Explain why Starbucks may have waved goodbye to the British market despite being one of the largest markets of the US coffee chain giant for more than 20 years.
Explain why Starbucks may have waved goodbye to the British market despite being one of the largest markets of the US coffee chain giant for more than 20 years.
It’s been almost 25 years since the British have sippedcoffee including famous beverages from world-class brands such as “Starbucks” (Starbucks), but recently newspapers The Times (The Times) reported that coffee shop chainThe world’s number 1 giant is looking for a way.Sell all business in the marketunited kingdom
current Starbucks which was founded in Seattle US state washington There are more than 34,000 branches all over the world. and serving millions of regular and one-time customers every day.
meanwhile united kingdomisOne of the largest markets ofStarbucks After the company entered the market in 1998, information from Statesman stated that in the United Kingdom StarbucksThere are about 300 self-operating branches and about 790 franchised branches (as of October 2021).
– A sign in front of a Starbucks in London (Photo Credit : AFP) –
however Starbucksare thinking hard about the future of business in this key market, the Times reports. higher product pricesvery much andBritain’s struggling economy It’s one of the main reasons the company is considering.sell businessOver 1000 branches across the UK Let other companies continue to manage
It is also reported that Starbuckshas asked a consulting company like “Houlihan Lokey” (Houlihan Lokey) helps assess companies interested in acquiring all of their businesses inunited kingdom which currently employs about 4,000 people
however united kingdomfacing problemsinflationThe highest peak in decades is not different from many other countries. The British Office for National Statistics (ONS) revealed on July 20 that the indexconsumer price (CPI) of England soared to 9.4% in June compared to the previous year
numberBritish inflationThis latest is considered to be an increase in the level.The highest in more than 40 years or since Feb. 1982 and up from 9.1 per cent in May, driven by a 9.3 per cent jump infuel pricecar in the month
– A British man waits for coffee in front of a Starbucks in London (Photo Credit : AFP) –
The Statistical Office states that product priceThe increase overtaken wages greatly. The household sector tends to face more difficulties. because of the expectation thatinflationwill surpass the 11% level in October when there is an increaseenergy priceagain
High inflation figures 9.4% In the month of June ofEnglandcountIt is the highest among the leading G7 economies. and is considered a factor thatcost of livingof many BritishEntering the “crisis” stage
At the same time, the famine situation in England may result in the need for people toReduce unnecessary product costs such as coffeeA cup of coffee or maybe a cup of coffee as usual. More isNot the same price as Starbucks.
for this reason coffee shop chainThe name therefore faces many competitors inunited kingdom including Pret A Manger, Tim Hortons, and Costa along with other difficulties that caused the expansion of the branchStarbucksis delayed
however Starbucksclarified the latest that The company is not currently “Official Business Sales Process” in the UK But it did not express or deny whether it would consider the plan in the future or not. Must continue to follow!
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refer : The Times, Archyde.com, CNN, Tastingtable