Starbucks has acquired the UK franchisee 23.5 Degrees, known for its successful Drive-Thru format, marking a significant strategic expansion in the UK coffee market.
Information on the Target
23.5 Degrees, a prominent franchisee of Starbucks in the UK, has seen substantial growth since its inception. Founded with a focus on the innovative Drive-Thru concept, the franchise has successfully opened over 70 locations across the country. Its rapid expansion was bolstered through investments made by Alexander Square Partners and Connection Capital, emphasizing the significant market potential within the UK's fast-paced coffee service industry.
The franchise's rise was particularly accelerated during the COVID-19 pandemic, which shifted consumer behaviors towards convenient dining options, including Drive-Thru services. This strategic format has not only adapted to changing demands but has also provided remarkable financial returns, making it an attractive asset for its stakeholders.
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Industry Overview in the UK
The coffee shop industry in the UK has witnessed significant transformation over the past decade, evolving into a multi-billion pound market. The rising trend of coffee consumption among consumers, coupled with the increasing demand for sp
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Starbucks
invested in
23.5 Degrees
in 2024
in a Buyout deal