Hampshire Starbucks franchisee 23.5 Degrees sees sales soar in pandemic

February 21, 2022

THE UK’s biggest Starbucks franchisee saw sales soar despite the pandemic as it invested in drive-through coffee shops and digital platforms.

23.5 Degrees, based at Hedge End, was the American coffee giant’s first franchisee in the world and opened its 85th outlet last year.

23.5 Degrees’ franchised stores locally include those at Hedge End, Southampton’s Town Quay, Havant and St Leonards near Ringwood.

Its annual report and accounts show sales in the year to August 31, 2021, reach £66.7million – up from £35.7m in 2020.

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

Profit after tax reached £8.54m after a loss of £2.4m in 2020.

Finance director Luca Contardo wrote: “The year to August 31 2021, heavily affected by the Covid pandemic, presented numerous challenges for the group as it operated within the rules and restrictions introduced by the authorities in order to contain the spread of the virus.

“Nonetheless, the business performed strongly, aided by the government stimulus packages introduced to support the hospitality sector and the wider economy. Operationally, the teams adapted well to ever changing health and safety rules, which saw multiple tiers of restrictions applied across the country for the majority of the year and the business reacting quickly to changes, putting its partners and customers’ safety at the front of decision-making processes.”

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He said the company opened 12 stores in the year – 10 drive-throughs and two in retail parks, creating 479 jobs. The business employed 1,382 staff.

“During the last 12 months the business has invested in its new sales channels, being delivery, mobile order and pay (MOP) and kerbside, which were initially launched in July 2020,” Mr Contardo wrote.

“The directors firmly believe these new channels, together with the drive-through model, were amongst the factors which allowed the business to successfully navigate through the last 18 months.

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“Considering all of the challenges faced by the business in the last 18 months, the directors are delighted with its performance this financial year and with how it has navigated through the turbulent trading environment caused by the Covid-19 pandemic,” he added.

23.5 Degrees opened its first store in Liphook in 2013 and bought 16 from Starbucks in 2015, doubling its number of outlets.

By Darren Slade

Source: Daily Echo

Starbucks ‘drive thru’ wanted in north Belfast

June 14, 2021

The Irish franchise holders of the Starbucks brand want to open a “drive thru” coffee shop within a recently revamped north Belfast retail park.

An application for planning permission has been lodged by the two brothers who control the island of Ireland franchise for the Seattle-headquartered coffee shop giant. If it is a Starbucks, it will be the first in north Belfast beyond the nearby city centre.

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

Ciaran and Colm Butler, through their company Raspet Limited, have asked permission to build in what is currently a car park at the Hillside Retail Park on the Crumlin Road, now anchored by Lidl following the February opening of its store on the site. They want to build a “Drive-Thru Coffee Shop with Erection of Single Storey Coffee Shop”, according to the planning application.

The company did not immediately respond to a request for comment.

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Lidl opened the doors of its Hillview Retail Park store in February following the revamp after more than a decade lying derelict.

The Crumlin Road site is owned by Killultagh Estate’s Hillview Belfast Limited, which announced last year that Home Bargains and a day centre for the elderly will also be tenants.

Meanwhile, a former city centre taxi depot is to be turned into a restaurant if planning permission is granted.

And the planned restaurant on Union Street, just behind the old Belfast Telegraph building, may well be Greek-style if the name of the developers offers a clue.

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Kyrillos Investments, which is owned by London-based Mary and Michael Kyriacou, has lodged planning permission to transform the old A1 depot into the restaurant.

The plan is to extend the ground floor and turn the first and second into two one bed apartments accessed from Little Donegall Street.

Architect Rory Caithness of Caithness Architects on the Holywood Road was not immediately able to reveal further details, and the developers did not respond to a request for comment.

By John Breslin

Source: Belfast Telegraph

Starbucks franchise eyes expansion with £17m package

May 10, 2021

Starbucks franchise 23.5 Degrees, based in Southampton, has secured a £17m funding package from HSBC UK to expand its portfolio.

The injection will allow 23.5 Degrees to open more cafes across the country, including drive thru sites in Sunderland, Bradford and Kings Lynn.

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

The company is planning to open seven new outlets in the next four months and aims to have 300 stores and 6,000 employees by 2027.

Luca Contardo, finance director for 23.5 Degrees, said: “During the pandemic we were able to open nine stores which led to 200 jobs around the country.

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“Fitting out new stores is very capital intensive, with each opening costing upwards of a six-figure sum, but our HSBC UK Relationship Director, Sharon Murphy and her team have enabled our continuous growth to run smoothly.”

Gareth Evans, Hampshire and Dorset area director at HSBC UK, added: 2We are nation of coffee lovers, so it has been a pleasure to support the growth of 23.5 degrees since the relationship began in 2017. They are a coffee powerhouse and it has been great to see the forward-thinking team grow and realise their ambitious growth strategy.”

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23.5 Degrees opened its first store opened in Liphook, Hampshire, in 2013.

By Storm Rannard, Assistant Digital Editor

Source: Insider Media

Starbucks UK plunges to loss on store closures and cost rises

June 30, 2019

Starbucks UK has slumped to an annual loss for the first time since 2013, after it was weighed down by cost increases and store closures.

