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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 (17157)
TheVoiceofReason 1 (3 hours ago)
you cant fool the Irish; Aussies are just Irish transplants...
Ghadizleo Ghadiz (5 hours ago)
Masih enak kopi kapal api
Ombro (5 hours ago)
Because Australia has actual good coffee?
Football 04 (5 hours ago)
Americans are dumb you forgot Northern Territory
tomas bachiller (7 hours ago)
it gets to my bloody south american nerves when people in the usa call australia a continent
Sue Lester (7 hours ago)
Hmm, nothing to do with their insipid coffee?
Bob Smith (8 hours ago)
Because starbucks sucks
Stunley Hu (23 hours ago)
Because its coffee is yuk and its service service is so bad.
Alex S. (1 day ago)
Oh come on! Starbucks is brown warm sugar water. They are overpriced and taste bland or just loaded with sugar. They don't know what real coffee tastes like.
Romain Sandt (1 day ago)
If only it could have failed in France. They make billions, pay almost no taxes (like all big corporations). Don't pay well their employees while serving bad overpriced coffee. I don't get this success. In France our culture of coffee is closer to the Italians and Australians described here. I think it's movies and American TV shows... Like you look cool with you big glasses in your overall, a winter hat in summer an IPhone in a hand and an overpriced Americano in the other.
doug dougy (1 day ago)
The coffee available here in Australia is some of the best in the world and Starbucks falls short of that. We are used to drinking top-grade.
Abilio Camaño (1 day ago)
australia is not a continent
Karen Dowling (1 day ago)
Proud of Australia!! Starbucks sucks!!
Daniel Nimmo (1 day ago)
Australia is a country. Oceania is the continent.
Katie Kat (1 day ago)
Australia isn’t a continent, Oceania is.
Stella Fagerstedt (2 days ago)
Australia isn't a continent...
ad man (2 days ago)
its funny they failed, instead of adapting to some way the local tastes like most of the "chains" do, say they coming back for the tourists and screw aussies
Phehlukwayo Chisoro (2 days ago)
I always prefer Gloria jeans
Phehlukwayo Chisoro (2 days ago)
It failed coz the local privately owned coffee shops r lot better. Proud of it
Charles Spain (2 days ago)
Because Starbucks tastes bad and overcharged lol 😂 their coffee just too blend
Sk88 (2 days ago)
No one is talking about how it’s on the rise again
Item69 (2 days ago)
2:50 I hate how that guy ends every sentence as if he was asking a question?
Peter Pumpkineater (3 days ago)
Sell beer in Australia......Success
Chad W. Breece (3 days ago)
NEWSFLASH: I am from Australia. Starbucks is doing just fine. In fact they just opened a new location in our City, its always packed. Regardless if you like their coffee or not, the title of this video is just straight up wrong.
Dania Salman (3 days ago)
I tried when I was in Spain but in my country we don’t have one😭💔
Aussie Pom (3 days ago)
In 2008 there was no financial crisis in Australia. As the rest of the world sank with the GFC in 2008 Australia thumbed it's nose at the rest of the world and carried on as usual. Starbucks sold rubbish coffee at extortionate prices. Aussies found that a much cheaper and better cuppa could be had at another American icon McDonalds or Maccas via their McCafe.
Gage Kampf (3 days ago)
Starbucks should've failed in the us too
Gary Touthang (3 days ago)
I live in perth for 3 years .It's like pilgrims for coffee and that's where my love for coffee starts. Best coffee by far .
B P (3 days ago)
Starcucks is one overpriced crappy coffee, never been a customer there and probably never will. So pretentious even the people who go there. Got one right next to my job and i still get in my car and drive to a DD.
Anonymous Person (3 days ago)
Any other Aussies not know that there were Starbucks chains in the country, until they watched this video? 🤣
Kurdish Gal (3 days ago)
cause it‘s too expensive it‘s just coffee
Paul Casson (3 days ago)
Nice to see a win for small cafe owners as opposed to a corporate giant.
techweenie1 (3 days ago)
MICHAEL DAMATO (4 days ago)
The best coffee is in Australia, how dare anyone else even trying out for a position in a place of high quality.
98cebu (4 days ago)
Starschmuck's sucks a big one. They'll never make a dime from me.
shiro (4 days ago)
this video should be upside down
Christy Bacon (4 days ago)
Because we have good quality coffee unlike the rest of the world!
Lorena Arias (4 days ago)
But all their different kinds of coffee contains chocolate. And they have no idea how to prepare frappe coffee. I didn’t like their coffee. Maybe Gloria Jeans was a bit better. I had a hard time enjoying coffee there.
