Yesterday, when I was cruising around town with my boss, he casually mentioned that Starbucks had finally signed a long awaited agreement to branch into South America. I was flabbergasted at best. I suppose all the gringos in South America, Buenos Aires in particular knew somewhere deep inside that it was only a matter of time before the day arrived. I guess the news just tore me up. Being on the cusp of heading out of here, I was hoping to miss the actual bomb dropping, but I've been struck by Starbucks shrapnel and now, no matter what I do, I can't stop thinking about it. For those with a particular interest and who missed the news when it arrived (as I did), you can read the release in a May issue of Clarín by clicking here.
I guess I don't know how to feel about it. I'm really torn in so many ways. In case you have too much time on your hands, let me tell you why...
- There was serious uproar when Starbucks hit hard in the beachside hamlet of Santa Barbara. There were actual protests (I don't think I need extrapolate on their effectiveness) and a dear friend of mine went so far as to pose for anti-Starbucks ads that ran weekly in the Santa Barbara Independent promoting a non-profit that formed to support local small business owners. I don't want to be anti-capitalist but Starbucks chose locations both out of budget to local coffee slangers and strategically close enough to Mom and Pop coffee to render all competition almost entirely obsolete in record time. Starbucks in Santa Barbara is a big, strong-arming, American bully that leaves a bad taste in my mouth.
- When it all comes down to it... Starbucks isn't all bad. As a corporation Starbucks receives almost constant accolades for their well-above-the-norm employment standards. You can investigate more about this (my information comes from a source who spent years inside) but your typical college aged barrista struggling to pay the rent and take classes at City College makes well above minimum wage and is eligible for health benefits at about half the working hours of any other corporation. Anyone who has seen Michael Moore's latest Sicko, can agree that any American Corporation that's bending over backwards to provide healthcare to all its employees should be given a pat on the back.
- Lots of people here, porteños specifically, say that Starbucks just won't work in Latin America. Despite the ever-growing presence of McDonald's, Burger King (Which, by pure coincidence, I visited YESTERDAY for the first time since I arrived in Buenos Aires. So call me an American. I had visited McDonald's before on countless occasions to pee but that's it. I took this photo to prove it because I almost couldn't believe it myself!) and other corporate giants - which, incidentally, are NOT cheap here - the McIzation of Latin America seems to be somewhat curbed compared to say, Europe or most of developed cities in Asia. The Clarín article references the total failure of the Pizza Hut brand in Argentina. I can't really put my finger on why I believe Starbucks will take off here... I suppose I just do. I think it's difficult to build an American franchise of Americanized Italian food in a country of snooty eaters that think they're Italian, slap American prices on it, and expect people to dig it the most. Pizza Hut was doomed. But coffee is coffee. Coffee, for most, is as necessary as breathing and people will pay mildly inflated prices for it when the need arises and the solution is convenient (I stepped of a plane in Texas in December and paid about $6US for a soy latte... I kid you not). Coffee in Buenos Aires is good but not SO cheap that the market can't be competed for. Coffee in a cafe here means sitting down for a half an hour. I would put money on the idea that in less than one year, the financial district's caffeine source will have a new face. I hate to say it but I think the porteños are going to lose the battle on this one. Besides, argue as they will, the richest, most influential Argentine buyers secretly (and sometimes not-so-secretly) EAT UP American culture. I think they'll drink this aspect up too. - Summer. Like I said, aside from the occasional pee emergency, I have almost entirely avoided American corporations here but if I had to live through another summer in Buenos Aires, I would LIVE at Starbucks. I could lie to you and say I wouldn't but there are several reasons I would and why half the population of this city would too. Starbucks is sure to be an air-conditioned haven when the heat index tops 110 in this sweltering inferno. It's hell, people, make no mistake. Last summer I trawled the streets in a pool of my own persperation looking for iced coffee to no avail. I spent mornings in cafes fanning myself with the newspaper and begging confused waiters in broken Spanish for coffee with a side of ice and a side of COLD milk. The waiters were, to say the least, flummoxed. It was around this time that if a frappachino had cost 50 pesos, well, fuck it I would have bought one and think most people would have done the same. It's the small convenience that will allow the big bully to win out every time.
