An Unlikely Blend -- Part II

Almost one year ago, I posted my response to the question: why aren't there any Starbucks in Italy? Today at Fast Company Expert blogs I talk about learning from Starbucks -- Was it Too Much of a Good Thing?

I thought it a good idea to take another look at the reasons I gave for the absence of the coffee chain in the beautiful country I come from (waxing poetic now):

My two cents on Italian coffee and why Starbucks is an unlikely blend in Italy (I've been proven wrong before):

1. True espresso coffee is an experience hardly any Italian gives up. It is often accompanied by a little pastry -- and I mean little -- a cigarette smoke, and a quick read of the sports section of the daily news. If the customer needs it, the caffe' quickly becomes "corretto", which means a splash of liquor graces it.
2. The corner bar (that's how we call cafes) is cozy and the choice is personal. Each bar brings its own experience and clientele. In Modena we have Il Caffe' dell'Orologio near Piazza Grande, the main square, where a coffee can become a delightful blend of caffeine, chocolate and whipped cream in a champaigne flute with little salatini on the side or remain its old, marvelous self. In the summer, you can sit outside between the store windows of Max Mara and iBlues. I'm there only once a year, but they remember my name. There are many others, of course. Including one that makes the best hot chocolates in winter -- they literally coat your bones and protect you from the rigors of weather.
3. Each bar has its own clientele and personality, even time of the day. When I'm there with my family, we head to one in the early morning, one in midmorning, and yet another one in late morning. All cafes work double duty, becoming aperitif places in the afternoon -- clever they are, and pleasure-loving we are. My favorite hangout for the afternoon and early evening cocktail or drink is the Caffe' Concerto in Piazza Grande, Modena. In the spring and summer they have tables outside where you can sit, relax, listen to the music, and watch the world go by and the sunset kiss the red bricks of the buildings and pink marble of the cathedral.

Now it looks like Mr. Schultz is planning to expand internationally. If there is market saturation for coffee shops, that would be in Italy. I just hope that wisdom prevails and we don't find ourselves flooded in the smaller piazzas and street corners of a country we've all come to love for it's lack of predictability.

I brew my own espresso at home so I can learn to avoid the stores there as I have here. What about you? Do you think Starbucks would blend in Italy?

Comments

[Sampad Swain]

I have never been to Italy, but going by your statements I guess Starbucks is better off staying away as it will lose its Brand Identity in the already cluttered corner bars which serves the existing mass.

So let's see how Starbucks(Mr Schultz)responds to this!!

[Marshall Sponder]

I don't think Starbucks will work out too well in Italy, given what you've shared. I know Starbucks is popular in Paris, based on what I observed, with about 23 locations (if I remember correctly).

From my point of view, as a traveler, going to place I'm not too familiar with, a Starbucks, even a McDonald's, might be comforting - and the semblance of Internet Access - makes it actually more appealing. If a lot of tourists are traveling around...say, Modena, maybe Starbucks would succeed.

But more likely, the locals won't support it ..and if they do, it will mostly be younger people - students. Question is - is there enough of that kind of audience to build 100's of Starbucks in Italy. My guess is no, there's not, but... my guess is..they'll try it.

Besides, wasn't there a study done recently comparing Starbucks to Dunking Donuts and people are actually blurring the distinctions... in some cases.

Like you say, maybe too many Starbucks...

[Cam Beck]

I love your analysis here... Italy is on my "places to go before I die" list, but so far I haven't been there, so it's impossible for me to give a firsthand account like you just did... My impression is that you're exactly right, and that if Starbucks wants to open some stores in Italy, they will need to account for cultural differences, and it will by no means experience the sort of ubiquity they have here in the U.S., at any rate.

[Joe Raasch]

Oh Valeria,

Why do many of us 'artists' in business wish to live in Paris or Modena or Vienna?

Today's Starbucks, focused on efficiency, speed, and competing with McDonald's won't work in Italy.

Yesterday's (tomorrow's?) Starbucks, focused on 'the coffee experience', grinding beans in-house, knowing your name, NOT serving hot breakfast sandwiches - they could be another choice for tourists and locals in any European city.

[Valeria Maltoni]

@Sampad -- I surely hope not to see yet another mass chain as the only export of U.S. culture abroad, like malls. I read recently that traffic in malls has been on the decrease. Part due to online shopping, part perhaps to overload with mass culture?

@Marshall -- oh, trying they will. The problem will be pricing. The Euro is at an all time high and Italians are at an all time earning less comparatively. Only for tourists? Why would you go all the way to Italy to sip a predictable cup of Starbucks (high priced) coffee? Students have no money ;-)

@Cam -- promise you'll go visit (I don't work for the Italian tourist board ;-). If you do, remember to visit cities in Romagna (region above Tuscany), Cinque Terre, and the Lakes. They are all among my favorites.

@Joe -- for a while there I thought you were going to move to France. Is that still a possibility? I need someone nice to go visit. The problem with your scenario is pricing. They could outprice themselves out of the Euro market if not careful. they outpriced themselves out of my own pockets here.

[Joe Raasch]

Hi Valeria,

Paris is still on the list - though maybe a few years out. BTW - I am not nice. I am sweet. Didn't your mother teach you to not use 'four letter words'? HA!

Pricing will be a challenge. My post was regarding Starbucks getting back to creating an experience. This would allow them to compete (though not necessarily win) against local competition. With the Walmartization of the world, many tourist DO travel half way around the world just to have the same brands they get at home. Sad.

[Valeria Maltoni]

Then I would say smart. There are no four letter words in Italian ;-) Except for ciao, maybe.

We could get into a whole conversation about how it's good to try new things and (maybe) be uncomfortable to grow, etc. Maybe we will when we have a chance to sit with a cup of coffee!

[Joe Raasch]

So is there a Starbucks in Philadelphia?? HA!

[Scott]

Valeria:

A guy in strategic planning I work with notes that Starbucks biggest issue is that they are offering a product that is already available even in airport bars in Italy. How can they differentiate themselves? He doesn't think they can, enough to make a difference in sales. they succeeded in the US because they brought something that _most_ people hadn't ever had.

Scott

[Valeria Maltoni]

@Joe -- plenty. But I will be in Minneapolis in early March. Will share details when I have them. Would love to meet face to face.

@Scott -- you are absolutely right. And the airport and train station coffee is already very good. I do a lot of travel to and from and have had great service in both places. There is also the pricing issue, which in Europe at the moment is a sticking point. Right again on experience most people had not had here. I keep forgetting that most do not even (or did not before last summer) have a passport ;-)

[Frode Hegland]

Italy sounds great, but you know, here in London the differences between the Starbucks' are vast. And it usually comes down to the staff. :-) Some are great. Some are just terrible, dirty , bad air, bad service and so on. The great ones truly are nice places to read a paper, do some work and smile.

[Valeria Maltoni]

Thank you for taking the time to report from the ground, Frode. And welcome to the conversation. I think chains work less well in Europe in general, people are much more "local" in their approach to everything, communities are better knit, still, etc.

Cafe's are so good in Italy that I would be hard pressed to find a reason to go to Starbucks there, especially since I do not go here.