Starbucks partners with Euro Garages to create 2,000 new jobs

The head of Starbucks in the UK has announced (1 December, 2011) plans to accelerate its expansion in partnership with Euro Garages.

Under the five-year agreement, Euro Garages will open up to 100 additional Starbucks roadside outlets — including drive-thrus — over the next five years across the North of England and Midlands, creating up to 2,000 new jobs.

Starbucks said additional jobs would also be created throughout the region with the expansion of its company-owned retail outlets — part of a wider UK growth strategy which will create up to 5,000 new roles in total.

Euro Garages entered into a licensing agreement with Starbucks in March 2010 to open an initial 30 drive-thru sites, which was later expanded to 50 following the success of the first stores. This latest announcement takes the total number of new sites to be opened by Euro Garages to 150.

Kris Engskov, managing director of Starbucks UK & Ireland, travelled to the flagship drive-thru Starbucks outlet in Blackburn, opened earlier this year by Euro Garages, to meet staff and make the announcement.

He said: “Customers told us that they want great coffee when they’re on the go and the success of our first drive-thru stores shows that this is a huge opportunity. It also means that we are able to create quality jobs at a time when they are most needed and because half of our baristas are under 24 years-old, this will particularly benefit young job-seekers at a time of record youth unemployment.

He added: “The North West of England is a region of high strategic importance for us as we believe it offers great potential for growth. We’re enormously excited about expanding our partnership with Euro Garages. We’re looking forward to contributing to the job creation story here and across the UK.”

Zuber Issa, chief executive of Euro Garages, said: “Our partnership with Starbucks has been a huge success to date. At a time when youth unemployment in particular is rising so sharply, we’re delighted to be making such a positive announcement that will create new and exciting employment opportunities for people at our sites.”

Euro Garages has already opened 12 Starbucks sites under its existing franchise agreement, with a further 12 due to open before June 2012.

Earlier this year, Euro Garages defied the economic gloom by posting strong growth in sales and profits in its annual trading update.

Total sales at the group, which is BP’s largest independent fuel distributor with a portfolio of more than 70 freehold-owned sites, were up 5 per cent to £300m (2010: £285m) in the 12 months to 31 July. It also said retail sales — which include its network of SPAR convenience stores as well as its Starbucks, Subway and Burger King franchises — had risen 28 per cent and now accounted for more than £50m of annual revenues.

The group, which is chaired by former ASDA Chief Executive Andy Bond, said funding for the expansion would come from its recent £110m fundraising exercise, led by Lloyds Banking Group.

Media coverage of the announcement:

www.telegraph.co.uk/finance/
www.guardian.co.uk/business/
www.bbc.co.uk/news/

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