Why Starbucks Failed In Australia

  • Published on Jul 26, 2018
  • 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.
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    Why Starbucks Failed In Australia | CNBC

Comments • 16 638

  • Cover Drive
    Cover Drive 5 hours ago


  • Big Small_Travel
    Big Small_Travel 6 hours ago

    There are 34 Starbucks in Australia: www.starbucks.com.au/Starbucks-in-Australia.php There is 1 Starbucks in Italy. I think in comparison, Starbucks did pretty well in Australia.

  • QueenChocky
    QueenChocky 10 hours ago

    The amount of Americans who don't understand how a country can also be a continent is truly sad. en.wikipedia.org/wiki/Australia_(continent)

  • NightEve__xX
    NightEve__xX 13 hours ago

    There's a Starbucks in Melbourne and its not too bad :P

  • RovingRoy
    RovingRoy 13 hours ago +1

    Ah, Vegemite doesn't go well with Ventis!

  • struttobeso
    struttobeso 14 hours ago

    because it sucks

  • alex 100
    alex 100 15 hours ago

    We know good coffee

  • Tim Dennis
    Tim Dennis 17 hours ago

    They forgot to say that a Starbucks coffee tastes worse and is generally a worse made coffee than a good local coffee shop that cares about its beans with a great barista... same with Gloria Jeans... American style chain coffee always has that mass manufactured taste made by a 17year old with 2 weeks training... how is that ever going to compete?? they want to charge 30 - 100% markup for a worse coffee... usually heaped with buckets of fake sugary crap... how was that ever NOT going to fail in Australia...

  • Hélio Buratto
    Hélio Buratto 21 hour ago

    It should be renamed Starsucks.

  • azariasthelast
    azariasthelast 22 hours ago

    Starbucks has always been a little too proud of their coffee.

  • Magnús Másson
    Magnús Másson 23 hours ago

    Starbucks sucks.

  • Derek Torrico
    Derek Torrico Day ago

    Starbucks is decent coffee, it's the better option to fast coffee on the go. But its overpriced, I would rather get Mccafe than Starbucks due to price. But than again there isnt any great coffee in America. South America is different tho. Most countries in the south have great coffee

  • Fenia Sklika
    Fenia Sklika Day ago

    Literally every point raised in this video is why Mc Donalds has failed in Greece as well. They opened too many shops at first, had more expensive prices than other places, “fast food” is kinda against Greek culture and failed to integrate national food in the menu like another popular fast food chain here. They are now reopening some stores hoping tourists and students will support them. Really interesting actually

  • Mark Te Puke
    Mark Te Puke Day ago

    I can’t remember the last place I’ve seen a Gloria Jeans here on the Gold Coast, it’s either Zarraffas coffee or Startbucks.

  • russell campbell

    Simple answer - Oz has much better and cheaper coffee.

  • Azizan Mars C.A.

    Just like Seven Eleven in Indonesia. It didn't work well.

  • John Shields
    John Shields Day ago

    did u call Australia a continent?

  • amariluna
    amariluna Day ago

    I have travelled around the world a bit and can say that we have the best coffee in Australia. Even Italians have said it's now better than coffee in Italy. We are true coffee snobs.

  • john z
    john z Day ago

    跟打仗一样,一味地扩大占领区无法消化,最后反而会被拖垮。东条英机 说的就是你

  • Video Account
    Video Account Day ago


  • Jayn Siregar
    Jayn Siregar Day ago

    I don't like Starbucks bcos their taste is normal coffee but charged you a lot! In Singapore i like coffee in kopitiam better

  • Don O
    Don O Day ago

    4:56 Thats is the real reason, Arrogance.

  • 815th Engineers
    815th Engineers Day ago

    Only a fool would go to a Starbucks.

  • Abhay Achal
    Abhay Achal 2 days ago +1

    Why Australian politicians must obey the US Administration ?

  • Lucifer & Sons Co.
    Lucifer & Sons Co. 2 days ago

    it's cause Australians are LAME
    the lamest of all nationalities

  • Anthony M
    Anthony M 2 days ago

    Good for the Aussies supporting their locally owned baristas. Starbucks is the Walmart and McDonald’s of the coffee world.

