Starbucks' stellar numbers in City point to recession’s end

Starbucks today declared that the City and Canary Wharf were back in rude health as its branches there posted the highest sales of all its British stores.

Darcy Willson-Rymer, managing director of Starbucks UK, said: "At the start of the recession these branches were hard hit, but they have come back strongly — they are now part of the strongest region of the UK."

That helped Starbucks report a 5% growth in revenue at its British and Irish branches between January and March.

Its American parent company posted an eight-fold increase in second-quarter profit, which hit $217.3 million (£141.3 million). Sales in American stores - the first in three years - also helped it to its fourth consecutive quarter of profit.

Starbucks' chief financial officer, Troy Alstead, said: "I think the trends we're seeing in the business are real and sustainable."

Willson-Rymer said Starbucks would sell coffee on Thomas Cook planes from May. The chain is also expanding its network of drive-through branches and opening five revamped Starbucks stores in Knightsbridge, the West End and Brixton.

Starbucks also upped its forecast for the year's adjusted profit, saying it expects to earn between $1.19 a share and $1.22 a share, increased from between $1.05 per share and $1.08 a share. Analysts had forecast adjusted profit of $1.12 a share.