Starbucks has set out plans to hire 7,500 new baristas over the next five years and hopes to open 500 new coffee shops across the UK by 2031, with hiring focused on the Midlands, northern England, Wales and Scotland. The expansion plan comes as separate jobs market data shows UK employers cut back on hiring in the run-up to last month's budget.
Starbucks, which employs more than 18,000 people in the UK, said the roles are expected to staff the outlets it hopes to open as it targets growth north of the M25. The company set out the growth plan earlier this year after shutting dozens of underperforming outlets in Britain last year as part of a $1bn (£750m) global restructuring.
Darren King, who runs Starbucks UK, said: "We're deeply focused on how we can help more young people into these positions, starting by making entry-level roles as accessible as possible."
Starbucks is a large youth employer and set out the plan before an official report into the number of young people not in education, employment or training, known as Neets, which hit a record high above 1 million at the start of the year.
The number of people taking up permanent jobs across the UK fell for the first time in four months, while recruitment for temporary roles also fell for the first time since March, according to the latest jobs report from KPMG and the Recruitment & Employment Confederation, compiled by S&P Global. The report said employers pulled back on hiring in the month leading up to the budget amid worries about rising costs and the outlook for the British economy.
Jon Holt, the chief executive and UK senior partner of KPMG, said: "October saw employers pull back on hiring in the month leading up to the budget, ending a run of more positive news over recent months. Renewed geopolitical and economic uncertainty weighed on confidence, with further energy price shocks and a global bond sell-off pushing borrowing costs higher."
Holt added: "Businesses will now be assessing whether the measures announced in the budget give them enough stability to absorb the external pressures and higher costs they face. But with the Bank of England increasing interest rates and inflation set to continue rising over the coming months, there is a risk the green shoots we had been seeing in the jobs market could stall."
Separate analysis by the Resolution Foundation found that job satisfaction among UK workers is at a record low, amid a lack of flexible working, insecure jobs and a loss of independence.
Analysis
Why This Matters
- Starbucks' plan would add 500 stores and 7,500 entry-level jobs by 2031, with hiring concentrated in the Midlands, northern England, Wales and Scotland, the regions the chain sees as its future growth.
- The announcement comes with youth employment in focus: the number of young people not in education, employment or training hit a record high above 1 million at the start of the year.
- The wider jobs market weakened in October, with permanent placements falling for the first time in four months and temporary recruitment falling for the first time since March.
Background
Starbucks employs more than 18,000 people in the UK and is a large youth employer. The expansion plan was set out earlier this year after the chain shut dozens of underperforming British outlets last year as part of a $1bn (£750m) global restructuring. It now hopes to grow north of the M25, opening 500 new shops by 2031, while the UK jobs market shows signs of slowing in the run-up to the budget.
Key Perspectives
Darren King, Starbucks UK: said the company is "deeply focused on how we can help more young people into these positions, starting by making entry-level roles as accessible as possible."
Jon Holt, KPMG: said October saw employers pull back on hiring before the budget, and warned that with the Bank of England increasing interest rates and inflation set to rise, there is a risk the recent improvement in the jobs market could stall.
Resolution Foundation: found job satisfaction among UK workers is at a record low, citing a lack of flexible working, insecure jobs and a loss of independence.
What to Watch
- Whether the budget measures give employers enough stability to absorb higher costs, which Holt said businesses will be assessing.
- The Bank of England's interest rate decisions and the path of inflation over the coming months, which Holt said could stall the jobs market.
- How quickly Starbucks opens the 500 planned shops and whether hiring in the Midlands, northern England, Wales and Scotland reaches 7,500 roles by 2031.
Checked
12 claims in this story checked against 1 source: 12 supported.
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- SupportedStarbucks plans to hire 7,500 staff over five years and hopes to open 500 UK coffee shops by 2031.World news | The Guardian: “Starbucks has set out plans to hire 7,500 new baristas over the next five years ... The roles are expected to staff 500 new coffee shops which Starbucks hopes to open across the country by 2031.”
- SupportedStarbucks hiring will focus on the Midlands, northern England, Wales and Scotland.World news | The Guardian: “the hiring spree would focus on the Midlands, north of England, Wales and Scotland”
- SupportedUK employers cut back on hiring in the run-up to last month’s budget.World news | The Guardian: “as UK employers cut back on hiring amid worries about rising costs and the outlook for the British economy, according to a monthly survey.”
- SupportedStarbucks employs more than 18,000 people in the UK.World news | The Guardian: “The US coffee shop chain, which employs more than 18,000 people in the UK”
- SupportedThe 7,500 roles are expected to staff the 500 shops Starbucks hopes to open.World news | The Guardian: “The roles are expected to staff 500 new coffee shops which Starbucks hopes to open across the country by 2031.”
- SupportedStarbucks set out its growth plan earlier this year after shutting dozens of underperforming British outlets last year as part of a $1bn (£750m) global restructuring.World news | The Guardian: “The company set out the growth plan earlier this year after shutting dozens of underperforming outlets in Britain last year as part of a $1bn (£750m) global restructuring.”
- SupportedDarren King, who runs Starbucks UK, said the company wants to make entry-level roles accessible to help more young people into them.World news | The Guardian: “Darren King, who runs Starbucks UK, said: “We’re deeply focused on how we can help more young people into these positions, starting by making entry-level roles as accessible as possible.””
- SupportedThe number of young people not in education, employment or training reached a record high above 1 million at the start of the year.World news | The Guardian: “known as Neets, which hit a record high above 1 million at the start of the year.”
- SupportedThe number of people taking up permanent jobs fell for the first time in four months, and recruitment for temporary roles fell for the first time since March.World news | The Guardian: “The number of people taking up permanent jobs across the UK fell for the first time in four months ... Recruitment for temporary roles also fell, for the first time since March.”
- SupportedJon Holt said employers pulled back on hiring in October, citing uncertainty and energy-price shocks and a global bond sell-off pushing borrowing costs higher.World news | The Guardian: ““October saw employers pull back on hiring in the month leading up to the budget, ending a run of more positive news over recent months. Renewed geopolitical and economic uncertainty weighed on confidence, with further energy price shocks and a global bond sell-off pushing borrowing costs higher.””
- SupportedJon Holt said businesses would assess whether budget measures gave them enough stability, and warned the jobs-market recovery could stall.World news | The Guardian: ““Businesses will now be assessing whether the measures announced in the budget give them enough stability to absorb the external pressures and higher costs they face. But with the Bank of England increasing interest rates and inflation set to continue rising over the coming months, there is a risk the green shoots we had been seeing in the jobs market could stall.””
- SupportedResolution Foundation analysis found UK workers’ job satisfaction was at a record low amid a lack of flexible working, insecure jobs and a loss of independence.World news | The Guardian: “Separate analysis by the Resolution Foundation found that job satisfaction among UK workers is at a record low , amid a lack of flexible working, insecure jobs and a loss of independence.”