[UK] Starbucks attributes £29m losses to minimum wage and rising taxes

In the UK, Starbucks has attributed operating losses of £29.8 million to several factors, including reduced spending and 'changes to minimum wage', Food Bible reports.

Accounts filed at Companies House revealed that the coffee giant made a major operating loss despite turnover rising by £30 million to £556.3 million.

Starbucks reportedly cited price increases, new loyalty schemes and the introduction of ‘freshly baked in-store food’ as reasons for sales increasing so dramatically.

But seeing revenue increase by 5.8 per cent did not prevent its operating losses increasing to £29.8 million, up from £27.5 million in 2024.

The chain cited a “challenging consumer environment” and a 7.8 per cent increase in National Insurance contributions, together with ongoing input cost inflation.

It stated that “changes to minimum wage and employer National Insurance contributions” had added to pressure on its profit margins.

On April 1, the UK’s national minimum wage rose by 4.1 per cent, taking the hourly rate to £12.71.

An additional factor contributing to losses is reportedly the one-off costs associated with its £750 million store closure programme carried out in September 2025.

The Telegraph reported that 77 stores closed in the UK during the 2025 financial year, with 10 Starbucks branches shutting up shop in England and Scotland, including stores in Glasgow, Ilford, Holland Park, and Muswell Hill, in October alone.

According to The Grocer, Starbucks also reportedly blamed dwindling profits on the price of unroasted coffee, which has increased by more than 35 per cent since August 2025.

Despite this, Starbucks EMEA president Duncan Moir outlined plans to open 500 UK stores over the next five years.

The first 75 of these are reportedly expected to open during the 2026 financial year.

“We’re seeing an encouraging process as we deliver on our Back to Starbucks plan, focusing on the fundamentals of the coffeehouse experience, improving customer service and product consistency, and building stronger digital and loyalty engagement,” Mr Moir said.

Source: Food Bible

(Link and quotes via original reporting)

In the UK, Starbucks has attributed operating losses of £29.8 million to several factors, including reduced spending and 'changes to minimum wage', Food Bible reports.

Accounts filed at Companies House revealed that the coffee giant made a major operating loss despite turnover rising by £30 million to £556.3 million.

Starbucks reportedly cited price increases, new loyalty schemes and the introduction of ‘freshly baked in-store food’ as reasons for sales increasing so dramatically.

But seeing revenue increase by 5.8 per cent did not prevent its operating losses increasing to £29.8 million, up from £27.5 million in 2024.

The chain cited a “challenging consumer environment” and a 7.8 per cent increase in National Insurance contributions, together with ongoing input cost inflation.

It stated that “changes to minimum wage and employer National Insurance contributions” had added to pressure on its profit margins.

On April 1, the UK’s national minimum wage rose by 4.1 per cent, taking the hourly rate to £12.71.

An additional factor contributing to losses is reportedly the one-off costs associated with its £750 million store closure programme carried out in September 2025.

The Telegraph reported that 77 stores closed in the UK during the 2025 financial year, with 10 Starbucks branches shutting up shop in England and Scotland, including stores in Glasgow, Ilford, Holland Park, and Muswell Hill, in October alone.

According to The Grocer, Starbucks also reportedly blamed dwindling profits on the price of unroasted coffee, which has increased by more than 35 per cent since August 2025.

Despite this, Starbucks EMEA president Duncan Moir outlined plans to open 500 UK stores over the next five years.

The first 75 of these are reportedly expected to open during the 2026 financial year.

“We’re seeing an encouraging process as we deliver on our Back to Starbucks plan, focusing on the fundamentals of the coffeehouse experience, improving customer service and product consistency, and building stronger digital and loyalty engagement,” Mr Moir said.

Source: Food Bible

(Link and quotes via original reporting)