A Norwich franchise business has expanded into the South of England and East London after acquiring nine new stores with support from HSBC UK.
KBeverage has used a seven-figure funding package from HSBC UK to purchase GK Coffee Group and take over the franchisee’s nine Starbucks stores, increasing KBeverage’s total number of Starbucks sites to 44.
The new stores, located in Lewisham, Ilford, Epping, South Woodford, Chatham, Sittingbourne, Deal and Hornchurch, support KBeverage’s ambition to expand into areas outside of its East England base and own 100 stores by 2026. This coincides with Starbucks plans to invest £30m to open 100 new locations in the UK this year after the company reported a 37 per cent increase in UK sales in 2022.
After banking with HSBC UK for over a decade, the bank has supported KBeverage’s acquisition of 12 stores from other franchisees, including one drive-through site, enabling the franchisee to diversify its offering and cater to the ever-growing demand for takeaway coffee.
Alok Yadav, Director at KBeverage Ltd, said: “Our expansion into London with nine new stores has been an important milestone in our growth plan. By broadening our reach beyond the East of England, we’ve tapped into a sizable customer base and taken a big step towards our goal of owning 100 stores by 2026.
“We’re grateful to HSBC UK and our Relationship Manager at the bank, James Payton, who has been a valuable source of strategic advice since I opened my first franchise – a Pizza Hut in Norfolk – in 2012.”
Nicholas Young, Head of Business Banking in East Anglia at HSBC UK, added: “HSBC UK is passionate about helping entrepreneurs realise their goals so we’re proud to have supported KBeverage as it has grown from a single store to 44 in only 8 years. With nearly 20 per cent of KBeverage’s London revenue coming through Uber Eats, it’s fantastic to see how the business has adapted to meet this shift in customer demand. We look forward to continuing our support for Alok as KBeverage expands nationwide.”
After arriving in the UK from India at age 19 in 2007, franchisee Alok Yadav started his career at Domino’s where he worked his way up from a cleaner who spoke no English to Manager of the Year within five years. He then became the youngest franchisee to open a Pizza Hut, which he launched with his wife Rachael. Three years later, the couple became the youngest franchisees to open a Starbucks when they launched their first store in Newmarket in 2015 at ages 27 and 26.
