[ad_1]
Starbucks Corporation (NASDAQ: SBUX) had a comeback of sorts last week. After more than 30 years of expansion and global domination, the coffee giant opened its first store in Italy, the cradle of espresso, and the country that inspired former CEO Howard Schultz. it is today.
Source of the image: Starbucks.
Benvenuti
The opening of Starbucks in Milan is not just a shop. The company cut the ribbon of its third Roastery in the world, revealing the latest version of what Schultz called "The Coffee Willy Wonka".
Like roasters already open in Seattle and Shanghai, the Milan roaster presents all stages of the roasting process, highlighting the "coffee theater" that has always seduced Schultz. The location of Milan also has special features, such as a unique 22-foot bronze roasting barrel, a unique bar on the mezzanine with over 100 cocktails on the menu, a homemade ice cream with Nitrogen Liquid and Princi bakery products.
And the fans showed up for the fanfare, while the convent drew crowds to its opening with about 200 people lined up around the block, waiting to enter the store last Friday.
The entry of Starbucks in Italy could be the biggest test of the brand, especially at a time when growth has slowed in many of its markets around the world. After all, cafes are ubiquitous in Italy – the country has about 57,000, one per 1,000 people – and Starbucks also charges nearly double the prices of its independent competitors.
Cold brewing
Before the opening of Milan, various media reported that Italians were skeptical about the entrance to the coffee chain. The Local Italy, an English-language news site based in Italy, said readers had largely rejected the decision, with 87 percent of respondents saying they were against the new Starbucks. A reader compared it to the opening of a Taco Bell in Mexico.
Condé Nast Traveler The Italians were also puzzled by Starbucks' entry, insisting that an espresso elsewhere in the country would be better and that the practice of taking five to ten minutes to drink an espresso in a coffee shop was a sacred ritual in the culture.
Then there is the issue of pricing. Starbucks will charge 1.80 euros for an espresso, nearly double the euro that Italians pay in their local bars. Starbucks thinks the price reflects the premium experience offered by the roaster, but many Italians have refused the highest price.
The naughty American
The phenomenon of an American company facing a reaction abroad is not new. French farmers once vandalized McDonalds restaurants, seeing its fast food as an assault on French culture and cuisine. However, the Golden Arches have nevertheless flourished in France and today count 1,400 sites. Walt Disney Co had a similar experience at the opening of Euro Disney, today Disneyland Paris, but a generation later, the attraction park still attracts about 15 million people each year.
We can expect a negative reaction from some Italians, and pride justifies it to a certain extent, but roasting should attract some people, at least out of curiosity, and it will probably attract tourists like roasters Shanghai and Shanghai. Seattle has been.
The key question is whether Italians will eventually endure the higher prices for "the premium experience" and will continue to return to the Milan roaster once the novelty has passed. Starbucks also has other plans for Italy as it plans to open four Starbucks in Milan by the end of the year.
Starbucks does not need to succeed in Italy. The country, with about 60 million people, would barely move Starbucks' finances, even though Starbucks has fully penetrated its market. But creating a brand at espresso would be a big win for the Starbucks brand and show that it still deserves its high prices, while showing that it is able to appeal to the most skeptical and sophisticated consumers.
Starbucks could use the win, even if it's just moral, because success in Italy would likely reflect strength elsewhere. The stock has struggled recently; it's traded on the side over the past three years, while the S & P 500 gained 50%. A recent divestiture has also not inspired shareholder confidence.
Meanwhile, Howard Schultz no longer has an official role, the company no longer has his own Willy Wonka to save the mark if things go wrong. An attack in Milan could mean that the brand is losing its direction.
[ad_2]
Source link
