Starbucks in Italy: cultural exchange or tradition loss? - DigiCommON (2024)
The crashing journey falls into a bigger ongoing reflection where the line between business freedom and damaging tradition of Starbucks brand is blurred.
The relationship between Italy and Starbucks runs deeper than expected. The first Starbucks of its name was founded in 1971, limiting its operation in selling coffee beans. The company’s fate took a turn when in 1983 Howard Schultz joined the company. He is the person who built the brand as we know it today. The inspiration? Italy.
Italian coffee culture originates in Venice. It started in the 16th century with the import of the product through the port and later in 1720, with the opening of the first coffee shop. Other inventions pioneered and fostered the creation of a culture of its own; setting Italy apart from any other country in the world. In 1901 Luigi Bezzera created the espresso coffee machine and 1933 Alfonso Bialetti the Moka Express. These two, in particular, made the product available and accessible at every corner to the masses, shaping new consumers’ habits.
Since then, the country has kept its own distinctive identity. The national protectiveness of coffee culture against outsiders is best exemplified by the Italian author, Italo Calvino. In 1959, during a trip to the US, he wrote: “Sure, I’m happy when I can drink a coffee Italian-style, but I struggle to explain to Americans the feeling of uneasiness that this kind of places provokes in me.” To put it another way, the emic perspective is hard to be expressed to non-Italians. Yet it creates today an unspoken shared sentiment of rejection towards international chains.
Caffè Florian, the first opened in Venice, started as an unofficial meeting space for exchanges. This idea is at the very core of the Italian coffee experience. As well as being the motivation for Howard Schultz’s rebranding of Starbucks. The CEO was struck by inspiration during a trip to the city of Milan. Then, he decided to merge the Italian experience with Americans’ taste and way of life. Hence, the focus on creating personalized drinks and a short preparation time.
Both Starbucks branches and the Italian coffee shops are common landmarks and part of a daily lifestyle. Yet the giant at an apparent advantage with an established global presence was very cautious in opening in Italy and only in 2018 did so. The answer for such a long wait very much comes down to cultural differences, acting as deterring agents.
Market newcomer’s success often comes from the ability to identify customer needs. Only in recent years, there have been signals of openness from various segments of Italian consumers. Thus, creating the perfect business opportunity. The move to open the first branch in Milan is the perfect marketing strategy. The city has a reputation for being a business mecca, with savvy entrepreneurs and a strong international tourism identity. In other words, establishing both a strong customer base, familiar with the brand to boost sales and initially helping establish trust with the unacquainted through WOM.
The question arises: what does it mean for Italian coffee culture? Since its opening, new locations have been inaugurated such as in Turin or set to, in Rome. A clear sign of the business growing and finding success. Parallelly, traditional coffee shops still have kept their critical presence. In other words, the two have seemed to coexist so far.
The expansion plan seems to be carefully planned out, with a focus on cultural sensitivity and establishing loyalty. The failed venture in Australia could have served as a rehearsal for their growth in Italy; the country with iconic coffee culture and where Starbucks’ inspiration came from.
Naturally, what we are witnessing are the short-term effects. Regardless of opinion, it is undeniable that every business has the right to open. Equally, in Italy, many international brands have already established themselves from the F&B industry and outside it, namely fashion brands.
At the core of Starbucks remains the focus on cultivating the coffee experience. Its reputation for not being authentic could be sufficient to create a perceived difference in the marketplace, develop different positioning and avoid disambiguation. Furthermore, regardless of which establishment one chooses, the very culture underneath will still exist. It would be an overstatement, for a single new market entrant to wipe an entire food culture, strong as the one in Italy.
Studentessa universitaria poliglotta all’estero. Amante dell’arte, cultura e sperimentazione in nuovi progetti. Nel tempo libero rifletto in formato scritto su argomenti relativi alla cultura popolare e questioni sociali. Il tutto per stimolare e prendere parte ad un dibattito costruttivo.
Italians take their coffee culture very seriously — it's filled with traditions, customs and rituals. It's common to order an espresso, quickly drink it at the counter while chatting with your barista, and leave — contrary to Starbucks shops, where customers may sit for a while to work on their laptops.
