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BuckheadFunds > Startups > Starbucks Largest UK Franchisee Reaches 100 Store Landmark

Starbucks Largest UK Franchisee Reaches 100 Store Landmark

News Room By News Room July 12, 2023 3 Min Read
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Global coffeehouse brand Starbucks has had a presence here in the UK since 1998, when it opened its very first British store on the King’s Road in London. They began the journey to becoming the familiar presence that they are now in so many local high streets and other locations in towns and cities this side of the pond by acquiring the Seattle Coffee Company, a chain of over 60 coffee shops that had been set up by two Americans who had moved from Seattle to London.

Starbucks signed up their first UK franchise partner in 2013, and now that same franchise partner 23.5 Degrees have celebrated their first decade by opening their 100th store this month.

As well as being the longest standing Starbucks UK franchisee, 23.5 Degrees is also the largest and has plans to hit a target of 300 outlets by 2028. Celebrating the opening of their most recent store in Tamworth, Staffordshire, Mark Hepburn, Managing Director of 23.5 Degrees says “As we celebrate the opening of our 100th store, we look to the future with optimism and remain steadfast in our commitment to innovation, diversity and social responsibility. We could not have achieved our success and 100 stores across the UK without our investors, contractors and Starbucks itself. Most importantly, I’d like to thank our partners who have delivered day in and day out to ensure we continue to serve our customers and build the business.”

The franchisee’s strategy for growth centres on convenience, with 59 of their units being drive-thru and most being situated on major roads or being located near to large retail locations. This reflects data released in a recent report compiled by Project Cafe UK 2023 which states that the UK’s drive-thru coffee market grew 17.6% last year, to reach nearly 700 locations. From an operator’s perspective of course these sites represent lower cost alternatives to high street locations and efficient processes mean higher volume of sales. 23.5 Degrees state “We’re actively seeking both freehold and leasehold Drive Thru opportunities sitting on main arterial routes, close to major retail destinations or on large industrial estates. We will also consider Retail Park and ‘Drive To’ destinations, as well as High Street units in prominent high footfall locations. We’re able to move fast on great new sites. Our use of modular design and build enables our landlords to have our stores trading faster”

With the franchisee saying that they already have twenty five more stores in the pipeline to launch over the next year, it would seem as if their ambitious plans for growth are well on the way to becoming a reality.

Read the full article here

News Room July 12, 2023 July 12, 2023
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