Starbucks UK has achieved record profits in the last year, resulting in the payment of £8 million in tax.
Pre-tax profits have climbed steeply to £34.2 million in the year to 27 September; this compares with a profit of under £2million in the year before.
Although the increased tax payment will capture the headlines – after the furore back in 2012 over Starbucks’ lack of tax payments – the real story is the transformation in profitability.
Sales have grown by 3.8% after intense focus at Starbucks to transform the business which has exited many expensive sites, such as Oxford Street, opened franchises, and managed costs rigorously. The result: more profit from coffee sold.
It is also reported to have adjusted payments made to other parts of Starbucks, such as the coffee it purchases. These will also have had a significant impact on overall profitability in the UK.