Franchise gets £17m funding

STARBUCKS’ first worldwide franchise 23.5 Degrees has secured a £17m funding package from HSBC UK to expand its portfolio of UK cafes.

The seven-figure sum will allow Southampton-based 23.5 Degrees to open more cafes around the UK, including sites in Sunderland, Bradford and Kings Lynn.

The company, which opened a cafe in Gosport in February, is planning to open seven new sites in the next four months and aims to have 300 stores and 6,000 employees by 2027.

23.5 Degrees currently has 81 UK stores employing 1,300 staff.

Luca Contardo, finance director, said: ‘During the pandemic we were able to open nine stores and create 200 jobs. Fitting out new stores is very capital intensive, with each opening costing upwards of a six-figure sum, but HSBC has enabled our continuous growth to run smoothly.’