HomeNews & PoliticsRelated VideosMore From: CNBC

Why Starbucks Failed In Australia

57562 ratings | 4663984 views
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
Category: News & Politics
Get embed code!
Text Comments (17513)
Junior Mynos (3 hours ago)
What?! Guantanamo has a Starbucks?! Then it cant be as bad as they say
Ryan W (9 hours ago)
Because we aint as dumb as Americans?
V C (12 hours ago)
We don't need Starbucks in Australia. It's not good coffee (I've had it in overseas stores). We have awesome cafe's with amazing coffee. We don't need or want this substandard coffee loaded with sugar, fat and profits going overseas.
Calvin Smith (19 hours ago)
Terrible product. Undrinkable.
Hannah Cochrane (20 hours ago)
Australian Starbucks needs the Strawberry açai or whatever they’re called. It’s the secret Pink Drink
Tanga Toto (22 hours ago)
Re the last comment, oh yes, having spent my early adult life in Melbourne, a city enriched by the post war immigrants from (mainly) Mediterranean Europe, Starbucks was an insult. Why would you want to waste your money on a mass produced plastic sugary attempt at coffee from America, when you could get the real thing, made by a real barrister on a machine that looked like the back of a Chevrolet. One Starbucks experience (in London) , was enough to put me off for ever. But, what can you expect really, from a country (the US) , that calls McDonalds , “restaurants”.....um no 😎
Joe Antolak (1 day ago)
Aussies aren’t a bunch of snowflakes they don’t need fancy things to be cool
Raul Fernandez (1 day ago)
Starbucks is a "low-key" front for prostitution, hence: "'know' your local barista"! P.S. what's up Evelyn?🤘🤓
Robochop 1987 (1 day ago)
Nescafe' is fine, and you save about $5 bucks whilst having it.
Purefoldnz (1 day ago)
The buck stops there.
Seb In Spaace! (2 days ago)
4:31 what happened to the ACT (Australian Capital Territory)?
Seb In Spaace! (2 days ago)
4:14 "serves over 35 million Australian consumers" Population of Australia: 25 million *Kowalski, Analysis*
R (2 days ago)
Not surprising as Starbucks does not make very good coffee and overcharges for it.
Cohenjameswhalley (2 days ago)
Why need starbucks when we have zarraffas and McCafe
CaesarInVa (2 days ago)
Too pretentious, too political, too leftist and too chic. Aussies don't really go for any of that stuff. They like cafes, true, but at heart they're a down-to-earth, roll-up-your-sleeves people. Starbucks, learn lesson 1 in business: Know Your Customer.
Switch (2 days ago)
bring in and out to australia and we will be happy
drg -yo (3 days ago)
How much Australian Coffee Shop sell cup of Coffee in average?
Aquamelon 008 (3 days ago)
Oh it’s amazing how we Australians are actually proud that we messed up Starbucks plans for world domination
Amara Fogarty (3 days ago)
Poor Australians
Alexander Penman (3 days ago)
Haha yeah that's it, Starbucks should just focus on selling to tourists. It's a lost cause trying to peddle that crap to the locals who know what good coffee actually tastes like and what it should cost. I only ever go there when there's no trendy independent cafe around.
ester y (3 days ago)
Guys drink ₹5 adrak chai of India 😂😍😍😍
hitardo (4 days ago)
Australia is a country. Oceania is a continent. Otherwise, good video. Starbucks is just over-priced, super-sugary, and snob coffee.
hitardo (4 days ago)
Never forget: Portugal is also one of the best places to drink coffee in the World. Espresso in Portugal is the best!
patthemightymat (4 days ago)
Mate the only reason it failed is no one could find a slang name for it
roygsxr600k7 (4 days ago)
Starbucks failed because the coffee they make is sub standard!
MidNightFeast Xoxo (5 days ago)
I live in Australia and the only place I find Starbucks is the city which is 1-2 hours away and you can’t even find Starbucks at a shopping centre 😬
Aero Aviation (6 days ago)
When will it try again in Australia?
Jim Dandy (6 days ago)
Don't worry... a lot of practical people in America don't care for Starbucks, either. I pay for good coffee, not image. I know people who buy cheaper coffee at QuikTrip, and dump it in a Starbucks cup they use again and again.
filth fury doom glory (7 days ago)
Why, Because Australians are cheap
Eddy C (7 days ago)
Starbucks coffee is actually trash
Pusheen The cat :3 (7 days ago)
WE Have it in Sydney and canbrea
Gail Irszak (7 days ago)
Believe it or not, Australia's coffee culture rivals that of Europe. Australian's are real coffee snobs, not that it's a bad thing, but when a company like starbucks comes along with it's flavourless bland crap, of course it will end up failing. Australian's demand good coffee.
alfredo hernandez (8 days ago)
Australia is a continent? You're tried to say Oceania
g0neplatinum (9 days ago)
Did you know coffee beans are one of the most chemically processed foods?
