Entering other big markets may be tougher yet. The French
seem to be ready for Starbucks’ sweeter taste, says Philippe Bloch,
cofounder of Columbus Cafe, a Starbucks-like chain. But he wonders if the company can profitably cope with France’s arcane regulations and generous labor benefits. And in Italy, the epicenter of
European coffee culture, the notion that the locals will abandon
their own 200,000 coffee bars en masse for Starbucks strikes many
as ludicrous. For one, Italian coffee bars prosper by serving food
as well as coffee, an area where Starbucks still struggles. Also,
Italian coffee is cheaper than U.S. java and, say Italian purists,
much better. Americans pay about $1.50 for an espresso. In northern Italy, the price is 67 cents; in the south, just 55 cents. Schultz
insists that Starbucks will eventually come to Italy. It’ll have a lot
to prove when it does. Carlo Petrini, founder of the antiglobalization movement Slow Food, sniffs that Starbucks’ “substances
served in styrofoam” won’t cut it. The cups are paper, of course.
But the skepticism is real.