The acquisition of 23.5 Degrees, Starbucks’ primary franchise partner in the UK, aims to enhance the coffee chain’s in-store experience. This agreement encompasses 113 stores operated by 1,650 employees, bringing the total number of company-operated Starbucks locations in the UK to nearly 500.
Alex Rayner, general manager for the UK, Switzerland, and Austria, remarked, “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.”
This transition occurs during a tumultuous period for Starbucks, which recently appointed former Chipotle CEO Brian Niccol as CEO, replacing Laxman Narasimhan due to disappointing performance. The company has also faced pressure from activist investor Elliott Investment Management, which has acquired a stake in Starbucks and is advocating for change following a sales downturn.
23.5 Degrees, backed by private equity and led by managing director Mark Hepburn, expanded its footprint last year by opening 11 new drive-through locations.
