Australia Slammed the Door on Starbucks’ Sweet Dreams
Imagine landing in Australia with all your American coffee shop confidence, only to face the company closed more than 70 percent of its underperforming locations, leaving only 23 Starbucks stores throughout the entire continent, accumulating $105 million in losses in its first seven years. That’s exactly what happened to Starbucks when it tried to muscle its way into the Australian market. The beginnings of Australian coffee culture is credited to Italian and Greek immigrants that began emigrating to the country during the mid 20th century and introduced Australians to espresso, by the 1980s, Australians had developed their own distinctive coffee drinks, like a flat white or Australian macchiato. The Aussies were already coffee connoisseurs before Starbucks even existed as a brand, and they weren’t impressed with sugary lattes when they could get proper espresso from local cafés for half the price. Starbucks moved too quickly, and grew faster than its popularity, when they launched, they launched too rapidly and they didn’t give the Australian consumer the opportunity to really develop an appetite for the Starbucks brand. Today, there are 39 locations in the Brisbane, Melbourne, Gold Coast and Sydney areas, catering to tourists who visit those parts of the country, by slowing its growth and trying to cater more to tourists, Starbucks may have found a recipe for success in Australia. The company is an internationally well-known brand, and many tourists are used to drinking Starbucks coffees and beverages, suggesting Starbucks in Australia caters to the preferences of the tourists rather than the locals, hence, Starbucks does not exist in parts of Australia with comparatively fewer tourists, like Perth, Darwin, and Adelaide.
Vietnam Served Starbucks a Cold Cup of Reality
Starbucks entered the Vietnamese market a decade ago, hoping to tap into the country’s deep-rooted coffee culture, fast forward to today, and the brand accounts for a mere 2% of Vietnam’s $1.2bn Coffee-drinking market. Here’s the kicker – Vietnam is the world’s second-largest coffee producer, so locals have access to incredible beans right at their doorstep. The Vietnamese have a penchant for innovation, blending traditional Robusta coffee with ingredients like egg yolk, yogurt, and even fruit, also Vietnamese want a thick heavy brew with condensed milk which is Cà Phê Sữa Đá (Iced Milk Coffee) and this is available all over Vietnam, from the street sidewalks to restaurants, local brands have successfully catered to these tastes, however, Starbucks missed out on them. With the average monthly wage in Vietnam being around US$345, Starbucks’ pricing made it a luxury rather than an everyday choice, street vendors serve flavorful coffee on sidewalks, often costing a fraction of what one would pay at Starbucks, according to Starbucks Menu Vietnam, a medium-sized Cold Brew at Starbucks with none of the add-ons costs about VND 65,000 (US$2.6). Starbucks in my smaller Vietnamese residential town, also attracted a large number of curious people when it opened, but as time progressed they became fewer and fewer, now, like innumerable other Starbucks restaurants around the country, it is no more. As of the information available in 2023, Starbucks has reached a significant milestone in Vietnam by opening its 100th store, underscoring the brand’s expanding presence in the country, this achievement reflects Starbucks’ commitment to growing its market in Vietnam, despite the challenges posed by strong local coffee culture and preferences.
Israel Gave Burger King the Ultimate Corporate Breakup
Burger King first entered the Israeli market in 1993, it eventually closed in 2010, after the franchise owner Orgad Holdings purchased local chain Burgeranch and converted all Burger King locations in the country into Burgeranch locations. But wait, the story gets messier than a soggy Whopper. In 2003, Burger King filed for suspension of proceedings in Israel after accumulating NIS 98 million (about $27 million) in debts, brothers Eli and Yuval Orgad bought the chain for NIS 30 million ($8.3 million). The real drama unfolded when politics crashed the party. When Burger King franchisee in Israel, Rikamor, Ltd., opened a store in the West Bank settlement of Ma’aleh Adumim in August of that year, Islamic groups, including the Arab League and American Muslims for Jerusalem, argued that international Burger King parent Burger King Corporation’s licensing of the store helped legitimize the illegal settlement, beyond the called-for Islamic boycott of the company, the Arab League also threatened the revocation of the business licenses of Burger King’s primary Middle Eastern franchise in the twenty-two countries that are part of the league’s membership, Burger King Corporation quickly pulled the franchise license for that location and had the store shuttered explaining that Rikamor, Ltd. had violated its contract by opening the location in the West Bank. In June 2015, a group of investors, including Pierre Besnainou, obtained the Israeli franchise for the brand, fifty branches around the country are planned within five years, at an initial investment of US$12 million, as of 2020, there are 11 branches in the country.