  • Jacques Machado-Steinman

    Starbucks opened here in South Africa in 2016 but it’s not doing well because the royalties are too high, the franchise is too expensive and there are better alternatives like Vida e Cafe and Seattle Coffee Company, both local brands.
    Starbucks is just a name, nothing special.

  • Tyan Yan
    Tyan Yan 2 days ago

    Even Mel street cafe is much better than Starbucks.

  • House Tablet
    House Tablet 2 days ago

    Doesnt taste like real coffee bitter taste

  • Lukas deBlok
    Lukas deBlok 2 days ago

    2:35 is she carrying a louis vuitton box??

  • Layla Dooley
    Layla Dooley 2 days ago +1

    Aussie Aussie Aussie oh oh oh

  • Rui Chanoca
    Rui Chanoca 2 days ago

    Fun fact, Starbucks also failed to enter the Portuguese market (much smaller one, but still...), and like the video said, only has a couple of stores in tourist heavy areas to accomodate said tourists terrible taste in coffee.

  • Rui Chanoca
    Rui Chanoca 2 days ago

    Australia isn't a continent though...

  • jayteean
    jayteean 3 days ago

    The plain and simple reason why STARBUCKS sucks.
    Their coffee sucks
    Their coffee is overpriced
    Their treats and snacks are unhealthy full of sugar
    NO COFFEE should costs over $2 maybe $1.50
    OVERPRICED stupid people in the USA pays for.
    Australians are smart

  • Michael J Conway
    Michael J Conway 3 days ago

    Narrator: In our language the inflection at the end of a sentence goes down. For questions, the inflection of a sentence goes up. Please learn to speak the language before attempting narration.

  • Mish Leigh
    Mish Leigh 3 days ago

    Because it sucks and the smaller cafes offer a greater variety, better atmosphere and better quality at a cheaper price with less crap = No brainer don't go to Starbucks.

  • DatGuyOfficial
    DatGuyOfficial 3 days ago

    all those comments complaining starbucks sells just crappy hot water make me laugh cos italians (like me) that actually tried their coffees when being abroad will say the same exact things 🤣

  • Sara Bonetto
    Sara Bonetto 3 days ago

    Because we have taste and starbucks is awful. Coffee in Australia is famous, we have awesome coffee

  • Gmtail
    Gmtail 3 days ago

    Because bla bla bla bla bla Starbucks charged more than places already there, and bla bla bla.... I think that's the only one you need to focus on...

  • Lemi Lemi
    Lemi Lemi 3 days ago

    it appears only the hundreds of thousands of asian foreign students go to cafe chains like starbucks. otherwise no chance with us 'natives'

  • djmm77
    djmm77 3 days ago

    Gloria Jeans Sucks as well!

  • hubobubo
    hubobubo 3 days ago

    You can fall over better, cheaper and faster coffee in the markets they were competing in.
    Macdonalds the lowest common denominator beats them on those fronts handily. I don't really understand what there edge was supposed to be.

  • cr4zyu
    cr4zyu 3 days ago

    Aussies are, or used to be, down to earth folk. We're tired of being ripped off by American & British companies that know the price, but not the value.

  • María Serrano
    María Serrano 3 days ago

    Australia is not a continent

  • María Serrano
    María Serrano 3 days ago

    Australia it’s not a continent

  • Linda Jones
    Linda Jones 3 days ago

    We’ve become “American” enough thanks without bloody Starbucks, give us a break!

  • Australia
    Australia 4 days ago

    Better luck next time boys.

  • Mélissa K.L
    Mélissa K.L 4 days ago

    The same kinda happened in Canada with Target

  • strafrag1
    strafrag1 4 days ago

    Starbucks is way overrated.

  • I agree with you
    I agree with you 4 days ago

    Starbucks just does it best. Dutch bros, black rock, all the one offs are sour, watery, burnt or just disgusting. You know it's good coffee when, after it cools down to luke warm, it's still delicious.

