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 • 17 502

  • Raul Fernandez
    Raul Fernandez 15 hours ago

    Starbucks is a "low-key" front for prostitution, hence: "'know' your local barista"!
    P.S. what's up Evelyn?🤘🤓

  • Robochop 1987
    Robochop 1987 17 hours ago

    Nescafe' is fine, and you save about $5 bucks whilst having it.

  • Purefoldnz
    Purefoldnz 19 hours ago

    The buck stops there.

  • Seb In Spaace!
    Seb In Spaace! 23 hours ago

    4:31 what happened to the ACT (Australian Capital Territory)?

  • Seb In Spaace!
    Seb In Spaace! 23 hours ago

    4:14 "serves over 35 million Australian consumers"
    Population of Australia: 25 million

    *Kowalski, Analysis*

  • R
    R Day ago

    Not surprising as Starbucks does not make very good coffee and overcharges for it.

  • Cohenjameswhalley

    Why need starbucks when we have zarraffas and McCafe

  • CaesarInVa
    CaesarInVa Day 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
    Switch Day ago

    bring in and out to australia and we will be happy

  • drg -yo
    drg -yo 2 days ago

    How much Australian Coffee Shop sell cup of Coffee in average?

  • Aquamelon 008
    Aquamelon 008 2 days ago

    Oh it’s amazing how we Australians are actually proud that we messed up Starbucks plans for world domination

  • Amara Fogarty
    Amara Fogarty 2 days ago

    Poor Australians

  • Alexander Penman
    Alexander Penman 2 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
    ester y 2 days ago

    Guys drink ₹5 adrak chai of India 😂😍😍😍

  • hitardo
    hitardo 3 days ago

    Australia is a country.
    Oceania is a continent.
    Otherwise, good video.
    Starbucks is just over-priced, super-sugary, and snob coffee.

    • hitardo
      hitardo 3 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
    patthemightymat 3 days ago

    Mate the only reason it failed is no one could find a slang name for it

  • roygsxr600k7
    roygsxr600k7 3 days ago

    Starbucks failed because the coffee they make is sub standard!

  • Jameson Clifton
    Jameson Clifton 3 days ago

    Arrogance. That is the primary cause for US companies who fail to expand in Australia.

  • MidNightFeast Xoxo
    MidNightFeast Xoxo 4 days ago +2

    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
    Aero Aviation 5 days ago

    When will it try again in Australia?

  • Jim Dandy
    Jim Dandy 5 days ago +2

    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

    Because Australians are cheap

  • Eddy C
    Eddy C 6 days ago

    Starbucks coffee is actually trash

  • Pusheen The cat :3
    Pusheen The cat :3 6 days ago

    WE Have it in Sydney and canbrea

  • Gail Irszak
    Gail Irszak 6 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
    alfredo hernandez 7 days ago

    Australia is a continent? You're tried to say Oceania

  • g0neplatinum
    g0neplatinum 7 days ago

    Did you know coffee beans are one of the most chemically processed foods?

  • James Donald
    James Donald 7 days ago

    Another factor in Australia is McDonald's with the Australian division creating the McCafe.

  • Ch0cHead
    Ch0cHead 8 days ago

    It's largely the same story in NZ

  • Ben Marvel
    Ben Marvel 8 days ago +1

    Now days people LOVE Starbucks

  • mr Rein
    mr Rein 8 days ago

    Australians boycott Starbucks ... our coffee is better

  • Unnecessary Jargon
    Unnecessary Jargon 9 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
    Girl E 10 days ago +1

    I wish it didn’t die down.

  • Just Me
    Just Me 10 days ago

    Because the coffee sucks!

  • victorienne frey
    victorienne frey 11 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
    N4rna 1 11 days ago

    “What is Gloria Jeans doing that Starbucks isn’t?”

  • bobbiebob575 bob
    bobbiebob575 bob 12 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
    uncle ted 14 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
    Aiden 15 days ago

    Wait. Starbucks failed in Australia?

  • dieubermensch
    dieubermensch 15 days ago

    Isn't the continent Oceania? Australia is the country.

  • Master Fire
    Master Fire 15 days ago

    I couldnt be bothered to watch the video so I just asked my friend who lives in Australia instead 😂

  • Dougdougdougdoug Meep
    Dougdougdougdoug Meep 16 days ago

    This is a comment

  • Mc zebras
    Mc zebras 16 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
    R. Powell 16 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
    Arya Stark 17 days ago

    because Australians are picky AF with their coffee

  • ソナSona
    ソナSona 19 days ago

    Starbucks is just convenient store. No manners n no good coffee

  • Tsetsi
    Tsetsi 20 days ago

    Australians are coffee spoiled rotten!

  • shraderX5
    shraderX5 20 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
    Cavin K 20 days ago

    It's more like Westerners open their sushi chain in Japan.

  • Lil, Charmander
    Lil, Charmander 20 days ago +3

    0:27 hmm Australia Is a country not a continent sir
    You meant to say "Oceania" 😌

  • Jon Bom
    Jon Bom 20 days ago

    That's weird - Gloria Jeans is the loser coffee shop in America.

  • K Tan
    K Tan 21 day ago

    Gloria jean period

  • Jay Jayaganesh
    Jay Jayaganesh 21 day ago

    Starbucks coffee sucks when compared to true Aussie coffees

  • reeni 07
    reeni 07 21 day ago

    Zrafa is better

  • Ram Strikk
    Ram Strikk 21 day ago

    I can't look at the starbucks logo without thinking of Robot Chickens origin story of how it came about.

