Starbucks slumps to £41m loss in UK in past year as pandemic takes its toll on another coffee shop chain
Starbucks slumped to a £41m loss in the UK in the past year as the pandemic took its toll on another coffee shop chain.
It published its latest results with Companies House, which showed revenues in the year to September 2020 fell £243m, down 32.7 per cent due to the heavy restrictions imposed during much of the year.
Slump: Despite the pandemic, Starbucks continued to pay their staff in full and did not take any Government furlough money for its non-franchised stores
But despite the pandemic, Starbucks continued to pay their staff in full and did not take any Government furlough money for its non-franchised stores, which account for around 30 per cent of all sites in the UK.
There was some recovery for the company when stores were allowed to reopen last summer, with UK city centres trading at 34 per cent of levels the previous year, rising to 56 per cent by September 2020.
Bosses in the UK continued paying rents during the entire pandemic period, although they did enter into lease negotiations to agree reductions where possible.
Other well-known chains, such as Pret a Manger and Caffe Nero, have also struggled.