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A Piece of me died inside - Starbucks basically abandoning the Australian market

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07-29-2008 , 07:50 AM

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

http://www.news.com.au/business/stor...14-462,00.html

Quote:

INTERNATIONAL coffee chain Starbucks will close 61 Australian stores within days, at the cost of 685 jobs.

After the closures this Sunday, 23 stores will remain open in Melbourne, Brisbane and Sydney.

The company says the 61 locations to be closed have been underperforming.

Today's announcement follows the decision by Starbucks last month to close 600 company-operated stores in the US, costing up to 12,000 jobs.

The company blamed poor real estate decisions coupled with the troubled economy for the US closures.

Starbucks international boss Howard Schultz has ruled out closing other stores internationally.

Starbucks operates more than 15,000 coffee shops around the world.

"We are well into the implementation phase of transforming Starbucks and we believe that this difficult, yet necessary, decision to close stores in Australia will help support the continued growth of our international business," Mr Schultz said in a statement.

"While this decision represents business challenges unique to the Australian market, it in no way reflects the strong state of Starbucks business in countries outside of the United States," he said.

"There are no other international markets that need to be addressed in this manner.

"We appreciate the exceptional service our partners in Australia have consistently delivered.

"We are thankful and proud of the contributions our partners make every day and we are committed to treating all of our partners with respect and dignity."

A list of affected stores will be published by July 31, after all the employees are informed.

As part of the restructuring, Starbucks Australia store development manager Jason Ball will become managing director from September 1.

Day of rumours

Before today's announcement, staff and management at Starbucks refused to head off speculation the chain would close stores in Australia.

On July 2, the company's Australian arm said the US closures would have no impact on its Asia-Pacific operations.

The US parent company is set to announce its third quarter results tomorrow.

The company has not offered any guidance on its profit expectations, but according to the Associated Press analysts are expecting a profit of 18 cents per share on revenue of nearly $US2.62 billion ($2.74 billion).

Spending slowdown

Over the past year Australians had tightened their belts when it came to eating out, according to Westpac senior economist Matthew Hassan.

He said that as living costs rose, more people were opting to eat at home.

But coffee was no longer considered a luxury item by many consumers, so it was not always a cutback people made, he said.

This pointed to the fact that if Starbucks was having problems, it was likely to be company-specific.

Starbucks opened its first Australian store in central Sydney in 2000.

Mr Hassan said that at the time there were some concerns about whether Starbucks could get a footing in the Australian café scene.

Workers on the web

Employees today turned to the internet to gather any information about the company’s future in Australia.

“This is so cruel to all the fantastic partners,” an employee said on a Facebook group.

“Pls let us know the outcome of this meeting.”

Several others posted comments on a blog dedicated to encouraging gossip.

Discuss

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07-29-2008 , 07:59 AM

suzzer99

Save the Cheerleader, Save the World

Join Date: Nov 2005 Posts: 100,714

How about you kick off the discussion with why this is such a big deal to you, some general info. about how Starbucks is received in AUS, or coffee in general, or other Starbucks-AUS-related matters?

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07-29-2008 , 08:01 AM

qdmcg

Pooh-Bah

Join Date: Oct 2006 Posts: 4,870

what is to discuss? who cares? it sounds like there will still be plenty of stores, maybe one every 4-5 blocks instead of every 2 blocks.

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07-29-2008 , 08:17 AM

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

Quote:

Originally Posted by suzzer99

How about you kick off the discussion with why this is such a big deal to you, some general info. about how Starbucks is received in AUS, or coffee in general, or other Starbucks-AUS-related matters?

It's a big deal to me because my huge Starbucks mocha is what gets me kick started in the morning, and now I will have to settle for Gloria Jeans or something else (I do live in the coffee/cafe capital of Australia, but I still love my SB)
I think Starbucks really exploded when it first came here but with so much competition from Gloria Jeans, The Coffee Club, McCafe, Coffex and the billion other independant and boutique cafe's they are feeling the pinch.
I still prefer to have a good properly made coffee during the day from a 'real' cafe but there is no substitute to the mega caffeine dose Starbucks can provide to kickstart the working day.

