Innovation and tradition in the coffee industry: the evolution of the ecosystem between new business models and cultural resistance. The case of Starbucks in Italy

Coffee represents far more than just a beverage; it brings people together, it’s a source of energy during the day and most of all it’s a global phenomenon. Originating in Ethiopia over a thousand years ago, coffee was able to adapt to different historical, economic and cultural contexts, evolving from an exclusive drink to one of the most traded commodities in the world, whose consumption is expected to grow in the coming years. Its versatility has been a key to its success, because people can prepare it in many ways, according to individual’s preferences, using a wide range of apparatus that have evolved along the centuries through a series of technological innovations, among which stands the Espresso machine. Coffee’s success can be attributed also to its role as a social glue, because since its very beginning it has functioned as a stimulant for intellectual debates and conversations, a characteristic that distinguishes it from all the other beverages. Today coffee is an integral part of the life of millions of people all around the world, but despite coffee’s global popularity and appeal, one country stands out as having truly embraced coffee culture: Italy, that has transformed the espresso, and the customs associated with it, into one of the most distinctive and known products of Made in Italy. The coffee sector in Italy counts more than one thousand companies and generates significant economic value, both from exports and domestic sales. Historic brands like Lavazza and Illy, have internationalized the espresso culture, making it the most famous method of preparation, both in cafés and at home, thanks to the modern coffee machines. Italian coffee culture is generally associated with quality and taste and for this reason many foreign companies have tried to replicate the same experience abroad, for example using Italian names for their products. A prime example is Starbucks, which operates in more than 40 countries and decided to enter the Italian market only in 2018, 47 years after its foundation, facing resistance from the locals, as its business model and product offering are very different from the Italian tradition. The aim of the following thesis is to investigate how tradition and innovation can coexist within sectors that are strongly embedded in a country's culture, such as the coffee one in Italy. The arrival of Starbucks represents an interesting case study to analyse the challenges that multinationals face when introducing innovative elements in very traditional contexts, inevitably encountering obstacles arising from local cultural resistance. Starting from a historical analysis of coffee, from its origins to the present day, the research will identify the factors that have contributed to transform it into a global phenomenon, focusing on innovations and coffeehouses. Then, an overview will be given of the Italian coffee ecosystem, exploring more in detail the relationship between espresso and Italy, and how it has evolved over time becoming a key sector for the country's economy. The study will then pivot towards the case of Starbucks, starting from the history of the multinational and then analysing the strategy that has led it over the years to become one of the leading companies in the industry. Drawing on press coverage, the research will highlight the challenges that even a strong brand like the American one, has to face when introducing innovative elements in very traditional contexts and how complex it can be to find the right balance between global and local and between innovation and tradition.