James Donald (9 days ago)
Another factor in Australia is McDonald's with the Australian division creating the McCafe.
Ch0cHead (9 days ago)
It's largely the same story in NZ
Ben Marvel (9 days ago)
Now days people LOVE Starbucks
mr Rein (9 days ago)
Australians boycott Starbucks ... our coffee is better
Unnecessary Jargon (10 days ago)
Its true that there are a lot of gloria jeans stores in australia, tho im confused how they get 35 million consumers each year since only 25 million people live here lmaoo...they must have a lot pf regulars
Girl E (11 days ago)
I wish it didn’t die down.
Just Me (12 days ago)
Because the coffee sucks!
victorienne frey (12 days ago)
This says a lot about narrow minded human mentality. Why would you go on vacation... to drink or eat what you do at home?
N4rna 1 (13 days ago)
“What is Gloria Jeans doing that Starbucks isn’t?” <— making better coffee, duh
bobbiebob575 bob (13 days ago)
First, you start drinking Starbucks, then you end up with mass school shootings. American culture is not always compatible with Australia.
uncle ted (15 days ago)
Good on ya, Aussies, from this American. Starbucks is over hyped, Over priced and the coffee is not as good as I can make at home.
Aiden (16 days ago)
Wait. Starbucks failed in Australia?
dieubermensch (16 days ago)
Isn't the continent Oceania? Australia is the country.
Master Fire (17 days ago)
I couldnt be bothered to watch the video so I just asked my friend who lives in Australia instead 😂
Dougdougdougdoug Meep (17 days ago)
This is a comment
Mc zebras (17 days ago)
There’s are Starbucks close to were I live and it’s disgusting and overpriced. I usually just go to a small business cafe in town and there always twice as cheap and twice as good.
R. Powell (18 days ago)
As others have said, our local coffee shops serve better coffee cheaper, and I suspect like myself many Australians have an espresso machine at home. When you can a make good espresso at home you're not going to buy Starbucks when you're out and about, you're going to go to your locally owned and run coffee shop for a decent cuppa.
Arya Stark (18 days ago)
because Australians are picky AF with their coffee
ソナSona (20 days ago)
Starbucks is just convenient store. No manners n no good coffee
Tsetsi (21 days ago)
Australians are coffee spoiled rotten!
shraderX5 (21 days ago)
Well they managed to get in the Italian market only in 2018, and with only one huge Starbucks in Milan. Not so easy to give us a coffee flavored milk for 6€ when we can get espresso for 1€
Cavin K (21 days ago)
It's more like Westerners open their sushi chain in Japan.
Lil, Charmander (22 days ago)
0:27 hmm Australia Is a country not a continent sir You meant to say "Oceania" 😌
Jon Bom (22 days ago)
That's weird - Gloria Jeans is the loser coffee shop in America.
K Tan (22 days ago)
Gloria jean period
Jay Jayaganesh (22 days ago)
Starbucks coffee sucks when compared to true Aussie coffees
reeni 07 (22 days ago)
Zrafa is better
Ram Strikk (22 days ago)
I can't look at the starbucks logo without thinking of Robot Chickens origin story of how it came about.
Ben (22 days ago)
Starbucks new strategy to target American and Chinese tourists basically acknowledges that they can't make coffee up to the Aussie standard or at a fair price.
terastarship2 (23 days ago)
Smart people doesn't drink Starbuck!
StopReadingMyUserNameAndGoDoYourHomework (23 days ago)
The actual coffee from Starbucks sucks ass, but their Frappuccinos and pastries are good af
Anthony D (23 days ago)
I run a mile when I see that logo. And their sugary megacups with the mega prices look revolting. Thank goodness that people still want to go local.
HI LEE (23 days ago)
When I was in Australia by working holiday visa, A lot of Australians have enjoyed an Italian style coffee in bistro or restaurant. Also, Australian barista was need required highly skilled for matching taste from who demanding European customers, even though it has a barista license.
Kurtney Lofranco (23 days ago)
Their coffees are too sweet. It ain't even coffee.
Mary Wren Turman (24 days ago)
It’s nasty 🤮
Kate HW (24 days ago)
I love Australia coffee culture.
vaireka1 (24 days ago)
Wrong .....Gloria jeans is failing too!
