Starbucks signs first UK university franchise

Starbucks has signed its first licensing agreement with a UK university in a deal which will see students at the University of Surrey, in Guildford sipping tall cappuccinos on campus.

The licensed outlet is set to open by the end of the year and is the first in a series of university campus deals the coffee chain is targeting in the UK in order to boost its presence outside of its traditional high-street market.

Rupert Lawrie, director of business alliances at Starbucks UK, said, "This is a great commercial investment for the university, combining a fantastic offer for students by providing them with somewhere recognisable from home with an investment that will provide the University with significant returns over the years.

"Our licensed store model has proved very popular with universities in the USA. We are confident that this partnership will be a great success and are actively looking for new partners in the college and university sector."

Starbucks introduced licensing as a way to increase store numbers in the UK back in 2005 but it has run the model in the USA since 1996 where there are now 2,000 licensed stores out of 4,400 Starbucks.

Rival chain Costa Coffee already has deals with universities for outlets including sites at Sheffield, Swansea and De Montfort in Leicester.

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By Christopher Walton

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