Southampton-based Starbucks franchise secures £17m funding package from HSBC to expand its UK portfolio
23.5 Degrees says it will open seven new sites, including drive-thru locations, in the UK over the next four months | Photo credit: Starbucks Coffee Company
Starbucks franchise 23.5 Degrees has secured new funding to grow its UK portfolio. The Southampton-based company said it intended to a £17m ($24m) package from HSBC to open seven new UK outlets over the next four months, including drive-thru sites in Sunderland, Bradford and Kings Lynn.
Longer-term, 23.5 Degrees says it aims to operate 300 stores and employ 6,000 staff by 2027. “During the pandemic we were able to open nine stores which led to 200 jobs around the country,” said the company’s Finance Director, Luca Contardo.
“Fitting out new stores is very capital intensive, with each opening costing upwards of a six-figure sum,” he added.
Data from Starbucks shows the Seattle-based coffee chain operated 748 licensed and 291 company-owned stores at the end of 2020. Announcing its financial results for the 13 weeks to 28 March 2021, Starbucks reported a marked improvement in its global sales following months of Covid-19 disruption.
Net revenues of $6.7bn rose 11% compared to the same period in 2020, while global like-for-like sales rose 15% during the period.