Dima Dobryak (4 days ago)
Why do the author calling Australia “continent” instead of “country”? He’s talking about a country not a continent. Correct me if i wrong.
Anonymous Person (3 days ago)
Australia is both a country and continent.
Bella Stringfellow (4 days ago)
Their coffee is the worst coffee I have ever had
Watling Art Galleries - Watling Framing & Art Services - Art Events, Space Hire! (4 days ago)
Because they served (and still serve) crap, dishwater coffee and Australians are discerning when it comes to coffee. We are used to some of the best coffee shops in the World!
Ariel Cerros (4 days ago)
same is happening in other nations suchs as Honduras
Sheanze (4 days ago)
It’s so sad that the local coffee shop in our place serves disastrous coffees so our only choice is starbucks
Gabo Silva (4 days ago)
Because their coffee sucks
Tom Miller (5 days ago)
There are plenty of good coffee shops across Australia. There is no need to drink second rate coffee .
Mark Neilson (5 days ago)
Something the Australian cafe culture should feel proud of.
PoppyRob (5 days ago)
The reason it failed as many others have stated their product sucks. We are smart enough to not want second rate diabetes in a plastic disposable cup.. But then again we do have coke here so that arguments is a bit weak. Ok I will say it over rated over priced and over here. If you want a decent coffee in Australia go to your nearest cafe or coffee shop.
Peter Symonds (5 days ago)
I think many people have summed it up. Its crap coffee and costs more. Why would you bother? Gloria Jeans is also crap.. Its like drinking Nescafé 43.
Shaeby The amaze balls (6 days ago)
We have Starbucks at Australia just not in a lot of places it only takes a 30 min drove to get Starbucks from where I live
Anonymous Person (3 days ago)
I've never seen one here in my life. I didn't even know we had them here?
Chris Munro (6 days ago)
How are they doing in Vienna, New Zealand? We have better coffee than American bucket coffee
slh950 (6 days ago)
Starbucks was the most revolting watery coffee I've ever had. If I wanted a cheap milk-shake covered in canned whipped cream I'd go there again
Ronald Neijenhuis (6 days ago)
Ouch Australia is not a continent.... Oceania is, Australia is a country folks! #USignorance
Jeremy Kelaher (6 days ago)
Yep we had seriously good coffee already, even in pubs in the boondocks, by the time they launched. Late to the game, expensive, weird and so inferior. Stupid products - just double crapiato with a dash of sickly syrup and sprinkles bad. My (Milanese) home machine makes better coffee, and I am no barista. Yep, just for tourists.
Екатерина Акатьева (7 days ago)
I am on the other hand surprised how they could become so successful everywhere else with their coffee not being authentic and severely overpriced, their bakery is just average too; I notice people go to Starbucks to sit in air conditioned space and talk rather than for coffee itself
Jorge Trevino (7 days ago)
Because in Australia we have good taste
Christy Fenwick (7 days ago)
Their coffee tastes like crap. If they started making proper coffee, we might have been willing to pay for it.
jorgensenmj (7 days ago)
No self respecting Austrailian would drink coffee made from beans that have not been through the digestive system of a pole cat...and then come out the back end. Kopi Luwak is where it's at mate.
Britnee B (7 days ago)
They're not stupid enough to pay so much for coffee
David 7X7 (7 days ago)
Starbucks is overrated
David Greetham (7 days ago)
Their coffee is rubbish
hendy wijaya (7 days ago)
Lol..gloria jeans failed also in.indonesia..so why u jnow already what the reason
Alchamistoh (7 days ago)
Australians dont want their sugary drug. Fattning coffee.
Sirios Star (7 days ago)
Personally i hope Starbucks fails in Italy as well. It is famous for its Espresso shops with espresso machines the size of a Buick. These individual shops are part of the charm and culture and to have them invaded with some greedy American company is rather disgusting.
Bing Lim (7 days ago)
In Australia, even McDonalds coffee tastes better than Starbucks coffee.
Tinashe (7 days ago)
Oh wow we even have Starbucks in South Africa
Yu fox (7 days ago)
Isn't that obvious? Australia has a strong coffee culture, market is saturated little room left for foreign brands
Jet S (7 days ago)
Well looks like I’m never going to Australia and I’m now getting ready to go to Starbucks...
vaibhav satpute (8 days ago)
In india homemade coffee = 5-10 rupees Starbucks coffee = 150-209 rupeees Take decision wisely !!
allen simpson (8 days ago)
Coz they only like bubbles!
THE HOLY OATS (8 days ago)
I’m not gonna say it failed i kind of agree that it succeed because Australian people are coffee snob so i think they would’ve made million’s of money for selling 4$ coffee
LaurenH (8 days ago)
I'm honestly so proud of Australia
Li. (8 days ago)
I live in Australia, No offense but Ive tried better coffee than starbucks also its overpriced. Soooo..
