The Starbucks model in an Australian market

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. Continue reading