Starbucks in Prague Next Year
Starbucks is preparing to open in the Czech Republic sometime next year. While this news has excited many American expats here in Prague (who can now scratch "mocha frappuccino" off the list of things they miss from home), I have to wonder how Czechs will embrace the coffee colossus.Coffee "on-the-go" has yet to really take off here in the Czech Republic. As in most of Europe, coffee is enjoyed at a leisurely pace in coffee houses or cafes while reading the newspaper, people-watching or chatting with a friend. There are a few locations for getting coffee to-go here in Prague, but native Czechs don't flock to these shops with the same fervor as American tourists. Most Czech workers get their java jolts from vending machines located at train stations and offices, where for 10 czk (about 50 cents) one can get a small plastic cup with a shot or two of coffee. Also, Czechs (like most Europeans) are not used to drinking coffee in excessive volumes like us Americans. I'm trying to imagine a Czech woman walking down the street with a Starbucks venti in hand, but my imagination is not quite up to the task.
Starbucks' success in the Czech Republic will likely rely heavily on their pricing. Czech salaries are quite low, so a cup of coffee from Starbucks at a price comparable to that in the USA would be an extravagance that many cannot afford. Dave Faries, food critic at the Prague Post said in an interview with Radio Praha, "The key though, for Starbucks in this market, will be price-point more than anything. Whether Czechs will be willing to pay for it, whether even expats will be willing to pay...".
Starbucks' brand image should give them a strong advantage in this market. Czechs (especially teens and young adults) tend to be very brand conscious and enthusiastic about things from the United States. When Starbucks comes to Prague, I think Czechs will be drawn to its foreign exoticness and strong brand image, and will probably consider it stylish to consume Starbucks beverages.
I guess this means Czechs will have to adapt to the Starbucks way of ordering a coffee... "I'll have a Venti mint mocha chip frappuccino with whipped cream, caramel affogato and a triple shot."
Also coming to Prague within the next year or so: the fast-food giant Burger King and discount supermarket chain Aldi.
Photo Courtesy: Starbucks.com
Labels: Czech Republic, International Business, Lauren Nemec




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