Major coffee chain to open 500 new UK shops

Starbucks has said it plans to hire 7,500 new baristas across the UK over the next five years following an overhaul at the coffee giant.

The company is currently undergoing a major turnaround under boss Brian Niccol, which saw the company shut dozens of UK coffeehouses last year.

That included a few weeks ago rejecting suggestions it could enter a tie-up agreement with Chipotle, the Mexican grill food outlet and focusing on in-house improvements under its ‘Back to Starbucks’ strategy plan.

However, the boss said last month that the business is firmly in growth and eyeing further expansion after two years of menu simplification, staffing investments and a shake-up of operations aimed at improving service.

In March, the company said it planned to open 500 new coffee shops across the country by 2031. On Monday, the Seattle-based hospitality firm said its expansion will see a recruitment drive for new staff to join its current workforce of more than 18,000.

It said the hiring spree will be particularly focused in the Midlands, north of England, Wales and Scotland, as it targets further growth north of the M25.

The hiring plans come despite increases in labour costs for businesses, with the Government confirming at last month’s Budget that the national minimum wage will increase by 3.9% in April next year. That follows previous hikes over the last couple of years to employer National Insurance contributions, the Living Wage and additional packaging costs.

Starbucks has been hit by new controversies on more than one occasion recently.

A US watchdog group investigation found earlier this year that none of the firm’s recyclable cups which they tracked actually ended up being recycled. A company statement refuted the process of the investigation.

And in South Korea in August, police ended up raiding Starbucks offices after a disastrous PR stunt linked a range of coffee tumblers to military operations used against civilians in 1980 and another incident which saw a student tortured and killed. The chief executive of Starbucks Korea was fired over the incident and videos were uploaded to social media showing former customers smashing mugs and products with the company logo.

Closer to home, Starbucks has a long history of paying barely any tax in the UK, despite profits running into the tens of millions of pounds.

A combination of paying royalties, making losses and tax credits to offset different years frequently mean the UK arm of Starbucks pays out zero corporation tax, with Paul Monaghan, chief executive of the Fair Tax Foundation, having earlier this year called it a “very Groundhog Day” situation of “growth in income and store numbers, […] declaring a loss due to the payment of hefty royalty fees to other Starbucks subsidiaries. The end result, no corporation tax is paid.”

However, the jobs boost to younger workers comes when there are concerns that many firms find it less worthwhile to employee inexperienced staff due to the increase in costs. Helen Dickinson, chief executive of the British Retail Consortium, said: “At a time when too many young people are struggling to get a foot on the career ladder, this investment is hugely welcome.

“Retail and hospitality are vital routes into the workplace, helping young people build skills, confidence and experience while offering genuine opportunities to progress.”

Darren King, vice president and managing director, Starbucks UK, said: “We’re proud to be creating thousands of new jobs across the UK over the next five years, bringing new opportunities to communities across the country as we continue to invest and grow here.

“At the heart of our Back to Starbucks strategy is our ambition to create a place where people can build skills, grow their careers and feel part of a team.

“We’re deeply focused on how we can help more young people into these positions, starting by making entry-level roles as accessible as possible.

“You don’t need previous industry experience and we’ll give you the training and support you need from day one.”

Starbucks is a major employer of young people in the UK, with more than half of staff in company-operated stores under the age of 24.

It came as researched commissioned by the business found that 68% of 18–35-year-olds surveyed believe that retail and hospitality roles are perceived as temporary or “stopgap” work, amid efforts from Starbucks to provide career progression opportunities for staff.

Additional reporting by PA