Why Starbucks sucks in Thailand
When you walk into a Starbucks in Thailand you know exactly what you’re getting. There are no pleasant local touches, no Thai specialties and nothing that hasn’t been copied from the Starbucks formula that makes the brand so successful in the West. That’s why Starbucks sucks in Thailand – because it offers absolutely nothing to Thailand other than overpriced coffee and sandwiches. Starbucks in Thailand does not represent Thai people, and so that may be why business is slow for the Green Giant.
I read an interesting blog post by Toby Shute over at The Motley Fool that compared Starbucks and McDonalds in terms of how the two brands have tackled the Thai market. While every Starbucks in Thailand is carbon copied from the States, McDonalds adds little touches that make the brand more “Thaiâ€, such as Ronald McDonald stood waiing customers and food on the menu tailored to Thai people.
Toby puts the failure of Starbucks to appeal to “young, upwardly mobile Thais†down to poor pricing and a lack of anything Thai added to the brand.
I loathe Starbucks and I loathe everything it stands for. Where are we going to meet? Oh, I know, let’s meet at Starbucks. Hell no! Let’s meet at McDonalds.
Starbucks just isn’t cool in Thailand. It offers nothing to Thai people other than bragging rights to be able to say, “I get my coffee at Starbucks.†It’s like a fashion statement, but the brand will only work up to a certain point. Up to that point you have nothing but cheap mugs and copies of Cosmo.
Would you believe that there are 72 branches of Starbucks in Bangkok? I think that’s about 70 too many.
August 2nd, 2007 at 5:24 pm
I dont see how Starbucks is failing to attract “young, upwardly mobile Thaisâ€. There are loads of them everytime I go to Starbucks.
You loathe everything Starbucks stands for? So what does it stand for actually? For me its good coffe, and that needs no thai flavour for me. McDonalds has a pretty poor product in terms of quality, so adding some flavour and spices is improving the product. Are you a coffe drinker?
August 2nd, 2007 at 5:34 pm
Matt, it sucks here too for all the same reasons. I don't mind getting coffee there, but there's nothing less appealing than actually sitting at a Starbucks in some godforsaken strip mall. Depressing as hell.
August 2nd, 2007 at 5:59 pm
Starbucks is about overpriced coffee, the world over. Starbucks Thailand achieves this. McDonalds Thailand however, sucks. Pork Samurai Burger? Wai-ing Ronald McDonald? Whatever. Give me breakfast. Sausage and Egg McMuffin. Every other country seems to manage this. Why not Thailand?
August 2nd, 2007 at 6:04 pm
I used to work in a coffee shop and a Starbucks opened directly opposite us. The service and the product in Starbucks is nothing special, and it's dramatically overpriced. That's what it stands for — poor service, poor value and poor quality.
I hate Starbucks because people go there for no reason, even if they don't want to drink coffee. The Starbucks i saw in Bangkok were mostly full of tourists. I've felt like this since I was in school and it became the in thing to go to Starbucks. People neglected beautiful parks, cafes and restaurants in Bath to go to that flippin' coffee shop. Now tell me where's the sense in that?
August 2nd, 2007 at 6:07 pm
Barry, I think they don't offer those things because Thai people don't want them.In that respect McDonalds does a good job of appealing to its target — Thai people.
August 3rd, 2007 at 12:55 am
I like Starbucks. the atmosphere is pleasant, the staff has been good and I know what I am getting. Yes, it's expensive as most things that are imported here. They are usually good places for people watching too.
How would you make Starbucks more Thai? Somethings are just what they are and you either accept or reject. If there are too many shops the law of supply and demand will will take care of the excess.
I go to many Thai coffee shops and they don't usually have anything much different on the menu than what Starbucks has to make them Thai. When I go to a Thai Restaurant in the US I don't expect to order ribs, a cheeseburger or pizza. I go there to experience Thai. The same with Japanese, Chinese, Italian and such. If I want good fish and chips or shepard pie I go to an Irish or British pub, if I want an hometown beer I go to a local pub. Everything has it's place.
A good rant though. I guess I wouldn't expect to run into you at Siam Center Starbucks. Would like to see one about having to sit through 30 minutes of paid advertising before the movie you pay for begins at most theaters in Bangkok.
