Starbucks is Considering Selling its UK Business

Starbucks is reportedly considering selling its UK business as it faces increasing competition and changing customer habits. According to media reports, however, no "formal sales process" has begun. Lockdown measures around the world have taken a heavy toll on the world's largest coffee chain.

In May, the company said it is "single-mindedly focused on enhancing our core US business". According to the Times, which broke the story first, the company will continue to "evaluate strategic options" for its company-owned international operations.

Starbucks has hired Houlihan Lokey as advisers to investigate potential business options. Starbucks, like much of the food and beverage takeaway industry, was hard hit by measures to slow the spread of Covid-19. It, like its competitors, is dealing with rising costs as well as having to adapt to changing customer habits as more people shift to hybrid work-from-home schedules.

In the United Kingdom, the company is also facing increased competition from rival coffee chains such as Costa, Pret A Manger, and Tim Hortons. Starbucks manages approximately 1,000 stores in the United Kingdom, approximately 70% of which are franchises, and the remainder is owned by the company.

The company is currently looking for a new permanent CEO, with former CEO Howard Schultz filling in as a temporary replacement.