Starbucks Coffee in China?
This morning. A normal morning. Leaving late. Driving fast. Minutes before train. Long line at Starbucks. So, there I am — with a pounding headache — in need of an espresso buzz. Not just any espresso — this espresso comes with warm milk (like mom used to make) and an assortment of flavoring choices (from vanilla to white chocolate). (And an added bonus — the coffee cups are decked out for the holidays.) So like a fool, I make my most important — and regretted — decision of the day, I pass on the java, make my train and save four dollars…
Could this lifestyle exist in China? I would never have thought so until this same morning. While reading a Wall Street Journal — during my brief awake moment on my commuter train — I noticed an article on the cover regarding Starbucks’ initiatives in China. Wait? (Are they not Communist?) I mean, don’t they drink tea?
Tea and coffee are so dissimilar (besides the fact that they are normally hot, sometimes cold, and receive milk and sugar well — okay, they have similarities). But for me, tea makes me think of being sick and snobbish people — whereas coffee reminds me of the joy of addiction and fifteen-minute coffee breaks.
How can Starbucks pull this one off? Then again, they have convinced so many that a Venti White Chocolate Mocha Latte is worth $4.50 and 630 calories. Obviously, they are doing something right. Why not make one billion Chinese the next focus — since they are already the largest coffee shop in the rest of the world!
As for some history (and I thank the Starbucks website for much of this info), the first “Starbucks” was founded in Seattle, Washington back in 1971 by two teachers and a writer (I do not think he had a blog) — selling mostly coffee beans. Then along came Mr. Howard Schultz — with his olive oil voice and espresso drinks — who was initially rejected by the trio, but, started his own coffee chain in 1985, Il Giornale. Finally, in 1987, the original three sold to Schultz, and the current Starbucks was born. Immediately, this new Starbucks expanded outside of Seattle. It opened in Los Angeles in 1991 (breaking 100 total stores that year). In 1992, the inevitable initial public offering [NASDAQ:SBUX]. In 1994, it finally opened in New York. And then in 1996 (a year it broke 1,000 locations), it opened in Tokyo — its first step towards world coffee shop domination. (I like to think of that scene in the film Outbreak, with the map of the United States and all the little red dots, starting from Cedar Creek or in this case, Seattle.)
Allegedly, there are currently more than 12,000 Starbucks locations around the world (if you count stores not owned directly by Starbucks — e.g, Barnes & Nobles). Although, that number may sound a little high — I have to believe it since, if I tried, I could easily pass about 20 Starbucks locations during a 20 minute stroll through midtown Manhattan.
But can it spread through China the way it appears to have spread everywhere else? Actually, to be fair, it should be noted that it has not worked in Italy. Has Starbucks avoided the great boot? With the love for coffee in Italia, I would have thought I would see the Starbucks label on the 2006 World Cup trophy. But, I would be wrong. I guess the Italians “really” love “their” caffe. (And my biggest shock – Milan, Italy’s “city,” not a Starbucks to be found.) Okay, back to China. (Forza Azzurri.)
Could Starbucks really bring tea drinkers over to the dark side? That is left to be seen. But, after witnessing its success in the United States and abroad (especially in London), it is hard to deny Starbucks’ appeal. (Not to mention a member of the current board of directors has his number 24 hanging from the Madison Square Garden rafters — that has to account for something.)
I’ll be sure to stop in for a “Grande Skim White Mocha” on my next trip to Shanghai.
1 comment November 29th, 2006