So to sum it up I'm torn. I don't hate Starbucks like I should, I don't want it to take over Buenos Aires and when it inevitably does, I'll probably drink their fucking coffee like a little lamb. That's all I'm trying to say. Part of me is sad that I really think that this could change the face of this city. I suppose I'm glad I saw it during the McDonald's era and won't be around to watch it all unfold once and for all. Chaucito.
7 comments:
I don’t hate Starbucks. Your sister and I had a conversation similar to your blog this morning, so she forwarded me a link.
I applaud and encourage your efforts to support local businesses; I try to do the same at home and when I travel (while never losing sight of the irony that I work for a very large multi-national). I don’t know what will happen in Argentina; however, I believe the impact of Starbucks on American coffee houses and American coffee culture has been positive.
More than any other force, I think Starbucks is responsible for people recognizing and expecting quality coffee. There was a time when most people were happy for any bitter brew as long as it provided caffeine; growing up, my parents, who were avid coffee drinkers, happily drank instant coffee every day. These days I don’t know anyone who considers instant coffee to be drinkable. Decent coffee is much too important. There was a near riot a few years ago when our office coffee was switched to Foldgers. There are probably a number of economic issues related to this switch; as our society has grown more prosperous, we have looked for higher quality in most of our consumption. However, before Starbucks came around, it was difficult to find quality coffee regardless of the price we might be willing to pay.
Moreover, I see Starbucks as a company that sustains American coffee houses, and at least to some extent creates the coffee house market. Perhaps this is a matter of semantics, but what you see as “taking over” I see as being ubiquitous. My observation is that Starbucks helps create a market for coffee rather than stealing market share from other coffee houses. In Santa Barbara, Starbucks has not killed off the independents; The Daily Grind, Coffee Cat, and Northstar are just three examples in the downtown area of successful independent coffee houses. For a business facing a big chain, Starbucks makes a great competitor: they get people thinking about coffee, and they maintain prices at a level that lets the independents make a profit (see $6 soy latte). Honestly, were it not for the existence/presence of Starbucks, don’t you think most of us would be more than a bit indignant at forking over $6 for coffee with soy milk?
Disclaimer: For Coffee in Santa Barbara I frequent Reds and Coffee Cat; in Ventura it’s Django’s. I generally drink Starbucks only when I’m at an airport (there being no other choice), although those bottles of Frappuccino are really tasty and often call out to me when I’m waiting for a bus.
I have to say, I agree. With Dan. I know its been "in" to hate Starbucks, yet all those haters go to the competition and cause the competition to be that much better, and thus the rest likely split their time between the two.
As a corporation, they aren't bad. Yes, they're big. But to hate them is to hate success- they started as a small local shop. Aren't we lucky to be in a country where things are allowed to grow, where the best are often successful? And yes, Starbucks will likely raise the bar for coffeeshops in South America, and there are already lots of chains here who can afford to compete with the jolly green giant. That isn't a bad thing.
If I don't go there, it'll be only because its too far from my house or I'm short on pesos for the pricy cup o jo. However, I'm certain I'll go with some other Yankee in times of nostalgia and bitterness towards fashionable Portenos- its a constant balance between love and hate, just like Starbucks.
hi dan -
welcome to the blog. thanks for the info and insight. honestly what you say is logical and I am right there with you except for a couple of statements.
- You say: However, before Starbucks came around, it was difficult to find quality coffee regardless of the price we might be willing to pay.
I have to respectfully disagree, my friend. Starbucks made it easier and more identifiable but to say it didn't exist is just, well, bullhonky.
