Starbucks Has an Australia Problem

In the U.S., Starbucks may be on every street corner and in every shopping center, but in Australia, the chain has been whittled down to a mere 24 cafes. Unable to grow down under, the company has licensed its local chain to the Withers Group, which operates 7-Eleven in Australia and will take over the existing cafes there. The amount of the deal was not disclosed.

Starbucks entered Australia in 2000 but has struggled to compete against established chains such as McCafé, a division of McDonald’s that started in Australia in 1993, Gloria Jeans, and independent coffee shops, reported the Sydney Morning Herald. While McDonald’s has been trying to expand its coffee business in the U.S., it has already become Australia’s largest coffee chain.