Starbucks explores UK business sale, reports say

As it deals with escalating competition and shifting consumer preferences, Starbucks is allegedly looking into the possibility of selling its UK operations.

Media reports claim that a “formal sales procedure” has not yet begun.

Lockdown procedures implemented globally have severely impacted the largest coffee chain in the world.

The corporation declared in May that it was “single-mindedly focused on developing our core US business.”

According to the Times, which broke the story, the corporation will continue to “explore strategic options” for its wholly-owned international operations.

Houlihan Lokey has been hired by Starbucks as counsel to help it consider all of its possibilities.

Measures to stop the spread of COVID-19 severely impacted Starbucks, along with a large portion of the food and beverage takeaway business.

In addition to needing to adjust to clients’ shifting habits as many people switch to hybrid work-from-home schedules, it must also contend with rising costs like its competitors.

Additionally, the business is dealing with heightened rivalry in the UK from competing coffee companies, including Costa, Pret A. Manger, and Tim Hortons.

Starbucks has over 1,000 locations in the UK, of which about 70% are franchises and the remaining 20% are company-owned.

The organisation is now searching for a new permanent chief executive, with outgoing chief executive Howard Schultz filling the position temporarily.

The business has also recently dealt with some of its employees’ attempts to organise a union in the US. Starbucks announced in May that it would quit Russia after 15 years because of the conflict in Ukraine.

Following a trading halt in March, the company declared that it will completely leave the Russian market. Since it entered into Russia in 2007, Starbucks has expanded to include 130 cafes run by licensees.