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.
Italy is Starbucks' most difficult market because of the country's strong and prevalent coffee culture with which Starbucks' products and atmosphere do not align.
The success and acceptance of Starbucks by different cultures stems from its carefully planned business strategy – localization. With localization, Starbucks is able to adapt to the tastes of different cultures, managing to convince consumers in other locations to drink coffee.
Despite being inspired by Italian coffeehouse culture, the American chain faced resistance when entering the country. Since then, the company has opened a total of 20 stores in Italy and plans to open five more before the end of 2022. Will the country that invented espresso embrace the world's largest coffee chain?
Starbucks will primarily target millennials between 18 and 34 years old, said Figura, adding that the Italian market has room for both traditional cafés and Starbucks, as they cater to different consumers.
Coffee has a long history in Italy. Venice was one of the first European ports to import coffee beans in the 16th century, and in the 19th century, men in bowler hats met in Turin's coffee shops to plan for the country's unification.
With twenty stores across Northern and Central Italy, Starbucks is committed to embracing Italian culture and coffee heritage. Italy is the country that brought espresso to the world and inspired the concept for what Starbucks has become today.
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.
There are enough foreigners in Milan for a branch of Starbucks to survive there even without Italian clients, but maybe it will be popular with Italians too, as Paolo Vergnani suggests. Starbucks cannot compete with the familiarity of the Italian coffee bar, nor the prices.
Starbucks Roastery, is the largest Starbucks in Europe, 2,400 m2, in Milan's Piazza Cordusio, you really can't miss it if you're on your way to the Duomo.
After eight years spent setting up 63 French Starbucks stores, the company has never turned a profit in France. And even in the parts of Europe where the company does make money, sales and profit growth lag far behind results in the Americas and Asia. Europe's debt crisis and sluggish economy are a factor.
Creating a culture of warmth and belonging, where everyone is welcome. Delivering our very best in all we do, holding ourselves accountable for results. Acting with courage, challenging the status quo and finding new ways to grow our company and each other.
Starbucks Coffee's organizational culture is a culture of belonging, inclusion and diversity. The combination of the company's key cultural characteristics is unique and specific to the nature of its coffeehouse chain business.
As of the third quarter of 2022, Starbucks had 2,554 stores in Europe. The European country with the most Starbucks stores was the United Kingdom with 842 Starbucks stores. This was followed by Turkey with 589 stores and France with 205 Starbucks stores. Comparatively, there were only 18 Starbucks stores in Italy.
Starbucks and Percassi share common values and a commitment to creating pathways to youth opportunities and employment in communities right across Italy. Starbucks will partner with Percassi to support local projects our store partners love to work with around the world.
Starbucks international strategy relies on low integration and high responsiveness (multi-domestic), which is best reflected in Entry Modes and Pricing Strategies. The goal is to spread Starbucks' coffee culture while adapting to local tastes and preferences.
Del Soldato believes Starbucks made the right decision by picking Milan as its entry point, a city of modern fashion and finance. In contrast, Naples and Rome are the true coffee snob capitals of Italy, where the espresso culture even more insular.
No, there are no Starbucks in Italy. The coffee culture is different there and most people get their coffee from local cafes. There are a few international coffee chains, but Starbucks is not one of them.
Italians drink lots of coffee – they drink it small and they drink it fast. It's a pick-me-up and a quick caffeine kick. 'Caffé' is what we'd call an espresso. It's served, not too hot, in a petite espresso cup and saucer, thick, dark and without milk and comes with a complimentary glass of water.
Bordering countries of France, Switzerland, Austria, and Slovenia to the north have influenced Italian culture, as have the Mediterranean islands of Sardinia and Sicily and Sardinia.
The famous elements of Italian culture are its art, music, cinema, style, and iconic food. Italy was the birthplace of opera, and for generations the language of opera was Italian, irrespective of the nationality of the composer.
Thirty-five years ago, an American businessman name Howard Schultz was inspired by the Italian espresso culture he found in Milan. He bought out the existing, indie Starbucks coffee shop in Seattle, grew it and made a fortune on it.
For currency risk, Starbucks often participate in forward contracts or uses foreign debt denominated in foreign currency to prevent the exposure of currency of its net investments in international operatives.
