Why did Starbucks UK's retail arm receive a £13.7m tax credit despite a 6% sales increase?

Because its UK retail arm reported a widened loss of £41.3m — nearly matching the £40m paid in royalty and licence fees to its parent company — making it eligible for a corporation tax credit that can offset future tax bills.

How did Starbucks UK justify its widening losses in 2025?

It cited a 'challenging consumer environment' marked by inflationary pressures, reduced discretionary spending, increased competition, a more than 35% rise in unroasted coffee prices since August 2025, a 7.8% increase in wages and benefits costs, and one-off costs from closing underperforming stores.

Starbucks UK Retail Arm Receives £13.7m Tax Credit Despite Sales Increase

Apr 10, 2026

Starbucks UK secured a £13.7m tax credit while posting a £41.3m loss due to royalty fees, despite a 6% sales rise. Unroasted coffee costs surged over 35%, contributing to financial pressures alongside inflationary wage hikes.

theguardian

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