Starbucks buys UK franchise group 23.5 Degrees

The purchase of 23.5 Degrees, Starbucks' largest franchise business partner in the UK, will help the coffee chain improve its in-store experience, it says.

The deal includes 113 stores run by 1,650 employees and increases the total number of Starbucks' company-operated locations to close to 500 in the UK.

“I want to acknowledge the important contributions of 23.5 Degrees and the dedicated green apron partners," says Alex Rayner, general manager, UK, Switzerland and Austria

"This strategic move will enable us to enhance our investment in new locations, elevate our in-store experience, and drive innovation for our UK customers.”

The move follows a period of change at Starbucks, which recently replaced​​ CEO Laxman Narasimhan​​ with former Chipotle CEO Brian Niccol following poor performance at the coffee chain. 

The company has also felt pressure from activist investor Elliott Investment Management, which recently acquired a stake in the company and which has called for change at Starbucks following the sales slump.

Private equity-backed 23.5 Degrees is led by managing director Mark Hepburn. The business opened 11 new drive-through locations last year.