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US coffee giant Starbucks has announced plans to open 500 sites across the UK over the next five years, just months after closing a host of stores.
The company plans to open more than 75 shops this financial year as part of an ambitious expansion drive, The Times reported.
The group’s European president, Duncan Moir, acknowledged that the move came amid a “tougher and more competitive market” in the UK but added that the company had confidence in “the market’s long-term growth”.
The expansion plans have been unveiled just six months after Starbucks closed 10 UK sites – six in London – which the company said failed to “create the physical environment customers want” and were not performing financially.
Starbucks’ latest results filed at Companies House show an operating loss of £29.8m for the 12 months to 28 September 2025, up from £27.5m a year earlier.
The company, which is the UK’s second-largest coffee shop brand behind Costa, reported a 10.1% increase in the cost of goods sold, while wage and benefit costs rose 7.8%.
However, the Seattle-based company recorded its first quarterly sales growth in the US in two years, as well as a return to international growth, driven by China and Japan.
Starbucks now aims to increase revenue by at least 5% in 2028.
The UK coffee market has faced a series of headwinds in recent years. Despite these challenges, coffee consumption in the UK remains strong. The average price of a coffee has risen by 17% since 2022 – well ahead of inflation – and 15% of UK adults buy an out-of-home coffee at least once a week, according to Lumina Intelligence.
With a £6.1bn turnover in 2024-25, the category is poised for robust growth. Starbucks faces stiff competition, with fast-growing challengers building market share. Newer premium brands such as Knoops, Black Sheep Coffee and Gail’s Artisan Bakery have all grown rapidly in the last few years.
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