The US coffee chain will be seeking to turn on a corner on consumer boycotts over the Israel-Gaza conflict that hit sales across the EMEA region during 2024
.png.aspx?lang=en-GB)
Starbucks currently operates more than 4,800 stores across 42 EMEA markets | Photo credit: Starbucks
Starbucks is planning to open dozens of EMEA region stores by the end of 2025 as consumer boycotts that dogged the coffee chain last year begin to subside.
The US coffee chain, which files its EMEA accounts separately from its 1,350-store UK business, reported 9% revenue decline in the region during the reported period, which it attributed to challenging macro-economic dynamics and consumer misperceptions about its position on the Israel-Gaza conflict.
Starbucks EMEA also posted a 5% year-on-year fall in gross profit to $305.7m, with operating profit in the region declining 16% to $104.6m. Total profit before tax fell 19% to $114.6m.
Reduced footfall, outlet expansion and marketing costs were also highlighted as key factors behind the profit decline. Administrative costs also grew 3.5% compared to the previous year.
Seattle-based Starbucks primarily operates in the EMEA region via licensed partners, including prominent franchise groups Alshaya Group, Alsea and Amrest.
Indicating improving fortunes for Starbucks in the region, in January 2025 Alshaya Group CEO John Hadden said boycotts began to soften in the fourth quarter of 2024 – an observation shared by Alsea two months later. Starbucks’ Malaysian licensee Berjaya Food also reported that boycotts had tapered off over the last six months.
“We would like to thank our over 48,000 partners across EMEA for their hard work in continuing to exceed customer expectations. Together, we are working on delivering growth and ultimately, getting Back to Starbucks,” said Duncan Moir, President, Starbucks EMEA.
Starbucks opened 280 net new EMEA stores in the 12 months ended 31 September 2024 to reach 4,862 stores across 42 markets. It increased its footprints in Turkey, Germany, Spain, France and Italy by double-digits during the period.
The US coffee chain plans to open 150 net new stores across EMEA by the end of September 2025, driven by outlet growth in the Middle East.
In February 2025, Starbucks Chairman and CEO Brian Niccol outlined plans to open 500 new stores in the Middle East and North Africa (MENA) over the next five years in partnership with Kuwait-based Alshaya Group. Alshaya Group’s largest Starbucks MENA markets by both outlets and sales are Turkey, Saudi Arabia and the UAE, where it operates over 720, 480 and 330 stores respectively.