The Allies agreed to help and decided to use Italy (which was aligned with Germany) as a platform to attack enemy territory in Europe and help divert German resources from the Eastern Front. This effort became known as the Italian Campaign.
The history of coffee in Italy begins at a precise date and place: in 1570 in Venice, when the Paduan Prospero Alpino brought some sacks from the East. At first the drink was sold in pharmacies, but the high cost of the product made it an attraction especially for the wealthier classes.
Countries with most Starbucks locations globally as of October 2022. The United States and China came top in the ranking of countries with the largest number of Starbucks stores worldwide as of October 2021.
Apart from one branch outside Florence and now Rome, the other outlets are all in northern Italy with six in Milan, where busy office workers appear to have adopted the un-Italian practice of rushing to work clutching a large beaker of Starbucks coffee.
MILAN – Sept. 6, 2018– Today, Starbucks (NASDAQ: SBUX) celebrates the opening of its first store in Italy and the most beautiful Starbucks in the world: the Starbucks Reserve Roastery in Milan.
At first, Starbucks' plan to expand its presence in Italy, the home of espresso, sounded like a recipe for failure. However, Starbucks has managed to succeed within the country in a way other American brands could not. The secret to that success lies in a surprisingly straightforward business strategy.
Starbucks has reported a sharp fall in profits at its UK business, which it has blamed on a slowing economy and the effect of the Brexit vote on consumer confidence. The coffee chain said its pre-tax profit in the UK fell 61% to £13.4m in the year to 2 October.
Starbucks missed the mark in Australia because they expanded too rapidly, failed to adapt their American business model, underestimated domestic competition, and didn't understand the unique needs of the existing Australian coffee culture. In short, they failed because they didn't prioritize strategic growth.
In summary, Italian espresso tastes better because it is always made from a fresh roast, which is never more than eight days old. In America, it is hard to find a fresh roasted coffee because there are not enough small-scale, local roasters and there are not enough coffee shops.
Authentic Italian coffee drinks depend on what we call an espresso shot in English. However, in Italy, an espresso shot is simply called “un caffé” (Oon kahf-feh) which translates to “a coffee.” Essentially, the drip coffee we brew in America doesn't exist in Italy.
This is because Italians generally roast their coffee fairly dark. This produces a darker flavour profile such as roasty and bitter notes. Italian coffee is also typically served as an espresso which is a short concentrated shot of coffee.
The company conducts research about the unique culture of different countries where it operates, so it can offer beverages that appeal to local tastes. What that means is—even if know your local Starbucks menu off by heart—there's a whole world out there (literally) of Starbucks beverages you haven't tried.
Back in the 16th century, as the global coffee trade was exploding, coffee beans were first introduced to Europe through trading ports in Venice. Coffee shops started to open in the cities, becoming meeting places for the local intelligentsia, then becoming more of a social space for wider society.
For the Italians, however, it doesn't have to be sparkling as long as it is mineral water. The minerals contained in the water cleanse our palate and stimulate the taste buds before the first sip of espresso, which is a sensually saturated and intense drink.
The most popular coffee drink in Italy is a cappuccino. Of course, espresso is still the base of this coffee but with a creamy and mild taste due to the added equal amounts of milk and foam. Caffè cappuccino is best consumed at home or as you linger at the coffee bar.
To blend in: In Italy, it is common to order and drink your coffee first, then pay at the register. Practice this method at Caffè Vergnano, which follows the same tradition. Now that you're an Italian caffè aficionado, create your own coffee culture with our wide selection of Italian coffee and espresso.
It is at this moment that coffee began to become the drink that most of all recalls that sense of conviviality and family that are among the founding values of Italian spirit.
Caffè Also know as caffè normale, caffè is the foundation of any Italian coffee drink. A caffè is simply an espresso, served black and only in one shot increments. Rather than ordering a doppio, or double, Italians will traditionally make a return trip to the barista if they're in need of more caffeine.
Introduction: My name is Kerri Lueilwitz, I am a courageous, gentle, quaint, thankful, outstanding, brave, vast person who loves writing and wants to share my knowledge and understanding with you.
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