What`s wrong with Australia coffee culture?
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According to george sabados, Australian and New Zealand café markets are the only country outside Italia with 100% espresso-based markets in the world. Try to compare even in US and other countries which is dominated by filter style, or brewed, coffee. Australian and New Zealand also known as consumers who has unique taste in espresso based coffees (98% always served with milk). The ratio of espresso machines to population in Australia and New Zealand is approximately 850 people to 1 machine, only beaten by Italy. Meanwhile, US`s ratio is 20,000 people per espresso machine. This mean quality is matter.
The consumption of coffee in Australia is running at an all-time high. In September they consume about 2.4 kilograms per person per year, double that of 30 years ago. Cafes, are “a $7.5 billion industry in Australia” (SHM). What we see is there`s nothing wrong with the market.
coffehouse chain, starbucks has decided to close 61 of its 84 Australian outlets in Australia. Why they chose Australia as part of their Starbucks closing plan across the world? Starbucks Asia Pacific president John Culver saw that “Australia has a very sophisticated coffee culture.” Starbucks gave key reason behind decision: ”challenges unique to the Australian market” (yahoo news). What people see is they just grow too quick. Some people did not want to buy starbucks coffee from a corporate giant and those who had tried Starbucks were not impressed by the product, saying it did not compare with the numerous local brews available. Starbucks seems to try as fast grow and quick as they can. They didn`t pay attention about situation that ”you’ve got to have a passion for coffee that involves everything from grinding the beans to operating the machine.”
Moral story from this articles are:
1. Don`t just grow fast, but be passionate.
2. Every region has it`s own culture and tradition so you have to tread it locally.
Popularity: 12% [?]
August 23rd, 2008 at 3:21 am
[...] What happen with brutally effort to add more stores is Starbucks facing big mistakes in location. Until we found they try to close about 600 store that underperform in USA and close 61 of its 84 Australian outlets in Australia. [...]
September 6th, 2008 at 7:01 am
[...] Despite some policy to close it`s under performing branches (not only 600 outlet across US but also 61 of its 84 store in Australia), coffee chain still has so many outlets around the world. This coffeehouse has key role to develop [...]
September 6th, 2008 at 7:26 pm
[...] we talk about Australia coffee culture? There`s heaps and sometimes it just make us a bit shocked. First shocked comes when we realized that Starbucks the coffee chain, the inventor of coffee culture doesn`t [...]
September 10th, 2008 at 3:03 pm
[...] head Farah Milda. Eventhough they just announced closing about 600 store in the US and close 61 of its 84 Australian outlets in Australia because of under performing sales, In Indonesia even grow 20% each year in [...]
October 11th, 2008 at 10:25 am
[...] kemudian semua orang tersentak ketika sekitar 84 starbucks coffee shop di seluruh Australia harus ditutup 61 diantaranya. Kenapa [...]