Because Starbucks did not succeed in Australia



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Next September, Starbucks, the big American chain of coffee shops, will open its first bar in Italy, in Milan. The announcement of the opening was accompanied by a predictable controversy over American coffee and there is no doubt that Italy for Starbucks could be a more complicated market than any other. others because of the traditional and widespread use of espresso coffee to drink. However, it would not be the first difficult market for Starbucks, present in 76 different countries: for example, over the last ten years, it has encountered many difficulties in Australia, a country that has similarities with the consumption of coffee Italy .

Starbucks has been present in Australia since 2000. During its first seven years in the country, the chain has accumulated $ 105 million (nearly 90 million euros) in losses. In 2008, with the global economic crisis, 61 of its 84 Australian clubs closed by firing nearly 700 people. From 2008 to today, the number of Australian Starbucks has increased slightly, but only slightly: from 23 to 34. When the company announced closures and layoffs in 2008, it motivated them by saying that They had difficulty in imposing because of "very sophisticated coffee culture" present in Australia

According to the opinions of various experts interviewed in a department CNBC there are several why Starbucks in Australia has been less successful than in other countries. The first would be that in Australia there was already a "coffee culture". The habit of drinking espresso coffee is quite prevalent because of the influence of Italian and Greek immigration in the 1950s. Before the arrival of Starbucks in Australia, at least since the eighties, there were already many cafes in competition. In comparison, the premises of the American chain seemed to Australian places where to eat a cake rather than drink a coffee.

Even though you can not say that in Australia you drink coffee like in Italy, it's true that there are some differences between the coffee you drink in Australia and what you drink in the United States. For some, these are just lexical differences (a few months ago, actor Will Smith scoffed at Australians because they called American coffee "long black", but for Australians, the difference is that the most common type of drink with coffee is the so-called "white dish", almost a latte.In general, very sweet drinks, like most of Starbucks, are not In addition, Starbucks coffee was more expensive than other coffees: that's why Australians would not like it.

The third reason why Starbucks did not succeed in it To establish in the Australian market, according to Thomas O. Connor, an badyst at Gartner consulting firm, it is that we jumped too fast, opening too many rooms all together and without giving Australian customers time to get used to their products and attach to their brand. Tarbucks made this mistake by thinking that the success he had in other countries would have been replicated even in Australia without the need to change strategy.

The last reason cited by the experts could be that since the 90s in Australia there was a chain of American cafes, Gloria Jean's Coffees. Unlike Starbucks, it is more slowly adapted to the tastes of Australians and offers different types of espresso: today it has more than 400 locals in Australia. Part of the success of this success is due to the fact that the first premises of Gloria Jean & Coffees were managed franchise by two Australians: Starbucks rather managed directly its premises in the country – from 2014 the direction is went to an Australian company. ] The first local Italian Starbucks will not be one of its most common cafeterias, but a "roastery", a kind of roaster furnished in a more elegant way, where guests will see the different phases coffee processing. It seems that the idea of ​​arriving on the Italian market with a different model from the usual one is also due to the experience with Australia. Meanwhile, in this country, Starbucks is trying to change its strategy: it targets more tourists who know its brand in their country than Australians.

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