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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 (17086)
Patriot (1 day ago)
It can fail in America too, I could careless.
There is some in Sydney
Dutch Van Der Linde (2 days ago)
4:14 “serves almost 35 million Australian customers”. Wow, just wow. The population of Australia is roughly 25 million. There are only 3 states/territories (Queensland, New South Wales and Victoria) with any Starbucks! For a whole continent there are only 46 Starbucks! I live in Western Australia and I am 3,330.1 km away from the nearest Starbucks!
Wayne Palmer (2 days ago)
Been in one in the past 15 years. Not impressed. I personally would not be stupid enough to pay their prices. . Can find better coffee elswhere..... Like Home :) !
Monica Apre (3 days ago)
can’t wait until sbucks will fail in Indonesia soon lmfao whenever I see starbucks there are only like atleast 2-7 people but locals mostly choose chatime (boba teas) instead.. lets be honest, sbucks is overpriced than boba teas
Daniella (3 days ago)
America moved in anyway, with all there other warehousing stores
Gatcha Queen (3 days ago)
There is Starbucks in Australia still and there are a lot of Starbucks shops in Sydney
Robin Östringer (3 days ago)
The question is rather why it succeded elsewhere
Charlie Brown (3 days ago)
I love it , snotty Starbucks wasn't sophisticated enough for Australia.
Brem (3 days ago)
New Zealand only has one city with Starbucks. They have the same attitude to coffee.
Linda Easley (4 days ago)
I don't understand how Starbucks became so popular in the US .They serve junk that's way overpriced and nothing close to being actual coffee
LaylasAdventures (4 days ago)
I like their frappuccinos and cold brew but yeah, Australia has really good coffee. Every time I travel overseas we bring our own coffee.
Trigger Troll (4 days ago)
Australia has great coffee everywhere. They are too smart to pay $5 for a cup of mediocre coffee. Americans are a hype nation and they fall for the cool factor. They become fanboys easy. Australia’s just wants a cup of good coffee. I’ve had good coffee from Nicaragua, Cuba, Mexico and Australia, France , Portugal, and Spain as well as Italy. All of it was better than Starbucks. Hell Tim Hortons in Canada is better coffee than starburst.
Lola Boy (4 days ago)
The reason Starbucks failed in Australia is GREED!
A F (5 days ago)
Jesus, the amount of anti-Australia comments, far out. Relax people. There are a lot of Italian influences here, it’s not just espresso. Considering at the 2016 census 1 million Australians claimed some Italian ancestry, I think we can be proud of having an established espresso drinking culture. Now enough with the insults.
Erick F (5 days ago)
Australia its not a continent. Is a country of Oceanía
John Ackley (5 days ago)
Dislike their ignorant politics, love their coffee. Have not had any of their coffee in ten years.
jojofromtx (6 days ago)
It’s overpriced crap. I rarely go unless a friend drags me in and I just stick to a basic iced coffee for under 3 bucks. It’s nothing I can’t make at home though.
TruthMyster (6 days ago)
Yankee go home !!!
debeeriz (6 days ago)
next video why taco bell failed in australia, answer there is stuff all mexicans
? (6 days ago)
I live for Gloria jeans
Peter Goezinya (6 days ago)
😂😂 the amount of aussies in here so proud of Starbucks not making it is ridiculous! I guess when you don't have much of a food culture you have to be proud of something. It appears this is something to be proud of? This is hilarious considering the only food Australia is known for is vegemite 😂😂🤢🤮 I don't think Australians know what tastes good and what does not when you take the whole vegemite thing into consideration.
A F (5 days ago)
Peter Goezinya HAHAHA actually I don’t mind the taste of Vegemite. It’s very LOW CLASS food though! I don’t eat it. Anyway do you know Vegemite is just an Aussie version of Marmite. The British invented it, not us!!!
Peter Goezinya (5 days ago)
@A F you guys like vegemite. That pretty much disqualifies you guys from determining what "tastes good". I'm sure there are tasty dishes in Australia,but vegemite??! It's kind of like smoking hay and claiming to be a cigar connoisseur
A F (5 days ago)
Peter Goezinya Um what???? We have amazing food here. Ever tried a mango from Queensland???
