Photo: Spokesman
Starbucks is looking to withdraw from the UK, according to reports, as the prices hike and the UK’s economy declines.
In a report from The Times, it has been reported that Starbucks is meeting with advisers to identify if they should or could put their business on sale in the United Kingdom.
Asked by CNN Business, Starbucks showed an email it dispatched to its UK staff during the weekend repudiating that the giant is taking part in a “formal sale process” and pushing its decision to stay in the area.
The news may be possible in the UK economy, which is currently struggling. Businesses and residents are having problems operating because of this stagnation.
UK inflation hiked to 9.1% in May – an all-time high in 40 years and the highest rate in the leading G7 economies. And they are far from a light in the tunnel: Inflation is estimated to rise over 11% this year.
The cost of living in the United Kingdom has been on a steady rise. According to the Bank of England, food prices are at an all-time high and disposable incomes are decreasing – the second most significant decline since 1964.
Odds are defoliated for the whole UK economy, said a report on financial stability issued by the Bank of England this month. The bank also stated that the prospects for the nation’s economy had “deteriorated materially.”
The UK’s economic growth is on the rocks and could result in a “zero” GDP growth for 2023, according to an estimate from Paris’ Organization for Economic Cooperation and Development.
That’s a risky market for businesses, and it’s an even riskier path to take if you’re still picking up after tough pandemic years.
Read also: Big Olaf Recalls Products Due to Listeria Outbreak
Starbucks saw stagnant sales when customers started working at home. But now that workers are headed towards offices, they’ve seen an increase again.
During a May call with analysts, Starbucks’ UK location’s sales recovered considerably in the quarter concluded on April 3, according to the group president of international and channel development, Michael Conway.
“Traffic continues to come into Central London metro areas, and we are increasing drive-throughs in that market at a significant rate,” he stated.
Starbucks, established in the country in 1998, is a well-established business in the United Kingdom. It owns around 300 company-run locations and another 800 stores with licenses.
As of November 2021, Starbucks owns 33,833 locations in 80 nations – 15,444 were in the United States. Out of the coffeehouse giant’s US-based locations, more than 8,900 are company-ran – the remainder of which are licensed.
Starbucks also has unions in different locations: Seattle, Buffalo, Rochester, Ithaca, Kansas City, and Manhattan.
The giant is not just a groundbreaker for the second wave of coffee culture but also represents how far our society has come in accepting this beverage as something new and different.
It serves hot and cold beverages, whole-bean coffee, micro-ground instant coffee, caffe latte, espresso, juices, full and loose-leaf teas, Frappuccino drinks, snacks, and pastries.
Starbucks’ hype is attributed to influencers who unintentionally advertise its drinks and snacks because of their taste.
Read also: Starbucks to Close Ithaca Locations, Employees Allege It’s Due to Union Activism
