UK-based Starbucks franchise attains £10m investment to scale business

The Magic Bean Co. currently employs 370 staff and reported a turnover of £17m in 2021 | Photo credit: The Magic Bean Co.

Swansea-based The Magic Bean Co. has unveiled ambitious expansion plans to grow its 24 franchised Starbucks sites to 200 in the next five years following a £10m support package from HSBC UK. 

Established in 2014, The Magic Bean Co. was the first licensee to open a Starbucks drive-thru and now plans to launch nine new Starbucks sites this year in as-of-yet undisclosed locations, before targeting a net store count of 200 in 2028. 

The expansion, which will focus on the company’s successful drive-thru model, is expected to create 4,000 jobs in Wales. 

In March 2022, Starbucks EMEA credited drive-thru as a key component of the business’ recovery from the Covid-19 pandemic as consumers shift towards convenience. 

"As more and more companies enter the drive-thru market, we are marking an exciting new chapter with this funding, which will allow us to accelerate our rate of growth. 

"Daniel Rees, our relationship director at HSBC UK, has been instrumental in helping us secure the funding required to deliver on immediate and longer-term growth plans – meaning we can continue to provide an exceptional service in our communities and, most importantly, give back,” said Leon Esfahani, CEO, The Magic Bean Co. 

The Magic Bean Co. currently employs 370 staff and reported a turnover of £17m in 2021. 

Starbucks operates more than 1,100 stores in the UK, the majority of which are franchised.
 

In 2021, Southampton-based franchisee 23.5 Degrees, Starbucks’ first franchise partner in the UK, secured £17m funding package from HSBC to expand its UK portfolio, with the company also targeting drive-thru outlets. 23.5 Degrees plans to operate 300 Starbucks stores by 2027.