Why Starbucks Avoided Italy for So Long? | Italian Coffee Culture

Starbucks, the ubiquitous coffee giant with its siren logo beckoning from seemingly every corner of North America, has long dominated the global coffee scene. From bustling city centres to quiet suburbs, it seems there’s no place untouched by its reach – except, for many years, one notable exception: Italy, the heart of espresso culture in the world and the Mediterranean.

The birthplace of espresso, the land where coffee is practically a religion, remained a Starbucks-free zone for decades. Why? Because Starbucks, under the leadership of Howard Schultz, knew it faced a formidable challenge: winning over a nation with a deeply ingrained Italian coffee culture and unwavering devotion to the art of espresso.

In this article, we will explore why Starbucks avoided Italy and initially hesitated to enter the Italian market. We will also explore the unique characteristics of Italian coffee culture and the challenges the American giant faced in trying to conquer the espresso capital of the world.

Italy’s Deep-Rooted Coffee Culture

In Italy, coffee isn’t just a beverage; it’s practically a national obsession. Italians consume an average of 6 kilograms of coffee per person each year, highlighting the profoundly ingrained role of coffee in their culture. From the bustling streets of Rome to the tranquil piazzas of Florence, the aroma of freshly brewed coffee permeates the air, a constant reminder of this deeply ingrained tradition.

The story of Italian coffee culture begins in the 16th century when coffee beans first arrived in Venice through trade routes. Initially met with suspicion by the Catholic Church (who dubbed it the “Devil’s drink”), coffee quickly won over the Italian palate, becoming a beloved beverage and a social catalyst. Coffee houses, known as “bars,” sprang up across the country, becoming vibrant hubs for social interaction, political debate, and artistic expression.

For Italians, coffee is more than just a caffeine fix; it’s a cherished ritual, a moment to savour and connect. Unlike the “grab-and-go” culture prevalent in many countries, Italians typically enjoy their coffee standing at the bar, engaging in quick, lively conversations with the barista and fellow coffee lovers. This social aspect of coffee consumption is deeply ingrained in Italian culture, fostering a sense of community and belonging.

At the heart of Italian coffee culture lies espresso, a small, concentrated shot of coffee that embodies the Italian passion for intensity and flavour. Italians typically consume espresso quickly, in one or two sips, savouring the rich, bold taste. While other coffee variations exist, such as cappuccino (espresso with steamed milk and foam) and macchiato (espresso marked with a dollop of foam), espresso remains the undisputed king of Italian coffee.

While espresso reigns supreme, Italian coffee culture encompasses a diverse range of coffee beverages, each with its own unique characteristics and traditions: Cappuccino, a morning favourite; Caffè Latte, similar to a cappuccino but with more milk; Caffè Macchiato, espresso marked with foamed milk; Caffè Corretto, espresso with a shot of liquor; and Bicerin, a Turin speciality layering espresso, chocolate, and milk.

An unwavering commitment to quality characterizes Italian coffee culture. From carefully selected coffee beans to the precise art of espresso extraction, every step in the coffee-making process is treated with meticulous attention to detail. This dedication to quality ensures that every cup of Italian coffee truly expresses the country’s passion for this beloved beverage.

This deep-rooted coffee culture, emphasising quality, ritual, and social interaction, forms the backdrop against which Starbucks would eventually attempt to make its mark in Italy.

Why Starbucks Was Hesitant

Despite its global success – the 45-year-old company has expanded to many countries, from the USA to Spain, Turkey to the UK – Starbucks recognized the unique challenges the Italian market poses. Howard Schultz‘s own experiences likely heightened this awareness of the cultural nuances surrounding coffee in Italy. In 1983, during a trip to Milan, he was captivated by the Italian coffee culture but also recognized the deep connection Italians have with their coffee rituals and the potential difficulty of introducing a different approach.

One key challenge was the difference in coffee styles. Italian people, who have some of the best coffees in the world, do not typically enjoy American-style coffees. Beverages like Americano and Latte, often mainstays at Starbucks, seem mild compared to the strong espresso flavoured in Italy. Starbucks also hesitated to introduce its larger-sized beverages, such as Grande and Venti, to the Italian market. Italians traditionally down their espresso in small cups, savouring the concentrated flavour. The concept of larger-sized coffees, often associated with a more diluted taste, might not resonate with the Italian preference for robust and intense coffee experiences.

Price was another factor. It was believed that Italians, who enjoy delicious espressos accompanied by short, pleasant conversations and pay only 1 euro for them, would not want to spend 5-6 euros on American-style coffees. The higher price point of Starbucks, coupled with the perceived difference in taste and size, could be a significant barrier.

Furthermore, Starbucks would face fierce competition from well-established local coffee bars, known as “bars.” These bars are deeply integrated into Italian daily life, serving as social hubs and community gathering places. Starbucks might have been concerned about being perceived as an unwelcome intrusion into this tightly-knit coffee culture, potentially facing backlash or rejection from Italians proud of their coffee traditions.

These factors combined contributed to Starbucks‘ initial hesitation to enter the Italian market. The company recognized the significant challenges it would face in competing with deeply ingrained coffee culture and established local preferences. However, Starbucks eventually decided to venture into the Italian market, likely recognizing its potential as a lucrative opportunity. By carefully adapting its offerings and strategies to cater to local tastes and preferences, Starbucks has begun to carve out a niche in the Italian coffee landscape.

