Starbucks's UK retail arm has been awarded a £13.7 million corporation tax credit for the last fiscal year, despite reporting a 6% increase in sales to £556.3 million and the opening of 92 new stores, bringing the total to 1,304 outlets. However, the company also faced a significant loss of £41.3 million, primarily attributed to £40 million in royalty and license fees paid to its parent company. This situation has drawn criticism from tax advocacy groups, highlighting a recurring pattern where Starbucks reports growth while simultaneously declaring losses that exempt it from paying corporation tax. The company has cited inflationary pressures and increased competition as contributing factors to its financial challenges, alongside rising costs for unroasted coffee and employee benefits. In response to these difficulties, Starbucks's parent group provided £90 million in cash to bolster the UK operations, alongside a £70 million credit facility, which indicates ongoing financial strain. The situation raises questions about the sustainability of Starbucks UK's business model and its tax contributions in the UK market.