Starbucks considers selling British business?Does the famous coffee giant start selling assets?

Among the coffee industry in the world, Starbucks is undoubtedly the best in the coffee industry. As the world's largest coffee industry participant, Starbucks has always been recognized as the leader of the market. British business, why is the famous coffee giant Starbucks also start selling assets?

1. Starbucks considers selling British business?

Reuters on July 17th, according to the British Times, sources said that Starbucks is exploring the sale of British business, saying that the company has been facing competition from coffee chain shops such as Pret A Manger, Tim Hortons and Costa.

People familiar with the matter revealed that Starbucks has asked the International Investment Bank to evaluate the interest of the outside world for its British business. According to reports, the company has not yet launched the official sale process, but it will continue to "evaluate the strategic options for international business." Starbucks has more than 1,000 coffee shops in the UK and hired nearly 4,000 employees.

Britain is Starbucks the largest market in Europe, the Middle East and Africa. The company stated in a financial report as of October 2021 that as of last year, the company had 1,000 stores in the UK, of which 297 were owned by the company and 703 were franchised. Nearly 4,000 employees are hired.

The company said that the total revenue of this fiscal year was 328 million pounds (US $ 389 million), and Starbucks British Coffee Company repaid a loan of 25 million pounds ($ 29.6 million) from the parent company to offset the head of the new crown pneumonia Decreased losses caused by monthly sales.

Although the income of the coffee chain rebounded after the British epidemic blockade was relieved, the company said that the financial performance of its own stores did not return to the level before the epidemic. Shops in office, tourism and city center lag behind other places. Starbucks opened 14 new stores in FY2021 and closed 5.

Second, why is the coffee giant who start selling assets?

To be honest, I saw that Starbucks was going to sell their business in the UK at this time, and many people would be surprised. After all, Starbucks is a world -renowned coffee chain company, and the British market is also one of the most important markets for Starbucks. Why is it? In this case, Starbucks wants to sell its core business? What is the logic of this?

First of all, for Starbucks, in fact, how many stores Starbucks opens in which market is actually a key issue, because Starbucks' strategy is actually a different market, and it is a relatively independent system. Among the relatively independent systems, Starbucks is actually more controlled by controlling the development of the entire market. Once a certain market has a continuous opening of stores and does not make money, Starbucks will choose to make a certain choice in this market. Through judgment, it will be judged. If you think that this market does not have much program value, it is necessary to deal with this market, which is the inevitable result. For the current British market, Starbucks may want to do this process. This is the normal state of Starbucks. A development strategy.

Secondly, why does Starbucks have such a situation in the British market? In fact, the core reason is the influence of the epidemic. Starbucks actually develops very unsatisfactory in the British market. It feels better, but because the epidemic continues to repeat, the impact on Starbucks is still very great, especially like the British market and there is no such developed takeaway system in the Chinese market. The demand may not be as big as expected, so under such a background, Starbucks in the British market is actually in a difficult state.

Third, from the perspective of long -term market development, Starbucks is actually a process of breaking the wrist. Its overall market development logic is actually losing the car and the handsome market. To keep it, this is the core development logic of Starbucks. However, from the perspective of Starbucks, it is not easy to give up more than 1,000 stores in the core market in Europe. It is not an easy task, unless the buyer can give a very good price. However, we see the current logic of Starbucks's money, even if it is put on the buyer, it is estimated that the buyer must weigh whether the Starbucks can make money, and the money that can be given will not be too much. Therefore, for the current Starbucks, even if even the British market can give up, what other overseas markets will Starbucks have no abandonment?

- END -