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Mon 21st Oct 2013 - Starbucks UK hires new MD
Starbucks hires new UK managing director: Coffee company Starbucks has hired Mark Fox as UK managing director, starting work on 6 January. Fox has over 20 years of retail operations and franchise experience, and is currently managing director of Yum UK overseeing circa 700 dine-in and delivery Pizza Hut sites in the UK and Ireland. He became managing director of Pizza Hut Delivery in December 2009 before stepping up to oversee the combined Pizza Hut operation in November 2012 when Rutland Partners bought the franchisee rights to the restaurant business. He’s also worked with Compass brands in the UK and Ireland for nine months and prior to that worked as an international franchise director for Yum restaurants across Europe. He said that he has “always loved Starbucks coffee” and is delighted to be joining the UK team. He will replace Kris Engskov, who was named as president of Starbucks EMEA in May. Engskov said that the company is “very pleased to welcome Mark to Starbucks” and that “Mark’s prior experience couldn’t be more relevant in supporting where we are headed at Starbucks”. Meanwhile, Starbucks has started training 350 apprentice baristas in the UK. A further 150 baristas are expected to start by the end of the year with another 500 to be hired in 2014. Last month, Starbucks reported that it has negotiated an exit on 46 costly leases in the UK so far – and wants to exit another 30 this year. One store opposite Selfridges on London’s Oxford Street had a rent bill of £850,000 a year. A move around the corner slashed that to £160,000 a year. Its franchise division has completed agreements on 15 deals so far, and is aiming for as many as 200. It plans to have 100 vending machines by the end of the year.

McDonald’s reports solid third quarter: McDonald’s has reported global sales rose 0.9% in its third quarter to the end of September. In the US, comparable sales increased 0.7% in the third quarter while operating income rose 5%. For the quarter, Europe’s comparable sales rose 0.2%. Operating income increased 11% (up 8% in constant currencies) reflecting strong performance in the UK and Russia and solid results in France, partially offset by Germany. Throughout Europe, ongoing efforts to recalibrate “key market value platforms and enhance the McDonald’s experience through menu innovation and marketing are designed to strengthen the business for the long term”, the company stated.

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