Photo: Spokesman

Starbucks is planning to withdraw from the UK, as per reports. The price hikes and economic decline may have prompted the alleged action. 

In a shocking development, the global coffeehouse giant is meeting with advisors to determine if it should consider putting its business on sale in the United Kingdom, says The Times.

Responding to CNN Business’ questions, Starbucks showed an email it dispatched to its UK staff during the weekend repudiating that the giant is taking part in a “formal sale process” and pushing its decision to stay in the area. 

The UK economy has been struggling since the turn of this year, with businesses having problems operating and residents scrambling to make ends meet. So, the reports might have some grounds. 

UK inflation hiked to 9.1% in May – an all-time high in 40 years and the highest rate in the leading G7 economies. And they are far from a light in the tunnel: Inflation is estimated to rise over 11% this year. 

The cost of living in the UK is increasing while incomes are decreasing. The Bank Of England had released data showing that disposable income will fall to its lowest level since 1964, when records started being kept.

Odds are defoliated for the whole UK economy, said a report on financial stability issued by the Bank of England this month. The bank also stated that the prospects for the nation’s economy had “deteriorated materially.” 

The UK economy might be on its way to depression as it could have zero GDP growth by 2023, according to Paris’ Organization for Economic Cooperation and Development.

Read also: Starbucks Workers Alleges Company of Closing Because of Union Activism

It is a risky environment for businesses, specifically those getting back on their feet after the pandemic. 

Starbucks is experiencing a new trend in customer behavior. As more people begin working from home and head towards offices, the company’s sales have increased again.

During a May call with analysts, Starbucks’ UK location’s sales recovered considerably in the quarter concluded on April 3, according to the group president of international and channel development, Michael Conway. 

“Traffic continues to come into Central London metro areas, and we are increasing drive-throughs in that market at a significant rate,” he stated.

Starbucks is a well-established business in the United Kingdom. The company owns around 300 company-operated locations and another 800 stores with licenses, which was first established in the country in 1998. 

Starbucks Still Has Many Outlets in Different Country, So No Worries

As of November 2021, Starbucks owns 33,833 locations in 80 nations – 15,444 were in the United States. Out of the coffeehouse giant’s US-based locations, more than 8,900 are company-ran – the remainder of which are licensed. 

Unionization efforts have been successful in Starbucks stores all over the country, including in Seattle, Buffalo, Rochester, Ithaca, Kansas City, and Manhattan. 

The giant is the groundbreaker for what’s to come in coffee culture. But, first, Starbucks presented a wider variety of experiences with its shops. 

It serves hot and cold beverages, whole-bean coffee, micro-ground instant coffee, caffe latte, espresso, juices, full and loose-leaf teas, Frappuccino drinks, snacks, and pastries. 

Starbucks’ hype is attributed to influencers who unintentionally advertise its drinks and snacks because of their taste.

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