Euro Garages turns to Midlands for new Starbucks sites
THE chief executive of Euro Garages has said it will confine the bulk of the 2,000 jobs it is expected to create through the opening of new Starbucks to sites in the North and Midlands.
Speaking to TheBusinessDesk.com following its announcement yesterday of a five-year partnership with US-based coffee shop retailer Starbucks, Zuber Issa said although it had recently opened a standalone Starbucks close to Stansted airport, this was a one-off trial.
“We’re looking at sites from Scotland down to Carlisle and through the North West, throughout Yorkshire and down to the Midlands in areas around Birmingham,” he said. “That’s where we’ve got the personnel, and we want to stay focussed.”
The deal with Starbucks certainly made headlines yesterday as part of a wider announcement by the US firm to bring 5,000 new jobs to the UK. Some 70% of these will go to people under 24, it said, and with youth unemployment figures recently hitting record highs the company gained a visit from Deputy Prime Minister Nick Clegg to an outlet in London as well as praise from Prime Minister David Cameron.
“We feel very fortunate to be a part of it,” said Mr Issa. “Starbucks was a brand that was always based in the city centre. We’ve taken the brand to different people and they’ve reacted well to it. It’s been very successful for us.”
Blackburn-based Euro Garages’ arrangement with Starbucks started around 18 months ago.
“Initially we did three, and then we moved from three to ten and eventually they came to us and asked ‘Would you be interested in doing a lot more?’.”
Its aim is to build 20 stores per year over the next five years. Mr Issa said this would be subject to securing the right type of sites and the necessary planning consents, but he is confident of achieving its target.
“We might not be able to do 20 every year, but if there’s a year where we can beat that and do a few more, we will. But it’s a good challenge for us and the team are really excited.”
The company has completed 12 sites to date and has already identified another 12 where Starbucks can be quickly bolted on to its chain of 70 freehold petrol forecourt sites – either through the purchase of extra land or by replacing an existing underperforming asset such as a car wash.
New sites could either be located alongside Euro Garages forecourts, other franchises (it also has relationships with Subway and Spar) or as completely standalone drive-thrus, depending on site and planning constraints.
Mr Issa added that trading at the company, which increased sales by 5% to £300m in the year to July 31, remained tough as petrol station forecourts suffered from a 5-6% decline in fuel spending.
“We’re experiencing double-digit growth in the convenience side of the business, though,” he added. Convenience sales accounted for £50m of last year’s turnover.
