Starbucks is contemplating a surprising expansion in Italy, and other companies should pay note
According to CNBC, Starbucks, a typically American coffee brand, has cemented itself as part of Italian coffee culture. Starbucks' aim to extend its footprint in Italy, the birthplace of espresso, seemed doomed at first. However, Starbucks has succeeded in the nation in ways that other American businesses have not. The key to their success is a very simple business plan.
Companies from the United States that have failed abroad
The issue with American food is that it is frequently made up of Americanized versions of world cuisine—so when US corporations go to their countries of origin and sell "bastardized" versions of their meals, the locals may not be so welcome. Nonetheless, many businesses have given it a shot.
After achieving success in a few other European nations, Domino's attempted to bring their version of pizza to Italy, the home of pizza, in 2015. After seven years of trying to expand there, the brand eventually closed its last Italian branch in 2022.
Domino's entered the Italian market on the notion that it would draw customers by utilizing locally produced ingredients and providing delivery, which was not typical at the time. Despite these incentives, it never took off, and Italians were neither shocked nor dismayed by Domino's departure, according to Food & Wine, with some online comments comparing the venture to "bringing sand to the beach."
One reason Domino's was unable to obtain a competitive advantage in the Italian market was because, beginning in 2020, the epidemic prompted small independent pizza restaurants to adapt, with many of them adding delivery to their offers. This market change eliminated Domino's one difference, and with little else to differentiate its pizzas, it was all downhill from there.
Taco Bell is another fast food business that has failed miserably in its attempt to sell Tex Mex food in the country where it originated. In fact, Taco Bell was so determined to establish a presence in Mexico that it attempted to enter the market not once, but twice. Several variables hampered these efforts, but one recurring theme appears to be that Mexican consumers just did not want Taco Bell's distinctive touch on their meal. They're content with the tacos they've got.
What Starbucks does well in Italy
When Starbucks first launched outlets in Italy in 2018, the reaction was similar to that of Domino's, according to CNBC. Some demonstrators set fire to the plants planted outside Starbucks' first shop in Milan.
Unlike Domino's, though, Starbucks has expanded throughout the country and is expected to do well in the Italian market in 2022. Why? Because the business avoided imposing "American" tastes on a product significant to Italian history and culture.
Coffee, like pizza, is something that Italians revere and approach with local customs and rituals. Starbucks collaborated with an Italian brand manager and teamed with local companies to honor those traditions and really immerse the brand in Italian culture.
Starbucks originally arrived in Milan with a mammoth 25,000-square-foot Roastery branch (which is also present in Chicago and a few other select locations worldwide), but the Roastery is notable for more than simply its size. It was created to seem more like an Italian coffee shop than an American Starbucks, with local products and craftspeople. The cuisine is also provided by local farmers, blending in with similar offers across the city. And, because Starbucks' menu was always intended to be an ode to Italian coffee culture, the product strives for authenticity. It must have won over enough people, since there are currently 20 outlets in Italy and counting, according to CNBC.
"I had a fantastic cup of coffee there... According to Eva Del Soldato, Associate Professor of Italian Studies at the University of Pennsylvania, "it tasted just like an Italian coffee should, and I would say an excellent Italian coffee."
Starbucks is not the only company that understands the importance of respecting another country's culture and adjusting to local tastes. McDonald's does it in a way by presenting significantly different menu items in each nation it serves. However, firms that specialize in a meal emblematic of a certain region or culture should take heed of Starbucks' success in Italy if they want to grow without shame. Delivery alone will not suffice.
#Starbucks #DominosPizza #Coffee #Pizza
SOURCE: thetakeout
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