Starbucks entered the Australian market in July 2000, but has struggled to make headway in the local market, facing fierce competition and America’s reputation for sub-par coffee.
There are currently 22 Starbucks in Australia in Sydney, Melbourne, and Queensland, following a major restructure of the business in 2008, which saw the closure of 61 underperforming Australian stores.
Ownership of the 22 stores owned by Starbucks’ US parent will be transferred to the Withers Group, which says it has plans to open further Starbucks stores.
Warren Wilmot, CEO of Withers, said the company’s aim is to make Starbucks the most successful coffee chain in Australia by adapting it to suit the local market, despite Starbucks’ China and Asia Pacific president, Jeff Hansberry, telling media there is no intention of altering the model which has seen success elsewhere around the world.
The Withers Group plans to rebuild Starbucks’s local presence by opening company-owned, rather than franchised, stores in close proximity to its existing 600 7-Eleven outlets, starting with CBD and metropolitan areas.
The Withers Group is owned by brother and sister Russell Withers and his sister Bev Barlow. The family introduced 7-Eleven to Australia in 1977, growing the number of stores to the current 600 following the acquisition of around 300 petrol stations and adjoining convenience stores from Mobil in 2010.