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Why Starbucks Failed In Australia

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Starbucks can be found all over the world, from Shanghai to Guantanamo Bay. But there is one continent that was uninterested in the coffee giant. Australians largely rejected Starbucks' attempted takeover, which led to an embarrassing retreat for the brand. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Starbucks Why Starbucks Failed In Australia | CNBC
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Text Comments (16267)
urbanrat84 (12 hours ago)
I dont remember ever seeing a Starbucks here...I think now that the keto, low carb diet is becoming really popular they could cater to that on their menu. I get a bit jealous when i see Americans on YouTube listing off their custom coffee from Starbucks
zekalwe (14 hours ago)
I think I'd rather see the tourist revinue go to local small stores than giant mega corporations. So here's to hoping it fails again 😁
Addie Balajadia (22 hours ago)
rip starbucks coffee in australlia
rurico martinez (1 day ago)
Because the government in Australia protects their people and most Australians are self aware. Good on them.
Chloe Preston (1 day ago)
Some places have Starbucks but there are non in WA LIKE REALLY
Fizzy Pop (1 day ago)
The Aussies make better coffee.
tish pooz (1 day ago)
As an Australian and a coffee lover, no ones drinking coffee at Gloria Jeans. It’s people who want frappes and crap like that.
Elton Golds (1 day ago)
Their coffee tasted awful. Australia developed coffee as we know it today. I've been to america and had their coffee. It was awful too.
infinite solution (1 day ago)
Costa cofee>> starbucks
Thunderhawk11 (1 day ago)
Your a liyer theres starbuck in goldcoasts evry one listening don not belive him!!
tyler lewis (1 day ago)
I imagine it's because they know in Australia that starbucks is sugar water for idiots, it's not a sleek sophisticated coffee shoppe, it's gas station coffee at five times the price lol pure trash
A (1 day ago)
Plug plug plug. Starbucks are boring. Now go away, stop pretending to be something other than a commercial
Nicole Erika (2 days ago)
Crap coffee. I used to work in the first store in Brisbane when it first opened. Australians prefer more boutique options. The only people that go there are tourists nowadays.
Sue J (2 days ago)
Coffee in most cafes in Australia is way better than you can get in Starbucks. Their coffee is too expensive and lacks taste. Plus, even if you are desperate for a coffee and that’s the only option, you can never get a seat because they’re all taken by people sitting for hours on their laptops. Their toilet is useful though, I will say that.
Samsara (2 days ago)
I had Starbucks in HK and it was amazing. I'm from Sydney Australia and I drink coffee from a lot of palces around the city.
Extremist (3 days ago)
Australia has good coffee 🤷🏼‍♂️
Throttlesnap (3 days ago)
Ask anyone who has traveled the U.S.A they will tell you America has the worst coffee in the world ! Last time I was in the states I only managed to find 1 half acceptable coffee per state !!!
Emjay Weise (4 days ago)
The coffee they make is crap. Pure and simple.
WtrDogg20 (4 days ago)
They failed there for the same reason they have had to take it easy in Colombia, they can go there to talk about coffee, when they know more about coffee than Starbucks people.
Stephan (5 days ago)
As an Australian, Starbucks coffee is worse than other coffee and costs about 40% more, why would I go there when there are good cafes all over the place.
Awarua Spirit (5 days ago)
This story is exactly mirrored in New Zealand too. First came the Italians, Greeks and Dutch with their coffee traditions. Growing up in my house, we had a wall mounted, manual coffee grinder for our stovetop Atomic (Brevetti Robbati) which I still have to this day. Then those traditions were taken and built upon by young baristas who travelled to places like Colombia to learn about coffee bean cultivation and roasting techniques. Now many cafes here daily batch roast their own. Often single region or plantation in origin. Even our gas stations have proper italian espresso machines and can assure you of a pretty good espresso. Starbucks was an American novelty that exploded onto the scene here but once you'd tried it with all its sickly, sugary concoctions there was no second time. Vile. Back to your local cafe. Starbucks had missed the boat completely as NZs own coffee culture, like Australia, was already highly evolved. I read Starbucks in the US now has a flat white on the menu (first made in 1980s Wellington NZ, btw!). You only now find Starbucks in a few tourist locations here that volume cater to American, Chinese & other Asian tourists / students. Few locals. Brand recognition I guess. As an aside, my office has its own la marzocco '3 group' espresso machine and grinder. People take the quality of their coffee very seriously in Australia and NZ. Worst ever coffee drunk has to have been at Tim Hortons at PET airport (Montrèal). Thin 'Kona'- style brew out of a thermal flask? Weird experience. Tasted burnt, weak and watery. Guess its due to proximity to the US coffee culture. Really surprising given both countries received a lot of italian and other coffee culture immigrants. France too generally has bad coffee which is surprising given it borders Italy (where to be fair you can also experience the odd crap coffee and pay exhorbitant amounts if you don't drink it at the bar). I'd drink Starbucks if there really was no other option. Like McDonalds.
