Starbucks sees UK profits increase by 5% after marketing push

Starbucks has reported a 5% increase in its UK profits over the first quarter of the year, boosted by campaigns for its flat white offerings and the Via ready brew range.

Starbucks campaign
Starbucks campaign

The Seattle-based firm reported global profits of $217.3m (£141m) in the first quarter to 28 March and said comparable store sales growth in the UK increased by almost 5%.

The brand’s growth came from around 50% more customers signing up to its loyalty card system and becoming repeat customers.

It adds that its decision to roll out new store designs meant customers were making the most of its in-store features such as free Wi-Fi and Fairtrade espresso shots and syrups.

Starbucks UK and Ireland managing director, Darcy Willson-Rymer, says: “Customers are still looking for value, and they told us that they wanted to be rewarded for loyalty. Our response is now paying off. Customers are also looking for better coffee at home, at work or on holiday, which is why Starbucks Via represents such a big opportunity.”

Last month, Starbucks unveiled an ad campaign to support the launch of Via Ready Brew coffee in the UK. it says it has added extra sales and received an enthusiastic reception from customers as a result of this with 400,000 people taking the “Taste Challenge” over 4 days and half of them buying Via on the spot.

The brand says it is now concentrating on extending its brand in more places and is working with Welcome Break to put Starbucks on the motorway network, and is working with Eurogarages to open drive-through stores on trunk roads. Starbucks Via Ready Brew will also be available for a six month trial with Thomas Cook Airlines to all its 80 destinations from 1 May.

Starbucks coffee is also now available through its Discoveries chilled coffees and Doubleshot offerings – which can be found in Tesco and Sainsbury’s supermarkets and will be backed by an advertising campaign planned by Arla Foods.

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