Coffee giant Starbucks is considering selling its UK business, according to reports. Although the company has denied that a 'formal sales process' has begun, the chain is thought to be suffering in the face of tough competition and changing customer habits following the pandemic.
Around 70 per cent of the 1,000 Starbucks are franchises, with the rest being company-owned that could expect interest from a specialist franchising group or a private equity company, reports The Financial Times.
Starbucks has confirmed it is “not in a formal sale process for the company’s UK business” but that it continued to “evaluate strategic options” for those of its international businesses that are owned by the company.
The BBC reports the chain has taken on advisers Houlihan Lokey to explore possible options for the business.
Starbucks is in the process of finding a new permanent chief executive, while battling efforts in the US by some of its workers to unionise. Earlier this year, it moved out of Russia following the outbreak of war in Ukraine.
The pandemic hit the company hard and while returning to profit after the end of lockdowns, it has not seen business yet climb up to pre-Covid levels.
