Starbucks

About Starbucks

The world’s largest coffee house chain, Starbucks is an American multinational chain of coffee houses and roasteries headquartered in Seattle. It has almost 34,000 stories in around 80 countries, about 900 of which are in the UK. It was founded in 1971 by Jerry Baldwin, Zev Siegl and Gordon Bowker, who in 1981 sold the company to Howard Schultz, who embarked on an aggressive expansion of the franchise. In October 2022, Starbucks launched its 50th in-store site with Sainsbury’s, and in June 2023, the company said it was considering introducing delivery-only stores.

In November 2023, after opening its biggest store in recent years - an 8,000 square-foot site in Edinburgh, Starbucks said the opening is another step in its ambitious plans for growth in the UK, with “many more” stores planned, particularly in key city and drive-thru locations and with a focus on innovative store formats such as smaller, digitally forward stores. It also said it was making “good progress” in its expansion plans to open 100 new sites in the UK over the current year after appointing Darren King, formerly of Stonegate Group and Greene King, as its new UK store development director.

In May 2025, Starbucks chief executive Brian Niccol said its UK business is starting to gain market share and see positive like-for-like sales, and said the company is hiring more baristas after admitting an experiment in cutting staff for automation had failed.

In September 2025, Starbucks has said that early results from its revamped coffee houses in the US show customers are staying longer, visiting more often and sharing positive feedback. Niccol said the brand is “ahead of schedule” in its turnaround and that he was betting on an “aggressive” redesign, enhanced rewards programme and an array of new food and beverage items to further drive momentum and reverse the decline in consumer traffic.

That same month, Starbucks said it is to close “some” of its circa 520 UK company-owned stores following a review of its global coffee shops. The company confirmed it has launched a consultation over the proposed closure of a number of company-owned UK stores, putting workers at the sites at risk, However, the company did not disclose how many stores will be affected and where these are located. Starbucks runs around 520 company-owned stores in the UK, as well as franchise-owned coffee shops.

In February 2026, Propel revealed that Starbucks had reshaped its UK licensing structure in a strategic process after fears it had become too fragmented. Starbucks divided its UK operations into seven development territories - two within Scotland and the rest covering England and Wales. This represented a material shift in how future growth within the Starbucks system will be accessed, as with territories now fixed, opportunities to enter the system at scale will be limited and expected to arise only when an existing partner chooses to step back, it is understood. A new process is now underway relating to the only development area remaining to be allocated - alongside the sale of an existing portfolio of stores to a new partner.

Current franchisee Magic Bean will hand over 19 stores to the new development partner, to “help it go fast and hard”. Darren King, director store development and licensing for Starbucks UK, told Propel: “We remain focused on our long-term growth plans in the UK and are strengthening our licensing model through a strategic regional approach. This will create clearer regional opportunities for future store development and support the continued growth of both Starbucks UK and our licensed partners. Further details will be shared in due course.” The following month, Starbucks said its new licensing agreement for the UK will bring “greater transparency and alignment around where and how we grow”.

The company said: “Licensed stores are a vital part of Starbucks success. Across the UK, they already represent the majority of our estate, and they will continue to play a central role in how we grow. The new licensee model is designed to strengthen that partnership by creating clearer, more collaborative ways of working. At its heart is a shared ambition: sustainable growth that works for everyone. Rather than competing for the same opportunities, the new approach brings greater transparency and alignment around where and how we grow.

“It supports smarter portfolio planning, clearer market focus, and a shared commitment to building stores that are designed to succeed for the long term. This is about opening the right stores, in the right places, with formats that reflect local needs - from drive thrus and high streets to cafés that anchor local neighbourhoods.”

In March 2026, Starbucks said it plans open another 500 sites in the UK over the next five years, including 75 shops this financial year. The following month, Starbucks EMEA promoted Darren King to UK managing director.

In June 2026, Starbucks chief executive Brian Niccol has said the company is not yet back to where it was three years ago but believes there is still “a lot of opportunity”.

Why franchise with Starbucks

• ✓Although it has used the franchise model to expand in the UK, Starbucks are not currently recruiting new franchisees, but this may change in the future. Franchisees would need to have liquid assets that amount to a minimum of £500,000 and be able to guarantee their own financing. In return, they will be supported in every aspect of their business, including store design and marketing strategies. They will receive a one-month training programme as well as ongoing support and business consultations. They will receive help and advice from dedicated support services in all the key areas of building a successful enterprise, while supporting partners will help manage staff training and marketing strategy, and the retail design team will help develop a store design and layout.
• ✓The company will provide accessible financial information and monitor the performance of each franchise in the form of quarterly business reviews, with experts in business consultation readily available to franchisees. Applicants should already have experience in the food industry, and ideally own a business that spans multiple sites. The company do not offer financial assistance but do provide business advice and assistance.