• 8 min read
• April 8, 2025

Starbucks UK-registered UK and EMEA businesses today filed accounts for the financial year ending 29 September 2024. 

FY24 Financial Updates: 

Starbucks Coffee Company (UK) (in GBP): 

• Total revenue: £525.6m (FY23: £547.7m), a decrease of 4% from last year driven by a challenging consumer environment 

• Gross profit: £135.0m (FY23: £149.0m) 

• Operating loss: £27.5m (FY23: operating profit £21.7m) 

• Loss before tax: £35.2m (FY23: profit before tax of £16.9m) 

• Total UK corporation tax charge: £1.0m (FY23: £7.2m) 

Starbucks EMEA Ltd (in USD): 

• Total revenue: $388.0m, a decrease of 8.8% from last year driven a challenging macro-economic backdrop  

• Gross profit: $305.7m (FY23: $321.7m) 

• Operating profit: $104.6m (FY23: $125.5m) 

• Profit before tax: $114.6m (FY23: $141.1m) 

• Total UK corporation tax charge: $37.5m (FY23: $36.4m) 

UK FY24 Operational Updates: 

• Modest decrease in revenue due to various macro-economic and consumer headwinds. This, coupled with inflationary pressures from commodities such as dairy and cocoa, and investment in our partners’ wages, has created a challenging trading environment. 

• Despite this, the Company opened 100 new stores, demonstrating a commitment to the region. The Company also plans to open an additional 80 new stores in FY25 in the UK. 

• The Company invested in digitalization and technology and enhanced its loyalty program by running innovative and engaging campaigns, such as collaborations with the Harry Kane Foundation and Stanley cup. These campaigns contributed to 35% growth in the program’s active members.  

• The Company’s long-term strategy in the region is aligned to the Global Back to Starbucks strategy, which will see it refocusing on what has always set Starbucks apart — being a welcoming coffeehouse where people gather, and where we serve the finest coffee, handcrafted by our skilled baristas. 

Duncan Moir, President Starbucks Europe, Middle East and Africa, commented: 

“It has been a difficult period for the sector. We navigated significant macro-economic pressures including inflationary headwinds which have also had an impact on consumer confidence. Despite this, we achieved our goal of opening 100 new stores in the UK.   

“We remain committed to further expanding our presence and are today announcing that we will open an additional 80 stores in the UK this year.   

“We are focused on regaining momentum by strengthening and scaling how we integrate technology across the business, building on the popularity of our Starbucks Rewards program, and further optimising our menu to ensure we continue delivering on our core offering every time.  

“Our success starts and ends with our green apron partners. 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.” 

UK Overview 

The UK remains the Company’s largest market in EMEA. UK operations are captured in the accounts of Starbucks Coffee Company (UK) Limited. 

The Company ended the year with a total of 1,240 stores in the UK. Of these, 378 were company-operated stores and 862 were run by licensees – a 30/70 split approximately, which is flat on last year. 

The macro-economic and consumer environment dampened consumer demand and Starbucks saw a 4% decline in revenue. Revenue for the period was £525.6m (2023: £547.7m). The Company experienced inflationary pressures on margins from increased input costs such as commodity prices and wage inflation. This led to an operating loss of £27.5m (2023: profit of £21.7m) for the period. 

UK Market Trends 

The UK coffee market experienced significant headwinds in the financial year which resulted in many consumers adjusting usual spending habits. The cost-of-living pressures accelerated during the period as persistent inflation and higher interest rates left consumers with less disposable income. Widely discussed misperceptions about the brand relating to events in the Middle East impacted footfall in some locations in the first half of the year. The UK coffee market has also become highly competitive with new entrants and localised specialty coffee houses investing in new stores.  

While the coffee inflationary pressures we observed in 2023 somewhat eased during the fiscal year, higher cost impacts on dairy and cocoa were felt in FY24 which continued to put pressure on margins. Profitability was also impacted by wage inflation as the Company continues to invest in its partners.  

Making Starbucks the best job in retail is core to the Back to Starbucks strategy. The Company remains confident that it is heading into FY25 in a strong position to attract and retain key partners for its stores. Further incentives and benefits were provided in the year, including but not limited to salary increases, bonuses and tenure pay. The Company launched a new bonus scheme for store supervisors and baristas, which allows green-apron partners to share in the Company’s success on a more sustainable basis.  

During the period, the Company continued to place a strong emphasis on digitalization and technology, enhancing its loyalty program by running innovative and engaging campaigns including collaborations with the Harry Kane Foundation and Stanley cup. These activations led to an increase in customer spend and 35% growth in the program’s active members. The Company will continue to build upon this in 2025 through the rollout of further digital initiatives.  

The Company has responded to changing consumer preferences and economic conditions by actively managing its menu offerings and pricing strategies. The trial of freshly baked in-store food products has proved promising and will continue to be rolled out across more stores into FY25 to support consumer convenience. Selected strategic price increases were taken in line with rising input costs.  

The Company continued its expansion strategy, delivering on its commitment to open 100 new stores in the UK. New store openings were targeted in key drive-thru and city locations with high traffic and footfall counts.  

UK Corporation Tax 

The Company reported a UK corporation tax charge of £1.0m (FY23: £7.2m). This reduction reflects the weaker financial performance for the period.  

UK FY25 Updates  

On the 14 October 2024, Starbucks Corporation acquired 23.5 Degrees Limited, the brand’s largest local licensing operator in the UK, bringing an additional 113 stores under Company Operated Ownership in the UK. This acquisition supports the brand’s growth strategy in the UK and reflects the continued confidence in the market’s long-term outlook. It is anticipated that these stores will be integrated into the Company in due course. 

Further to this, the Company plans to open an additional 80 stores in the UK in FY25. Company operated growth in FY25 will prioritize new smaller store format innovation in town locations, drive-thrus, as well as high traffic count locations stores across the United Kingdom. 

EMEA Overview 

Starbucks EMEA Ltd is the main reporting entity for all Starbucks activities in EMEA – excluding the UK business, which is reported separately, as outlined above. 

At the year end, there were 4,862 stores in 42 markets across Europe, the Middle East and Africa (EMEA) (2023: 4,582 stores). 

Starbucks continues to pursue its core strategy of a mostly licensed and franchised operating model in the EMEA region, meaning most of its revenues come primarily from royalty payments. Revenue decreased by 8.8% in the period to $388.0m (2023: $425.4m), driven by the challenging macro-economic backdrop and misperceptions about the brand relating to events in the Middle East. 

This was compounded by a slight increase in administrative costs to $152.3m (2023: $147.2m), driven by increased headcount, additional activity supporting expansion across EMEA such as marketing, technology and digital support costs, and unfavorable foreign exchange movements. 

Profit after tax for the period was $77.1m (2023: $104.7m). This consists of a profit before tax of $114.6m (2023: $141.1m) and a UK corporation tax charge of $37.5m (2023: $36.4m).   

EMEA Market Trends 

In support of its broader strategy, the Company continued to grow in the region. During the period, it opened 421 new stores. The Company will continue to expand its presence in the region in support of further growth, with plans to open 150 stores in the region (excluding the UK) next year.  

As outlined by Brian Niccol in February 2025, the Company expects to work with its partners in the Middle East to open approximately 500 new stores over the next five years.  

EMEA corporation tax 

Starbucks EMEA Limited reported a UK corporation tax charge of $37.5m for the year, compared to $36.4m for the same period last year.  

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