Also see that the following is on the Starbucks website www.starbucks.com.au

Quote:

Starbucks Coffee International, a wholly-owned subsidiary of Starbucks Coffee Company today announced plans to restructure its business in Australia through a geographical refocus on three core cities and surrounding areas: Brisbane, Melbourne and Sydney. This decision will result in the closure of 61 locations throughout the country by August 3, 2008.

We would like to thank all of our customers for your continued patronage and support during the past eight years.

Starbucks has been a part of the Australian market since 2000. There are currently 84 Starbucks locations throughout the country, including Brisbane, Canberra, Gold Coast, Melbourne, South Australia, Sydney, and Tasmania. 23 stores will remain open in Brisbane, Melbourne, Sydney and surrounding areas to serve customers in those communities. The list of stores that are scheduled for closure will appear on this site by 5pm July 31st after all affected stores partners (employees) have been personally notified.
STARBUCKS CARD

Starbucks Card may continue to be used at remaining Starbucks locations in Australia, as well as at participating Starbucks stores in Canada, Ireland, Hong Kong, Mexico, the United Kingdom and the United States.

For Starbucks Card holders in Australia who choose to redeem the balance on their Starbucks Card, please call the Customer Care Hotline: 1800 140 408, and your balance will be verified and a cheque will be posted to you.

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07-29-2008 , 08:22 AM

P Chippa

bacon messiah

Join Date: Sep 2005 Posts: 6,234

* I knew that somewhere in this world there was a large group of people that were smart enough to not pay 4 bucks for a 10cent cup of coffee over and over again until the supplier was making billions .

* IMO, coffee from a random gas station is better than Starbucks coffee.

* OP doesn't post so good.

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07-29-2008 , 08:28 AM

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

Quote:

Originally Posted by P Chippa

P Chippa doesn't post so good

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07-29-2008 , 08:33 AM

Phildo

doesn't watch the games

Join Date: Feb 2005 Posts: 22,771

Quote:

Originally Posted by P Chippa

* I knew that somewhere in this world there was a large group of people that were smart enough to not pay 4 bucks for a 10cent cup of coffee over and over again until the supplier was making billions .

are you living in 1965?

Quote:

* IMO, coffee from a random gas station is better than Starbucks coffee.

i'm a big starbucks detractor. but, c'mon.

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07-29-2008 , 08:36 AM

szw

veteran

Join Date: Jun 2006 Posts: 2,647

Close down stores in Australia/North America....open up a ****-ton more stores in Asia...profit!

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07-29-2008 , 08:38 AM

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

Quote:

Originally Posted by szw

Close down stores in Australia/North America....open up a ****-ton more stores in Asia...profit!

I tell you what Starbucks are EVERYWHERE in Singapore and they are always busy too

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07-29-2008 , 08:43 AM

#10

szw

veteran

Join Date: Jun 2006 Posts: 2,647

In Shanghai they are also doing extremely well as the locals here are getting a lot wealthier.

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07-29-2008 , 08:44 AM

#11

kioshk

Nixonian

Join Date: Oct 2006 Posts: 93,115

Taster's Choice Instant ftw, and you save some money.

Quote

07-29-2008 , 08:47 AM

#12

P Chippa

bacon messiah

Join Date: Sep 2005 Posts: 6,234

Quote:

Originally Posted by Phildo

are you living in 1965?

OK. Tell me how much that coffee is really worth.

Quote:

Originally Posted by Phildo

i'm a big starbucks detractor. but, c'mon.

I'm serious. I would rather drink just about any coffee.

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07-29-2008 , 08:48 AM

#13

pulse

adept

Join Date: Apr 2006 Posts: 819

wtf, if you don't hate starbucks you don't deserve to live.

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07-29-2008 , 08:53 AM

#14

P Chippa

bacon messiah

Join Date: Sep 2005 Posts: 6,234

Quote:

Originally Posted by ngaskin

P Chippa doesn't post so good

I'm not trying to be mean. What you did to start a thread is called linktarding.

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07-29-2008 , 09:19 AM

#15

Ruebs

old hand

Join Date: Apr 2008 Posts: 1,837

The market for espresso coffee in Australia:

a) is unsophisticated
b) has weak demand due to warmer climate (except Melbourne, Sydney and south)
c) becoming rapidly saturated by large chains

WHO CARES ABOUT STARBUX.. YOU'LL ALWAYS HAVE GLORIA JEANS!!!!!

