Why Starbucks shut down in this continent

Starbucks has coffee shops all over the world. There are more than 28,000 locations and 76 markets from Shanghai to Guantanamo Bay and in China. New Starbucks location opens up every 11 hours. But there is one continent that seems uninterested in the hype over the Seattle based coffee chain and that continent Is Australia. it’s proven to be one of the toughest markets in the world to break into, so tough in fact that Starbucks closed more than two-third of its stores on the continent back in 2008. so, what went so wrong with Starbucks in Australia. To answer that let us go back to July of 2000, when Starbucks opened its 1^st shop in Sydney from there it expanded fast. By 2008 Starbucks has 87 stores across the continent. But the problem was that they tried to grow the empire too fast, Starbucks rapidly opened up multiple locations instead of slowly integrating them into the Australian market. when they launched, they launched too rapidly and didn’t give the consumer an opportunity to really develop an appetite for Starbucks brand, they also move into regional areas into outer suburbs of major cities and so for the Australian consumer it was almost like it was too available for them. The need for Starbucks wasn’t an organic growth which is what we saw in the US.

In its first seven years in Australia Starbucks accumulate $105 million in losses. by 2007 Starbucks Australia was hanging on by a thread taking big loans from US, totaling up to $54 million and in 2008 Starbucks announced it was shutting down 61 stores. But of course, 2008 was a difficult time for business due to financial crisis along with Australia closures, Starbucks also closed 600 underperforming American stores. But even still such a retreat in Australia was embarrassing for the brand, when you're shutting down 75 stores, for the Australian consumer when they did leave the market or at least number of bestowals were shut down and didn’t really care partly because Australians are spoiled for choice when it comes to coffee Australia's coffee market is one of the biggest in the world. The industry is expected to hit more than $6 billion in total revenue in 2018.

They’ve been immersed in nuances of café culture since the mid-1900s when Italians and Greek began traveling to country. the immigrants introduced were fully engulfed in café culture. They’ve also grown accustomed to speciality menu items like a flat white or an Australian macchiato. So cafes in Australia were born out of like the Italian culture of, you know meeting of friends and knowing your local barista and it begin kind of like a local meeting place where everyone knew each other and that coffee was just a part of that and Starbucks come in with what is more of an American style like coffee culture which is essentially just like coffee is a product, coffee is a commodity, coffee is like perk me up in the morning it’s caffeination. Starbucks has had a basic menu and offered more sugar drinks which most Australians didn’t like. In Australia where your local tasted are different so they don’t really want a coffee that’s hundreds of ounces with lots of sugar in it, they want something a little more sophisticated plus Starbucks charge more than local cafes. So, Australians instead opted to pay less for coffee they liked from a local because they trusted them.