Ken Jones (8 days ago)
Because their Coffee takes crap
seyum lema (8 days ago)
That's way to much money for a coffee!coffee cmon coffee.In my place one coffee is $5 and its risky deadly stuff snakes spiders nuuuu
Roxi Heart (8 days ago)
Why in the hell would I travel to Italy and buy Starbucks!? 🙄
UltraViolence (8 days ago)
Video should have been a 2 second image of a Farmers Union Iced Coffee............ Because it's Farmers Union or it's NOTHIN
Young Choi (8 days ago)
Don t try to make useless reason . That time starbucks coffee was expensive . That s it .
nancy kelly (8 days ago)
Starbucks coffee is overroasted burnt bean , acidic expensive B S ........ MORE OF A SOCIAL SCENE WITH FREE WI FI.....
Richard Whitehouse (8 days ago)
Because Melbourne INVENTED coffee
Sara Yaakov (8 days ago)
because the coffee smells and tastes like bad water.....
masija whiskey (8 days ago)
Am Australian. Only people you see drinking starbucks are the tourists or students from overseas. We have plenty of other coffee shops other than starbucks and gloria jeans too. Like merlo, zaraffas and many more local shops. Starbucks isnt really appealing thats all.
Connor Reilly (8 days ago)
It failed cause we all just go to coffee shops like Gloria Jeans, Maccas etc. And we ain’t basic :)
lythsian (9 days ago)
Taking Starbucks to Australia is like taking Pizzahut to Italy, iPhones to China or bombs to Syria :D Any money the Yanks actually tried all of these, how did it pan out? I'll sell you a clue for $100US
Joey Legit (9 days ago)
oi starbucks, you can't sit with us.
R4V3-0N (9 days ago)
Am I the only one confused if they are talking about the continent Oceania or the country Australia?
magnomaxx2010 (9 days ago)
They open it here in Brasil, and failed. What about sell ice in North Pole?
andrew cole (9 days ago)
Starbucks is shit house coffee no question of a lie
T Murray (10 days ago)
I roast and grind my own coffee. North American foods and beveridges are usually far too sweet (not to mention fatty, large serves) for us.
BKSKP (10 days ago)
No Australian actually watched this. but just clicked to say "We tried it Once, and it was yucky". Thanks. We have many many cafes with good coffee. and people who like nasty nasty franchises already go to McDonalds for their nasty cuppa 😂 And the fake 'cosy' atmosphere. Yyyyyyuck
Gummy sue A (10 days ago)
You call that coffee ? 🤢🤢🤮
Whitewingdevil (10 days ago)
They failed because the quality of local coffee is pretty high (on average) and the quality of Starbucks is garbage. There's a still a Starbucks in Melbourne CBD, and I've tried it, and I swore to NEVER drink it again. All I got was a long black, the simplest possible coffee, and it tasted like something had died in that coffee.
Tom Lucas (10 days ago)
Australians love coffee!!
Luke Millar (10 days ago)
AUSTRALIA is not a continent mate, AUSTRALAISIA is
Melanie Dean (10 days ago)
Aussies not liking sweet drinks?? Lol go to you real average Aussie and ask if they got jam or vegemite and you'll get your answer. They prefer bitter over sweet.
Dude (10 days ago)
They control their immigration ?
Ruby Lee (10 days ago)
If they try to reopen as a tourist focus they'll still fail if they remain more costly than the local smaller cafes. Not to mention that word of mouth is a big driver here... If tourists ask what's good, what's not, where do you recommend.... they'll get brutally honest opinions from the locals and pointed in the right direction
EarthMedia2009 (10 days ago)
American tastes in Coffee is radical different We like Real coffee
Carmine Zuccarini (10 days ago)
If anybody cares, the store at 4.50 is Kingston Upon Thames in Kiggston, London UK :)
Odetuber (11 days ago)
In Sweden if we want good coffee we go to Espresso House.
Philo P. (11 days ago)
why do you keep saying continent, makes you sound ignorant
Philo P. (7 days ago)
there are starbucks in the "continent" of australia
aussie jim (7 days ago)
+Philo P. New Zealand is many many kilometres off the east coast of the Australian continent which contains the country of Australia only - where are you getting your ideas from?
Philo P. (8 days ago)
and the only reason he is saying continent is because he thinks he sounds smarter
Philo P. (8 days ago)
+Kelly Davis only the country Australia is shown in the video, other countries such as new zealand would be considered part of the same continent
Kelly Davis (8 days ago)
Philo P. Because Australia is a continent