August 3rd, 2007 at 1:14 am
Matt – the reason it's no different from any other Starbucks anywhere else in the world is probably down to the brand image. Those who license or operate Starbucks in Thailand might well be under some very strict guidelines about what exactly they can and cannot do with it here. (I know from my own experience with bringing a brand into Thailand).
I don't like Starbucks personally – Coffee World is my preferred choice. Give me a Caramel Frappe Supremo any day !
August 3rd, 2007 at 1:51 am
So in your mind, a company needs to offer Thai'ness to their products when entering the Thai market?
Your MickeyD's argument is also a little weird. Whilst they come up with gimmicks like the samurai burger and other shit, the Quarter pounder and breakfast menu is missing, is this because Thai's don't like them?
Let's look at why Starbucks is doing well here; they keep their brand and products the same and don't change for the territory they are in. This is simple business, has Mercedes changed any aspect of the way they sell cars in Thailand?
I don't see any Thai Porsche 911 version, only the standard 911 that is available anywhere.
Is the real hatred of Starbucks a economic rant? We all know that journo's are broke and miserable :)
August 3rd, 2007 at 2:11 am
Perhaps my dislike of Starbucks is irrational. I'm neither broke nor miserable, but there's just something about the brand I don't like.
August 3rd, 2007 at 2:29 am
You commend McDonalds for its 'Thai-style' products, but didn't you slag off the McRice burger a while back?
August 3rd, 2007 at 2:35 am
I commend the initiative, although the rice burger itself was disgusting. Do you really work for Asda?
August 3rd, 2007 at 2:37 am
Matt, from a legal standpoint the franchising agreement that the local franchisor has to enter into will set the standard for the menu options available and a lot of the time these agreements can be very strict.
From a customers point of view, I don't agree with your "Thai" influence argument. As has been stated in comments above, not everything can be molded to local tastes nor should it. What are you going to make a curry latte? Also, as far as Mcdonald's my Thai friends have never ever ordered the samurai burger or any of the other "Thai" items on the menu.They stick with the cheeseburger or nuggets.
Finally, if you've only seen tourists in the Starbucks then you are going to the wrong ones. Next time your in Bangkok, try the Starbucks on Lang Suan on a weekend. Not only is it s great place to relax and enjoy an afternoon, but it is mostly Thai with some expats mixed in.
August 3rd, 2007 at 2:40 am
Interesting. Well, this has certainly given me some food for thought. Maybe my view of Starbucks has been a bit clouded in the past, but I've never liked the aggressive attitude of the franchise that just muscles its way into every city without offering anything new.
But perhaps I'm alone in my resentment. No worries.
August 3rd, 2007 at 3:55 am
A large amount of people dislike Starbucks, but then again another large amount like the coffee, including me. The thing i like is exactly what you said, you always know what you are getting.
Starbucks here is much cheaper than the uk, where i was paying 3.50 for a coffee and now it's 140 baht
August 3rd, 2007 at 7:58 am
I share your resentment towards Starbucks. I prefer to buy my morning coffee at one of those street booth. 20bt for a very strong espresso.
On why Starbucks doesn't adapt its image to the Thai market, the answer has been given previously. Being a franchise, strict guidelines are applied from the colours and furnitures used to the employees uniform and their greetings. That's the reason why the Starbucks outlet in the Forbidden City in China has been closed last month. Unable to comply with the orders to tone down their presence, Starbucks chose to close the shop.
August 3rd, 2007 at 7:58 am
Why, given that Starbuck's pays a Thai barista only a tiny fraction of what a Western barista earns, does their coffee cost more in Bangkok than it does back home?
August 3rd, 2007 at 10:25 am
Interesting tidbit I remember from a 60 Minutes (US tv show) interview with the guy that started Starbucks. Howard Schultz grew up in the ghetto of New York. When his dad was injured on the job he had no health insurance. The family was literally penniless. His dad was unable to support the family.
After Starbucks took off Howard Schultz was determined that his employees would never be in the situation that he was in. Starbucks offers health insurance to anyone that works at least 20 hours (I think, maybe its less).
Anyways, the point is the reason their coffee is expensive is because they spend more on health care costs than on buying coffee. This was from the mouth of the guy that started the company. Look up his picture, I remember him having a smile a mile wide. Interesting rags to riches story too.
August 3rd, 2007 at 1:55 pm
Your first paragraph says it all.
