Starbucks Heading to Moscow
By Anastasia Serdyukova
Источник: MoscowTimes
Tuesday, October 10, 2006.
Issue 3515. Page 7.
Starbucks, the ubiquitous U.S. franchise of coffee shops, has announced it will open its first coffee shop in Russia next year, citing a growing consumer market and taste for Western name brands.
It has been reported that Starbucks is looking at a site on Tverskaya Ulitsa, potentially giving Coffee Bean and Coffee House competition.
The world-famous coffee company has been pondering a Russia move for years but was only granted permission last November to use its name and logo. The famous green-and-white symbol had been registered by a Russian firm.
But other obstacles persist. Unlike the United States, where most anyone can buy a double decaf latte almost anywhere, market analysts say the Seattle-based company may have to seek out its niche in Russia.
As Vladislav Kochetkov of the investment firm Finam put it: "There is no coffee-shop culture in Russia." While Westerners are accustomed to going out for a cup of Joe -- from Viennese coffee houses to Parisian cafes to grungy dives in New York's East Village -- Russians want food with their caffeine.
What's more, Russians don't know the Starbucks name, said Ramaz Chanturia, president of the Russian Association of Tea and Coffee Producers.
Also, the coffee sector is not growing like it did in the 1990s. Indeed, Chanturia called the market "saturated," adding that the market might grow just 3 to 5 percent this year.
But analysts say Starbucks may have one big edge: In general, the coffee house is smaller than its Russian counterparts, focusing on customers who get their coffee to go and renting spaces no more than 100 square meters in size. This should limit rent and other fixed costs.
Andrei Petrakov, CEO of the restaurant consulting outfit Restcon, added that the idea of buying coffee, cappuccinoes, lattes or frappuccinoes to go may have growing appeal in Russia. "The rhythm of life has become much faster," he said. But the notorious Russian winter may discourage some coffee drinkers from sipping their coffee on the run, Chanturia said. While it's possible to get coffee to go in Russia today, the lion's share is sold to sit-down customers.
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