,927 shortly after opening this morning, following yesterday's 17-point loss.

Brent crude futures were 0.31% higher at $86.48 a barrel.

Companies reporting today

  • Q3 results: Ashtead
  • Q4 results: Greggs

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