Starbucks in Russia
Starbucks decided at last to open its first caf? in Russia. I mean on the Russian territory as a Starbucks at the US Embassy in Moscow counts as American turf. Starbucks goofed off with its brand name and logo. It was registered in Russia but for five years the company failed to open a single outlet. Thus the registration was cancelled and immediately a clever Russian entrepreneur Sergei Zuikov became a proud owner of Starbucks name and logo in Russia. He wanted Starbucks to buy its own logo for $600 000 but failed. In November 2005 justice triumphed and Rospatent cancelled Zuikov’s right to sell what doesn’t belong to him.I’m afraid it’s too late for Starbucks. First, there are at least five popular coffee chains in this country. Second, I’m sure that plastic cups and fast food outlet general atmosphere together with outrageous prices would not appeal to Russian coffee lovers.
I believe that much of the Starbucks success in the US is due to the fact that Americans like (liked?) very bad coffee. When I visited the US for the first time some 15 years ago my first disappointment was coffee. At first I thought the restaurant was bad but then I discovered Americans even like low quality and watery coffee. Highly recommended coffee at Dunkin’ Donuts was only marginally better. What’s more – even at high scale restaurants nobody knew what espresso or cappuccino means. Starbucks proved that the problem lied not in wacky American tastes but rather in weird American food retail marketing.
Related Tags: Russia, Moscow, Starbucks, coffee, marketing
posted by Konstantin at Wednesday, April 19, 2006
5 Comments:
It's definitely not too late for Starbucks in Russia. I'm sorry to say that even with the flourishing of coffee shops in Moscow, not one of them, in my opinion, has good coffee! And they're not very cheap either. Starbucks is annoying - agreed - but it's all about the BEANS, not the glasses with straws.
I have to add, that I've never seen coffee served in a "plastic cup" at Starbucks. That wouldn't work very well with a hot cup of coffee.
Typically their coffee is served in stone or ceramic coffee cups or mugs if you are staying at the cafe to enjoy it ... or in paper cups with a plastic cover and a 2nd paper ring for insulation while holding it for coffee "to go".
Coffee to go is a phenomenon just waiting to happen in Moscow - it has nothing to do with "taste" and everything to do with practicality. The people of Moscow have all the things required to make it popular - active lives and long commutes. The people of Moscow have no problems drinking beer while walking, so it isn't some aversion to multi-tasking. When someone sets up shop at a Metro station serving coffee (and tea) to go, for people to drink on the hour long metro/bus commute - I predict it will be a success.
As for your impression about American's wanting bad coffee - that obviously was never the case. It was simply what manufacturers thought Americans wanted - cheap coffee - versus what they really wanted. American consumers of food have generally been sold everything based on "value" (cheap). However, it has been shown for over 20 years that Americans will gladly pay more for quality in food when given that choice. These days we have a wide variety of high quality coffees, ground or in bean form, available at any supermarket, and ultrapremium coffee available through specialty markets and online.
American tastes were simply underestimated by suppliers for several generations.
Well, maybe I underestimated Starbucks opportunities. Thanks for pointing at my mistake - apparently Starbucks I visited was selling only "to go" coffee. There was a very long queue and neurotic queue that could influence my perceptions of the coffee quality. Coffee I got as a gift from my friend in California had a label "Starbucks Coffee". It was bad.
Anyway. Long wait - now see.
I think Starbucks can make it in Moscow and St.Petersburg if it will position itself as high-end luxury cofee house for VIP's only - something along these lines.
I must say that I agree with the author of the author of the post. I was in Paris recently and the coffee there was unlike any I'd tasted in the US. Starbucks is not really all that good - perhaps is the taste for a different proportion of beans/water ?
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