Starbucks’s retail arm will get £13.7m tax credit score whilst gross sales enhance | Starbucks

[ad_1] Starbucks’s UK retail arm obtained a £13.7m company tax credit score final 12 months, whilst its gross sales elevated 6% and it added greater than 90 shops.

The credit score, which can be utilized to offset future tax payments, comes after losses widened to £41.3m within the 12 months to the top of September – virtually matching the £40m it paid in royalty and licence charges to its guardian firm.

Starbucks mentioned worth will increase, new loyalty schemes and the introduction of “freshly baked in-store meals” had helped to extend gross sales to £556.3m, accounts filed at Corporations Home present.

Paul Monaghan, the chief govt of the Honest Tax Basis marketing campaign group, mentioned: “This all feels so very Groundhog Day. As per a decade in the past, Starbucks UK experiences annual development in earnings and retailer numbers, while on the identical time declaring a loss because of the fee of hefty royalty charges to different Starbucks subsidiaries. The top outcome, no company tax is paid.”

Final 12 months’s tax credit score comes after the UK retail enterprise paid no company tax for 2024 because it dived to a £35m loss after paying £40m in royalty and licence charges to its guardian.

The royalty charges had been paid to a UK-based entity, Starbucks Emea, which collects comparable charges from throughout Europe, the Center East and Africa.

That enterprise paid out $27m (£20m) in company tax, the accounts present, however it was unclear how a lot of that may be paid within the UK, after it made a revenue of $84.5m on revenues of $402m collected from a number of nations. The revenue got here after it paid out virtually $65m below a “cost-sharing settlement” with its US guardian and $17m in “assist charges” to Starbucks Italy.

The group additionally paid a $207m dividend to the US guardian, up $7m on a 12 months earlier than.

A spokesperson for the Starbucks group mentioned the corporate was dedicated to paying all its taxes, wherever they're due.

“As a accountable enterprise, we handle our international tax duties consistent with our mission and values,” it added. “Our method to tax goals to align with the wants and long-term pursuits of our varied stakeholders – together with governments, shareholders, companions and the communities the place we function and supply merchandise.”

Starbucks UK opened 92 extra retailers throughout the 12 months, taking the whole to 1,304, together with these run by franchise companions. The openings included 25 company-run shops, taking that complete to 398.

Nevertheless, it mentioned it had lower total workers numbers by 244 to five,352 as a result of it had shifted away from part-time employees in the direction of full-time workers.

The corporate mentioned its losses had widened in 2025, citing a “difficult shopper atmosphere characterised by inflationary pressures, diminished discretionary spending and elevated competitors”.

It mentioned costs of unroasted espresso had elevated by greater than 35% since August 2025 whereas wages and advantages prices had elevated by 7.8% in contrast with 2024, together with the federal government’s enhance in employer nationwide insurance coverage contributions. The corporate additionally incurred a one-off price related to the closure of some underperforming shops.

Starbucks UK mentioned its guardian group had ploughed £30m of money into the enterprise to maintain it afloat within the 12 months to the top of September and an additional £60m in February this 12 months.

It mentioned the contribution was made to “strengthen the corporate’s liquidity place within the mild of economic pressures expertise in 2024 and 2025” in addition to prices linked to its restructure.

The group took out a £70m credit score facility, which expires in December, and at its year-end in September had £166m of money owed payable inside a 12 months, up from £144m a 12 months earlier than.