To anyone who finds amusement in the oddities of human nature, there is sometimes no greater pleasure than to watch people go to war over the role Starbucks plays in coffee culture. Though it would seem many are unaware, your role in this battle is probably influenced greatly by where in the world you come from.
In Melbourne, Australia, we like to think of ourselves as very cultured. We’ve got laneways, street-art, trams, lots of nice little coffee spots… of-course we’re cultured! You don’t think otherwise do you? You’d better not. Have you not been to Fitzroy? Jump on my vintage bicycle and I’ll take you there now; we’ll enjoy a cup of freshly brewed fair-trade coffee with soy at a great little organic grocer I know next to a gorgeous little vintage clothing store run by my 23 year old housemate Mabel.
Heavens, sorry about that. It must have been my status-anxiety leaking through again. That tends to happen to many of us Melburnians when we are approached by large, mainstream brands like Starbucks. A mere mention of the green logo sends the complexion pale; “Oh, so you like the milk”, they’ll snidely say. Or this; “Coffee connoisseurs? More like coffee-slags!”.
To fully understand the role of Starbucks in the world, we must cast our eye back to America in the 1970s. You’ve seen those scenes in old cop shows where the main character meets a dodgy, usually overweight guy in a diner while he eats his bacon and eggs and sips a cup of murky black liquid. Well, believe it or not, that murky black liquid was once known as coffee. It’s true! And back then, it’s all the USA had.
Then one day a man named Howard went on a holiday to Europe. He was immediately infatuated by the numerous coffee bars that existed largely throughout Italy. They were unlike anything he had seen in his home country; fashionable bars, like the ones that served alcohol in New York, yet set-up especially for coffee. What a concept! Returning to the USA, he began begging the owners of the store he worked in to start selling espresso. Back then, in 1982, the store sold only coffee beans. Unfortunately, the three owners of the first Starbucks thought selling drinks would distract the customer from the point of the business – coffee beans.
Howard had determination. Growing up in a subsidised housing area of Brooklyn, New York, he had long dreamed of achieving something better. In 1975 he became the first member of his family to graduate from college, which led him to his position as Director of Marketing at Starbucks’ first incarnation.
In 1985, Howard set his idea in motion when he opened his own coffee bar chain, Il Giornale. Before long, however, the owners of Starbucks bowed out. Howard bought the original Starbucks chain in 1987, rebranded all his Il Giornale stores, and the Starbucks as we know it was born.
While the scary dark liquid version of coffee (commonly known as “filtered coffee”) is still sold at Starbucks, the staple item really has become the latte; a shot of coffee, steamed milk, and a thin layer of froth on top. Simple, reliable, essential. To a nation like the USA, the introduction of things like lattes, cappuccinos and caramel macchiatos was revolutionary. Starbucks ignited a brand new industry, and quickly rose from a small chain of stores to a massive corporation.
Inevitably, international expansion became a reality. Nowadays there are 49 countries of the world with a Starbucks outlet. As you may have noticed, Australia is one of them. When the chain arrived here in the 90s, the strategy for breaking the market was no different to anywhere else. The rather notorious saturation protocol was followed; a store on every corner, just like in New York.
But as Starbucks recently found out, Australia is a very different marketplace to other parts of the world. In the aftermath of World War II, our cities became very popular destinations for those seeking an escape from war-weary Europe. In particular, Melbourne had already been home to coffee culture for many, many years before Starbucks arrived on the doorstep. Indeed, the idea of Americans marching in to teach us about coffee played like a punch line.
And thus, Starbucks has not been very successful in Australia. The stores we still have do quite a roaring trade, and are immensely popular with overseas students and those who like their coffee artificially sweetened. But for a chain with dreams of world domination of the coffee market, the current situation isn’t great.
However, this dissection of Starbucks’ failure in the Australian landscape does not account for the angry, bitter, and sometimes violent reaction many Australians have to the chain. Even when presented with the very valid point that most ordinary coffee shops do not offer the massive sizes that Starbucks does, or the array or sweeteners, the Starbucks-haters do not relent.
Unfortunately, despite the masterful branding efforts by Starbucks, the company has failed in Australia to separate itself from the perception most of us have towards large American corporations. To many a Melburnian, buying from Starbucks is akin to shopping at Wal-Mart. Everyone knows how evil Wal-Mart is – and we don’t even have any stores! Going to Starbucks will not make you feel like a member of a small and exclusive club; it will make you feel like a fat American capitalist who is used to getting everything they want by the truckload.
That’s true, assuming you’re one of those people who holds opinions for fashion reasons. Starbucks has destroyed some smaller businesses simply by existing, just like Borders has killed smaller bookstores and supermarkets often kill greengrocers. But why this assumption that frequenting a smaller operator is always a better choice?
What many fail to fathom is that, aside from the obvious question of who owns the business (i.e. a large American company or a passionate individual), there is also the question of where the beans come from. On top of a line of fair-trade coffee products, Starbucks also pays above market prices for its coffee beans; on average $1.42 per pound, compared to commodity prices of around $0.60.
Meanwhile, the majority of independent cafes receive their roasted beans from suppliers. How many would have any clue how much was paid to the grower for the beans they brew?
Of-course, in the real world, asking all coffee merchants to match Starbucks’ buying power would be handing a golden key to the giant. But just imagine the situation for bean growers in poorer countries if Starbucks were to suddenly disappear.
Admittedly, the quality of coffee at Starbucks here in Australia is rather dull. And sadly, none of the special promotions featured in the US stores ever make it to our shores. But still, I like Starbucks for what it is. I like the ridiculously large cups, the variety of drinks, the condiments bar, the little cardboard cup holders, it’s all fun and part of the experience of going there.