The coffee chain said Thursday that its UK business lost £17.2 million ($22 million) in the year ended September 2018, a performance it blamedpartlyon costs including store closures and higher wages. The business made a profit the previous year.
While sales increased by about 4%, the company said that was offset by "an increase in our cost of sales, which was driven by our efforts to improve our food menu with higher quality ingredients and more fresh food."
The United Kingdom is Starbucks' sixth-biggest market by number of stores (994 in total), behind the United States, China, Canada, Japan and South Korea.
The American chain is the latest in a series of restaurants and retailers to come under pressure in Britain, where many businesses have struggled with the transition to online shopping and uncertainty about Brexit.
Starbucks also faces stiff competition in the United Kingdom.
It's also facing several other challenges in regional markets.
"From the changing consumer landscape to high rents and political uncertainty, there are ongoing pressures across the region," said Martin Brok, president of Starbucks' operations in Europe, the Middle East and Africa.
Starbucks is addressing the trouble by making changes to how it serves customers and moving away from traditional retail outlets, Brok said.
The company is expanding drive-thru stores, and testing a coffee delivery service in partnership with Uber Eats that will be available in London this summer and other cities around Europe and the Middle East later this year.
Starbucks last year also signed a $7.2 billion deal with Nestle(NSRGF), under which the Swiss food and drink company will market, sell and distribute Starbucks' packaged coffee and tea around the world.
Britain currently has 17 F-35Bs and has pledged to purchase 138 in total from US aviation giant Lockheed Martin.
The aircraft - which cost almost £100m - can land vertically, similar to the Harrier Jump Jet, and combine radar-evading stealth technology with supersonic speeds.
Six of the jets have been deployed at RAF Akrotiri in Cyprus since May for training exercises, in an operation known as Exercise Lightning Dawn.
As part of their training, the jets carried out 95 missions and flew in pairs for 225 hours, the MoD said.
They have now joined the hunt for militants under Operation Shader, the UK's contribution in the ongoing military action against IS.
Speaking from the Cypriot RAF base, Ms Mordaunt said she was "very proud that these are now flying in defence".
She added: "It obviously has some incredible capabilities which are really putting us in the lead."
The jets, jointly operated by the RAF and the Royal Navy, are expected to take off from the decks of the new £3.1bn Queen Elizabeth Class aircraft carrier in the autumn for more testing.
Why F-35 jets' real test is still to come
By BBC defence correspondent Jonathan Beale
The first of Britain's most advanced and expensive fighter jets have now carried out more than a dozen missions over Iraq and Syria.
With IS having lost its territory and on the run there are now few obvious targets.
The F-35s have not yet conducted any airstrikes. Instead they've been using their sophisticated sensors to gather intelligence.
The RAF describes the F-35 as the best "eyes and ears" on the battlefield, even though the jet is still suffering from a host of technical problems.
But its other great asset is that it is hard to see. Britain's first "stealth" jet can, in theory, avoid detection by enemy radar.
The real test in combat will not be against the remnants of IS, but a well armed opponent with advanced air defences.
Britain currently has 17 F-35Bs and has pledged to purchase 138 in total from US aviation giant Lockheed Martin.
The aircraft - which cost almost £100m - can land vertically, similar to the Harrier Jump Jet, and combine radar-evading stealth technology with supersonic speeds.
Six of the jets have been deployed at RAF Akrotiri in Cyprus since May for training exercises, in an operation known as Exercise Lightning Dawn.
As part of their training, the jets carried out 95 missions and flew in pairs for 225 hours, the MoD said.
They have now joined the hunt for militants under Operation Shader, the UK's contribution in the ongoing military action against IS.
Speaking from the Cypriot RAF base, Ms Mordaunt said she was "very proud that these are now flying in defence".
She added: "It obviously has some incredible capabilities which are really putting us in the lead."
The jets, jointly operated by the RAF and the Royal Navy, are expected to take off from the decks of the new £3.1bn Queen Elizabeth Class aircraft carrier in the autumn for more testing.
Why F-35 jets' real test is still to come
By BBC defence correspondent Jonathan Beale
The first of Britain's most advanced and expensive fighter jets have now carried out more than a dozen missions over Iraq and Syria.