I don't care for Starbuck's in Thailand. Nor do I care for McDonald's …. or KFC.
It's just more imported American crap culture.
Peace,
~Chani
August 4th, 2007 at 6:50 am
The Thai touch of Starbucks so far perhaps only occur for Thai customers. I was startled to be asked by the barista/cashier if I would like to add their baked goods to your order. The one at Paragon actually started to Thai-style pressure sell me the muffin. It was kind of funny. And the one in Langsuan actually made a conversation with me as in, "I've seen you here twice now. Did you just start working in the area?" Who else does that?
Over here, not so much of the friendly. Get your coffee and get the fuck out is usually the feeling. (Except for the Downtown LA crew at the Citicorp building. All Hail to the morning shift people! They got quirks.)
My Thai friends see SB not as a main life line but a place to get a sweet treat. Some people told me it was down right about showing off the brand, the "Oh, I so can afford this" mentality. A cup of SB to go with your Coach bag.
I don't mind SB so much. Capitalism at its best. Having SB in Bangkok doesn't bother much either, the tourists have got to gather somewhere! But 3 within a 1km radius–Central Chidlom, Langsuan, and Amarin Plaza…oh, 4 if you count Central World Plaza too–are just too damn many. Oh, and one in the airport surprises me. What a way to welcome foreigners to Thailand than a Starbucks…next to the local Black Canyon Coffee.
August 5th, 2007 at 5:04 am
since i started working and earning something myself, i've stopped going to starbucks. for one i can't afford the luxury everyday without feeling guilty. second… i can get pretty much the same thing for less than 40 baht. :P that's my reason for not going to starbucks. i occasionally go there for scones… :P but i guess ur right about it not having any thai touch. i never thought about it before.
August 5th, 2007 at 1:30 pm
It doesn't matter the locals just like the cool looking brand of it.
December 30th, 2008 at 7:14 pm
Sorry you feel that way. Please indulge me while I tell you some of the story behind their Muan Jai blend and Starbucks commitment to improving the lives of the hill tribe people in Thailand, not by trying to westernize them, but by helping to bring clean, running water to the villages, schools and medical clinics, and more. The Muan Jai coffee is raised by hill tribe people, they are paid above average price for their coffee, and the fields that were once opium are now coffee. Instead of smoking their crops, they are selling them and learning skills and earning income that allow them to stay in their village instead of going to the city. Starbucks may be capitalism at is finest, but in Thailand they are also helping the underserved. By purchasing Muan Jai coffee you would be, too. I hope you reconsider the next time you go to Thailand.
February 24th, 2009 at 10:04 am
As a longtime coffee drinker, a coffee enthusiast, a barista, and a cafe owner, I must say I am also very disappointed in Starbucks. It is not because of the lack of "Thai influence" or the high prices… but it is the quality of the products in which they serve. In truth, I wouldn't mind paying the price starbucks charges for a cuppa but with that, I do expect a good cuppa coffee in return! Did you know Starbucks now actually uses Thai coffee beans to reduce their cost and also a "Fully Automatic" espresso machines at many branches? (Fully automatic = terrible watered down coffee due to the lower pressure during coffee extraction) So.. most of the time, their espresso and drinks come out tasting like toilet water… its very sad thing for us consumers… I do not like to be taken advantage of.
What is even more sad though… is that I still have to go to starbucks sometime! Its because everyone still finds it convenient to meet there. So no matter what, there is no escape going there… but you will never see me order hot coffee from there for sure :P
Bottom line – I admire Starbucks very much in many aspect of their business… operation, marketing, service, etc etc… as a cafe owner, I know how hard it is to operate a good coffee house. However, they messed up on the thing that's the most important.. having good coffee. But I guess it doesnt matter because most Thai people will still buy it for the image rather than the quality.
Thanks for the interesting blog!
March 30th, 2009 at 7:38 am
Thanks to everyone for sincere and polite comments. I have been looking for some info on Starbucks in Thailand and this page happened to be the best source so far.
May 14th, 2009 at 8:43 pm
It does not suck that much. It is just way too expensive. Thai middle class love it as much as their Louis Vitton. It makes them feel "educated".
Coffee with Thai taste? Try Ban Rai Coffee near BTS Ekamai station.
April 17th, 2010 at 4:42 am
I must confess that I've actually gone to Starbucks for a meeting and never ordered anything… hehehe… :-)