Peter Goezinya (6 days ago)
Yeah,but Australians eat vegemite.🤮🤢 Not sure I care what Australians think when it comes to food or beverage 😂✌
A F (5 days ago)
Peter Goezinya Hahaha thanks! Nice to know you were just joking! Actually I don’t mind the taste of Vegemite, I don’t see it as disgusting in terms of taste, but more I see it as very LOW CLASS food 😂😂😂!
Peter Goezinya (5 days ago)
@A F all in good fun! I am seriously just fukin around. Yes,vegemite is disgusting to everyone in the world but you guys,but I truly don't believe that is reason enough to say you guys don't have good taste. Thanks for not getting crazy aggressive over my joke
A F (5 days ago)
Peter Goezinya Ever tried Tasmanian Pinot Noir? Or Victorian olive oil???
Matt David (7 days ago)
I love starbucks syd aus i have to go to hurstville tho😭😭😭
Bill Olsen (7 days ago)
I heard Starbucks put their drive-up windows on the wrong side & Australian drivers had to reach way over their consoles, gear shifts & hand-brakes to get their order, so Australians just said tahellwithit.
existential crisis (7 days ago)
I'm Australian, I live in western Australia (born here) and I don't remember a Starbucks being in my town ever..... I live in Perth. Also Gloria jeans has closed a lot of their stores in my city too!
Vexron (7 days ago)
there's a small cafe that's located very near to where I live and I've gone there for years for coffee, some of the best coffee I've had. Starbucks could never do better nor appeal to me the same way they did.
Blu (8 days ago)
I live in Melbourne South East Suburbs and have never seen a starbucks or even heard someone talk about it
Kevin Huynh (5 days ago)
there's one opening at fountain gate, I saw it blocked off under renovation opposite glassons the other day
Jane lane (8 days ago)
One of the few areas where Australians have taste! Star Bucks sucks and it has a cheap and nasty feel.
A F (5 days ago)
Jane lane We have taste. Ever tried Pinot Noir from Tasmania?
Josif Maracine (8 days ago)
Australia must be a smart market compared to China’s market. I know, I know. Chinese are highly educated maybe educated so much that they just don’t know the difference anymore.
Icarus Ash (9 days ago)
Dear Aussies, you've dodged a bullet there.
Charles Lewer (9 days ago)
Crappiest coffee ever
Wiremu (9 days ago)
Starbucks should stick to politics and leave coffee for those who know how to make a decent cup.
Richard Jones (9 days ago)
Wow I can buy a whole pound of coffee and tastes better too from my local grocery store. Starbucks is overpriced and over rated.
zeemin dmn (9 days ago)
Cuz they are bland unlike Starbucks.
Peter Horrall (10 days ago)
Anytime a Starbucks fails I sleep better at night. I refuse to pay extra for crap I DON'T like
Anthony H. Deng (10 days ago)
Since when Australia is a continent?
TheOne 151 (10 days ago)
Me: Subscribes to Pokemon & Fishing videos! YouTube: Here's some Starbucks! 🤗
William David (10 days ago)
Good riddance, way too liberal of a company to be in my country!
Robert Skow (11 days ago)
Good
VolDep45 (11 days ago)
Screw Starbucks!! I hope the whole franchise goes under along with Nike and the NFL.
Jacinda Legend (11 days ago)
🐨
Datta James (11 days ago)
😂 😂 😂 As if anyone expects an American franchise to sell stuff that's better than the local ones... Hi 5 Australia.
Gold Coast Videography (11 days ago)
ITS funny because gloria geans now have basically closed all of there stores, and ZARRAFFAS has taken over
Colin MacLaughlanWeir (12 days ago)
The coffee is not that good the price is too high
Jacob Dean (12 days ago)
Disliked when he called Australia a continent
T Savage-17 (12 days ago)
CNBC big company but doesn't know what a continent is!😂
Akiko Alodia (12 days ago)
because we have zarraffas
Elizabeth Jones (13 days ago)
Yet Gloria Jean coffee shops have a strong business base..
Right to Record (13 days ago)
The same droolers in America who line up to spend over $30 a gallon for bean-flavored water lose their minds if gasoline goes higher than $4 a gallon. America is doomed.
TIMS PRB102 (13 days ago)
We have had a coffee culture here in Australia for many years. We like our coffee to taste like coffee. Not hazelnut or mocha or caramel etc. Basically Starbucks is not needed in our market.