  • Ariel King
    Ariel King 4 days ago

    Australia is known to have some of the best coffee in the world. Most of us make our own. Starbucks was a big fish in a bigger pond. They came from a country where Dunkin donuts was a thing and clearly didn’t know what they were getting themselves into.

  • Sarah Kupka
    Sarah Kupka 4 days ago

    I'm a bit surprised they didn't integrate their menu more to Australian consumers bc the Starbucks' around the world in different countries all have. In China, their menu is more focused on tea (vast tea menu) and their coffee flavors are more geared toward Chinese taste. Same goes for most countries I've been to. I live in Korea and their menu is very different than the American one, and Koreans seem to like it a lot. That's why I'm surprised Starbucks didn't do better research into Australian tastes and coffee. Hopefully they learn to conform to Australian needs bc that's what makes Starbucks so unique and popular around the world

  • RC Ballz
    RC Ballz 4 days ago

    Hey hey hey, we just don’t like Starbucks, Starbucks is expensive and not worth it

  • Soviet Onion 72
    Soviet Onion 72 4 days ago +2

    Starbucks is huge in Indonesia with stores everywhere, I mainly used it to get good wifi.

  • Rob Boden
    Rob Boden 4 days ago

    Australia is not a continent, it’s oceania

  • michael lawrence
    michael lawrence 4 days ago

    they are selling coffee ? must be joking.

  • Coffee
    Coffee 5 days ago

    I read somewhere that Australia has awesome coffee I’m not from Australia and I never drink their coffee. It’s just bad?

  • Bill Malec
    Bill Malec 5 days ago

    Because Aussies are smarter than us Americans. I never set foot in that place. Plus the fact they support liberal nonsense.

  • Osvaldo Morínigo
    Osvaldo Morínigo 5 days ago +1

    Because it does not include spider in the coffee

  • emma jeffries
    emma jeffries 5 days ago

    When did a flat white become a specialty menu item??? Pretty standard I would've thought...and yeah, Starbucks coffee is horrible. Tastes like dirty water.

  • Luke Vu
    Luke Vu 5 days ago

    Vietnamese Ice coffee alot better

  • Melissa Martin
    Melissa Martin 5 days ago

    Keep out of CBDs as that's where all the best coffee beans are sold and has the highest concentration of us coffee snobs
    Bring the stores out to the suburbs
    Have late trading hours
    Have a drive thru and car park space
    Well at least that's how Mt Druitt Starbucks is making a killing

  • Kieran Gibb
    Kieran Gibb 5 days ago

    We are HUGE coffee snobs. And Starbucks is absolutely repulsive. I tried it once when it was here and really had to spit out the first sip. It was absolutely horrendous and I threw it in the bin at the entrance on my way out. Then I tried it once more whilst delayed in an airport in Belfast....Same thing -- except due to the boredom and need for caffeine I endured 2/3 of it. Never again.
    Gloria jeans is better, not great but okay. But it has ties with religious institutions so I don't bother with it.
    If you want to sell coffee here, you need to be good and on par with a local cafe's price/quality or it will just never work. Especially in the eastern suburbs of Sydney and in Melbourne.

  • Techie DLS
    Techie DLS 5 days ago

    I'm ok w/McDonald's coffee 😁

  • Loraine Spencer
    Loraine Spencer 5 days ago

    I go there like twice a year.

  • Johnny Norfolk
    Johnny Norfolk 6 days ago

    Dirty stores, poor service, poor coffee.

  • Spanky
    Spanky 6 days ago

    Yep their coffee sucks. Have they even been to aus? We have awesome coffee coming out of our arses.

  • FourAGE
    FourAGE 6 days ago

    7-eleven coffee is awesome and cheap too. get a huge one for $3. Why would we go to starbucks?

  • Putin The Great
    Putin The Great 6 days ago

    Because starbucks sucks

  • Henry Pickering
    Henry Pickering 6 days ago

    I’ve never seen or heard of Gloria jean before and I’m Australian

  • john smith
    john smith 6 days ago

    The company is great to its employees...but for me their coffee really sucks...it taste burnt...and is way over priced. Im from Puerto rico, where the best coffee is made. :)

  • andres ibacache
    andres ibacache 6 days ago

    Australia is a country, not a continent. Typical of American(USA) ignorance...