Edward Lee (6 days ago)
Starbucks wants to learn from their mistake by opening a location in Italy. There are moments of joy that come to me periodically.
Ri Sa (6 days ago)
My ex is Australian, she and her family always make their own coffee with their expensive coffee maker and the best coffee beans😂
Seulgi Im (6 days ago)
Mostly cafes in Australia provide good coffees. Every cafe has different coffee beans and their own styles. I'm still impressed by them even though I've stayed Australia almost two years.
Bondi OneOhFourThree (6 days ago)
The coffee they use is CRAP. Even the Chendu, China Starbucks stord has better coffee or was it that I could NOT get coffee in CHINA?
Jack lee (7 days ago)
Aussies prefer beers than coffee
Lisa Bee (7 days ago)
7/11 $1 coffee is better than that rubbish Star bucks sold.
Paul glandy (7 days ago)
Gloria Jeans is not thriving
David Okanagan (7 days ago)
Tim Hortons is the way to go.
Syne x (7 days ago)
i’m from australia and tbh it’s not that good i would rather make my own coffee
Big E (7 days ago)
Australians have better taste than I thought.
CakeIzGood (7 days ago)
Who’s watching this while Starbucks had already opened a store?
Two Eye (7 days ago)
Finally Australia does something smarter than USA
Catalin Catalin (8 days ago)
I have EU, US and Australian nationalities so I don't take any sides. I understand that a lot of American things are crap, Starbucks and McDonald's being two of them, but why blame the Americans for 'not staying out of other countries'? No-one forces you to buy coffee or burgers from them - or watch Hollywood movies for that matter. It's all about supply and demand. Ditto with Chinese products, which everyone vilifies yet everyone buys. We have a saying in Eastern Europe: stupid is he who buys, not he who sells.
Alex Clark (8 days ago)
Starbucks has been in the Brisbane CBD since I was a child, that means it's been working minimally at least for 20 years
kevinKronnack (8 days ago)
Cus its hot, in 'strailia, an we dun want any of your fruity - hippy bean juice mate.
Völker (8 days ago)
its oceania
Sugar Baby (8 days ago)
I prefer coffebean over starbucks.. The milk they mix in their coffee at starbucks gives me diarrhea..
Stephanie Lezaich (8 days ago)
Flat white is not a specialty item it is one of the most standard coffee after cappuccinos and it is basically a cap with me a froth
Best Tongkat Ali (8 days ago)
I can help boost Australian men's energy and supercharge their power 🔥🔥🔥
Gary Host (9 days ago)
Supporting small businesses is so important in Australia it's basically cultural. 9/10 will pay a little more to buy from a small business. Starbucks failed because it's just awful coffee, and because they priced it at double what we could already get a better quality cup for here.
I AM NOT A MEME (9 days ago)
Why Starbucks failed in Australia. *cuz we got maccas or hungry jacks bruh*
Katelyn M (9 days ago)
Way to go, Australia, for supporting local!!
Marco Antonio López Báez (9 days ago)
Australia a continent?..
Abbylie (10 days ago)
Because the drinks keep spilling
Li Ricepaper (10 days ago)
i wouldn't choose sb coffee if there are other options
HYDRO4123 Gaming (10 days ago)
hey hey hey at 4:33 that isint every state! your forgeting the ACT and Northern Territory
페브리즈 (10 days ago)
In South Korea, there are lots of Starbucks. people full of vanity
Joseph Marton (10 days ago)
the coffee is from ethiopia not seattle hence we boycott them. enuff migrants here , we dont need to support their business.
