Convenience retailer 7-Eleven snatches the local rights to Starbucks chain
In an attempt to revive the struggling chain.
Starbucks has entered into a licensing agreement with the Withers group, a privately held family business with more than 100 years of experience in operating retail businesses in Australia.
Although presently struggling, the group believes there is strong potential for Starbucks to grow in the Australian market.
The Withers are one of Australia's wealthiest families, owning Australia’s largest convenience store 7-Eleven, operating more than 600 stores, and the largest independent petrol retailer.
To be executed over the next 90 days, the new licensing agreement will allow the group to take over all 24 stores under a new corporate entity, Starbucks Coffee Australia Pty Ltd.
It will be business as usual in Australia and the group does not expect this transaction to affect any of the Starbucks stores in the country. It emphasised the following:
- Starbucks retail partners will continue to be employed by their stores and will become partners (employees) of the new business entity Starbucks Coffee Australia Pty Ltd.
- Starbucks customers in Australia will continue to receive the exceptional service, high quality coffee and handcrafted beverages that they have come to expect from Starbucks.
- Starbucks Coffee Australia Pty. Ltd., under the ownership of the Withers group, will continue to operate the stores on a corporate store model
