Starbucks to invest £8m in London stores in time for 2012 Olympics
Starbucks plans to invest £8m to revamp 70 London stores ahead of the Olympics in a bid to cash in on increased visitor numbers to London.
The news comes as Starbucks reports that sales of special festive menus items such as eggnogg and gingerbread lattes and its 12 days of Christmas festive campaign helped drive the highest quarterly gains in the company’s history.
The coffee chain reported a 9% rise in global sales in the three months to 1 January. Total revenue in the three months to 1 January increased 16% to $3.4bn (£2.2bn) while profit jumped 10% to $382.1m (£243.7m).
It is the first time Starbucks has reported financial results since restructuring the business around three geographical divisions.
The China Asia Pacific region reported strongest growth with sales up 20% in the period while Europe underperformed with 2% sales growth in the quarter. The US business reported a 9% increase in sales.
Starbucks is reported to be mulling starting up a franchise operation in the UK to drive growth in smaller towns and villages where local knowledge would be vital to the success of operations.
Kris Engskov, Starbucks UK & Ireland managing director, says: “Customers are thinking carefully about how they spend, which is why we have to offer them more for their money. That’s everything from having the best baristas in the best looking stores to free iTunes downloads or a reward for loyalty. It’s also right that our baristas get a share in the company and are rewarded for their success and hard work.”
The business also grew its consumer products division, which includes Starbucks branded produce sold through supermarkets. Net revenue increased 72% to $335.8 million (£214.2m) while profit increased to $79.7m (£50.8m), up from $71.1m (£45.3m) in the same period last year.