Starbucks 'not in a formal sale process' for UK business

Starbucks has said it is not ‘in a formal sale process' for its UK business following media speculation.

It comes after a report in the Sunday Times said the coffee chain was "exploring a potential sale of its UK operations" amid a backdrop of rising costs and competition.

The paper reported that Starbucks has appointed its adviser, Houlihan Lokey, to canvas interest for its UK arm.

A Starbucks spokesperson said: "Starbucks is not in a formal sale process for the company's UK business."

Starbuck oversees around 1,000 coffee shops in the UK, of which approximately 300 are company owned and 700 are run under franchise.

Its UK and EMEA business posted a £13.3m pre-tax profit in its results for the year ending 3 October 2021, with total revenues of £328m.

However, the company said the operating environment remained "extremely challenging" due to rising inflation, supply chain disruption and labour shortages.

Starbucks was founded in Seattle, Washington in 1971 and now runs more than 32,000 stores in 80 countries.