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Introduction
Starbucks is a multinational coffeehouse chain founded in Seattle, Washington in 1971
(Starbucks, 2023). The company has become one of the world's most recognizable brands, with
over 30,000 locations in 78 countries worldwide (Starbucks, 2023). The coffee house has a
reputation for providing high-quality coffee, great customer service, and a unique in-store
experience. Americans view Starbucks as the golden standard for coffee shops and admire the
brand for its success. After establishing a strong presence in the market in the United States,
Starbucks decided to go global. In 1996, the chain opened its first store overseas in Japan and
then continued to expand in the Asia-Pacific region, and later in the United Kingdom and Europe
(Lemus et al., 2015). Eighteen years later in 2018, Starbucks expanded to about thirty thousand
total stores, and decided to venture into Italy and open a Starbucks Reserve in Milan (Starbucks,
2023). With the strict traditional structure of Italian coffee culture, this was a bold and daring
move by Starbucks. Now, five years after the Reserve's opening, Starbucks plans to add more
locations in Italy (Wanted In Rome, 2022). This paper aims to explore the background and
business plan of Starbucks in the United States, and view insights into the complexities and
strategies of the company's expansion into the traditional coffee market of Italy.
Starbucks’ Early History
Start of the Company
In 1971, three friends named Jerry Baldwin, Zev Siegl, and Gordon Bowker started
Starbucks in Seattle, Washington (Pereira, 2023). At the time, the coffee market in the United
States was still in its early stages, and Starbucks faced competition from established coffee
companies such as Peet's Coffee and Tea. However, the founders were determined to set
themselves apart by offering a unique and superior product (Farr, 2017). They roasted the beans
themselves and sourced their coffee beans directly from growers in Latin America, Africa, and
Asia to ensure quality and freshness. With a great product and strategy, they knew they needed a
great name to seal the deal. Sheila Farr (2017) explains best how they created the name:
“Bowker had teamed up with designer Terry Heckler to form the advertising firm
Heckler Bowker. As Bowker, Baldwin, and Siegl struggled to find a name for their coffee
business, Heckler suggested that names beginning with the letters "ST" had a bold,
memorable character. One day Bowker, looking at an old mining map hanging in his
firm's waterfront office, noticed a town called Starbo: "I immediately connected it to the
character in Moby Dick and said 'Starbuck' ... And from that moment it became
Starbucks. I didn't really have to convince Zev and Jerry very hard" (pg. 3).
Balwin, Siegl, and Bowker initially planned for the store to only sell roasted coffee beans, teas,
and spices (Pereira, 2023). They never envisioned the community and restaurant that it would
eventually become in the future. It was not until a decade later, in 1982, that Starbucks decided
to open its first coffee bar where they sold their own brewed coffee (Farr, 2017). In 1984,
entrepreneur Howard Schultz bought Starbucks because he was impressed by the company's
commitment to quality coffee (Le, 2022). Schultz had a different vision for Starbucks than the
original owners, and he gained his vision and inspiration from a visit to Italy in 1983
(Bondarenko & Petruzzello, 2023). While in Milan, he observed that when Italians went to a
café, they did not just go to drink coffee, but rather they went to talk with friends and interact
with other customers. He was then heavily influenced to drive Starbucks in a different direction
and make it a social hub that customers can visit while enjoying their coffee (Le, 2022). Thus
was the very start of the ever-increasing global brand because Schultz wanted to turn this small
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coffee bean store into a chain of stores that would connect people and bring high-quality coffee
to people across the United States.
Growth in the United States
Under the leadership of Howard Schultz, Starbucks experienced explosive growth in the
United States. Schultz was passionate about bringing high-quality coffee to as many people as
possible, and he believed that Starbucks could be a cultural force that would change the way
Americans thought about coffee (Larimore, 2013). In pursuit of this goal, Schultz embarked on
an aggressive expansion campaign, opening new stores across the country and introducing new
products (Quarterly, 2011). One of the keys to Starbucks' success during this period was its focus
on creating a consistent brand experience. No matter where you were in the country, a visit to
Starbucks would feel familiar and comforting, with the same menu, design aesthetic, and
customer service (Starbucks, 2023). This consistency helped to build customer loyalty and made
Starbucks a trusted and reliable destination for coffee drinkers. Schultz also created the concept
of the "third place," a social gathering space that was neither work nor home, but provided a
sense of community and belonging (Smith, 2021).
