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Starbucks Expanding in Vienna

Coffee © photocase.com/heytommy

© photocase.com/heytommy

August 27, 2008

While the coffeehouse chain is closing hundreds of stores in the U.S. due to sinking profits, the opposite is true in Austria

Starbucks opened its 13th store in Vienna on Wednesday. According to the Marketing Manager for Austria and Switzerland, Cristina McDaniel, plans are in the works for more stores in the provincial capitals outside Vienna. Exactly when Starbucks plans to conquer the other provinces was not revealed. But in the long run, McDaniel did not exclude additional stores in the Viennese suburbs as well.

Even though the coffeehouse chain is feeling the effects of higher prices of primary products like milk, these will at least initially not be passed on to the consumer. McDaniel expressed the company’s overall satisfaction with the development of business in Austria’s and Switzerland’s stores, but refrained from citing any concrete sales figures.

In the USA the situation looks completely different: in July Starbucks announced the closing of 600 outlets due to sinking profits. 61 of 84 coffeehouses are also scheduled to close in Australia.

Starbucks –by their own account the world’s leading supplier, roaster and marketer of specialty coffees – currently employs 155 people in Austria. McDaniel did not want to disclose Starbucks’ ranking among the coffeehouses in Austria, but did say it is not the market leader. The US company opened its first store in Austria almost 7 years ago, December 2001, on Kaerntner Strasse in Vienna.

Last year Starbucks purchased about 160 million kilos of coffee for its roughly 16,000 stores.

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