Mikhael Gabriel Rafael (8 days ago)
We, the Aborigines are the natives of this continent. And we will let everybody to come to this our ancestor's land, if they bring peace and harmony. :)
Deni Dower (11 days ago)
You can bought 10 cups coffee with 10 dollars in indonesia. Very cheap
gianni arnoldons (11 days ago)
Because australian didnt get brainwashed by yet another corp, selling bad overpriced hyped crap? Good job aussies! Keep it local, and healthy!
Sad Sophie seal (11 days ago)
Can Starbucks come back to Australia cus like I really like it
Sahal E. M. Patel (2 days ago)
Paige Mooney Well maybe Starbucks could find a way to make it work in Australia. There’s a lot more to it than just regular plain coffee.
Paige Mooney (2 days ago)
Sad Sophie seal this whole video is about why it doesn’t work to be here lmao
Sahal E. M. Patel (10 days ago)
Sad Sophie seal I agree! Thankfully there’s three in Brisbane cbd and hopefully we get more right across the country.
Manning Bartlett (11 days ago)
As the video observes, Starbucks moved into a country with a long heritage of Italian coffee (as a result of the enormous wave of Italian immigrants into the country after WWII). American coffee was regarded as weak flavoured and over-priced, and the company was considered "crass and American".
Connor Duke (11 days ago)
Because Australians are not afraid to call "bullsh!t" on product offerings which are...
Jose (11 days ago)
Starbucks isn’t even good in the US. In Chicago even Dunkin Donuts coffee tastes better
Mo Ronik (11 days ago)
I found the coffee in Australia a little more bitter than I'm used to drinking but for sure there are countless coffee shops/cafes there and it doesn't take long to get used to the taste difference. The way you order is a little different too with the long black, long white.. etc but you get used to it as well. Love going to the Gloria Jean's in Surfers. Small place right on a corner with great coffee and things to munch on and great for people watching too. It'll be my go to place when the missus and I move back there next year. Starbucks.. naaa. I don't frequent the place here and I can't see that changing any over there.
Paul Dunn (12 days ago)
Because Australian Coffee is the best in the world, and Strabucks sucks in comparison.
Creative Username (12 days ago)
australia has gloria jeans and woolies.
Sahal E. M. Patel (10 days ago)
Creative Username Gloria Jean’s is also nice and it’s sad that they have gradually closed down so many stores and there’s not much on the news about them… very scary…
TeenierNewt321 (12 days ago)
What about the dome?
John MCCULLOCH (12 days ago)
I will tell YOU THE REASON WHY Starbucks didn't make it a success in Australia..... and that is because setting up a business in Australia is bloody hard..right there when the GST tax system kicked in is when Starbucks started. I've has businesses too and I know that the Australian Government makes it exceedingly difficult to operate and set up and run a business. With the licensing, rules and regulations, health inspection requirements and ongoing collection of taxes and the nightmare of employing staff. THAT'S BLOODY WHY because at the end of the day there is noooo profit.!!!
lee hwak (12 days ago)
Starbuck coffee sucks
Captain Thumper (12 days ago)
Starbucks sucks. That could be why they failed.
Julia Sung (13 days ago)
Italians have SUPER pride in their coffee. hands the best coffee place in the world
James Chen (13 days ago)
Local cafes make much better coffee, better store, more friendly staff and cheaper. Starbucks are open for international students in Australia.
Sahal E. M. Patel (10 days ago)
James Chen That’s right a lot of customers are of an international background however there’s more to just coffee in Starbucks
TomD Pretty (13 days ago)
Never had a coffee there can't tell ya
ella Martin (13 days ago)
I wish i had starbucks where i live in Australia
Ramy (13 days ago)
Gloria Jean opened in my country and fold in less than 3 years. Overpriced coffee.
Ramy (13 days ago)
I indulge in Starbucks once a year because it is too expensive to drink it more than once for me.
