23.5 Degrees Topco Limited
2024
Why
Starbucks acquired 100% of 23.5 Degrees Topco Limited, its largest UK licensed business partner, on October 14, 2024, converting 113 licensed stores (about two-thirds drive-thru) to company-operated locations.
Impact
The deal pushed Starbucks company-operated UK footprint to nearly 500 stores, about 40% of its 1,200-plus total UK locations, within its International operating segment. It also brought roughly 1,650 UK employees in-house, giving Starbucks direct control over training, service standards, and labor practices in its largest UK market segment rather than relying on a franchise operator.
Outcome
Completed in Starbucks fiscal Q1 2025, the acquisition directly contributed to the International segments 7% revenue growth that year.