Monday 19 August 2019

Store closures hurt Starbucks

COFFEE chain Starbucks said the closure of six of its Irish outlets contributed to pre-tax losses.

The stores closed by the US-owned company were all Dublin-based and included sites in Ranelagh, Dalkey, Tallaght, Dundrum and Swords.

Pre-tax losses at the operation expanded by 102pc within the year and the closures contributed to a 10pc decline in sales.

Pre-tax losses jumped from €1.62m in 2009 to €3.28m in the 12 months to the end of October 3 while revenues declined to €16.1m.

The iconic coffee brand only established itself in Ireland in 2005.

The Irish loss includes royalties and licence fee payments of €875,303 to the Seattle-based parent.

Starbucks has 16,858 stores worldwide, employs 137,000 people and last year had total revenues of $10.7bn (€7.4bn).

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