  • Noam Ben-Shalom
    Noam Ben-Shalom 6 days ago

    They failed miserably in Israel too! The coffee sucks! They took this amazing thing called Coffee, and just ruined it completely!!

  • luke joynson
    luke joynson 6 days ago

    Waayy. Starbucks ya dickhead.

  • luke joynson
    luke joynson 6 days ago

    Makes me happy

  • Andrew Yacos
    Andrew Yacos 6 days ago

    Footy and sun, that's what's great about the Oz.

  • Marina Basilio
    Marina Basilio 6 days ago

    australia is not a continent

  • Penny Svingos
    Penny Svingos 6 days ago

    We do have still have Starbucks in Sydney and in Melbourne i don’t know about the other stats cause I live in Adelaide

  • Explore Australia
    Explore Australia 7 days ago

    Because full of coffee shop

  • Prodigal Son
    Prodigal Son 7 days ago

    It's always music to my ears to hear of Starbucks closing down. Australia you don't need Starbucks, go Black Rifle Coffee Company it'll remind you how to be men again.

  • Billy the bully
    Billy the bully 7 days ago

    Coz Australians only drink McDonalds coffee

  • yarpos
    yarpos 7 days ago

    It seems they have not actually learned anything from their mistakes really and a rationalizing management failure.
    Australia has a very strong coffee culture from earlier Euro migration. Starbucks had a mediocre product, insisted on their own coffe language and people laughed at the stupid syrup shots in coffee.
    An example of genius store placement was placing one in the centre of Lygon St Melbourne, a traditional italian restaurant area overflowing with good coffee (Little Italy NYC X 3 or 4). In what universe is that a good idea.
    American cookie cutter mentality, bit like the failed Masters stores using Lowes US mechandising and stocking. What? its hot at Christmas? who knew?

  • Liam Kennedy
    Liam Kennedy 7 days ago

    It's not even good anyway so not really a big loss

  • Mikayla Knight
    Mikayla Knight 7 days ago

    Who here is from Australia

  • Marvin Ledesma
    Marvin Ledesma 8 days ago

    Not a centavo loss for starbucks if they don like it. As far as i knw millions loved it and its going to have more stores around the world period!!!☕💚💙😂

  • taeliciouscheeks
    taeliciouscheeks 8 days ago

    gloria jeans anYONE?
    i like my home made coffeE

  • Mason Nix
    Mason Nix 8 days ago


  • Looking for A will to live

    Gloria jeans has better coffee and good food. Something Starbucks just can’t do.
    If I want a sugary coffee drink, then I will get a coffee kick frappe from Maccas.

  • Looking for A will to live


  • Smitty
    Smitty 8 days ago

    i wish it would come back!!!

  • patrihr13
    patrihr13 8 days ago

    Australia is not a continent....

  • AT M
    AT M 8 days ago

    Cause it's really not that great and significantly overpriced

  • Deplorable D
    Deplorable D 9 days ago

    Australia is rightfully arrogant about their coffee. But why can't we make a decent steak vs USA, Argentina, South Africa and Brazil? Also our meat pie vs the UK is appalling.

    MIKI-WAWA 9 days ago


  • M James
    M James 9 days ago

    Gloria Jeans sucks as well.

  • david white
    david white 9 days ago +3

    Overhyped, overpriced slop. Truly dreadful.

  • Tracey Nguyen
    Tracey Nguyen 9 days ago +1

    I’m not kidding maccas coffee is honestly better and it’s cheaper and seve n eleven is pretty nice as well

  • Paul Pinto
    Paul Pinto 10 days ago

    What's the meaning of too available ? Failure to adapt and highest standards are understood but who tf opens outlets like that

  • Kosmo Aduodonkor
    Kosmo Aduodonkor 10 days ago

    The message here is not everything has to be about corporate profit.

  • ChocFiend
    ChocFiend 10 days ago

    Melbourne has the BEST coffee. We dont need this crap American co.