Starbucks In Kuwait

JOURNAL OF CONSUMER MARKETING, VOL. 15 NO. 2 1998, pp. 191-197 © MCB UNIVERSITY PRESS, 0736-3761 191

Introduction

After a long and tiring flight from Seattle to Kuwait via London, the Kuwaiti

Airlines jetliner finally lands and Mr Howard Behar mentally prepares to

meet with Mr Nasser Al-Mutair. This meeting has been anxiously

anticipated by both parties.

Nasser is a young businessman recently graduated with a degree in

marketing from a regional university in the State of Washington. This is

where he became familiar with Starbucks Coffee and learned of Mr Behar,

the President of Starbucks International Coffee Company.

Nasser had so enjoyed the Starbucks speciality coffees as a student and had

observed how many Americans and other international students also loved to

drink this popular coffee. Knowing the fondness that Arab people have for

coffee, Nasser thought that a speciality coffee shop might be successful in

Kuwait, which has seen an increasing number of Americans and other

foreigners since the Gulf War. As a marketing student, however, Nasser

realized the importance of planning, obtaining information, and getting

expert opinions. He had personally invited Mr Behar to visit with him in

Kuwait City, so that Mr Behar could see the sites Nasser had selected and to

discuss this possible expansion in person. While the deal was far from

complete, Nasser was very confident that his plan would succeed, but was

anxious to hear Mr Behar's opinion.

In fact, Nasser had to persuade not only Mr Behar that his idea was sound,

but also his uncle, Abdul Al-Mutair. Abdul Al-Mutair had long been a

prominent financial leader in Kuwait, primarily involved with importing

consumer products and trading. He had recently become interested in the

service industry. With the increasing number of foreigners living in Kuwait,

even for relatively short periods of time, he realized that traditional

restaurants were inadequate to meet their desires. After Nasser had returned

from the United States with his newly acquired degree, he and his uncle had

long talks about what they might do together. Nasser had some interesting

ideas and might be a good person to explore new ventures. Abdul Al-Mutair

was considering financing Nasser's venture if it seemed feasible and

profitable.

Mr Behar was anxious to meet with Nasser and also very curious. He had

never been to the Middle East and was uncertain what he would find there.

He had had little time to learn about the country or culture, but he had

certainly heard about Kuwait and had seen pictures of it during the Gulf War.

In addition, Mr Behar was very interested in expanding his international

operations. His main concerns included the image of Starbucks International

and profitability. Although curious, he had a number of misgivings about

expansion into the Middle East.

Starbucks International enters

Kuwait

Dianne H.B. Welsh, Peter Raven and Nasser Al-Mutair

Eastern Washington University, Spokane, Washington, USA

Speciality coffees

As Mr Behar stepped out of the plane, Nasser met him and escorted him

rapidly through customs and the unfamiliar airport. After a brief tour of the

city in a chauffeured Mercedes limousine, they arrived at a small restaurant

near the center of town for some refreshments. Behar was taken with the

unique beauty of Kuwait City.

The restaurant was a rather small, nondescript locale. They began to talk

about the trip and other small talk, when Mr Behar suddenly said, "I really

would like to try some of your traditional coffee." Nasser said, "Yes, we

have excellent Arabian coffee. This restaurant also serves French Press and

Turkish coffees. You should try some Turkish coffee. It will be different

from coffees you've had in other places." Mr Behar said, "Yes. It's been a

long time since I have had Turkish coffee." Nasser ordered some for both of

them.

While waiting for his coffee, Mr Behar was able to observe the restaurant

which reminded him of some of the restaurants in Italy where Mr Howard

Schultz, President of Starbucks, first got the idea for Starbucks coffee shops.

The coffee was soon served. He had forgotten how good this coffee was and

how it resembled straight espresso in texture and strength. He thought to

himself, this is either a very good sign for our coffee-shops - the Kuwaitis

already like richer, stronger coffee, or it could be a bad sign in that they

might not want another choice. He listened attentively