Starbucks retail magic isn't working on the Irish. Figures released by the company this week suggest that the costs associated with the closure of over 20% of Starbucks’ Irish outlets contributed to its pre-tax losses, which more than doubled last year.
According to a report in the Irish Examiner this week the number of Starbucks coffee shops was cut from 23 to 17 last year, with the closures contributing to a 10% decline in sales, from 18.1 million euro to 16.1 million and a loss of 46 jobs, as staff costs fell from 6 million to 5.1 million. Thirteen of the company’s remaining 17 Irish outlets are located in Dublin, including two at Dublin Airport.
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In their accounts, the directors state: 'In spite of continuing challenges in the wider economy, these accounts reflect a period in which management continued to make progress towards improving the overall health of the business by focusing on improving the customer experience, investing in its employees and driving efficiencies throughout the operating structure.'
The company added that 'tough measures taken this year will deliver future improvements in the financial performance of the business.'