With IS having lost its territory and on the run there are now few obvious targets.
The F-35s have not yet conducted any airstrikes. Instead they've been using their sophisticated sensors to gather intelligence.
The RAF describes the F-35 as the best "eyes and ears" on the battlefield, even though the jet is still suffering from a host of technical problems.
But its other great asset is that it is hard to see. Britain's first "stealth" jet can, in theory, avoid detection by enemy radar.
The real test in combat will not be against the remnants of IS, but a well armed opponent with advanced air defences.
Britain currently has 17 F-35Bs and has pledged to purchase 138 in total from US aviation giant Lockheed Martin.
The aircraft - which cost almost £100m - can land vertically, similar to the Harrier Jump Jet, and combine radar-evading stealth technology with supersonic speeds.
Six of the jets have been deployed at RAF Akrotiri in Cyprus since May for training exercises, in an operation known as Exercise Lightning Dawn.
As part of their training, the jets carried out 95 missions and flew in pairs for 225 hours, the MoD said.
They have now joined the hunt for militants under Operation Shader, the UK's contribution in the ongoing military action against IS.
Speaking from the Cypriot RAF base, Ms Mordaunt said she was "very proud that these are now flying in defence".
She added: "It obviously has some incredible capabilities which are really putting us in the lead."
The jets, jointly operated by the RAF and the Royal Navy, are expected to take off from the decks of the new £3.1bn Queen Elizabeth Class aircraft carrier in the autumn for more testing.
Why F-35 jets' real test is still to come
By BBC defence correspondent Jonathan Beale
The first of Britain's most advanced and expensive fighter jets have now carried out more than a dozen missions over Iraq and Syria.
With IS having lost its territory and on the run there are now few obvious targets.
The F-35s have not yet conducted any airstrikes. Instead they've been using their sophisticated sensors to gather intelligence.
The RAF describes the F-35 as the best "eyes and ears" on the battlefield, even though the jet is still suffering from a host of technical problems.
But its other great asset is that it is hard to see. Britain's first "stealth" jet can, in theory, avoid detection by enemy radar.
The real test in combat will not be against the remnants of IS, but a well armed opponent with advanced air defences.
Britain currently has 17 F-35Bs and has pledged to purchase 138 in total from US aviation giant Lockheed Martin.
The aircraft - which cost almost £100m - can land vertically, similar to the Harrier Jump Jet, and combine radar-evading stealth technology with supersonic speeds.
Six of the jets have been deployed at RAF Akrotiri in Cyprus since May for training exercises, in an operation known as Exercise Lightning Dawn.
As part of their training, the jets carried out 95 missions and flew in pairs for 225 hours, the MoD said.
They have now joined the hunt for militants under Operation Shader, the UK's contribution in the ongoing military action against IS.
Speaking from the Cypriot RAF base, Ms Mordaunt said she was "very proud that these are now flying in defence".
She added: "It obviously has some incredible capabilities which are really putting us in the lead."
The jets, jointly operated by the RAF and the Royal Navy, are expected to take off from the decks of the new £3.1bn Queen Elizabeth Class aircraft carrier in the autumn for more testing.
Why F-35 jets' real test is still to come
By BBC defence correspondent Jonathan Beale
The first of Britain's most advanced and expensive fighter jets have now carried out more than a dozen missions over Iraq and Syria.
With IS having lost its territory and on the run there are now few obvious targets.
The F-35s have not yet conducted any airstrikes. Instead they've been using their sophisticated sensors to gather intelligence.
The RAF describes the F-35 as the best "eyes and ears" on the battlefield, even though the jet is still suffering from a host of technical problems.
But its other great asset is that it is hard to see. Britain's first "stealth" jet can, in theory, avoid detection by enemy radar.
The real test in combat will not be against the remnants of IS, but a well armed opponent with advanced air defences.
Britain currently has 17 F-35Bs and has pledged to purchase 138 in total from US aviation giant Lockheed Martin.
The aircraft - which cost almost £100m - can land vertically, similar to the Harrier Jump Jet, and combine radar-evading stealth technology with supersonic speeds.
