Starbucks UK has reported a 61% decrease in annual profits in the year to 2 October, siting factors such as Brexit, the sharp fall of the pound and terrorism for the dip.
The figures are said to have also been affected by the cost of reorganising stores, investment in its product offering, and by an increase in pay to meet the National Living Wage.
The company, which operates 900 UK stores, saw pre-tax profits drop to £13.4m for the year to 2 October last year compared with £34.2m the year before, as turnover fell by 6% to £380m.
Sales at the coffee shops that had been open for a year rose by 1%, compared with a 3.8% increase the year before. These don't include unprofitable 12 month-old outlets that have now closed or are in the process of closing.
Having faced criticism for low tax payment, Starbucks' corporate tax bill was down from £8.4m to £6.7m.
Starbucks stated, 'The general consumer environment was more cautious than the prior year, with footfall noticeably down across the store estate leading to lower sales.'
Martin Brok, president of Starbucks Europe, Middle East and Africa, said, 'Whilst there are undoubted challenges presented by a more cautious consumer environment, lower high street footfall, and adverse currency impacts, we are investing significantly to drive innovation in our food and coffee offering.'