  • Ben
    Ben 21 day 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
    terastarship2 21 day ago

    Smart people doesn't drink Starbuck!

  • StopReadingMyUserNameAndGoDoYourHomework

    The actual coffee from Starbucks sucks ass, but their Frappuccinos and pastries are good af

  • Anthony  D
    Anthony D 22 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
    HI LEE 22 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
    Kurtney Lofranco 22 days ago +1

    Their coffees are too sweet. It ain't even coffee.

  • Mary Wren Turman
    Mary Wren Turman 23 days ago

    It’s nasty 🤮

  • Kate HW
    Kate HW 23 days ago

    I love Australia coffee culture.

  • vaireka1
    vaireka1 23 days ago

    Wrong .....Gloria jeans is failing too!

  • Adams Esquillo
    Adams Esquillo 23 days ago

    Because other people don't drink a coffee that is made of gold

  • mykill92777
    mykill92777 24 days ago

    Coz its gloria jeans territory...lol

  • he he
    he he 24 days ago +3

    Let drinks coffee VIETNAM, the best coffee in the World

  • Deel Weed
    Deel Weed 24 days ago +1

    Be practical just buy regular coffee.

  • Jeremy Pacheco
    Jeremy Pacheco 24 days ago

    Yeah.. they were just being wise because it is totally overpriced!!

  • John Nepomuceno
    John Nepomuceno 24 days ago +2

    Starbucks you charge too much for a cup of coffee. Only the rich can afford.

  • レーモンジェー
    レーモンジェー 24 days ago +4

    I don't understand why ppl think drinking inside Starbucks makes them look classy.

  • Robnoxious77
    Robnoxious77 24 days ago +1

    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
    lemoned green 24 days ago +2

    Australian like beer, Itarlian coffe.
    Australian don't like coffe with sugar,
    why are they so fat? because of Beer?

    • Ben
      Ben 21 day ago +1

      Can confirm

  • Dylan Frith
    Dylan Frith 24 days ago

    Yeah that coffee sucks. I can't believe Americans can stomach it. After diner black coffee maybe less offensive.

  • Rhyan Jill
    Rhyan Jill 24 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
    Alekos Dafiniz 24 days ago

    Starbucks Mt druittt used to have mad ice chocolates

  • SELENA love
    SELENA love 24 days ago +2

    Starbucks is overpriced and i rather make my own coffee

  • dzulkafley samad
    dzulkafley samad 25 days ago

    Nothing like a shot of tall or grande americano to start the day

  • Slot Pooma
    Slot Pooma 25 days ago

    Hello world we Tasmanian’s have flick the bean . In Launceston we love it.

  • Slot Pooma
    Slot Pooma 25 days ago

    Australia don’t have big populations and its continent not only country . So, local people go with local .

  • Brad Kynoch
    Brad Kynoch 25 days ago

    Cause their a rip-off.
    And probably underpay their staff

  • Chen Xiajie
    Chen Xiajie 25 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
    Rezandro Ace De Guzman 25 days ago +1

    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
    Ho chi min 25 days ago

    Because in the big cities only lives stingy chinnese and indian people

  • Sameera
    Sameera 25 days ago

    I thought the Aussies drink tea...not coffee.

  • Stratamania
    Stratamania 25 days ago +2

    Starbucks is to coffee as McDonald's is to food. It's not good coffee...

    • alphamone
      alphamone 24 days ago

      Amusingly, McDonald's made their own similar mistake with the custom burger thing.

  • ppssuuu
    ppssuuu 25 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
    but2star 25 days ago +2

    Fifty percent of the Australians opt for raw milk and the other half go for beer.

  • Angry Investors - take control

    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
    tjh_lfc 26 days ago

    Costa is and always will he better than Starbucks

  • Gabby S
    Gabby S 26 days ago +5

    Cause they wont eat ,drink crapp

  • jonathan dow
    jonathan dow 26 days ago

    Obviously, because Australia🇦🇺is a far right country 🕷No sugar rush! Please.

    • MrBJPitt
      MrBJPitt 26 days ago

      Australia is not a far right country, thankfully.

  • squishy ponyo
    squishy ponyo 26 days ago +1

    i live a suburb next to one of the few starbucks left in melbourne 😎

  • Chef Frank
    Chef Frank 27 days ago

    Oy mate, its hod to thro mi boomerang while holdin a cup o joe!

  • YesItsRainbowHere
    YesItsRainbowHere 27 days ago

    You can a cheap frappe from like McDonald’s

  • David Morrison
    David Morrison 28 days ago

    We already have better coffee in OZ.

  • nur fitriart
    nur fitriart 28 days ago

    in my country, u can get normal coffee just for 40 cents. but starbucks sell their coffee for 4 dollars. i mean that just taste like normal coffee to for me. people buy Starbucks coffee not because it taste amazing, they just wanna prestige. good job Australia

  • Nishant Patar
    Nishant Patar 28 days ago +1

    Same in India. They suck...

  • grease monkey
    grease monkey 28 days ago

    In Australia, people only put 1 teaspoon of sugar in their coffees.

  • Gary Groeneweg
    Gary Groeneweg 28 days ago

    Do you wanna drink actual coffee, or do you just wanna f*ck around!?