Six of the jets have been deployed at RAF Akrotiri in Cyprus since May for training exercises, in an operation known as Exercise Lightning Dawn.
As part of their training, the jets carried out 95 missions and flew in pairs for 225 hours, the MoD said.
They have now joined the hunt for militants under Operation Shader, the UK's contribution in the ongoing military action against IS.
Speaking from the Cypriot RAF base, Ms Mordaunt said she was "very proud that these are now flying in defence".
She added: "It obviously has some incredible capabilities which are really putting us in the lead."
The jets, jointly operated by the RAF and the Royal Navy, are expected to take off from the decks of the new £3.1bn Queen Elizabeth Class aircraft carrier in the autumn for more testing.
Why F-35 jets' real test is still to come
By BBC defence correspondent Jonathan Beale
The first of Britain's most advanced and expensive fighter jets have now carried out more than a dozen missions over Iraq and Syria.
With IS having lost its territory and on the run there are now few obvious targets.
The F-35s have not yet conducted any airstrikes. Instead they've been using their sophisticated sensors to gather intelligence.
The RAF describes the F-35 as the best "eyes and ears" on the battlefield, even though the jet is still suffering from a host of technical problems.
But its other great asset is that it is hard to see. Britain's first "stealth" jet can, in theory, avoid detection by enemy radar.
The real test in combat will not be against the remnants of IS, but a well armed opponent with advanced air defences.
A report on how to avoid checks on the Irish border after Brexit suggests the UK and Ireland could try to form a new single zone for food standards.
The radical proposal is part of the Alternative Arrangements report.
It is backed by Tory MPs Nicky Morgan and Greg Hands.
Food standards are one of the most difficult border issues due to strict EU rules as food products entering from a non-member state must be subject to checks at the point of entry.
If the UK is outside the single market after Brexit that could mean products being exported from Northern Ireland to the Republic would have to be checked at border inspection posts.
The report from the Alternative Arrangements Commission suggests that one solution could be for Britain and Ireland to form a single zone for food standards.
The rules in the zone would remain closely aligned with the EU to minimise the prospect that goods would have to be checked when entering the continental EU.
If the UK sought to diverge from EU rules then Ireland could revert to the EU regulatory area.
In that scenario, Stormont would then have a vote on whether it wanted to remain aligned with Ireland - which would mean new checks on goods coming into NI from the rest of the UK.
The proposal is likely to face some major hurdles and the commission acknowledges it would be difficult to negotiate.
It would require the EU to accept UK standards as equivalent to EU standards.
It is likely to be extremely controversial in Ireland as it could be seen as weakening Ireland's position as a member of the EU single market.
It is also not a guarantee that border checks would not ultimately have to be applied.
The island of Ireland is already a single zone for animal health, meaning all livestock entering NI from GB are subject to checks at Larne Harbour.
The commission says that simply extending that arrangement to cover food standards would resolve many issues.
However, it concludes that such an arrangement could not negotiated at this time, though that could change if a Stormont government is in place.
Another idea around the area of food standards suggests that any checks could take place away from the border.
That could mean, for example, Irish government accredited vets inspecting food production facilities in Northern Ireland.
The EU rules on Border Inspection Posts currently allow inspection to happen away from the border if the frontier area has "geographic constraints".
The Commission suggests this could also be explored in an Irish context.
The geographic constraints rule can apply if a border crossing is somewhere like a narrow mountain pass which would make it hard to construct inspection posts.
That would not seem to apply on somewhere like the main Belfast - Dublin road.
Last week, the UK government announced the first of three expert groups which will also look at "alternative arrangements".
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Your guide to Brexit jargon
The EU has also committed to exploring alternative arrangements once a Withdrawal Agreement is passed.
On Friday, the Taoiseach (Irish prime minister) emphasised that whatever alternative arrangements may be proposed any Brexit deal must also include the backstop.
Speaking at the end of an EU summit Leo Varadkar said: "We can't accept that alternative arrangements are an alternative to a backstop unless we see what they are, know how they would work and see them demonstrated.
"That hasn't been done yet and I don't see that being done this side of 31 October, which is why we certainly can't accept the deletion of the backstop."