Phil Broad, the Starbucks UK and Ireland managing director, has resigned less than a week after he assured The Times that difficulties facing the coffee shop chain in America and Australia had not spread to Europe.

Darcy Willson-Rymer, vice-president of Starbucks Europe, Middle East and Africa, will take over.

Martin Coles, president, Starbucks Coffee International, said: “We have already seen steady, consumer-led growth in the UK for the last 10 years and remain excited by the opportunities in the UK market.”

Earlier this week, Mr Broad said that despite a “slight decline in traffic” in the three months to June 29, the UK and Ireland arm was on track to meet its target of 100 new stores by the end of the financial year. It had opened 78 so far, taking its total to 679.

Last month the chain announced its first loss since 1992 after the cost of closing 600 store closures pushed it $6.7 million (£3.36 million) into the red during the third quarter.

The company said it will also cut three quarters of its 84 stores in Australia.

Times Recommends

• Global stocks rally on Fannie and Freddie rescue
• Green gives warning of 'double dip'
• ‘Winter of discontent’ looms amid strike action