Starbucks Corp. is looking to bow out of the United Kingdom, at least in terms of ownership. The world’s most famous coffee chain reportedly hired advisors to test the interest in its company-owned operation in the UK.
Investment bank Houlihan Lokey is responsible for evaluating the potential buyers and interested parties. However, according to The Times, the company isn’t fully set on going through with the sale. When asked for comment by Bloomberg, the Starbucks spokesperson said they are “not in a formal sale process for the company’s U.K. business.”
At the moment, Starbucks has around 1,000 coffee shops in the UK that employ more than 4,000 workers and totaled $389 million in revenue last year. The company itself is the owner of 300 locations, while the remaining shops are run by franchisees.
The United Kingdom represents the biggest Starbucks market in Europe, the Middle East, and Africa. However, the company-owned coffee shops are having trouble returning to business as usual despite the ease of COVID-19 restrictions and lockdowns. The mounting competition, which includes the likes of Costa, Pret A Manger, and Tim Hortons, also doesn’t help and has made the company question the viability of continuing there as an owner.
Starbucks stock is trading at $81.21 per share on Monday, which represents a 2% jump from the close on Friday. The company’s shares are down 30.40% year to date.
