Can Starbucks work in Italy?

posted on 2nd March 2016

While Starbucks is a big name in the US, and used to be a staple scene in romcoms, it hasn't always flourished outside its home country. In Australia it struggled for eight years before closing over 60 unprofitable stores, while in New Zealand it has always struggled against better offerings from other brands. Part of the reason for this is that franchises such as Columbus Coffee, The Coffee Club and Robert Harris are individually-owned by franchisees, while Starbucks outlets are operated under management by Restaurant Brands.

Now Starbucks is to expand into Italy, the home of espresso and the culture that reportedly inspired Starbucks founder Howard Schultz 30 years ago. Will it fare any better in one of the world's most style-conscious and sophisticated markets? Time will tell.

The headline of its news release said the company was entering Italy "with humility and respect" for the country. Schultz said he plans to develop a coffee blend specifically for the Italian market and add a bar for customers to stand at, as is custom in Italian coffeehouses.

The company will also be going local with a partner, working with Percassi - which Srere noted is "hugely respected in Italy" - as the licensee to operate its stores.

Branding experts said the humble and local approach was the right one.

"You've got to go and kiss the ring here - you don't mess around with Italy and coffee," Ries said. Companies need "to be authentic, and to not just be the big American brand with guns blazing, coming in to take over the town."

Read more at http://www.stuff.co.nz/busi...

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