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Starbucks Taking On France

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From Reuters

Starbucks Corp. will open its first branch in France next year, hoping to sell its take-away American-style concept to a coffee-proud nation accustomed to sit-down shots of espresso.

The world’s largest coffee chain, which already is present in several European countries including Britain, Germany and Spain, said Thursday that it would launch its first French coffee bar in Paris’ Opera district in early 2004.

The Seattle-based firm, whose green-and-white logo is a fixture on street corners across the United States, has expanded rapidly across the globe in recent years.

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But skeptics have scoffed at the idea of bringing take-away cafe lattes to countries such as France and Italy, where coffee-drinking habits are long established and mostly sedentary.

Although Starbucks makes a feature of offering comfortable chairs and big mugs for those who want to sit down and relax, a good part of its business is its take-away trade.

Starbucks, which partners with local firms when entering new markets, said it would team up with Spanish food service and retail operator Grupo Vips in France.

“This may not be the best time to go to France,” said Barry Sine, an analyst at HD Brous & Co. who follows Starbucks. “They are taking an American imitation of a European concept and reintroducing it in Europe. I’m skeptical about whether it can succeed.”

Catherine Mathivat, head of Les Deux Magots, the famed left-bank cafe favored by Ernest Hemingway and Pablo Picasso, expressed doubts about whether enough French customers would grab coffee on the run to make the venture worthwhile for Starbucks.

“The traditional French cafe will not disappear,” she said. “A take-away concept could work in business and student areas, but our customers prefer to take their time, sit down and chat.”

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