STARBUCKS
AIMS TO CRACK TOUGH FRENCH COFFEE MARKET
THE WALL STREET JOURNAL 10/07
Already the world's biggest coffee shop chain with more
than $4 billion a year in revenue, Starbucks Corp. is
planning to open its first store in central Paris early
next year, part of a broader push into continental Europe.
If all goes well, the U.S. company says it will gradually
open more outlets, jostling for market share with the
thousands of family owned corner cafes that pepper the
streets of the French capital. Franck Esquerre, managing
director of Starbucks in France, says Starbucks, with
its familiar range of takeaway frothy and flavored cappuccino-style
drinks, will offer French consumers a "new"
way of drinking coffee. Currently, more than eight out
of 10 coffees served in France's traditional cafes are
rich, bitter-tasting espressos.
And, unlike those corner cafes, which can often double
as restaurants, licensed bars, tobacconists and occasionally
venues for gambling, Starbucks will stick to serving just
coffee and pastries. In its bid to break into the French
market, Starbucks has linked up with Grupo Vips, the foodservice
operator that works in neighboring Spain with well-known
retail names such as Gino's Pasta & Pizza and TGI
Friday's. The two companies already work together in Spain,
where Starbucks has 15 shops in Madrid and Barcelona.
The company has no plans yet to expand into Italy, another
European coffee stronghold, but says it is "encouraged
by opportunities" there.
