It appears on all the evidence that Starbucks not only misjudged the Australian coffee culture but also misjudged the extent of the competition, and failed to adapt its offering to the local market. Starbucks may have been responsible for growing the premium coffee category, but the emergence of Gloria Jean’s and the Coffee Club (and McCafé, a premium coffee shop embedded in McDonald’s restaurants) turned out to be serious competitors. This report tries to examine:
- Why do Australians think the reasons that Starbucks did not fare well in the Australian market?
- What changes to Starbucks would make people in Australia prefer to choose it instead of other local coffee outlets?
- Is there any possibility that Starbucks can regrow its market position and improve the ability to open new stores at top-sites in Australia?