Work and Money

Multinational coffee shop chain, Starbucks, has opened its seventh store in Tower Hamlets, on Whitechapel High Street.

The area has many independent cafes and restaurants, and protestors say that the arrival of Starbucks damages the character of the local area.

Activists from an anarchist group called the Space Hijackers organised an "East End knees up" outside the Starbucks on Whitechapel High Street, giving out free tea and coffee to passers-by.

"A company like Starbucks is all about homogeneity, which is the total opposite to what Whitechapel has been historically," said Robin Priestley, a member of the Space Hijackers.

A spokesperson for Starbucks told BBC London: "A respect for the local environment and the communities in which we do business is of paramount importance to Starbucks.

Not a real advert

"Starbucks has helped to build and enhance coffee house culture in the UK and we feel there is still plenty of room for both branded coffee shops and independents to happily coexist, just as other multiples in Whitechapel have with other independent retailers."

Starbucks announced in January 2007 that it would aim to open a new store in London every fortnight for the next decade.

Local outlets under threat?

Sayeem Mamood, from nearby independent Cafe Aura, said that multinational chains like Starbucks have much larger marketing budgets and economies of scale when buying their products.

"It will be very difficult for independent retailers like us to compete with Starbucks," Sayeem said.

But Tower Hamlets Councillor Ohid Ahmed, the Lead Member for Regeneration in the borough, said that the council wants to encourage regeneration by promoting outside investment from companies like Starbucks.

"This place is the heart of London and obviously we encourage more investment. We're glad to see more investment coming into this area," he said.

The premises that Starbucks now occupies on Whitechapel High Street was already designated for use by any restaurant or café, so the chain did not have to apply for full planning permission to open the store, and there was no requirement for public consultation.

Whitechapel High Street is already home to multinational food chains, McDonald's and Kentucky Fried Chicken.

To watch Angela's report about the Starbucks store on Whitechapel High Street click on the link at the top right of this page.

angela.saini@bbc.co.uk