This is also true in the United States and yet here we are.
I don't know what to take from that though with regard to what y'all are arguing about, I can't really explain the economics of it all. But I think it's a fact that at the point Starbucks was expanding to be national, it was not true that most places it was expanding to had plenty of places where you could get a much better cup of coffee at a comparable price. Starbucks actually brought "coffee culture" to most of the U.S. (if it wasn't them it would have been someone else, this was when "foodie" culture in general was becoming a thing, people with enough money to were becoming more interested in 'gourmet' everything).
The fact that now, in 2018, it's possible to easily get high-quality coffee in Australia is not a complete explanation of why Starbucks is not popular there, since the same is true of the United States.
It's worth pointing out Starbucks has several competitors in the cafe-chain space in Australia. There are cities in Australia where Starbucks tried opening & then closed down because they were unable to beat the local incumbent cafe chains.
I suspect some Aussies haven't heard of this cafe chain, even though they have twice as many stores as Starbucks, and now have cafes internationally.
I'm particularly excited that Gloria Jeans is launching 40 stores in Germany soon [1], and also 13 stores in the UK next year [2].
(We don't have Starbucks in my city and I loved Gloria Jeans so much that I bought shares in the parent company, that's why I'm so interested in information about coffee shops & competitors. So far it's been the worst share investment I made though, the shares have crashed 90%!)
[1] https://www.insideretail.com.au/news/gloria-jeans-to-open-40...
[2] http://www.rfg.com.au/2018/05/22/gloria-jeans-coffees-open-f...
Why the secrecy?
But my general point was less about this specific chain, and the idea that your profits may come from a part of the business that you're not known for. You then use that money to subsidize the other parts of the business. A bit like how Sony Corporation's profits come from life insurance & medical insurance, while their electronics division makes a loss.
[1] https://www.nytimes.com/2013/05/28/business/global/sonys-bre...
I bought a toothpaste from a store but I feel like I shouldn't disclose the name of the store for their privacy. They're a private company!