Starbucks has coffee shops all over the world.
There are more than 28,000 locations and 76 markets
from ShangHai to Guantanamo Bay.
And in China, a new Starbucks location opens up every 15 hours.
But there is one continent that seems uninterested
in the hype over the Seattle-based coffee chain.
And that continent is Australia.
It’s proved to be one of the toughest markets
in the world to break into.
So tough in fact that Starbucks closed more than 2/3 of its stores
on the continent back to 2008.
So what went so wrong with Starbucks in Australia?
To answer that, let’s go back to July of 2000.
When starbucks opened its first Australian shop in Sydney,
from there, it expanded fast.
By 2008, Starbucks had 87 stores across the continent.
I think one of the problems with Starbucks
and it’s true for a lot of businesses that have been successful in one country
is that they thought their business model could just roll out
to a different environmemt and there was no need for them to adjust.
But that wasn’t the problem,
they tried to grow the empire too fast.
Starbucks rapidly opened up multiple locations
instead of slowly integrating them into the Australian market.
When they launched, they launched too rapidly
and didn’t give the Australia consumer
an opportunity to really develop an appetite for the Starbucks brand.
They also moved into regional areas into outer suburbs of major cities.
And so for the Australian consumer it was almost like,
it was too available for them.
And so there wasn’t this point of difference,
this want, this need for Starbucks,
and it wasn’t an organic growth which what we very much saw in the US.
In its first 7 years in Australia,
Starbucks accumulated $105 million in losses.
By 2007, Starbucks of Australia was hanging on by a thread,
taking big loans from the US, totally up to $54 millon.
And in 2008, Starbucks announced it was shuting down 61 stores.
But of course, 2008 was a difficult time for businesses
due to the financial crisis.
Along with Australian closures,
Starbucks also closed 600 underperforming American stores.
But even still, such a retreat in Australia was embarrassing for the brand.
When they’re shutting down 75 stores,
for the Australia consumer when they did leave the market
or at least a large number of bestowals were shut down,
they didn’t really care.
It’s partly because Australians are spoiled for choice
when it comes to coffee.
Australia’s coffee market is one of the biggest in the world.
The industry is expected to hit more than $6 billion
in total revenue in 2018.
They’ve been immersed in nuances of coffee culture
since the mid 1900s.
When Italian and Greek immigrants began traveling to the country,
the immigrants introduced Australians espresso.
到二十世纪八十年代 澳洲人沉迷于咖啡 无法自拔
By the 1980s, Australians were fully engulfed in cafe culture.
They’ve also grown accustomed to specialty menu items,
like a flat white or an Australian macchiato.
So cafes in Australia were born out of,
like the Italian culture of, you know,
meeting a friend and knowing your local barista
and it being kind of like a local meeting place
where everyone knew each other,
and that coffee was just a part of that.
And then starbucks came in,
with more of American style like
咖啡文化是基本的 咖啡是一种产品 是一件商品
coffee culture which is essential just like coffee is a product, coffee is a commodity,
coffee is like, like perk me up in the morning, it’s caffeination.
Starbucks had a basic menu and offered more sugary drinks
which most of Australians didn’t like.
In Australia, where, you know, local tastes are different.
So we don’t really want the coffee that’s,
you know, hundreds of ounces with lots of sugar in it.
Everyone wants something a little more sophisticated.
Plus, Starbucks charged more than local cafes.
So Australian instead opted to pay less for coffee they liked
from a local barista they trusted.
And so when you come in with the big like hey,
we’re going to open all these cafes,
And they’re all gonna be to go focus,
It just the complete wrong market for what,
what the Australian was used to.
But there’s one American coffee company that’s thriving in Australia.
Founded in Chicago and now based on Australia,
Gloria Jean’s got the traction in Australia, but Starbucks couldn’t.
Gloria Jean’s has more than 400 Australian locations,
and serves more than 35 million consumers in Australia each year.
So what is Gloria Jean’s doing in Australia that Starbucks isn’t?
Well, the company attributed to success to two Australians
who franchised the business in their home country.
Shops started to show up in Australia in 1996.
Fast forward to today,
the company has a presence in every Australian state.
The reason?It’s menu.
The chain offers a wide variety of espresso drinks and specialty coffee.
Failing to adapt its menu to Australian coffee culture
proved to be a mistake for Starbucks.
And the company faces another challenge later this year,
Starbucks is opening its first store in Milan in late 2018.
Home of the espresso, Italy is rich in cafe culture.
But according to Starbucks,
it’s not going to make the same mistakes that it did in Australia.
The company said that it will develop in Italy
with humility and respect for its coffee culture.
It announced it would be opening a roastery which is not your average cafe.
It gives customers a chance to see coffee beans
roasted and processed before their eyes.
所以这是一个机会 我不会苦苦挣扎 像在澳洲一样
So there’s a chance that I won’t struggle like it did in Australia.
But Starbucks isn’t admitting defeat in Australia either.
Starbucks is staging a comeback on the continent.
And 2014, Starbucks locations in Australia were purchased
by the Mount Waverley base withers group.
Starbucks told CNBC that since it sale to the withers group,
the company leared a lot.
So this time, it’s taking a different apporach
to putting Starbucks on the continent.
So if you just think about Australia is a big tourism destination,
there’s a lot of US and Chinese tourists,
Starbucks has been very successful in China,
and it makes a lot of sense for them to build out,
because there are people looking for something that’s familiar to them.
Now with 39 locations in Brisbane, Melbourne,
the Gold Coast, and Sydney areas,
this time it’s not looking to appeal to Australians.
but instead the coffee giant hopes to be a familiar face for tourists
visiting popular vocation destintons in Australia.
For Australia has always been a high-volume tourist market.
And the same things in terms of international students at our universities
are potential opportunities for them.
And we’re starting to see Starbucks enter into some large shopping malls.
here in Australian was well
Australia welcomed 9 million tourists from 2017 to 2018.
And those international visitors spent more than $30 billion in 2017 alone.
So tours could possibly be the key to keeping the company afloat,
and preventing another downfall.
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