According to various reports, Starbucks, the major US coffee chain, is considering selling its Japanese operations. The sale price could reach $2.5 billion (400-500 billion yen).

Starbucks has been struggling in the US and other countries and is currently working on a business restructuring. Meanwhile, its business in Japan is strong, and has been on a revenue-increasing trend in recent years.

Why is there such a difference between Japan and the US? One possible reason is that in the US, excessive rationalism has backfired. While Starbucks has been closing stores in the US and other countries, its drive-thru and pre-order services are performing well, and not all of its services are failing.
However, Starbucks initially aimed to create a comfortable space for everyone, based on the motto of being a “third place.” This was well-received by customers and contributed to its growth. In short, customers valued the relaxed atmosphere and the ability to spend time leisurely in the stores, becoming fans and returning to the chain.

However, since then, the company has pushed for rationalization, including thoroughly streamlining its supply chain. As a result, the value of a relaxed and comfortable space diminished, and fans drifted away.
On the other hand, in Japan, Starbucks still focuses on creating comfortable spaces, and instead of uniform customer service, they create stores that reflect the unique characteristics of each region. This seems to be the secret to their success, as it has allowed them to retain a strong base of loyal fans.
In any case, misjudging and betraying the values ​​that customers held led to Starbucks’ decline.
Of course, rationalization is essential to maintain and develop a business. However, rationalization that damages the company’s value is meaningless. Especially in the age of DX and AI, rationalization can be done endlessly if one so desires. In the coming era, the key will be to properly determine one’s own value and rationalize while protecting that value. (Kei Kitajima)