Overall, the expansion of Starbucks in the United States under Howard Schultz has been
a story of success. By the end of the 1990s, before Starbucks opened chains outside of the
country, there were more than 1,000 stores in the United States (Starbucks, 2023). Its distinctive
green and white logo had become a universal symbol of high-quality coffee and a modern,
upscale lifestyle. While Schultz would later face criticism for the company's rapid expansion,
there is no denying that his vision and leadership transformed Starbucks into a global
powerhouse and a cultural icon in the United States.
Business Plan
Starbucks experienced tremendous growth in the United States due to many key
components that were integral to the company's business plan and strategy. Those components
include rapid store expansion, brand loyalty, product innovation, and a focus on quality coffee.
In the late 1980s, there were fewer than 20 stores, and by the early 1990s the company expanded
to over 100 locations nationally (About Us, 2023). In 1992 the company went public and that is
when store openings around the country started to skyrocket (Bondarenko, P., & Petruzzello, M.,
2023). Before Starbucks expanded globally in 1996, the company had already grown to include
more than one thousand stores throughout the United States (About Us, 2023). This aggressive
expansion was a central part of Starbucks' growth strategy and helped the company to establish a
significant presence in the U.S. market. To build brand loyalty and create a consistent customer
experience, Starbucks developed a standardized menu, store design, and customer service
training program that was implemented across all locations (Kahn et al., 2014). This emphasis on
consistency helped Starbucks to build a loyal customer base that knew what to expect when they
visited any Starbucks location. Product innovation was also a key component of Starbucks'
growth strategy. The company regularly introduced new products and variations to its menu to
keep customers engaged and interested (Kahn et al., 2014). This approach helped Starbucks to
stay relevant and meet changing customer preferences over time. Finally, Starbucks emphasized
the importance of quality in its coffee and customer experience. The company aimed to
differentiate itself from competitors by offering high-quality, premium coffee and emphasizing
the importance of the coffee-making process (Kahn et al., 2014). This commitment to quality
helped to establish Starbucks as a leader in the coffee industry and a trusted brand for customers.
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Global Growth
Starbucks' success in the United States paved the way for the company to expand
internationally and become a global brand. Over the years, the company has continued to expand
its reach and establish itself as a leader in the coffee industry worldwide. The first store that
Starbucks opened internationally was in Tokyo, Japan, in 1996 (Szabo, 1996). Despite facing
fierce competition, Starbucks generated significant excitement and interest, with approximately
100 people waiting in line at 6:30 am on the morning of the opening (Starbucks, 2023). Every
single year since then, Starbucks has opened a store in at least one new country (Starbucks,
2023). They have been able to succeed in international markets due to adaptations and
localization without compromising their brand and values. Before entering a new foreign market,
Starbucks extensively researches the culture, consumer preference, and history of the new
location they are considering (Day Translations, 2019). The company will change and adapt
items on the menu to better suit the local area's culture and people. An added part of this strategy
is to even change the overall look and design of the store on the inside and out. Starbucks will
often hire local designers to “create the right atmosphere” for the new store ((Day Translations,
2019). Even the websites for Starbucks become localized to the local language of the culture.
Doing so helps Starbucks’ brand as seen as more approachable and welcoming in a new location,
and consumers don’t feel as if an outsider has infringed on their local area. Despite making new
adaptations to the menu and physical store, Starbucks remains loyal to its core values. In every
new location, the company maintains its dedication to offering high-quality coffee and providing
customers with a distinctive in-store experience (Starbucks, 2023).
Italy
Culture and Business
The culture in Italy is vastly different from that in America because of their deep
appreciation for personal relationships and love for life. In the United States, many people would
say that they live to work and have a mindset that their work controls their life. In Italy, they say
that they work to live. Whenever one leaves their place of work for the day, they do not think
about it at all until they show up the next morning. This way of life helps them to enjoy the other
simple pleasures that life has to offer on a day-to-day basis. Italians also emphasize personal
relationships, which are essential for building trust, loyalty, and mutual respect (Evason, 2017).
Family and close friends are considered the most important relationships. Personal connections
are also key to successful negotiations and partnerships in business settings. Italians often take
the time to get to know their business partners on a personal level, and building a relationship
based on trust and mutual respect is often seen as more important than a specific outcome
(Evason, 2017). This value on personal relationships adds to Italy's high-context culture, which
means they emphasize nonverbal communication and physical cues rather than explicit language
(Buchanan, 2022). This reliance on nonverbal communication can be challenging for outsiders to
understand, but it is an essential part of Italian culture and plays a significant role in building
strong personal and business relationships.
