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Friday, January 16, 2004

Starbucks opens first French shop



By Laurence Frost
The Associated Press

PARIS - Starbucks has finally arrived in the country that likes to think it invented the cafe, and some business insiders say they know why it took so long to get here.

Almost six years after it began establishing itself in Europe - starting with Britain, Switzerland and Austria, Starbucks Corp. inaugurated its first Paris store Thursday, with Spanish partner Grupo VIPS.

Executives from four major French food companies said they turned down offers from Starbucks to form a joint venture in this notoriously difficult market.

"Their contract was way too expensive," said Jean-Paul Brayer, former head of Groupe Flo, a French restaurant-management company, which declined a Starbucks offer in 2000. "It was a win-win situation - but only for Starbucks."

Hamburger chain Quick and restaurant groups Elior and Le Duff also said they rebuffed Starbucks offers.

Starbucks CEO Howard Schultz dismissed the suggestion he initially sought a local partner. But he acknowledged having talks with French firms.

"Many of those conversations were not so much about partnering but learning about doing business in France and sharing information," Schultz said. "We were in discussions with lots of people, never made a proposal."

The king of Frappuccinos-to-go nevertheless accepts that it might not be easy to make ends meet right away in a country where people still like to sit down to drink their "express," preferred short, black, bitter - and above all, cheap.

Seattle-based Starbucks sees its international business posting an operating profit overall in fiscal 2004 for the first time in an eight-year global expansion drive.

But Schultz said the company was taking a "long-term view" on France, where pre-launch research showed people remain skeptical about America coffee. The findings also revealed that the French are already aware of the brand, he added.

"Their curiosity will drive them into the stores," he said.

There, familiar croissants and "pains au chocolat" await them, to lessen the culture shock when the doors to the new Starbucks premises on the prestigious Avenue de l'Opera swing open to the public today.

Another outlet opens Monday in the La Defense business district, the second of about 10 planned for Paris over the next year.



Gasoline prices bounce all over
Speculators blamed for high price of gasoline
Follow-up round of bank mergers predicted
Delta will abandon boarding by rows
Inflation appears under control
Fifth Third counts record profit
Enron's Causey likely is next
States push mutual funds for reform
U.S. pension bailout has $11.2B deficit
New Gillette razor stands hair on end
Starbucks opens first French shop
KFC spreading its wings and more throughout China
Business Digest
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Convention bureau makes changes

 

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