On Swedish Business

Peter Vinthagen follows the money

Welcome Ms.Starbucks, but don’t take off your coat

When McDonald’s was forced to close in Umeå in northern Sweden in 1991, the news broke worldwide. Little Sweden had fought off the US hamburger invader – or so the story went.

McDonald’s now has more than 230 restaurants in Sweden but still struggles in the north, with competitor Max ruling the roost. My kids call them MaxDonald’s but that’s by the by.

It is now the turn of Starbucks to try their luck. Not a worldwide news item but their marketing department will no doubt be very happy with the coverage they gained in the media today.

The arrival of the mucho mocha frappalappacino will no doubt be met with mixed feelings among Sweden’s chattering classes.

Some will no doubt welcome the fact that the Seattle-based caffeine peddler has finally noticed little old Sweden – in case you hadn’t noticed many have something of a love/hate relationship to the good old US of A.

The bottom line is, I’m sure, the only reason why Starbucks haven’t arrived before – market may have been considered too small, Sweden’s café culture recognised as too well established…

In many of the markets where the brand has thrived this was not the case and I am sure they have done wonders for the standard of coffee served in the US and the UK.

In Sweden they simply can not offer a better product – we can coffee.

They can however offer a different product, but locating their store in Arlanda airport indicates that they don’t (yet) have the confidence to try.

I remember once declaring to an American friend that Sweden does not have any Starbucks – he curtly challenged me, somewhat defensively in my mind, asking “what is wrong with Starbucks?”.

I didn’t tell him – I can honestly say I did not know, and still do not – I have never bought anything resembling a coffee in one.

And I won’t be making any special trips out to Arlanda for that mucho mocha that I mentioned previously but I do wish them well; but not too well.

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10 responses to “Welcome Ms.Starbucks, but don’t take off your coat”

  1. Miso says:

    Most communities tend to support the locals.
    The strong community ties and McDonald experience in that market would prevent Starbucks making enough $$$ to expand beyond the airport.

    Report abuse »

  2. Anders Blackmun says:

    Starbucks is about snobbery. Paying too much for brewed coffee with romance-language names has nothing to do with superior flavor or the Old World culture of the coffeehouse. I can’t imagine how this pseudo-elegant product could meet with Swedish approval.

    Report abuse »

  3. Marc the Texan says:

    In Malmo I go to Espresso House. In London I prefer Costa Brothers. In Houston I go to Starbucks. It all works for me. I will say you are right about Starbucks improving American and British coffee though. Starbucks really stimulated the coffee market and drove the competition. Lots of small coffee chains in the US and UK are better than Starbucks, but I think Starbucks is the global impetus that made everyone improve their coffee and that includes Europe to some extent as well. I also think Starbucks brought coffee to lots of places where there was no no market previously.

    Report abuse »

  4. Jess Hicks says:

    I think the major reason for Starbucks success has little to do with their coffee and much more to do with their marketing of the business. In years gone by coffee shops wwere regarded as places people popped into for a quick drink while out for the day. But Starbucks chnaged them in to meeting places with Wifi and now many business men and women will meet for coffee rather in a bar.

    In some European countries including Sweden this culture already existed hence harder for the impact to be as significant as say UK and USA.

    Report abuse »

  5. Petros says:

    Snobbery or not, good quality or not, coffee or not, the fact is that Starbucks is a huge multinational chain. They surely have a better reason for not invading Sweden, than just been afraid of the Swedes who “can coffee”.

    I believe that what Starbucks sees in Sweden is a vast market with limited profit. Furthermore and in spite of what they claim to be, Starbucks is not a company that cares much – to put it mildly – about its employees. The Starbucks working conditions would create massive problems to the local employer, as a result of the more human centric Swedish labour system and standards.
    In addition, the infrastructure in Sweden is much more expensive that in other European countries and so are the charges the companies pay to the state for their employees.

    Report abuse »

  6. KT says:

    I think it would be nice to have a company that offers something different. I love the selection and value that American companies offer to Swedes compared with their Swedish counterparts. I remember coming here 13 years ago and actually being “bored” by the limited selection of coffee. It is much better now.

    In this market any job is a good job!!! In my view any company offering new jobs and opportunity to Sweden and Swedes should be welcome with open arms.

    Report abuse »

  7. KT says:

    Welcome Starbucks!

    Please open at least one shop in Stockholm, or better yet try Täby Centrum where there is a large group of resident Americans!

    Report abuse »

  8. Luiza says:

    I totally agree with the author. Good coffee or not-and I would tend to say rather not, especially because of the huge-huge prices and cups-Starbucks is just another american piece of civilization that is trying to conquer the rest of the world. Just like McDonalds and all the rest.
    I think is time for Europe to take stronger position. We know what coffee means. And it certainly does not mean the melange that Starbucks is selling. Those people should learn that coffee is usually served in cups not in McDonalds beverage glasses…I want a coffee not a whole teapot. This oversize me culture is not something a European prefers. IMHO.

    Report abuse »

  9. Matteo says:

    I agree with KT

    Report abuse »

  10. JR says:

    It is so much better to go to Espresso House and pay 29 kr for a take-away coffee. At least Starbucks coffee tastes OK. Espresso house is more corporate than Starbucks and the coffee is piss.

    Report abuse »

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