A top Norwegian catering boss believes that Starbucks cannot work in Norway after years of negotiating with the global chain. Norwegian wages are too high for the US-based café concept.
Sten Magnus, now head of Umoe Catering, the country's largest food service group, told trade journal Handelsbladet FK that he had to turn down a deal with Starbucks after over two years of talks.
"We had to sell seven café lattes to cover one hourly wage. Germans need to sell three and a half, Britons two and a half. It doesn't work in Norway when we also have to pay a fee to the Americans. That is why Starbucks will likely never come here," Magnus said.
Umoe Catering includes 132 restaurants and cafés and several major chains including Burger King. The company has an annual turnover of NOK1.4bn (US$195.2m).