Adams Esquillo (24 days ago)
Because other people don't drink a coffee that is made of gold
mykill92777 (25 days ago)
Coz its gloria jeans territory...lol
he he (25 days ago)
Let drinks coffee VIETNAM, the best coffee in the World
Deel Weed (25 days ago)
Be practical just buy regular coffee.
Jeremy Pacheco (25 days ago)
Yeah.. they were just being wise because it is totally overpriced!!
Mary Wren Turman (24 days ago)
Overpriced and tastes like crap
John Nepomuceno (25 days ago)
Starbucks you charge too much for a cup of coffee. Only the rich can afford.
レーモンジェー (25 days ago)
I don't understand why ppl think drinking inside Starbucks makes them look classy.
Robnoxious77 (25 days ago)
the second worst coffee in the world is McDonalds coffee. We let them get away with it because a Big Mac is the best cure for a hang over.
lemoned green (25 days ago)
Australian like beer, Itarlian coffe. Australian don't like coffe with sugar, why are they so fat? because of Beer?
Ben (22 days ago)
Can confirm
Dylan Frith (25 days ago)
Yeah that coffee sucks. I can't believe Americans can stomach it. After diner black coffee maybe less offensive.
Rhyan Jill (25 days ago)
I never really understood what is so good about Starbucks coffee though. But meh... I associate Starbucks coffee to diarrhea anyway since my stomach can't seem to handle it very well. LOL For some reason the only coffee my stomach can handle are the bland ones so I normally stick to instant coffee. As for the taste... I really can't tell the difference to be honest. LOL Since my country is tropical, cafes are really just places to cool down from the humid, scorching heat of summer. Iced coffee is an abomination though - it tastes like.... ICE. Also... Isn't there something wrong with assuming that tourists would just go to Australia just to get into a brand they already have back home? This is like going to another country just to buy a Toblerone when you could have easily gotten it from the local mall.
Alekos Dafiniz (25 days ago)
Starbucks Mt druittt used to have mad ice chocolates
SELENA love (26 days ago)
Starbucks is overpriced and i rather make my own coffee
dzulkafley samad (26 days ago)
Nothing like a shot of tall or grande americano to start the day
Slot Pooma (26 days ago)
Hello world we Tasmanian’s have flick the bean . In Launceston we love it.
Slot Pooma (26 days ago)
Australia don’t have big populations and its continent not only country . So, local people go with local .
Brad Kynoch (26 days ago)
Cause their a rip-off. And probably underpay their staff
Chen Xiajie (26 days ago)
I don't think Starbucks is successful in Europe as well. I think the coffee culture in European countries and AUS/NZ is more traditional. When I visit France,Germany, Holland the people who visiting Starbucks most were from Asia. I'm from Shanghai China so I understand that. In Asia why Starbucks are so popular is very hard to find a coffee chain shop with stable quality. Most of Asian people can't make good coffee except Vietnam. So starbucks is not popular in Vietnam too.
Rezandro Ace De Guzman (26 days ago)
I am from the Philippines but I will always prefer to have my little French vanilla from 711 than from Starbucks. I am not a really big fan of that coffee chain.
Ho chi min (26 days ago)
Because in the big cities only lives stingy chinnese and indian people
Sameera (26 days ago)
I thought the Aussies drink tea...not coffee.
Stratamania (26 days ago)
Starbucks is to coffee as McDonald's is to food. It's not good coffee...
alphamone (25 days ago)
Amusingly, McDonald's made their own similar mistake with the custom burger thing.
ppssuuu (26 days ago)
Wow I can't believe why do you need to ask, its really simple answer, Starbucks coffee sucks big time! (I struggled to find real coffees in the US!) Its a much better and more interesting business case to analyse why such a company with such crap product can succeed in many other countries, or why people in other countries don't seem to know what good coffees are like. Good luck and I will be very surprised if Starbuck can be successful in Italy, as I believe thats where Aussies coffee culture originated from.
but2star (26 days ago)
Fifty percent of the Australians opt for raw milk and the other half go for beer.
Angry Investors - take control (26 days ago)
Odd - when in USA we head for Starbucks. When back in Aus we'd never even consider Starbucks. Gloria Jeans probably in a shopping centre. But still prefer the local coffee shops.
tjh_lfc (27 days ago)
Costa is and always will he better than Starbucks
Gabby S (27 days ago)
Cause they wont eat ,drink crapp
jonathan dow (27 days ago)
Obviously, because Australia🇦🇺is a far right country 🕷No sugar rush! Please.
MrBJPitt (27 days ago)
Australia is not a far right country, thankfully.
squishy ponyo (27 days ago)
i live a suburb next to one of the few starbucks left in melbourne 😎
Chef Frank (28 days ago)
Oy mate, its hod to thro mi boomerang while holdin a cup o joe!