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07-29-2008 , 09:25 AM

#16

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

Quote:

Originally Posted by P Chippa

I'm not trying to be mean. What you did to start a thread is called linktarding.

Yeah I added further thoughts in a later post

Quote

07-29-2008 , 09:36 AM

#17

P Chippa

bacon messiah

Join Date: Sep 2005 Posts: 6,234

Quote:

Originally Posted by ngaskin

Yeah I added further thoughts in a later post

Good save.

Quote

07-29-2008 , 09:42 AM

#18

miajag

Carpal \'Tunnel

Join Date: Jun 2003 Posts: 17,328

What's worse, people who spent $7 at Starbucks every morning, or people who vehemently hate it for no discernable reason besides the fact that it's Starbucks?

Quote:

OK. Tell me how much that coffee is really worth.

lol. How much is anything you ever buy "worth?" You're probably wearing an article of clothing right now that cost <10% of what you paid for it to make.

Quote

07-29-2008 , 09:46 AM

#19

P Chippa

bacon messiah

Join Date: Sep 2005 Posts: 6,234

Quote:

Originally Posted by miajag

What's worse, people who spent $7 at Starbucks every morning, or people who vehemently hate it for no discernable reason besides the fact that it's Starbucks?

lol. How much is anything you ever buy "worth?" You're probably wearing an article of clothing right now that cost <10% of what you paid for it to make.

Thank you for reiterating my point.

Quote

07-29-2008 , 09:47 AM

#20

Phildo

doesn't watch the games

Join Date: Feb 2005 Posts: 22,771

Quote:

Originally Posted by P Chippa

OK. Tell me how much that coffee is really worth.

why don't you tell me where you can purchase a ten cent cup of coffee?

Quote:

Originally Posted by miajag

What's worse, people who spent $7 at Starbucks every morning, or people who vehemently hate it for no discernable reason besides the fact that it's Starbucks?

i don't vehemently hate starbucks or anything, but man, their coffee does suck pretty hard. stop burning the beans, you *******s.

Quote

07-29-2008 , 09:48 AM

#21

Thug Bubbles

Pooh-Bah

Join Date: May 2007 Posts: 4,183

Go to any local coffee shop for better tasting drink. Starbucks burnt coffee beans are only good for a pre-party amp-up.

P Chippa

Quote:

OK. Tell me how much that coffee is really worth.

Worth and average price are two different things. A good cup of coffee should run you about 1.50 to 2 bucks. And unless you like your coffee tasting like it's been filtered through a jock strap, Folgers is at the bottom of the list, even against Starbucks.

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07-29-2008 , 09:50 AM

#22

mr.giggles

veteran

Join Date: Nov 2007 Posts: 2,610

Why is it that coffee smells totally awesome but taste like liquid ass?

Quote

07-29-2008 , 09:53 AM

#23

ngaskin

banned

Join Date: Jun 2008 Posts: 4,214

Quote:

Originally Posted by mr.giggles

Why is it that coffee smells totally awesome but taste like liquid ass?

Ew, you know what liquid ass tastes like

Quote

07-29-2008 , 09:59 AM

#24

punkass

Carpal \'Tunnel

Join Date: Oct 2002 Posts: 12,564

I am certainly no fan of coffee. I might have a cup or two a month, and that's because I'm with friends who go get coffee.

But I always found Starbucks coffee to be very bitter to me. It's too harsh for me to like, and it makes me put in a lot of sugar and milk, to the point where the coffee flavor is all but gone. I no longer get coffee there. I opt for the tea lemonade, which is cheaper so good for me.

I like Dunkin Donuts coffee better. But again, I've only had it a couple times.

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07-29-2008 , 10:20 AM

#25

aytrak

grinder

Join Date: Jun 2008 Posts: 400

Hmm, roll with it and discover somewhere new? In London the indie coffee houses are the ****, and in fact the Aussie/Kiwi places are usually the best. I've always found Starbucks to be lacking in the caffeine kick department, possibly because their coffee is brewed in all-in-one machines.

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