The Starbucks phenomenon has taken us dumbfounded when it's able to thrive in more than 15, 000 locations all around the world! However, will Starbucks make it in the intimidating Milan?
Milan is known as one of the greatest financial hub in the world for its high-end dining and exclusive, expensive shopping! Indeed, Starbucks is venturing into a risky business when it sealed the deal with Italian retail network Percassi to open its first coffee chain in Milan, Italy this coming 2017. It's a gamble to put up a coffee shop in a place where you have Italian local coffee shops and ethnic cuisines serving great coffee as well.
Statistics from market analysts shows that Italian coffee bars serve six billion espressos a year worth 6.6 billion euros (S$10 billion), while 41 per cent of Italian adults drink at an espresso bar at least once a week. After Milan, Starbucks embraces itself by opening more coffee chains in Verona and Venice, according to Starbucks chief executive Howard Schultz.
In 2001, the Seattle-based coffee maker opened six stores in Tel Aviv, Israel only to close them in 2003. The company said at the time that it closed the stores due to "ongoing operational challenges that we experienced in that market."
This is just one example where the U.S. coffee giant failed. Starbucks although it had previously planned on opening a location in Jerusalem in 2003 but withdrew the plans due to fear of terror attacks. There were unconfirmed talks that Starbucks did not make it in Israel because of political reasons, but locals think otherwise.
Starbucks said that they closed down due to financial reasons and nothing more. The rumor is Starbucks in Tel Aviv were empty because consumers cannot seem to connect with Starbucks coffee-Isaraeli's coffee taste is far different from what Starbucks offer.
Well, Starbucks can learn a thing or two from the Tel Aviv experience but let's wait and see come 2017!
