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StarbucksandMcDonaldstwodifferentstrategiesforcoffee drinkersinAustralia
Developed by Dr Maxwell Winchest er
Senior Lect ur er, Vict oria Univ ersit y, Melbour ne Aust ralia
McDonaldsisseenasapinnacleoffastfoodofferingsglobally.However,McDonaldshaveoftentriedtodiversify theirproductofferingtoincludethingslikeMcSpaghetti,McPizzaandmorerecentlytheHealthyOptionsMenu. SalesofcoffeeatMcDonaldsstoresinAustraliawerenotstrong,andasaresulttheconceptofamore sophisticatedstyleofcafewasexperimentedwith,initiallyinSydney.McDonaldslauncheditsfirstMcCafinthe SwanstonStreetstoreinMelbourne,Australia,in1993.UnlikearegularMcDonaldsstore,McCafssellitems suchaslattesandcappuccinosinrealcups,meanwhilecakesyoudmorelikelyseeinapatisseriearelinedupin displaycases.ThesophisticatedcultureofcoffeedrinkersinAustraliarespondedtothissowellthatthedecision wasmadetotaketheconceptdevelopedinMelbourneglobally.In2001,itbroughttheconcepttotheUnited StatesandMcDonaldsarenowintheprocessofinstallingMcCafsin14,000storesacrosstheUSA.Thishassince resultedinthebiggestrevamptoitsglobalmenuinthirtyyears. StarbucksisfamousforbringingcafculturetotheUnitedStates.Beforelong,Starbucksstoresbecametheplace tobeseenintownsacrossthecountry.In2011,StarbuckshadthethirdhighestsalesfiguresintheUnited States,onlybehindMcDonaldsandSubway.Theirfashionable,spaciousinteriorswerecopiedbymanyother startupcoffeechains.AsidefromitssuccessintheUSA,Starbuckshavedoneparticularlywellincountrieswhere therewasnotanestablishedcoffeeculturesuchastheUK,mostofAsiaandCanada.Starbucksthemselves highlightChinaashavingthepotentialtobethebiggestStarbucksmarketoutsideoftheUSA.Thecompanyhas, however,struggledincountrieswithestablishedcoffeecultureslikeFrance,ItalyandAustralia. StarbucksenteredtheAustralianmarketbyopeningastoreinSydneyin2000.Theirstrategywastobringthe famousStarbuckscultureofcoffeetoAustralia.WhileintheUSA,Starbuckshadcreatedthecafecultureasithad notexistedpriortoStarbucks,inAustraliatherewasalreadyathrivingandsophisticatedEuropeanstylecaf cultureduetothelargenumbersofGreekandItalianimmigrants,particularlyintheEuropeanstylecityof Melbourne,famousforitssidewalkcafs.InMelbournecafestendtobesmall,boutiqueandveryEuropeanin style.Thisstyleofcafetendstobeclutteredwithsmalltablesandchairs,withoutdoorseatingunderumbrellas. Fromdayone,Starbucks,withitsAmericanstyleofcafculturedidnotfaresowellinMelbourne.When StarbucksopeneditsstoreinthecentreofMelbournesfamousItaliancafedistrict,LygonStreet,localtraders lobbiedMelbourneCityCounciltohavethechainstorecloseddown.Starbuckswerenotparticularlybotheredby thisreactionandcontinuedtrainingtheirbaristasfortheLygonStreetStorereadyforopening.Theopening receivedalotofpublicity,especiallywhenitisrumouredthatpriortoopeningvandalismwasseenacrossthe frontofthestoreexpletivelyexpressingadesiretoseeStarbucksgobacktotheUSA. By2008,therewasacullofstoresaroundAustraliawiththreequartersofallAustralianoutletsclosed,including theinfamousoneonLygonStreet.TheCEO,HowardSchultzacknowledgedthatAustraliahadpresentedthem withuniquechallengestotheirbusiness.AccordingtotheBBC,theanswerwasmuchsimpler:Starbucksjust didntknowhowtomakegoodcoffeeinacountryfullofpeoplewhoarepassionatelysnobbyaboutcoffee.
This work is licensed under a Creative Commons Attribution-Non-Commercial-No Derivative Works 3.0 License. To view a copy of this licence, visit: http://creativecommons.org/licenses/by-nc-nd/3.0/
This work is licensed under a Creative Commons Attribution-Non-Commercial-No Derivative Works 3.0 License. To view a copy of this licence, visit: http://creativecommons.org/licenses/by-nc-nd/3.0/