Italian Coffee Culture
Italian coffee culture is deeply ingrained in everyday life and is more than just a morning
caffeine boost. During a food tour of Florence with Devour Tours, I learned about the Moka Pot,
an Italian espresso maker that many households use to make coffee every morning. This
traditional method of coffee brewing uses steam to extract the flavors of the coffee grounds and
is a practice that has been passed down through generations (Wahn, 2022). Traditionally in most
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households, the youngest family member has the chore of making the morning coffee using the
Moka Pot. It is also common for children as young as five years old to start drinking small sips
of coffee, and by the time they reach their teenage years, they are starting their day with a full
cup of coffee. After adults have their morning coffee at home, it is not unusual to stop again at a
café for more coffee throughout the day. Taking a quick break at a café for a shot of espresso is a
ritual that is deeply ingrained in the Italian workday, sometimes going up to five times a day
(Kirchgaessner, 2016). When ordering an espresso shot at a café, the routine is quick and casual.
Customers walk up to the counter, order their espresso, make friendly conversation, pay only one
or one and a half euros, and then sip their espresso right there at the counter. The regularity of
visiting the café creates a sense of community, and baristas often get to know the local people,
adding a friendly and familiar touch to the café environment (Hough, 2021). The culture of
coffee in Italy is more than just a beverage, it's a way of life. It's a tradition that is steeped in
history, and the Italian coffee experience is unlike any other. From the morning coffee made
using a Moka Pot to the quick espresso shots at the café, Italian coffee culture is an integral part
of Italian life.
Italian Coffee History
Coffee culture is deeply ingrained in Italian society, and its history starts all the way back
in the 16th century (Lavazza Team, 2022). Venice is home to the most ancient operating coffee
house in the world, which was founded in 1720 after Venetian merchants imported coffee from
the Middle East. However, it wasn't until the 17th century that coffeehouses started to appear all
over Italy. These coffeehouses became vital meeting places for artists, writers, and intellectuals,
and began to create a social setting that coffee shops in Italy would later follow (Lavazza Team,
2022).
In 1884, Angelo Moriondo, an Italian businessman, presented a new machine capable of
producing a short and concentrated drink, the espresso (Lavazza Team, 2022). In 1901, an
engineer named Luigi Bezzera revised the machine, which helped spread the espresso machine's
popularity throughout Italy (Lavazza Team, 2022). His revisions and improvements enabled the
creation of a single serving for each customer by “forcing pressurized water through a handful of
coffee powder to produce a short, concentrated drink: the espresso, so called because it could be
prepared expressly for each customer and because the water had to be expressed through the
coffee” (Bizzarri, 2017). The use of espresso machines rose in "American bars," where
customers would stand at the counter while ordering and drinking coffee (Lavazza Team, 2022).
The first "American Bar" was established in Florence and gained the nickname Caffe de Ritti.
This nickname was due to the standing action of its customers because the term "Ritti" in Italian
means "upright" (Bizzarri, 2017). The rich history of Italian coffee has contributed tremendously
to the traditions Italian families continue to follow centuries later.
Starbucks Entering Italy
External and Internal Competitive Environment
Starbucks made its entry into the Italian market by opening a storefront in 2018,
prompting the need to evaluate its competitive environment through the analysis of the core
competencies and strategies of its competitors, mainly through a SWOT analysis (Starbucks,
2023). While scanning and analyzing the environment that a firm plans to enter, it is also
important to understand the strengths and weaknesses of its own company before expanding. In
terms of strengths, Starbucks has had exceptional financial performance, with yearly revenues
reaching over 20 billion dollars (Pereira, 2023). Starbuck's well-known brand name and
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reputation might be one of its primary strengths, as it is one of the most popular firms in the
global food and beverage industry. The quality and standardization of coffee at every location,
except for the localization of a few products, is another strength. Additionally, Starbucks has an
extensive supply chain and global reach through networks of multiple coffee bean suppliers from
Africa, Latin America, and Asia (Pereira, 2023). With the various strengths that Starbucks holds,
there are some weaknesses that could hinder its growth and profitability. For instance, the prices
of Starbucks' products are higher than those of other coffee competitors (Pereira, 2023). While
standardization is a strength in ensuring consistent quality, it can become a weakness when it
does not fit the local culture and preferences (Nichols, 2018). Lastly, the imitability of Starbucks'
products is a concern. Competitors can easily replicate or recreate the resources and
competencies that Starbucks has developed for its products (Pereira, 2023).
