Citation
Starbucks Failed Expansion Plan in Australia Explained
TL;DR
Entered Australia in 2000, grew to ~90 stores
This analysis documents Starbucks' Australian failure: entered in 2000, grew to ~90 stores, closed 61 in 2008, accumulated A$143 million in losses. It explains how Australian coffee culture (Italian/Greek espresso traditions, independent café loyalty) differed fundamentally from American coffee culture where Starbucks thrived.
This is the definitive case study for The Phenotype Fallacy. Starbucks copied their U.S. phenotype without recognizing that their success was environment-specific. Their DNA (standardization, convenience, scale) was adapted to weak American coffee culture. Australian conditions required different DNA altogether.
Key Findings from CNBC (2018)
- Entered Australia in 2000, grew to ~90 stores
- Closed 61 stores in 2008 with A$143 million in losses
- Australian coffee culture evolved from Italian/Greek espresso traditions
- Starbucks coffee perceived as inferior to independent Australian cafés