Starbucks is exploring a sale of its UK business amid heated competition from new companies, The Times reported on Saturday.
The coffee chain has asked investment bank Houlihan Lokey to search for a company interested in the market for its UK business, and the report added that the company has suffered from fierce competition from other coffee chains such as Bret-A-Manger, Tim Hortons and Costa.
Starbucks UK operates more than 1,000 coffee shops with around 4,000 people working in the stores. The business has grossed $389m (£328m) in total revenue over the past financial year, and the Starbucks branch there repaid its loans worth up to The total amounted to £25m from the parent company, which helped offset weak sales losses during the first three months of the coronavirus pandemic.
The company has also launched a “formal sale” of its UK business and continues to evaluate strategic options for the company’s global business.
Parent company Starbucks stopped providing guidance for the fiscal year in its latest quarterly results report after it failed to meet expectations of Wall Street analysts due to severe restrictions in China due to the resurgence of the Covid-19 outbreak, which affected sales in the country. Read more [Starbucks Aspirations Halted as Lockdown Continues in China].
The company, which is currently dealing with recent unionization efforts for its US workforce, is seeking a permanent CEO, with Howard Schultz remaining the company’s interim CEO. Read more [The American Starbucks Exits Russia After 15 years].