However, the coffee chain saw its tax bill for the year rise despite posting the loss.

The firm’s taxes have come under significant scrutiny in recent years after it was revealed in 2012 that the business paid only £8.6 million in corporation tax over a 14-year period.

In 2018, Starbucks UK Coffee Company saw its corporation tax bill rise by 22.9% to £4 million.

The UK arm plunged to a pre-tax loss of £17.2 million for the year to September 2018, down from a £4.5 million profit in the previous year.

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It said it made the loss after it was impacted by “very challenging” high street trading conditions and “generally low” consumer confidence.

From the changing consumer landscape to high rents and political uncertainty, there are ongoing pressures across the regionMartin Brok, Starbucks Europe, Middle East & Africa

Profitability was also dented after a sharp rise in costs last year, as the firm started its shift towards a franchise-based portfolio and was hit by one-off charges related to closing unprofitable stores.

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Higher distribution costs and payroll and investment in fresh food also pushed costs higher during the year, it said.

Starbucks reported a 4.1% rise in revenue to £387.5 million for the year, up from £372.2 million the previous year, despite the downturn in consumer confidence.

The chain’s London-headquartered Europe, Middle East and Africa (EMEA) division also saw total revenues rise 1.3% to 229.5 million US dollars (£180.9 million) over the period.

Starbucks was founded in Seattle in 1971 and is now the UK’s second largest coffee retailer, behind Costa, with roughly 1,000 UK stores.

It has recently closed a number of high street outlets and turned its attention to smaller format units and drive-throughs.

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Martin Brok, president of Starbucks Europe, Middle East & Africa, said: “Doing business in EMEA continues to be challenging for Starbucks.

“From the changing consumer landscape to high rents and political uncertainty, there are ongoing pressures across the region.”

By Henry Saker-Clark, PA City Reporter

Source: Independent

Starbucks set to open at Ashford Designer Outlet

June 28, 2019

A major international coffee chain, Starbucks Coffee, is due to open at Ashford Designer Outlet later this year.

Starbucks Coffee will be opening a store at the centre, which is currently undergoing a multi-million pound renovation.

The centre is currently advertising for baristas at the store.

The Careers section of the website says: “HMSHost UK are really excited to be opening a brand new Starbucks Store in Ashford Designer outlet later this year – and we would love to have you join our team!”

HMSHost UK is a global food-service company, best known for airport branches of well-known brands.

The Ashford Designer Outlet, in Kimberley Way, is currently undergoing a £90million expansion – which will see it add 50 more stores, more restaurants and a community area to its offer.

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It is an exciting time at the Designer Outlet, which recently opened its world class children’s play area.

The £400,000 Garden-of-England themed playground features seven-metre high Robinia tree house – one of the UK’s tallest of its kind – a slide, climbing frames and see-saws.

Another coffee shop, Pret, also opened at the mall recently, as did Japanese restaurant YO! Sushi. Five Guys is also due to open.

Outlet bosses say once the extension is complete in the autumn, 500 new jobs will be created.

The centre will also play host to Europe’s largest living wall – the £1.5m plant installation will become the centrepiece of the centre’s expansion.

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Leader of Ashford Borough Council Cllr Gerry Clarkson (Con) said: “I’m delighted to see that another of the Council’s Big 8 projects is approaching completion.

“Like Ashford College, the Elwick Place cinema and leisure complex, and the first phase of the Commercial Quarter, the Designer Outlet expansion is set to play a major part in helping to transform the fortunes of the area.”

But the American coffee franchise is remaining tight-lipped about the new store. A spokesman said: “We are always looking for new locations and opportunities to bring the Starbucks Experience to customers in the UK, but at this time we have no news to share about specific plans in the area”.

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Ashford Designer Outlet has been approached for further comment.

By Molly Mileham-Chappell

Source: Kent Online

Starbucks’ first UK franchisee has opened its 60th Starbucks outlet

February 8, 2019

Starbucks’ first UK franchisee, the Southampton-based company 23.5 Degrees, has opened its 60th Starbucks outlet. The new store in Sheffield, South Yorkshire has created 20 jobs for the local community, including 23.5 Degrees’ first apprentice.

Mark Hepburn, managing director of 23.5 Degrees said: “Reaching our 60th Starbucks store just six months after opening our 50th demonstrates our commitment to our ambitious growth plans. We’re keen to keep our foot on the gas and hope to extend our store count considerably in the coming years.”

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

23.5 Degrees opened its first Starbucks in Liphook, Hampshire, in February 2013. Last year it opened 20 stores and currently has six further new outlets in the pipeline, with a target of 23 stores planned this year.

After opening 13 drive through stores in 2018, the company says it is actively seeking further drive through opportunities on main arterial routes, close to major retail destinations or on large industrial estates, in addition to prominent high street locations.

Hepburn said: “We’re able to move fast on great new sites. Our use of modular design and build enables our landlords to have our stores trading faster.”

Related: 23.5 Degrees franchise opens Starbucks drive-thru in Sheffield

23.5 Degrees adds that it has invested more than £20.5m in the UK economy to date through building and buying stores and has over 770 employees, with nearly 70 per cent of current managers and area managers having started as baristas with the company.

Source: Franchise World