Tue 15th Oct 2024 - Starbucks acquires largest UK franchisee 23.5 Degrees Starbucks acquires largest UK franchisee 23.5 Degrees: Starbucks has acquired its largest franchise in the UK, 23.5 Degrees, which operates 113 sites, for an undisclosed sum. The global coffee brand said the deal would further expand its portfolio of company-operated stores and enhance “the coffeehouse experience for customers”. The deal increases Starbucks’ total number of company-operated locations to almost 500 in the UK. It operates circa 1,200 sites in the UK in total. 23.5 Degrees, which is led by Mark Hepburn, opened its first licensed UK Starbucks store in Liphook, Hampshire in February 2013. Two-thirds of its estate are drive-thru. The company, which planned to reach 300 stores by 2028, said it has invested more than £35m in the UK economy to date through building and buying stores. Alex Rayner, general manager for Starbucks UK, Switzerland and Austria, said: “I want to acknowledge the important contributions of 23.5 Degrees and the dedicated green apron partners. This strategic move will enable us to enhance our investment in new locations, elevate our in-store experience, and drive innovation for our UK customers.” In April, Starbucks UK turnover increased 22% to £547,672,000 for the year ending 1 October 2023. It reported  compared with £449,257,000 the previous year. Of that, £336,688,000 came from company operated stores (2022: £282,651,000), £207,848,000 from licensing and franchising (2022: £165,896,000) and £3,136,000 from store value card breakage (2022: £710,000). Last December, 23.5 Degrees reported its turnover increased to a record £83,539,389 for the year ending 31 August 2023, compared with £74,979,078 the year before. Pre-tax profit was down to £1,628,035 from £8,032,900 the previous year as costs increased by more than £7m. In March, Starbucks announced plans to open 100 more UK stores this year with a focus on key drive-thru and high-footfall city centre locations. Earlier in the same month, the coffee chain appointed Darren King, formerly of Stonegate Group and Greene King, as UK store development director to lead its acquisition, design and construction departments. Starbucks features in the Propel UK Food and Beverage Franchisor Database, which is an exhaustive guide to the companies offering a food and beverage franchise in the UK and available exclusively to Premium subscribers. The database is updated every two months and the current version features 270 businesses. A Premium Club subscription costs an annual sum of £495 plus VAT for operators and £595 plus VAT for suppliers. Companies can now have an unlimited number of people receive access to Premium Club for a year for £995 plus VAT – whether they are an operator or supplier. Email kai.kirkman@propelinfo.com today to sign up.