Coffee Craze
I'm Barry Petersen and this Letter From Asia comes from, well, from Starbucks. But they have Starbucks from Connecticut to California.
Since it's Asia, for those of you who guessed China, you're absolutely right. Starbucks is finally providing the answer to that age old question…where do you get a biscotti in Beijing?
And it's coming soon to hundreds of Chinese cities, big or small because of this man. Howard Schultz is Starbucks founder and its number one China cheerleader.
"We believe that ultimately China will be the largest market in the world for Starbucks outside of North America," Schultz said.
Frankly, Starbucks is a bit late coming to the China game…there's a McDonalds or Kentucky Fried Chicken on what seems like every block in Beijing. And, let's face it, China is a tea growing, tea drinking country.
Starbucks now has more than 200 stores across China. And yet…
"The awareness of Starbucks has shocked us. People walk into our stores who cannot speak English, and order a frappuccino," Schultz explained. "Things that are going on in the stores have surprised us. People are bringing…they're dating at Starbucks, they're having meetings here. We're seeing all kinds of things which took us ten or 20 years to accomplish in the U.S…it's happening here in months!"
And then there are the little kids. As shown in this Starbucks film, the company gave China a five-million dollar donation for educating rural kids before it opened it first store.
"And demonstrate the fact that we want to make an investment in China as well as making a profit," added Schultz.
Maybe it seems obvious to get into the China market…what with one point three billion people and the rush to wealth. But it's hard doing business here. A lot of American companies have come here…and lost millions.
But Schultz believes, and he's made his company believe, that it's worth the risk.
"There is a transformation going on in this country the likes of which the world has never seen," said Schultz. "This represents the next gold rush…or maybe the way the internet was five years ago. Everyone's racing to China."
And when all those people racing to China get here…big city or small…they'll have no trouble finding a damn fine cup of coffee.
by Barry Petersen