The thread is dedicated to the Brexit video, the Brexit Story and how this could impact Starbucks. Try and weave the Starbucks company into the Brexit story. Does Brexit have implications for a...

With every passing day Brexit seems to be becoming a reality and one which would have
tremendous implications for the various businesses especially those which have a sizable
presence in UK. One of such businesses is the coffee major Starbucks. The US continues to
be largest market for the company with Asia showing robust growth. The net sales generated
from the European market is rather limited at 8% of the total sales but despite that there is no
denying the fact that Starbucks would be adversely impacted considering that in Europe, UK
is the largest market with a total stores in excess of 850 (Maze, 2016). The next European
market is Germany which has only 158 stores and thus dwarfs in comparison to UK. Clearly,
in such a background, the European business of Starbucks rests on the UK and its economy
(Sozzi, 2016).
The impact of the Brexit has already been visible in the financial results of the company. The
company in the recent results has seen the profit from UK market plunging by more than
50%. One of the key reasons contributing to the same is the fall in consumer confidence
which has been observed in the aftermath of the vote in favour of Brexit. As the UK
government goes ahead to materialise the Brexit, the consumers have grown increasingly
wary of an uncertain future especially in the short term (Maze, 2016). Hence, it is apparent
that the fortunes of the company in Europe atleast are linked closely with their success in the
UK. Another product which is expected to witness an adverse impact on the sales is the
Nespresso machine for home brewing...