Starbucks franchise firm the Magic Bean Co expanding with 75 new drive-thrus

The Swansea firm’s expansion is being backed with a new £21m funding facility with HSBC

Swansea-based Starbucks franchise venture the Magic Bean Co has revealed major expansion plans for 75 new drive-thrus across the UK.

The business, which currently operates 47 franchise outlets, is being backed to expand with a new £21m funding line from HSBC. The bank, through a revolving credit facility, has support the firm since its was established in 2013 and opened its first Starbucks outlet in Cardiff a year later. The new facility builds on a previous £15m funding agreement.

The expansion over the next five years, will create more than 1,00 new jobs. Every drive-thru with having electric charging points after the company secured a national electrical vehicle channel license agreement. The business currently employs around 700.

Of the new sites, four have already opened . A further four will launch by year end i ncluding those in Port Talbot and Swindon and Netherton in September, followed by Lichfield in November.

Over the five-year period, the business anticipates its turnover will double from £34m to to £68m.

The HSBC UK funding will enable the Magic Bean Co to invest in the development and refit of the new sites, while providing headroom for working capital and supporting the business’ long-term growth.

.Jamie Evans, finance director at the Magic Bean Co, said: “HSBC UK has been with us from the very beginning, supporting us from the opening of our first Starbucks drive-thru in Cardiff in 2014 through to establishing our first revolving credit facility, which helped us expand from 19 sites to the 47 we operate today.

“This latest funding will support the continued rollout of our Starbucks drive-thru portfolio, enabling us to serve more customers in more locations.”

Lyndsey Connor, corporate banking relationship director at HSBC UK, added: “With the UK targeting 300,000 public EV charge points by 2030, investment in innovative roadside developments has never been more important.

“We’re delighted to support the Magic Bean Co on this unique venture, bringing together premium coffee and EV charging to enhance the customer experience while supporting the UK’s transition to electric vehicles.”