Italian Coffee Companies
Italian brands Lavazza and Illycaffe pose as significant competitors to Starbucks
(Landini, 2017). These brands have gained a reputation for their quality coffee and established
their presence across Europe, already having storefronts in Milan close to where the Starbucks
Reserve is located (Landini, 2017). Lavazza has a well-known brand name, a good reputation,
and a strong financial position (MBA Skool Team, 2020). However, Lavazza is seen as an
expensive brand and is in constant competition with other coffee companies in the industry
(MBA Skool Team, 2020). To combat these challenges, Lavazza has the opportunity to create
cheaper coffee products and open stores in smaller towns and cities. Its threats come from the
increasing competition in the market, like Starbucks and Illycaffe (MBA Skool Team, 2020).
Illycaffe, another big Italian name brand, also poses a significant threat to Starbucks. By
charging a premium to its customers, the company receives high-profit margins which are then
reinvested into research and development (Carroll et al., 2022). Illycaffe has a strong brand
image and brand awareness, but it is also seen as expensive, costing up to three times the price of
local cafes (Landini, 2017). Additionally, its products can be easily imitated. Like Starbucks and
Lavazza, Illycaffe faces the constant threat and possibility of increasing coffee bean prices.
While Starbucks faces stiff competition from these Italian name-brand coffee companies, they
also face a portion of competition against smaller cafes that the area’s locals visit regularly.
American Companies Entering the Italian Market
The success of American companies in Italy, like Domino's and McDonald’s, may have
influenced the decision for Starbucks to enter the Italian market. In 2015, Domino’s opened a
storefront in Milan (Povoledo, 2023). Their choice to enter the Italian market was considerably
bold because of the cultural significance of pizza to Italians. However, Domino’s was confident
in their decision due to their expertise in home delivery, which Italy lacked, and the fact that
Italy has the second-largest market for pizza eaters in the world (Povoledo, 2023). After six
successful years and the opening of 34 new locations, Domino’s had made American-style pizza
a hit in Italy, with customers even embracing unusual pizza toppings like pineapple. However,
due to the pandemic's lasting effects, Domino’s has now closed all of its Italian restaurants
(Povoledo, 2023).
McDonald’s opened their first store in Italy in 1986, even while enduring heavy protests
from the people of Rome (Suro, 1986). Many protestors complained of “significant and constant
noise and an unbearable smell of fried food fouling the air” (Suro, 1986). Despite the negative
press, McDonald's waited patiently for the right time to expand throughout the country. They
bought out their biggest competition, added healthier menu options, and eventually became a
great success (Ferrari, 2018). As of 2021, there were 680 operating McDonald's stores all over
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Italy, a true testament to how an American food brand can become embraced by Italian
consumers (Neely & Segreti, 2021).
Covid Impacts
The Covid-19 pandemic created challenges for various industries, and the food and
beverage sector is no exception. Restaurants, bars, and cafes had been forced to shut down,
operate with limited capacity, or shift to delivery and takeout services to comply with social
distancing guidelines. In addition, almost all supply chains had been disrupted, causing shortages
and increased prices for some food items. The pandemic has also changed consumer behavior
and preferences, leading to a shift towards online ordering and contactless payment. These
impacts have opened new challenges and significant changes to Starbucks and the global food
and beverage industry.
Delivery and Convenience
The impacts of Covid-19 considerably altered the traditional Italian activity of visiting a
local café. Due to strict lockdown rules and regulations, visiting a local café was no longer an
option. Coffee breaks during the day turned into a solitary activity in one's own home, with many
Italians using their Moka Pot (Hough, 2021). What was once a friendly and spontaneous
interaction with baristas and neighbors, turned into a lonesome experience. As restrictions
loosened, some cafes began offering a takeout option which was previously not normal for the
Italian culture. Pre-pandemic, it was not typical that cafés and restaurants would ask the
consumer if they preferred to have their food and drink to go. Locals or tourists would never
carry around a to-go cup with food or drink because it was always customary to enjoy their meal
or coffee at the café counter (The Local It, 2022). After Covid shifted the way in which
businesses had to operate, Italian cafes and restaurants adopted the necessary change of offering
takeout. Italian consumers were so joyous to start drinking their favorite coffee again, one person
even claimed that coffee from their favorite café had saved their life (Hough, 2021). Starbucks
benefitted greatly from this cultural adoption of takeout and to-go cups, considering they have
always been operating their business that way.