- You say: Moreover, I see Starbucks as a company that sustains American coffee houses, and at least to some extent creates the coffee house market. Perhaps this is a matter of semantics, but what you see as “taking over” I see as being ubiquitous. My observation is that Starbucks helps create a market for coffee rather than stealing market share from other coffee houses. In Santa Barbara, Starbucks has not killed off the independents; The Daily Grind, Coffee Cat, and Northstar are just three examples in the downtown area of successful independent coffee houses.
Yeah, interesting point but I think that SB is TOTALLY unique in this sense. We DO have a more conscious consumer in general than the average American town so let SB NOT be our model for seeing the Starbucks affect on local companies. There are many a No-Name USA where those Mom and Pop Coffee Store HAVE been driven out entirely. SB offers (a) more conscious local consumers and (b) decent alternatives (yay, Reds!) which other cities don't so we can't use it as a model. Starbucks stratagists DO sit down and map local companies. They DO buy ADJOINING property to drive up prices and drive out local competition. And they ARE successful. Is that evil? Who knows. I am not about to get into a debate about the rights/ wrongs of capitalism (I've been in South America waaaaay to long) but it happens... and it's not as sweet and fair and you make it sound.
G -
hi love! thanks for peeping the blog. are there local South American chains to compete NO WAY. The Clarin article states that Bonafide (currently the largest Argentine coffee supplier) just opened their FIRST 2 locations outside of Argentina a couple of weeks before Starbucks announced their launch. i have to say i almost CHUCKLE thinking at Bonafide trying to compete with Starbucks. They can't do it. They won't do it. And they have the best chance of anyone.
anyway - you are right in many respects. and we should meet, 2 years from now, in the alto palermo food court, at the starbucks, i will be the one with the giant mocha frappachino with whipped cream.
xo
Hi Clareabella,
Gotta jump in here. I see all sides of this issue, but I have to comment on the idea that Santa Barbara is "loyal" to its local stores. I have to say I could not disagree more about Santa Barbara. Pretty much the ONLY local businesses that survive in this town are coffee shops and restaurants owned by millionares like Gene Montesano. In Ann Arbor, the line for Stucci's (the local ice cream shop) is literally out the door, while Ben and Jerry's (who conveniently opened up a store right next door) only get real business on free ice cream cone day. If you walk down State Street these days, or wander through Paseo, the only stores you'll find are smaller crappy versions of giant chains. As an example, I was just informed that Copelands Sports is being replaced by an Old Navy. Copelands is not exactly a "local store" but apparently even a small chain can't afford to have a store front in SB anymore? Santa Barbara Sandwich company, the Italian Greek Market, some of the best local stops on State Street have shut down. So why can the coffee shops survive? Is it because of Starbucks like Dan suggests? I don't know, but I have a hard time believing its because of "loyal" Santa Barbarans.
MISS YOU!!
hi jules -
this is the danger of using SB as a model - because, you are right. but now we are talking about chalk and cheese. the earthling was pushed out NOT by borders but by real estate prices in SB. RGs was pushed out NOT by mcdonalds up the street but but real estate prices in SB. sb sandwich co. is not losing business to quizno's because they can still afford their rent... for how long? we'll see. earthling fans did everything short of chain themselves to the store to stop it from closing. but you can't beat big business. it closed anyway. where do those shoppers shop now?? BORDERS!!! (myself, included. chauser's downtown branch, anyone?)
anyway - real estate is a whole other animal. i think SBers are more conscious than you think but that you are right they will result to fries with a side of mochachino if their favorite local joint gets pushed out by development or property owner. still, chaulk and cheese, chicken and egg. there is no beginning to a circle...
xo
I really do dislike the coffee at Starbucks, but LOVE those gingerbread lattes at Christmas Time!
Two items I did bring with me here were these beautiful mugs I bought (on sale) at SB´S.
Starbucks does appear to do anything in their power to squeeze out the mom and pop businesses though. When SB´s moved into our neighbourhood, all of a sudden the outdoor seating had to be removed at the bakery, and took about 9 months to be reinstated. There was no problem with the outdoor seating for the year and a half before that.
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