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The Starbucks model in an Australian market

home made flat white made by me

home made flat white made by me

Starbucks entered the Australian market in July 2000. At its peak, it had a total of 81 stores nation wide. Now it’s stores have been reduced to just 23 and out of the 4 outlets in Canberra, there is not one store left for the Canberra population.

I have read John Simmon’s book: My Sister’s a Barista: How they made Starbucks a home away from home and from reading it, you get the impression that Starbucks could do no wrong; their business model is almost flawless and can only grow from strength to strength.

The book was published in 2005 and a lot has happened since then. There is no doubt that Starbucks is an incredible story of innovation, niche markets and successful chain operations.

Something happened in Australia though. I didn’t quite work out. (more…)