Lessons to learn from how Starbucks is selling coffee in Italy - Insights (2024)

For most, mornings are not complete without a cup or two of your favourite joe. When Howard Shultz, Starbucks’s former and long-running CEO, claimed that he was inspired to build his coffee empire from what he experienced during his early travels in Italy (specifically Milan), it is indeed telling that the company has waited this long before pushing full force into this hallowed market.

Lessons to learn from how Starbucks is selling coffee in Italy - Insights (1)

Visiting the country affords nearly every traveler the right to outstanding coffee, with a perfect little café adorning nearly every city block. So, when Starbucks decided to make its move, it had to be bold and it had to be different from what’s considered the norm in Italy’s coffee culture – to not only earn the ongoing praise of locals but to hopefully also give the company another revenue stream that they could export around the world.

The Milan Roastery

Starbucks decided to enter the Italian market starting in Milan with a single store – the Starbucks Reserve Roastery Milan. Converting a historic post office, it is undoubtedly the largest Starbucks in the world. Dominated by a multi-story, unobstructed roastery and adjoining packing line in its center, eight serving counters wrap around the outer walls with coffee-related merchandise sold in the middle.

On the mezzanine, you’ll find a bar with a half-dozen mixologists whisking together a wide range of alcoholic beverages with, surprisingly, no coffee service on this level. Instead, with most every order comes free pizza to ply patrons with a little nosh.

On a weekday afternoon, service was brisk and efficient. Above all, the coffee was superb. Looking over the vast expanse from my balcony seat, I estimated about 400 people actively pursuing a cup of their favourite brew as they watched the brewers shuffling about in the center to roast and bundle the beans on the spot.

It’s all about the experience

While every café in Europe has its charm, the experience offered by this Reserve Roastery was exceptional, and therefore memorable. While any place can inevitably make a fantastic cappuccino, here it’s all about the experience and the vivid activation of the five senses.

Beyond the taste, think of how the wafting of freshly roasted beans smells, how the constant grinding of those beans from every corner plays on the ear drums or simply how having so many people in one room resembles less a traditional café and more a German beer hall.

Applying this to the hospitality industry, how do you move your aspects of your business from serviceable or great to something truly experiential? Certainly, you’re not going to spend a massive amount of CapEx to build a roastery in the center of your restaurant, but the core idea of full sensory activation is nevertheless critical for the next evolution of your operations.

Thinking experientially does not have to be limited to your coffee program, of course. Initiate a dialogue with your staff to see how you can slowly integrate newer and wilder ideas into your restaurants, your bars, your lounge areas, your pool areas, your meeting spaces or anywhere else that’s guest-facing.

Ask what measures can be taken to create elements of your service delivery with a unique thumbprint. Hotels must be fun and exceptional in order to truly command an upwardly moving ADR and to create year-round demand. Designing micro-experiences are a great way to make your hotel stand out.

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Lessons to learn from how Starbucks is selling coffee in Italy - Insights (2024)

FAQs

Why is Starbucks so successful in Italy? ›

Now, Starbucks has 20 stores operating across Italy. According to The Take Out, the secret behind Starbucks' success in the coffee-loving country is simple. The brand recognized that this was not America, where many people weren't as familiar with the difference between cappuccinos and lattes, and adjusted accordingly.

What challenges did Starbucks face when entering the Italian market? ›

Entering this market successfully was a great obstacle for Starbucks, as they faced strong competition from local cafes, Italian coffee brands, and a population that is deeply rooted in their coffee traditions.

What is the target market of Starbucks in Italy? ›

Conclusion. Conclusively, Starbucks should enter into the Italian market with the main focus being the tourists and other foreigners who are immigrants from other countries, as these are already used to the coffee. Additionally, they should focus on attracting new Italian clients by customizing the product.

What do Italians primarily drink as per Starbucks research? ›

Italian coffee drinking behaviour

Typically, an Italian will enter the coffee shop, simply ask for a coffee (which is an espresso – this is the standard drink), stand up at the counter, drink the coffee which takes just a few minutes, then leave.

Do you believe that Starbucks will be successful in Italy? ›

Despite challenges, I would say Starbucks beat the odds in Italy with plans to expand further. They key for Starbucks is to adapt to the local culture. Expecting further challenges, Starbucks partnered with an Italian Brand Manager and local businesses.

Why Italy is a difficult market for Starbucks? ›

Matters of taste. In general, Italians jokingly call American coffee "brown water". In Italy there is a strong coffee culture, so it is difficult for a foreign brand to enter the Italian market.

Why is Italy known for coffee? ›

The Serenissima Republic of Venice was in fact one of the first European states to import coffee beans when they reached the Old Continent. Founded in 1720 and located in the outstanding and iconic Piazza San Marco, Caffè Florian, is the most ancient operating coffee house in the world.

Why does Starbucks use Italian? ›

In 1986, Starbucks founder Howard Schultz was reportedly working on another coffee chain called Il Giornale, Italian for "the newspaper." It was this first venture that sparked the sizing names short, tall, and grande.

What ethical problems has Starbucks faced? ›

These include tax avoidance, allegations of irresponsible marketing, issues surrounding worker and human rights. Before we discuss these ethical questions, let's summarise the history of the company.

When did Starbucks enter the Italian market? ›

Starbucks entered the Italian market in 2018 with the Starbucks Reserve Roastery in Milan and plans to reach 37 stores nationwide by the end of 2023.

How many Starbucks stores are there in Italy? ›

As of the third quarter of 2023, Starbucks had 2,794 stores in Europe. The European country with the most Starbucks stores was the United Kingdom with 911 Starbucks stores. This was followed by Turkey with 676 stores and France with 238 Starbucks stores. Comparatively, there were only 31 Starbucks stores in Italy.

Which country buys the most Starbucks? ›

The U.S. and China are easily Starbucks' largest markets, accounting for more than 61% of all Starbucks locations, and also have the most stores under direct company control.

Is Starbucks inspired by Italy? ›

Starbucks CEO, Howard Schultz, admits that it was the Italians' love for coffee that inspired him to create a cafe in America that resembled their community and delicious coffee.

Is Starbucks originally from Italy? ›

Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It was founded in 1971, and is currently the world's largest coffeehouse chain.

Who owns Starbucks in Italy? ›

Starbucks Coffee Company announced opening the first Starbucks store in Italy. Percassi confirmed as Starbucks sole licensee in Italy will own and operate Starbucks stores, with the first store opening in Milan at the end of 2018.

Which country is Starbucks most successful in? ›

The U.S. and China are easily Starbucks' largest markets, accounting for more than 61% of all Starbucks locations, and also have the most stores under direct company control.

Why is Starbucks successful internationally? ›

Starbucks is well-positioned for continued international growth, with over 32,000 stores spanning over 80 countries. The company's strong brand reputation, customer-centric approach, and ability to adapt to local markets are key factors that will drive its future success.

What makes Starbucks successful globally? ›

The company's focus on local markets extended beyond the U.S. and Canada. Starbucks continued to replicate this successful model as it expanded internationally, adapting to the unique tastes and preferences of each new market. This localization strategy was critical in winning the hearts of customers worldwide.

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