Iceland Froze Out Domino’s Pizza Dreams
Norway and Sweden haven’t been profitable markets for Domino’s and in October 2019, Domino’s Pizza Group announced it would exit those countries. Iceland joined this Nordic rejection club, proving that even in a land of fire and ice, Domino’s couldn’t find the heat it needed to survive. The company discovered that competing with local pizza traditions in Nordic countries was tougher than navigating through a blizzard. What’s particularly fascinating is that Iceland consistently ranks among the world’s happiest countries, but apparently that happiness didn’t extend to American-style pizza delivery. Local food culture in Iceland runs deep, with traditional dishes and local pizza variations that residents preferred over Domino’s standardized offerings. The harsh Nordic market conditions, combined with strong local competition and high operational costs, made it impossible for Domino’s to turn a profit. When a global pizza giant can’t make it work in a country with just over 300,000 people, you know the local food scene is seriously strong.
South Korea Served Burger King a Cultural Reality Check
Beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea, in 1982, franchisees opened stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea, beginning in 1982, BK and its franchisees began operating stores in several East Asian countries, including Japan, Taiwan, Singapore and South Korea, due to high competition, all of the Japanese locations were closed in 2001; however, BK reentered the Japanese market in June 2007. While Burger King managed to maintain some presence in South Korea, it never achieved the dominance it expected. The Korean market proved incredibly challenging due to intense competition from local burger chains and Korean fried chicken joints that offered flavors more aligned with local tastes. Korean consumers showed a strong preference for their own fast-food innovations, including bulgogi burgers and kimchi-flavored items that Burger King struggled to compete with. The company found itself in a constant battle not just with McDonald’s, but with homegrown chains that understood Korean palates better. South Korea burgerking.co.kr indicates the brand still maintains a presence, but it’s a shadow of what corporate headquarters originally envisioned for this massive market.
Italy Gave American Fast Food the Cold Shoulder
Picture this: trying to sell mass-produced burgers in the birthplace of slow food and culinary excellence. That’s essentially what happened when American fast-food chains attempted to conquer Italy. While not completely absent, chains like Burger King and Domino’s have struggled significantly in a country where food is treated as an art form rather than mere fuel. Italians have a deeply ingrained culture of taking time to enjoy meals, preferring fresh, locally-sourced ingredients over processed fast food. The concept of eating on-the-go contradicts the Italian tradition of leisurely meals shared with family and friends. The partnership with Autogrill is a move to consolidate BK’s presence in travel plazas along major highways in France, Italy, Poland and other European nations. Even when these chains do operate in Italy, they’re often relegated to tourist areas and highway stops, serving more as convenience options for travelers than integrated parts of Italian food culture. Local pizzerias and trattorias continue to dominate, offering authentic experiences that no multinational chain can replicate. The Italian market taught these companies that sometimes, tradition trumps convenience.
Japan Initially Rejected Burger King’s Imperial Ambitions
Burger King was a latecomer in Japan’s hamburger market, coming at a time of “recession,” unlike its competitor McDonald’s, Burger King plans to leave its original menu untouched, later owned by Japan Tobacco, it withdrew from the Japanese market in February 2001 with all of its 25 outlets sold to Lotteria. The Land of the Rising Sun showed American burger chains that success isn’t guaranteed, even with deep pockets and global recognition. Burger King expanded to Japan in 1993 as a 50-50 venture with Seibu Railways Group, its first outlet in Iruma opened on September 22, with another in Yokohama and another suburb expected to open that year, additional outlets were expected to open in station buildings owned by Seibu. The Japanese market presented unique challenges that Burger King wasn’t prepared for. Unlike McDonald’s, which had already adapted its menu to local tastes, Burger King stubbornly refused to modify its offerings for Japanese consumers. This inflexibility proved costly in a market that values both quality and cultural sensitivity. Domino’s has announced on February 7, 2025, that it plans to close over 200 stores worldwide, 172 of them just in Japan, where Domino’s Pizza Japan operates 1000 stores, the reason given for the closures, is low sales in the selected stores. Even today, Japan remains a challenging market for Western fast-food chains, with local competitors like Lotteria understanding Japanese preferences much better than their American counterparts.