Daniel Stanley (13 days ago)
This is WRONG the reason why It didn't work is because there coffee is s*** compared to great Australian coffee.
JTezi _ (13 days ago)
Meanwhile in Washington and Seattle we have a Starbucks on every corner LOL
Beth Hamilton (13 days ago)
starbucks does make their frappucinos better than gloria jeans chiller things, the gloria jeans ones are too watery or atleast all the ones ive had
Tommy Ly (13 days ago)
maccas coffee taste better
Jon Cooper (15 days ago)
Just BS their coffee wasn’t any good.
dave kahn (15 days ago)
Why Starbucks Failed In Australia ? because Starbucks doesn't sell coffee but a coffee flavored juice. places that appreciate and understand what coffee is will never drink Starbucks
MrKayaker69 (15 days ago)
💫 Starbucks Coffee is ABSOLUTE FILTH 🤮🤮🤮DISGUSTING
Patato Everything (15 days ago)
Might as well go to McDonalds :-)
Just A Mechanic (16 days ago)
I’ve gone to Australia 🇦🇺 , they are more health conscious and like to support local businesses . Beside that, they were actually friendly to foreigners not like USA 🇺🇸
Martin Lanigan (16 days ago)
You can buoy jar of coffee for few pounds why pay two are three pounds for cup coffee
Liz The Dog (16 days ago)
IM SO SAD BC IM AUSTRALIAN AND I REALLY WANT TO TRY STARBUCKS 😭😭
littlepaperjellyfish (16 days ago)
We still have them, though...
John Seabrook (17 days ago)
Starbucks succeeding in Australia had about as much chance as Budweiser succeeding in Germany. It’s quite amazing they even bothered.
Yvonna 나나 (18 days ago)
People still go to Starbucks for coffee? I only go for the tea/refreshers or strawberries and cream 💀
Baha Awadallah (18 days ago)
Starbucks sucks !!
LHolly (18 days ago)
I'm an Aussie who lived in the US for a year. I think it's the fact that we want to taste the coffee. Starbucks coffee is really disgusting which is probably why they put so much sugar in it. The prices are high, it's not welcoming. But the biggest problem is probably the bad reputation that Starbucks has. There is the saying that if you want to find an American go to Starbucks. Because the only people in Starbucks are either tourists or Americans living in Australia. For many people it's rather embarrassing to go there. That and the fact that coffee shops sell different food. The menu in American coffee shops and Australian ones are very different. Most of us go for our favourites rather than try new things first thing in the morning.
1978arty Ttot (18 days ago)
Try fooling people in other countries...fake drinks
spadaacca (18 days ago)
I'm actually currently squatting in one of the abandoned Starbucks shops in Australia. Oddly enough their internet still works somehow.
Erich Stocker (19 days ago)
Given how bad Starbucks coffee is, I congratulate Aussies for recognizing that burnt coffee is poorly roasted coffee. I'd like to see the entire chain disappear.
bluemona (20 days ago)
one word, "competition" bad baristas don't last long, spoiled for choice, making a good coffee isn't enough, even making a great coffee can be undone by rude customer service because there is another barista that makes a great coffee nearby, even making a great coffee with a smile can be undone with just one ordinary coffee served up just once, yep it is a tough market in Australia
Skullies ! (20 days ago)
They failed because Australians don't drink coffee in the morning... They drink VB Longneck 12 in the facking moorning
michael sharpe (13 days ago)
Skullies ! lol! Oh come on now..really?
Colin Miller (20 days ago)
Just pay your fair share of taxes Charbucks
magicalex223 (21 days ago)
Spoiler alert Gloria Jeans isn't popular here either
Samuraiwarm (22 days ago)
7-11 at where I live sells canned coffee at literally less than 50 cents, and honestly it tastes better than $5-6 starbucks. There's also 7-11 cafe that brews coffee by actual human, which is also great, at a cost of $1. People are still buying starbucks though, probably because they didn't trust 7-11 in terms of coffee. Most people would rather just follow the trends than try something different. Even when they try it, they would have a bias against what they were accustomed initially.
Mary Renaud (22 days ago)
Agree with Aussies...mostly very bitter coffee, plus cafes filled with weirdos all day so you have to fight for a seat in many USA cities. Not to mention absurd prices for plain coffee and tea. McD’s and Dunkin have them beat by a mile...
