Starbucks has ‘finally nailed it’, turning a profit in Australia for first time in 23 years thanks to younger coffee drinkers.
Starbucks has swung to a modest profit for the first time in its history of operating in Australia, ending a record of consistent unprofitability across two decades – all thanks to Generation Z’s obsession with iced coffee.
“For many, many years, you can historically read that Starbucks has failed in Australia because it didn’t connect with the coffee-centric culture of Gen Y and Millennials – they’re all coffee snobs, wanting to get barista-style, premium espressos, piccolos, all that sort of stuff … that didn’t resonate greatly with chains,” she said.
“It looks like they’re finally actually nailing what it means to be a young coffee drinker in Australia.” Billionaire Russell Withers, who built his fortune from 7-Eleven, owns Starbucks’ Australian operations.While the Australian chain is now profitable, its expenses have also increased over the past 12 months. The company is now in a net asset deficit of more than $22.3 million, far outweighing its $3.2 million profits.
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