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Starbucks’ second crack at local market

May 28, 2014

The owners of 7-Eleven stores in Australia have taken control of the local operations of global coffee maker Starbucks.

The Withers Group, run by one of Australia’s wealthiest families, plan to turn around the fortunes of the coffee chain, which has failed to gain a foothold in the burgeoning Australian coffee market.

“Our aim will be to make Starbucks the most successful coffee chain in Australia,” Withers Group chief executive Warren Wilmot said in a statement.

“Our intention is to capitalise on the skills of the broader Withers group of companies in successfully bringing an international brand to Australia, and adapting it to suit the local market.”

The Withers Group owns the Australian arm of 7-Eleven, which has grown to 600 stores across the country.

Getting similar growth from the Starbucks assets will be major challenge given the US chain has struggled since opening its first store in Sydney in 2000.

After years of losing money, the company closed about 60 stores and sacked 685 staff, leaving its current stable of 24 stores along the east coast.

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The Withers Group have indicated Starbucks stores will now be operated by the group, rather than franchisees, and that the coffee stores will remain independent from 7-Eleven stores.

There are currently no Starbucks outlets in Adelaide.

It had opened three outlets in 2007 – Rundle Mall, Glenelg and Noarlunga – but they closed in July 2008 when the franchise shut down 75 per cent of its Australian locations. 

The company’s current Australian stores are all based on the east coast with outlets in New South Wales, Victoria and Queensland.

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