Mathew Kelly (22 days ago)
We have an actual coffee culture , and I'm not a coffee drinker
Kevin Bettinger (23 days ago)
Aussies don’t buy into the hype!
Allan Steele (23 days ago)
Tried canada,s starbucks coffee once and never went back for another,over rated and over priced...
Tom (24 days ago)
A 1 dollar coffee from 7 - 11 is better than Starbucks coffee
Anti Dhimi (24 days ago)
I'd rather buy McDonald's or Burger King coffe which tastes better than high priced StarBuck trash
Eric Small (24 days ago)
Starbucks isn’t even real coffee. It’s junk food just like MacDonalds.
Gana Ramesh (24 days ago)
Just came back from Australia tried the coffee there and it was crap
William Chamberlain (24 days ago)
SevenEleven is cheaper and tastes better, and literally everyone else from the Chinese bakery up makes better coffee than Starbucks. Aussies in Starbucks are there for either the cakes, or to recharge their phones and get out of the wind. "appetite for Starbucks brand" is just a way of saying that US coffee tastes like burnt toast, so Starbuck's repackaging of Nescafe instant coffee powder was an improvement.
No Name (24 days ago)
is there a five guys in aus?
NickVegas (24 days ago)
I've never bought a coffee in a Starbucks anywhere in the world that doesn't taste like hot water and milk.
Mp Pm (25 days ago)
Australians are real smart
Hey Its Noah (25 days ago)
Starbucks is still in australia
Ahmed A (25 days ago)
Starbucks is like American foreign policy. It leaves a bad taste in your mouth, which is why I never bought coffee from them.
blackrabbit212 (24 days ago)
In a thread of brilliant comments, yours is outstanding. You've made my day, Ahmed!
Cyber Prince82 (26 days ago)
Even 7/11 coffee is better than Starbucks
Robyn Lester (26 days ago)
We simply want to drink good coffee, not Macdonald’s style toilet water. Plus coffee culture in Australia has vibe, your barista takes pride is their craft and what they make for their guests.
D C (26 days ago)
every coffee shop in AU is much better than Starbucks, that's the reality, even 7 11 coffee is much better, only Asians are obsessed with Starbucks
Dennis (26 days ago)
Australia has taste
cymruisrael (27 days ago)
Probably because the Australians were smart enough to realise that Starbucks coffee is lousy!
Browntau (27 days ago)
Not only coffee culture from Italy and Greece, but also from Vietnam. We Aussies have access not only to some of the best coffee in the world, but also superb service in an environment that is the opposite of the "production line" approach in Starbucks. In Starbucks one person takes your order, someone else makes your coffee, then yells your name, often incorrectly. In a typical cafe, you may well already know the barista by name as they make your coffee for you while having a short conversation. They may well know you by name too. It's a far more friendly atmosphere, and the coffee is better. Seriously, why did Starbucks expect their inferior product to sell when they sold it for 30-50% more than the cafe's 10-20 meters away? Of course they tanked. Now we play the game of "Spot the tourist" as they line up for rubbish.
Joe Bowd (27 days ago)
MacDonald's McAfee killed Starbucks. They are everywhere and have the quality quick cofee market s Tied up.
William Chamberlain (24 days ago)
@Kira Lee agreed
Kira Lee (25 days ago)
Not really, it's only for people that go to McDonalds. Independent cafes are everywhere and they're all better. And even 7-Eleven coffee is better than Starbucks.
Bee (28 days ago)
Because we already have good coffee
Just Me. (27 days ago)
N we're proud we got rid of them 😁
Daniel Bonner (28 days ago)
Who the fcuk wants to put that poison in their bodies everyday...fcuk outa here a glass of water please 👌🏿
Guru Sandirasegaram (28 days ago)
Starbucks don’t know how to make flat white Plus topicals countries coffee is not good tea is good. Those Italian & Greeks people drink coffee
Just Me. (27 days ago)
Yeah, I never drink coffee, it's disgusting n unhealthy. I love my Dilmah Tea, won't drink any other than Dilmah.
Gort Newton (28 days ago)
Those speakers appearing on-screen don't know. I do. I studied what Starbucks did. Even the voice-over has got lots of things wrong. I love all those 'business experts'.
Brendan Grossman (27 days ago)
Go on
Sox Mate (28 days ago)
It failed because it sucks. Aussies are no fools.

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