Dear Mr. Howard "Starbucks" Schultz,
First of all, I must confess that I am a huge fan of yours. Second, there are a few things that you should know before launching your Italian campaign – you will probably find most of the following tips rather banal, but I will share them with you anyway because I believe in narcissism, participation, and coffee beans.
I am aware that you had an epiphany in Milan, back in 1982, or so the story goes. Apparently, you marveled at the atmosphere you encountered within the espresso bars and decided to replicate it in the US. Well, it worked great, didn’t it?
Actually, you did much more than that. You created a brand new world, a new language, and new social rituals. Now Starbucks is a media empire, not just a chain of coffee houses. You have many detractors, especially in Europe, but I am not one of them. I am writing this letter as an encouragement to enter the Italian market as soon as possible and start a Frappuccino revolution.
- Now, I am aware that Italy is a very complicated market. Ultra-protected by unfair anti-free market laws, powerful trade unions, cryptic bureaucracy designed to discourage even the more energetic foreign investor... Italy can be a scary place. In addition to legal issues there are some cultural aspects that you should bear in mind: Italians are extremely conservative and close-minded when it comes to edible things. No, really. They are extremely proud of their food culture and quick to label as “blasphemous” every attempt to deviate even slightly from the Canon (read some comments just to get an idea). For instance, If you dare ordering a cappuccino in a restaurant while enjoying your meal you will get incinerating looks from your waiter. Even though this behavior is clearly provincial, and ultimately inappropriate, it is the widely accepted, even encouraged – for more information about this, check Stanley Tucci’s Big Night (1996). It’s the same with soccer and fashion: it is just impossible to have a rational conversation with an Italian on these topics. Just smile and move on.
- As a side note, on average, Italians are old. Otherwise said, the country is ruled by old farts. And old farts are reluctant to try new things, think different, and experiment. That is, selling a tall banana douche latte to a 65+ year old might be tough. However, Starbucks should have a bigger appeal on local hipsters, tweens, and young cosmopolitans. More and more Italians are traveling abroad, thanks to low-fare flights, the strength of the Euro currency, international school exchange programs and pervasive ennui. Unlike the Old Guard, the new wave is willing to try new things instead of criticizing a priori what does not conform to the predictability of the so-called culturally imposed "Traditions" (mangia! mangia!).
- Most Italians have not ever experienced the coffee house culture that flourished in most civilized countries, from Austria to the US, from the UK to Germany, from Scandinavia to Central Europe. Ray Oldenburg is a stranger here. In Italy, coffee is mostly consumed quickly, standing up like a horse, while other customers push you from behind to reach for the sugar, the milk, and other amenities (the idea that these goods could be shared, on a separate table, is unthinkable - sugar, water and coffee, like the Bible, should be chained and restricted from public consumption). Coffee is just a quick boost, and the experience of consuming the drink is not pleasurable per se. Vice versa, Stabucks mainly sells pleasurable - not cursory - experiences, using coffee as a pretext. There is a huge difference. Can you pass the nutmeg? Thanks!
- As an addendum, most Italians are willing to pay for the drink, but not for the experience. That is: they mostly care more about the quality of the coffee itself than the contextual elements (ambiance, music, people, relaxing atmosphere, books etc). The truth is that most are not even aware of anything that surrounds the coffee cup - otherwise they would flee the idiotic bars that plague the country. As you did in the US, you will need to teach the customers the new rules of the game. Brainwashing is strongly recommended. You need to erase decades of bad habits and Italians are notoriously recalcitrant. Take something banal like the notion of a queue. Italians are, by definition, anarchic and insubordinate. They simply won’t stay in line. They do not play by the rules. "Rule" is a foreign concept. They would do anything to disrupt what is politely accepted almost everywhere else – thus, you will need to emphasize signs like “please wait here”, “please order here” etc. I would personally recommend the use of in-store electrified fences. Before launching Stabucks Italy you should know that crowd management is sorely lacking in this country. One of the reasons behind Starbucks' success lies in its highly effective strategies of visual display of information. [The same goes for road signs – the US is vastly superior to Italy in terms of road sign information - mental note: culture is really about interface design - But I am digressing...]. Anyway. Just having a blackboard behind the counter with the menu and prices clearly visible would be considered revolutionary in Italy. Transparency – at all levels of society – is not very common here. If it is too easy, it is not fun. Italians love to make things unnecessarily complicated,
- As a corollary, Italians do not spend much time in public places such as bars to read or work. The reasons are technical, social, and cultural. Most bars are loud, tiny, painfully bright, and cramped. Unsurprisingly, people are actively encouraged to get the hell out after consuming their drink. WiFi in public spaces is still a rarity, thus you won’t see many people working on laptops. Finally, “going out” in Italy is perceived only as a social activity – you spend time in bars discussing the quality of your relationship with your significant other, the philosophy of soccer games, and politics - that's about it. Very few people spend their time doing productive activities such as reading, writing, drawing or working on a laptop. Moreover, true coffee houses are places where you engage in discussions about the state of the affairs. Democracy was born in coffee houses. Poetry slams are common. So are open mic nights. Book presentations. Debates. Music events... Italy lacks coffee houses. Italy lacks coffee culture. Unsurprisingly, Italy's democracy is very fragile. Hence, Mussolini. Hence, Berlusconi. Hence, the strongest Communist Party in Europe. Hence, the overlap between the Church and the State. It's all about coffee. This is why Italy needs Starbucks.
