Starbucks has purchased 23.5 Degrees, its largest franchisee in the UK, as part of its efforts to enhance the customer experience.
With this deal, Starbucks acquires 113 cafes and 1,650 employees, increasing its number of company-owned locations in the UK to nearly 500.
Starbucks stated that the acquisition was about further “enhancing the coffeehouse experience for customers”.
This move comes after a period of instability for the company, which saw the departure of its CEO, Laxman Narasimhan, in August after less than a year in the role, following a 3% decline in global sales.
Former Chipotle CEO Brian Niccol was brought in to steer the company back on course. In an open letter to customers, he acknowledged that the brand had 'drifted from our core.' Niccol pledged to 'elevate' the in-store experience and enhance the digital ordering system, with a particular focus on improving service during the morning rush.
Alex Rayner, Starbucks general manager, UK, Switzerland and Austria said: “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.”
