Euro Garages to open 100 new roadside Starbucks
EURO Garages has signed a deal with Starbucks to develop up to 100 Starbucks roadside and drive-thru outlets in a move that could create up to 2,000 jobs.
The Blackburn-based garage forecourts operator has signed a five-year partnership with the coffee retailer to open the new outlets – around half of which will be in the North West.
Euro Garages, which is owned by the Issa family, initially entered into a licensing agreement with Starbucks in March 2010 to open an initial 50 sites. Some 12 of these have already been built, and a further 12 will open by June 2012.
Euro Garages chief executive Zuber Issa said: “Our partnership with Starbucks has been a huge success to date.
“This latest announcement is fantastic news for the region, which will be a key area of focus for our expansion over the coming months and years.
“At a time when youth unemployment in particular is rising so sharply, we’re delighted to be making such a positive announcement that will create new and exciting employment opportunities for people at our sites.”
In the 12 months to July 31, Euro Garages increased sales at its 70 freehold-owned forecourts by 5% to £300m. Retail sales from a portfolio that includes Spar, Starbucks and Subway concessions grew 28% to £50m.
The group, which is chaired by former ASDA chief executive Andy Bond, said funding for the expansion would come from its recent £110m fundraising led by Lloyds Banking Group.
Alongside the partnership with Euro Garages, Starbucks announced plans to create up to 5,000 new jobs in company-owned outlets across the UK.
The company’s UK & Ireland managing director, Kris Engskov, said: “Customers told us that they want great coffee when they’re on the go and the success of our first drive-thru stores shows that this is a huge opportunity.”
He added: “The North West is a region of high strategic importance for us as we believe it offers great potential for growth. We’re enormously excited about expanding our partnership with Euro Garages. We’re looking forward to contributing to the job creation story here and across the UK.”