Starbucks’ Entry into Italy

After decades of admiration and careful consideration, Starbucks finally debuted in Italy in 2018. However, the coffee giant didn’t simply replicate its standard model; it took a strategic and localized approach. This approach involved respecting Italy’s rich coffee heritage, adapting its menu to include more espresso-based drinks, and designing its stores to reflect the local culture, demonstrating Starbucks‘ commitment to integrating into the Italian coffee landscape.

Starbucks‘ first foray into the Italian market was not a typical café but the grand Starbucks Reserve Roastery in Milan. Located in a historic post office building in Piazza Cordusio, this flagship store was designed to be an immersive coffee experience, showcasing the art and craft of coffee in a way that would resonate with Italian sensibilities. This approach was likely influenced by Howard Schultz‘s long-standing admiration for Italian coffee culture. His early vision for Starbucks was inspired by the Italian espresso bars he encountered in Milan, and he aimed to bring elements of that experience to the American market.

The Roastery offered a curated selection of Starbucks Reserve coffees worldwide, the company’s premium line of small-lot, rare coffees. This focus on high-quality beans and specialized brewing methods was a strategic move to appeal to discerning Italian palates accustomed to exceptional coffee. Starbucks went to great lengths to ensure the Roastery felt integrated with Italian culture. The design incorporated local materials like Tuscan marble and elements inspired by Italian architecture and craftsmanship. This attention to detail helped create a space that felt both luxurious and authentically Italian.

To navigate the complexities of the Italian market further, Starbucks partnered with Percassi, a leading Italian retail group. This collaboration provided valuable local expertise and helped Starbucks adapt its offerings and operations to suit Italian preferences better. While the Roastery was the first step, Starbucks intends to open more stores across Italy, including traditional cafés. This gradual expansion reflects a long-term commitment to the Italian market and a desire to become a part of the country’s evolving coffee culture.

By opening the Starbucks Reserve Roastery Milan, Starbucks signalled its respect for Italian coffee traditions while offering a unique and premium coffee experience. This strategic approach has allowed Starbucks to establish its presence in Italy, paving the way for potential future growth in this challenging but rewarding market.

Since opening its first store in 2018, Starbucks Italy has gradually expanded its presence in Italy. As of 2024, the company operates 37 stores nationwide, including the flagship Starbucks in Milan.

Starbucks’ Potential for Success in Italy

While Starbucks faced significant challenges entering the Italian market, the company also has several factors working in its favour that could contribute to its long-term success.

Italy is a global tourist hotspot, drawing millions of visitors each year. Many of these tourists are already familiar with Starbucks and may appreciate a taste of home while abroad. Starbucks locations can provide a sense of familiarity and comfort for travellers seeking a break from unfamiliar surroundings.

Younger Italians, particularly those in urban areas and those familiar with American culture, might be more open to trying new coffee experiences and international brands. Starbucks‘ modern aesthetic, focus on customization, and variety of offerings beyond traditional espresso could resonate with this demographic.

Starbucks is willing to adapt its menu and offerings to cater to Italian preferences. This includes offering smaller sizes, incorporating local pastries, and even developing new beverages inspired by Italian flavours. Continued adaptation and innovation will be key to further integration into the Italian market.

Starbucks doesn’t necessarily need to replace traditional Italian coffee bars to be successful in Italy. Instead, it can co-exist by offering a different kind of coffee experience that complements the existing culture. For example, the Starbucks Reserve Roastery in Milan focuses on a premium, immersive coffee experience that caters to a different need than the quick, social espresso break at a traditional bar.

Starbucks has long promoted the concept of the “third place” – a comfortable and welcoming space between home and work where people can connect and relax. This concept could resonate with Italians, particularly those seeking a more relaxed and social coffee experience beyond a traditional bar’s quick, stand-up espresso.

Starbucks also has the potential to build a loyal following in Italy by fostering a sense of community within its stores. This can be achieved by hosting events, partnering with local organizations, and creating a welcoming atmosphere that encourages social interaction. By becoming a contributing member of the community and providing a space for connection and belonging, Starbucks can further solidify its presence in the Italian market.

While the Italian coffee market presents unique challenges, Starbucks has the potential to carve out a successful niche by leveraging its strengths, adapting to local tastes, and embracing the existing coffee culture. By offering a unique and complementary coffee experience, Starbucks can become a part of Italy’s vibrant coffee scene.

Starbucks in Italy: A Brewing Future?

Starbucks‘ journey into Italy is a compelling example of a global brand navigating the complexities of a deeply ingrained and unique coffee culture. While initially hesitant due to Italian coffee drinkers’ strong traditions and preferences, Starbucks ultimately took a strategic approach, demonstrating respect for local customs while offering a distinct coffee experience.

The Starbucks Reserve Roastery in Milan signalled the company’s commitment to adapting to the Italian market. By focusing on premium coffee, Italian design, and a localized experience, Starbucks has begun to carve out its own space in the competitive Italian coffee landscape.

The future of Starbucks in Italy remains to be seen. Will the company successfully integrate into the fabric of Italian daily life, or will it remain a niche experience for tourists and those seeking an alternative to traditional coffee bars?

Ultimately, Starbucks‘ success in Italy hinges on its ability to balance honouring the country’s rich coffee heritage and offering something new and appealing to a diverse and evolving consumer base. Only time will tell if Starbucks can truly win the hearts and palates of Italy’s passionate coffee lovers.

What do you think the future holds for Starbucks in Italy? Will it become a staple in Italian daily life, or will it remain a niche experience for tourists and those seeking something different? Share your thoughts in the comments below!