Ronan Rogers (14 days ago)
Because Starbucks is what Americans think coffee should be...it’s sickly sweet. Australians, like Italians, like real coffee
Shane parker (14 days ago)
So in other words Australians are too smart to pay for overpriced coffee
Jorge (14 days ago)
New Zealand and Italy have rejected Starbucks also. Mostly because those two countries had a robust coffee culture long before Starbucks arrived. Starbucks only lasted as long as it did in Australia because it was, initially, a novelty. Once the new wore off, Starbucks began the downward spiral.
David T de Castro (14 days ago)
Brazilian here. Starbucks coffee is terrible! The product is overpriced and cheap to make, plus an aura of arrogance of its shops. Once I tried green tea there and it was only boiling greenish water in such a large cup anyone could drown in it. Never more.
MimWhispers ASMR (15 days ago)
12 months before the Italian store goes under.
Kiori Perdania (15 days ago)
In my country starbuck about IDR 50k , and there is tea like chatime and the price only IDR20k. And the taste much btter duno why ppl still buying it, maybe cus already overtheworld
MimWhispers ASMR (15 days ago)
Because we aren't stupid enough to pay for dishwater!
king pin 146 (15 days ago)
Looks like the aussies prefer fosters instead
jeff jeff (16 days ago)
Australia isn't a continent, reeee
Thander Lin (14 days ago)
It's both a continent and a country. ^_^
Cris JTI (16 days ago)
Not a single word about poor quality and overpriced products. Starbucks is a typical US company, selling a brand and a lifestyle rather than a high quality product.
Codsworth (16 days ago)
*DOME*
romeos50 (16 days ago)
Australian coffee culture has a very high standard, sorry Starbucks!
Amber Pereira (16 days ago)
how much is starbucks coffee for a small ?
Nicola Lewis (16 days ago)
gloria jeans is still better? jdjd
patricia ferrini (16 days ago)
Starbuck should stop serving coffee in plastic glass to much waste and rubish for the planete.
lynn allen (16 days ago)
Go to Wawa👍🏻 Get Wawa in Australia Excellent coffee Starbucks is over priced sewer water I’m glad Aussies are smart enough not to drink this garbage Go have some great Aussie coffee, tea or even a Beer Starbucks drinks are way sugary and too childish
Ruby Kashiki (17 days ago)
McDonald's coffee is way better than a Starbucks coffee
Petr Per (17 days ago)
No chance will the Italians opt for Starbucks instead of their own coffee shops. I live in London and a big Italian coffee shop/grocery store opened up in town. It is packed from opening to closing and coffee there is cheaper than Starbucks but 100 times better!
Toxxic _ (17 days ago)
Cos Gloria Jeans exists?!
kloos 070 (17 days ago)
Could it be that #1 their coffee is too expensive, and #2, it tastes like dogfood?
Soy Yo Sofia (17 days ago)
Because the Australians are intelligent and do not drink garbage. Besides the price is ridiculous.
Hahaa Ha (17 days ago)
starbuck is illuminati,thats the answer
Eileen M. Keyes (17 days ago)
Starbucks is just a fancy ripoff. Period. A scam.
Wild (17 days ago)
did he just call Australia a continent?
Thander Lin (14 days ago)
It's both a continent and a country. ^^
오현승 (17 days ago)
Gloria Jeans are better I reckon
arek novak (17 days ago)
GOOD ! I don't like Starbuks
TheMojoLemon (17 days ago)
Australia isn’t a continent...
Thander Lin (14 days ago)
It's both a continent and a country. =D
Wonmin Song (18 days ago)
Nah. SB never had flatwhite right. That's why.
Peter McKerrow (18 days ago)
Interesting analysis. Australians are generally wary of franchised food or beverage outlets which they see as inauthentic and, if American based, probably offering unhealthy dietary choices, particularly sugar. In contrast, I think Americans have a lot of confidence (and perhaps even pride) in their big corporate brands and perhaps are immune to sugar overdoses.
magnum opus (18 days ago)
Didn't do their home work 😒
Calvin Sanders (18 days ago)
Good for Australia. It's average coffee anyways. Not everybody wants to wait in line and pay more for average coffee because it's got a brand name.
FreeScoopTV (18 days ago)
starbucks only succeed in countries with stupid consumers