- In Italy, the quality of coffee varies dramatically from place to place. Coffee could be heaven but it could also be hell. The lack of standardization is both a blessing and a curse. You never know what you are going to get, as Forrest Gump would say. Ergo, Stabucks could (should) easily exploit this situation. And please, bring the pastries as well. Italy is culturally dominated by France. Enough croissants! Where are the muffins? The bagels? The cookies? The banana bread? The pumpkin pie? The freakin croissant - aka cornetto - MUST die!
Having said that, I have no doubt that Starbucks could be very successful in Italy. In fact:
- First of all, there is no real competition. You have a clean slate.
- Second, Italy does not lack tourists, thus an initial user base is already assured.
- Third, Starbucks would be clearly perceived as “cool” and “exotic” by the local youngsters. The early adopters will flock. The 'normals' will follow. It happened with McDonald's, in the 80s. It will happen again, as Vico would suggest. The key to success is not to replicate the Italian experience in Italy– which would be clearly foolish (launching Pizza Hut here was quite a suicide) – but to offer a bit of Seattle, San Francisco, and Portland in Rome, Florence, Milan (the last one is a tough sell). Italy will capitulate!
- Fourth. Expect some bashing from the left parties, the no-global movement, the anti-Americans, the slow-food gurus, the talk-show psychologists, the Americans who asked for political asylum, the trade unions, the Pope and so on... I mean, that’s part of the game. At least, I can guarantee that people would not be rioting in the streets. After all, Italy is not France.
- Fifth, you must instruct the local baristas not too smile too much and not to be too kind. You see, the 'real' Italian baristas tend to be gloomy and - if you live in Milan - usually pissed off. By serving you coffee in exchange for money, they are doing you a HUGE favor, so try not to make things complicated for them, alright? Drink your coffee AND GET OUT. Quick, quick. Sure, I know that Starbucks is mostly a simulation ("How is your coffee today? Have a wonderful day! It's great to see you again!" and so on), but I prefer the simulation to the harsh reality - yeah, I hear you, Cipher: "Ignorance is bliss".
- Sixth, Italian companies have been extremely slow to devise a counter-attack to Starbucks. As usual, inertia creeps in Italy. I would have expected Lavazza, Segafredo, AutoGrill or other food companies to build some barricades in the form of local coffee house chains a long time ago. They did not. Illy opened a few coffee "boutiques" (sigh) here and there, but their logic is antithetical to Stabucks: they envision the coffee house as a space for few – think the fashion ateliers for the rich, the bold, and the beautiful – not a third place for the masses. It's Armani vs. Levi's, so to speak. Stabucks could (should) easily crush such elitist approaches even though your prices are not exactly affordable but that’s your magic formula and we do not really want to mess with that, do we? Anyway, resistance is futile. I'll take a Grande Cappuccino to go, thanks
- Seventh: the "paper cup" is a revolution. The notion of the "lid" is genius. The paper cup holder is genius - 100% recyclable, with Tylenol PM ads on it - "Having Trouble Sleeping?" - capitalism is genius. Yelp.com is genius. Starbucks is genius. Starbucks is so perfect it's almost scary.
Well, there is much more that I would add, but time is coffee, pardon, money. Dear Mr. Schultz, if you would like to further discuss these issues, I am here to help.
Sincerely yours,
And yes, I wrote this under the influence of a double espresso.
Additional reading on the same topic (external): here and here.
Additional reading on the same topic (mbftoday): The Self-Poiesis of a brand; Starbucks and Recurrence; The Starbucks' Aesthetic; Starbucks in France; Starbucks to open in Milan?, An older post from my previous blog (gosh!).
More about contemporary Italy from The Economist: Addio Dolce Vita
PS
I have been asked to elaborate on the notion that Italians "drink their coffee standing up, like horses". What's the rationale behind this odd behavior? Ok, horses don't really drink coffee, agreed. What I meant is that most bars charge customers for taking a seat (!!!), so people drink (read: gulp) their beverages right in front on the barista (quick quick!). The majority of coffee places (the nice ones - not the generic mass) are scientifically designed as evil tourist traps - mostly for American and Japanese visitors, e.g. cannon fodder, I mean, coffee fodder: Think Hostel, but with mug and milk. Usually located in strategic locations, these bars charge outrageous amounts of money for a few drops of caffeine - the infamous cafes in San Marco Square, Venice or in the Milan's Galleria, for instance, would demand up to 10 dollars for a single cappuccino (by the way, all cappuccinos, pardon, cappuccini, are single in Italy - diversification and freedom of choice are mortal sins... Repent!). This is why I laugh when people argue that Starbucks is ridiculuosly expensive. The day that Starbucks opens in San Marco's square I will celebrate with a triple Frappuccino. Tabula rasa.
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