Foie Gras Sandwiches In France? Starbucks To Conquer Europe With Localized Menus
April 13th, 2012
Market localization for Starbucks means foie gras sandwiches in France and ‘bacon butties’ in the UK.
Following a recovery in the US market, Starbucks is looking to improve its performance in Europe. The region has proved elusive to the high street coffee chain. Some see this as a symptom of the dominance of European café culture.
In order to achieve a surge in sales Starbucks has decided to localize its services according to individual countries to tailor their services to different cultures.
Michelle Gass, Head of EMEA at Starbucks, underlined the need to adapt to markets where the espresso is king. “Europe is espresso territory,” she stated. “To compete, we must absolutely deliver the best latte on the High Street.”
Food will also play a major role in the changes to the European business plan. Localized menu options will include “bacon buttie” sandwiches in the UK and foie gras sandwiches in France.
Behind The News
Café culture in Europe has posed a challenge to Starbucks as it attempts to dominate the market. In the US the company was able to steer clear of the economic downturn by offering discounts for the first time in its history.
This willingness to adapt is extending to the European market. Starbucks are changing the recipe of their small lattes in the UK to include two shots of espresso rather than one. Gass told Reuters that selling more lattes will more than offset the cost of adding the extra espresso shot.
Like McDonald’s before them, who refitted their European restaurants for a chicer look, Starbucks have decided that you cannot roll out a global model but need to localize your services for different markets.