The Australian subsidiary of Seattle, US-based coffeehouse giant, Starbucks Coffee Company (Australia), revealed today [Wednesday] that it might be up to five years before it breaks even.
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As the chain opened its 27th outlet in Australia, company head Markus Hofer, who runs the company as a joint venture between himself and Starbucks Coffee Corp., revealed financial results are weighed down by overheads.
Speaking to the Australian Associated Press, Hofer said: “Our entire (Australian) operation’s running at a loss. But that’s what you’re going to do when you set up in a country like this.”
Starbucks entered the Australian market 20 months ago, and Hofer said it would only break even once its initial rollout of franchises is completed.
“I think profitability is going to be anywhere between three and five years, depending on how quick we can continue rolling out,” he said, adding: “The rollout will depend on acceptance of the brand.”
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