Italians’ Opinions
The arrival of Starbucks in Italy was not well received by the Italian people due to their
strong coffee culture. Prior to the opening of the Starbucks in Milan, an Italian news network
conducted a poll on Twitter to gauge the residents' opinions about their arrival. The results of the
poll were overwhelming, with 87.3% of the respondents expressing their disapproval of the idea
(Nichols, 2018). Many took to social media to voice their outrage, criticizing Starbucks coffee as
"over-roasted crap," "too hot," "burnt," and "acidic" (Nichols, 2018). Some also commented on
the high prices and joked about the names of the cup sizes. Italians are accustomed to their small
espresso shot portions, so many speculated that Starbucks' maxi sizes and prices would not be
well received (Povoledo, 2023). Additionally, some made fun of the way tourists would order a
cappuccino later than 4 pm, which in Italian culture is considered very unconventional (Nichols,
2018).
Although many Italian residents are not keen on the arrival of Starbucks, some
individuals are excited about the new store opening. Raimondo Ricci, the owner of Sant
‘Eustachio, a very popular cafe in Rome, believes that Starbucks' arrival will benefit both
customers and competitors by introducing a different way of doing business (Kirchgaessner,
2016). He acknowledged that although Starbucks offers more expensive coffee and a space that
is more traditional to American coffee shops, it will not “replace the traditional Italian bar”
(Kirchgaessner, 2016). Ricci gave credit to Starbucks for having a good variety of products and
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food, and he even linked the similarities between Starbucks and 17th-century Italian
coffeehouses through their shared history as “literary places where educated people discussed
politics” (Kirchgaessner, 2016). Meanwhile, some local Italians on Twitter admitted that they
wouldn't mind having a Frappuccino occasionally (Nichols, 2018).
Starbucks’ Actual Customers
Despite many Italian locals opposing the opening of Starbucks in Milan, the coffee house
isn't necessarily aiming to attract this particular demographic. Many Italians predicted that only
“millennials, tourists, and people looking for free Wi-Fi and a place to sit” would be the ones to
walk in and order from Starbucks (Nichols, 2018). Local cafes and bars were not fearful of
losing business to this well-known brand, as they believed there was enough room for both types
of businesses (Maffei, 2017). Locals would continue to go to their small regular cafes while
Starbucks would attract tourists and likely many Americans. After a few years of successful
business, the best-selling beverage turned out to be a solo shot of espresso, the same order that
local Italians enjoy at their traditional cafes (Ngo, 2022). Whether this is because tourists are
trying to act Italian or Italians are buying from Starbucks is still up for debate. However, this
success shows that maybe Italians have embraced what Starbucks has to offer. Data also suggests
that when a foreign brand enters a new country, people's bias toward their own culture only
affects how they perceive the quality of the brand and not how they view the brand overall
(Magno and Cassia, 2019). Italians prefer the quality of their own local cafes and bars but still
view Starbucks as a successful global brand and could be open to the idea of occasionally
visiting for a shot of espresso.
Success or Failure
Starbucks' first store in Milan is not only thriving, but the company also opened another
nineteen stores by 2022 (Starbucks, 2022). They have plans to continue expanding their footprint
across Italy, with a goal of opening twenty-six new stores by the end of 2023 (Starbucks, 2022).
Many factors have contributed to this success, but the main one is likely the vision and intention
behind the brand. Decades ago, Howard Schultz was inspired by local European cafes, and that
experience shaped the way he built the chain (Bizzarri, 2017). He did not want to take over the
coffee industry in Italy, but rather because of his deep respect for the Italian culture and people,
he wanted to bring what he had to offer to their country (Maffei, 2017). He wanted to provide
them with the third place he had pioneered, knowing that even the “multiethnic, hyper-connected
population needs a place to rest, read, work, and use the bathroom while on the go” (Bizzarri,
2017).
Personal Experience
My visit to the Reserve
In the summer of 2022, I spent five weeks studying abroad in Florence, Italy, where I
fully immersed myself in the local culture. This included going to cafes, ordering a shot of
espresso, drinking it at the bar, and making casual conversation with the barista. I even became a
local at one café and the barista would bring my drink to my table without having to place an
order. Although I loved the quaint little spaces that made each café unique, as an American used
to large dining areas, I found them quite cramped. My roommates and I spent a weekend in
Milan our first stop was to visit the Starbucks Reserve. Having been to a Reserve in New York, I
knew that this store would be enormous, with an operating roastery and plenty of open space.
