Acquiring Southampton-based 23.5 Degrees adds 113 sites to Starbucks’ company-owned UK store network, which now makes up approximately 40% of the coffee chain’s total UK footprint
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A 23.5 Degrees-operated Starbucks drive-thru in Buckinghamshire, UK | Photo credit: 23.5 Degrees
Starbucks has expanded its UK portfolio of company-operated stores with the acquisition of Southampton-based 23.5 Degrees for an undisclosed sum.
23.5 Degrees opened its first licensed UK Starbucks store in Hampshire in February 2013 and has grown to 113 sites – two-thirds of which are drive-thru. The group is currently the largest Starbucks franchise in the UK.
In a press release, Starbucks said the acquisition increases its UK company-operated stores footprint to nearly 500 – approximately 40% of its total 1,200+ UK store network.
“I want to acknowledge the important contributions of 23.5 Degrees and the dedicated green apron partners. This strategic move will enable us to enhance our investment in new locations, elevate our in-store experience, and drive innovation for our UK customers,” said Alex Rayner, General Manager UK, Switzerland and Austria at Starbucks.
In May 2021, 23.5 Degrees secured £17m ($24m) to grow its UK portfolio and 12 months later announced a goal to reach 300 Starbucks stores by 2027.
The UK is Starbucks’ largest Europe, Middle East and Africa (EMEA) market. The coffee chain achieved 22% year-on-year sales growth in the UK in the 12 months ending 1 October 2023 to reach £547.7m ($693m), with gross profit rising 15% to £149m ($188.5m).
In March 2024, Starbucks announced plans to open 100 more UK stores this year with a focus on key drive-thru and high-footfall city centre locations. Earlier in the same month, the coffee chain appointed commercial and real estate specialist Darren King as UK Store Development Director to lead its acquisition, design and construction departments.