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Starbucks Coffee suffers a setback in France

Five years after its launch in France, Starbucks Coffee is said to be finding the French market problematic for its American concept. Despite large investments with 40 cafés opening up in Paris and one in Lyon, daily takings have been dropping according to data received by the magazine ‘Capital’. The company is, Capital reveals, now suffering major losses.

Starbucks Coffee outlets have proved to be a success all over the world with its different varieties of coffee. The French, however, would appear to be less attracted to its range. They prefer to drink strong black coffee without added flavors. Furthermore, most French people stop drinking coffee in the afternoon unlike the Americans who drink coffee all day long. As a result the French Starbucks Coffee outlets have very little custom after 2 p.m.. Another explanation could be that the majority of the French dislike drinking whilst they are walking so take-away sales remain low. Competition from local pubs is also very strong with many French preferring to drink in such establishments than the American-style Starbucks.
Competition is becoming more and more intense on the market in many countries with other chains also setting up their own cafés to attract custom such as the MacDonald’s McCafés. The Subway sandwich chain is also currently testing an integrated café area at some of its outlets in Washington DC. (kbp)

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