However, when we arrived, I was shocked by the crowd. Though the store was giant and had two
levels of retail, people were everywhere, the line to order coffee was winding and long, and the
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line to purchase merchandise was even longer. We got in line to order food and coffee, and as we
waited, I noticed that most of the customers were speaking English and were probably tourists.
Finally, after a 35-minute wait, we ordered our coffee and pastries. The coffee was the same as it
is in America, which is part of the appeal of Starbucks having consistent and quality coffee, and
the pastries were very fresh and flavorful. Overall, the experience was what I expected, except
for the overcrowding of the store due to its popularity among tourists.
Interviews
My great cousin, Star Meyer, has been living in Milan, Italy for almost two decades after
falling in love with an Italian man while studying abroad to achieve her master's degree. She
frequently visits her favorite cafes around town, enjoying espresso like the locals do. When she
heard that Starbucks was opening a location in Milan, she wrote numerous letters and emails to
both the city of Milan and Starbucks persuading them not to open a store as she believed it didn't
belong in Italian culture. Four years after its opening, Star has still not visited any Starbucks
locations in protest to the global chain.
While studying abroad, my roommate Olivia Richardson and I visited the Starbucks
Reserve in Milan, and she was pleasantly surprised. The architecture and the roastery's scent
made a jaw-dropping experience. Olivia, a self-proclaimed coffee connoisseur, found it unique
and elevated compared to Starbucks in America. She appreciated that everything was house-
made, and the French vanilla coffee was “the best coffee” she ever had. The seating options were
limited due to the high number of people in the store, as Starbucks encouraged visitors to shop
around, get their coffee, drink it, and go. Though primarily Americans were observed visiting the
store, Olivia believes it is a worthwhile addition to Italy's coffee culture. She understands how in
Italian culture they place a high emphasis on quality coffee and what goes into making it, so she
appreciated how Starbucks demonstrated its detailed process and enhanced the menu to adapt to
Italian culture.
Personal Opinion
In my opinion, Starbucks made a well-informed and calculated business decision by
entering the Italian coffee market in the manner that they did. The intention behind their entry
was one of the most significant aspects to me. Howard Schultz's appreciation for Italian cafes
was the reason and inspiration for building Starbucks, and he has the utmost respect for the
Italian coffee market. Instead of forcing their way into Italy and disrupting their coffee industry,
they entered cautiously and respectfully. Starbucks recognized that the coffee industry in Italy
was well-established and mature, and they had no intention of replacing it. They only wished to
offer their own unique products to the culture. After my visit to the Reserve, I realized the
importance of Starbucks localizing to better fit in with the area and culture. I appreciated the
familiarity of the store, which reminded me of America. As an American in Italy for five weeks,
halfway through my trip, I missed anything that remotely reminded me of home. I believe that
many tourists, whether American or not, appreciate this store because they know that it provides
a consistent experience with quality coffee no matter where they are in the world. With plans to
add twenty-six new stores by the end of this year, I fully support Starbucks, as the Italian culture
seems to have adopted this global brand to some extent.
Conclusion
After exploring the background and business plan of Starbucks in the United States, and
viewing insights into the complexities and strategies of the company's expansion into the
traditional coffee market of Italy, the global chain had created monumental success in such a
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mature market. Starbucks has become a global brand after only being founded by three friends in
Seattle, and starting as a small store selling roasted coffee beans, teas, and spices. The company
later expanded into a chain of coffee bars under the leadership of Howard Schultz, who bought
Starbucks in 1984. Schultz was passionate about bringing high-quality coffee to as many people
as possible, and he believed that Starbucks could be a cultural force that would change the way
Americans thought about coffee. The company's success also extended to international markets,
where Starbucks adapted and localized its menu and store design to suit the culture and people of
each new location. Starbucks' expansion into Italy required extensive research and adaptation to
the Italian culture. The Italian coffee market is a mature and well-established market with a rich
history of traditional espresso culture. Entering this market successfully was a great obstacle for
Starbucks, as they faced strong competition from local cafes, Italian coffee brands, and a
population that is deeply rooted in their coffee traditions. While making adaptations to the menu
and store design, Starbucks remained committed to its core values of providing high-quality
coffee and a unique in-store experience. While controversial, their success in Italy cannot be
undermined as they continue to expand and attract customers in the birthplace of espresso.
