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It has been called a “rapacious multinational” and accused of invading our high streets, setting up countless Identikit shops serving weak, overpriced drinks. Now Starbucks, the world’s largest coffee chain, is reinventing itself — as the local independent café.
The first of 100 “individualised” Starbucks opens today in Conduit Street, Central London, as the American giant looks to recapture some of the cool, relaxed ethos of its first branches in Seattle 38 years ago — and steal customers back from its rivals.
The company’s green logo, for so long a focal point of anti-globalisation groups, is nowhere to be seen on the outside of the new shop. Instead hangs a bronze roundel depicting a mermaid above the words “Fresh roasted coffee”.
Inside, the familiar brown colour scheme and leathery chairs give way to bookshelves and antique furniture set between cubbyholes and community noticeboards. The coffee, however, remains the same — as does the problem that too few people are choosing to drink it. This week Starbucks posted improved fourth-quarter figures, showing that like-for-like sales in Britain had returned to positive territory. Worldwide sales had been down 5 per cent in the past few months.
However, its rivals Costa Coffee and Caffè Nero have been consistently reporting positive growth of about 2.5 per cent in recent months, while Starbucks is said to be suffering “brand fatigue” and negative publicity.
To rejuvenate the brand, the company will inject the new-look coffee shops with local character and unique designs, chosen from the antique and second-hand shops of the area.
“We are not trying to disguise that it’s Starbucks,” said Tim McCoy, head of communications. “It still says Starbucks on the door, but we needed something different. There are a lot of copycat chains around and we thought people would feel better disposed to us if they felt the store was part of their community and knew the people there.”
Starbucks was set up on the West Coast of America in 1971 by two teachers and a writer. A taste of what the future might hold was offered by Howard Schulz, the chief executive, in Pour Your Heart into It, published a year after Starbucks arrived in Britain in 1998. The company “may become another soulless big chain”, he wrote. A decade later, his fears seem to have been realised.
Tim Pfeiffer, head of global design, said: “We wanted to reconnect with our history. There is an opportunity with the global economy in recession for us to be more introspective. There’s no image we’re trying to move away from, but we know we could have a more subtle approach.”
Initially 100 of the 712 British shops will be changed.The company also plans to close up to 50 of its worstperforming shops in Britain over the next few months, though the overall number will not change as new ones open.
Despite the installation of a new espresso machine, customers did not seem convinced yesterday that the makeover would change many views. Ken Smith, 40, a designer from Tyneside, said: “This won’t change anything. Simply, the coffee is just much better at Costa. Starbucks is a big US brand and people who know coffee won’t be fooled by the makeover, even though the design of the new store is very swanky. Chances are it won’t be this swanky at the branch in South Shields, where I’m from.”
Even a dedicated Starbucks customer, Lucy Born, 18, was not convinced, as she supped her sugar-free skinny vanilla latte. “Starbucks fans like me will like it, and maybe the local idea and community element will convert some people, but people who don’t like Starbucks will still go elsewhere.”
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