Starbucks is closing 61 out of it's 84 stores in Australia. This is a lot of stores to say the least. From my understanding, the economy in Australia is not suffering, and other specialty coffee retailers are doing pretty good. I wonder why the huge cut back so soon?
My assumption is that espresso was a little late on the scene in Australia and maybe assumed the consumer to be more like those in the US. Australia seems to follow a more European style of espresso consumption, and I relate this to if Starbucks opened 84 stores very quickly in Italy or Croatia or somewhere where their business model may need a lot of tweaking to work.
This still goes with my theory of FOCUS, and another decision by Howard to take control of what made Starbucks successful in the first place.
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