By Leah Montebello
Starbucks’ interim chief said the firm had “lost its way” in recent times as the coffee giant eyes up a $450m growth plan.
In an interview with the Financial Times, Howard Schultz said although the company had gone through a rocky period, he believed “the best days of Starbucks are ahead of us”.
In an investor meeting this week, he said the firm would deliver double-digit revenue increases in the long term thanks to a “reinvention plan”. This will look at investing in new North American stores and improving efficiency.
The news comes after reports earlier this year that the firm had appointed advisors for a sale of the UK business.
As first reported by the Sunday Times, the coffee chain was said to “exploring a potential sale of its UK operations” amid a backdrop of rising costs and competition.
The paper reported that Starbucks has appointed its adviser, Houlihan Lokey, to canvas interest for its UK arm.
At the time, a Starbucks spokesperson said: “Starbucks is not in a formal sale process for the company’s UK business.”
Starbucks shares were elevated last month after the coffee chain posted record quarterly revenue.
However, the US giant said its bottom line had been impacted by inflationary cost pressures and higher wages.
It surpasses sales expectations, posting third quarter sales topping $8.2bn, ahead of analysts’ bets of $8.1bn.
Roaring sales in the chain’s largest market the US were offset by a hit to revenue in China, its second-largest market.
Sales in China fell 44 per cent on a same-store basis in the period, driving an 18 per cent drop in international sales. Store sales in the US were boosted nine per cent, primarily boosted by higher average order sales.
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