Norway Said “Nei” to Domino’s Nordic Dreams
Norway and Sweden haven’t been profitable markets for Domino’s and in October 2019, Domino’s Pizza Group announced it would exit those countries. Norway, consistently ranked among the world’s happiest countries, proved that contentment doesn’t necessarily translate to appetite for American-style pizza delivery. The Norwegian market presented Domino’s with a perfect storm of challenges that the company couldn’t overcome. High operational costs, strong local competition, and consumer preferences for traditional Norwegian cuisine created an impossible business environment. Norwegians have their own pizza traditions, often featuring local ingredients and preparation methods that differ significantly from Domino’s standardized approach. The company discovered that Norway’s high wages and strict labor laws made it difficult to maintain the low-cost model that works in other markets. Additionally, the strong Norwegian kroner made Domino’s prices less competitive compared to local alternatives. The citizens of seventh-place Norway (7.302) feel they are being well cared for by their government thanks to universal healthcare and free college tuition, Norwegians also enjoy a healthy work-life balance, working an average of 27 hours per week vs. 36 hours per week in the United States, additionally, Norway has a low crime rate and a strong sense of community among its citizens. This strong social fabric meant Norwegians preferred supporting local businesses over international chains.
France Initially Resisted Burger King’s Royal Invasion
In December 2012, BK returned to the French market, based on an agreement with multinational operator Autogrill, a move that has met with some excitement in the country, in July 1997, it was announced the chain would be leaving the country, closing its 22 franchised and 17 corporate locations, after a poorly executed entry into the market that left it unable to compete against McDonald’s and local chain Quick. France, the land of culinary sophistication and gastronomic pride, initially gave Burger King a lesson in humility that lasted over a decade. The French market proved particularly challenging because of the country’s strong food culture and resistance to American fast-food standardization. French consumers, accustomed to quality bread, cheese, and meat, found Burger King’s offerings subpar compared to local alternatives. The company’s first attempt at French expansion was poorly planned and executed, failing to understand the nuances of French consumer behavior and preferences. Local competitor Quick, which better understood French tastes, easily outmaneuvered the American giant. In November 2013, Groupe Bertrand, who owns several restaurant franchises, acquired the BK master franchise Autogrill, becoming one of their franchisees. Even when Burger King returned to France, it required partnerships with local companies who understood the market better than the American corporate headquarters. The French experience taught Burger King that culinary imperialism doesn’t work in countries with established food traditions.
Sweden Showed Domino’s the Door to Nordic Rejection
Norway and Sweden haven’t been profitable markets for Domino’s and in October 2019, Domino’s Pizza Group announced it would exit those countries. Sweden, known for IKEA and innovative design, couldn’t design a profitable future for Domino’s Pizza. The Swedish market exemplified the challenges that American food chains face in countries with strong social democratic values and local business preferences. Swedish consumers showed little interest in the Domino’s model of mass-produced, delivered pizza when they had access to high-quality local alternatives. The Swedish pizza market is dominated by local pizzerias that offer fresh ingredients and unique Nordic toppings that reflect local tastes. Domino’s discovered that Sweden’s high minimum wages and strong worker protections made their low-cost delivery model economically unfeasible. Fourth-place Sweden (7.344) ranks only #18 for happiness among the younger people (aged below 30), yet, it is also #4 in older adults’ happiness, in fact, according to the report, along with Norway, Germany, France, the United Kingdom, and Spain, Sweden is a country where the old are now significantly happier than the young, while in Portugal, Greece, and Israel the opposite is true. This demographic split may have contributed to Domino’s struggles, as younger consumers who typically drive fast-food consumption were less satisfied overall. Swedish consumers also demonstrated a preference for supporting local businesses over international chains, valuing community connections over corporate efficiency. The exit from Sweden marked another Nordic defeat for American fast-food expansion.
What did you expect from countries with such strong food traditions and cultural pride?
