American Coffee giant Starbucks confirms lease of prime beachfront site, but is met with lukewarm response

THE world’s biggest coffee chain is heading to Manly. Starbucks will unveil a cafe in a prime historical location. But business leaders, cafes and locals are “disappointed”.

The old Surfection at the top of the Corso is empty but is set to become a Starbucks. Picture: Adam Yip

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THE PLAN by American coffee giant Starbucks to open at a prime Manly spot has been met with a cold response.

The world’s biggest coffee chain will move into the ground floor of the newly-refurbished Ocean Tea Rooms Building.

Straddling both the beachside and the Corso it’s described as “the jewel in the crown” of commercial real estate.

The company said it chose the spot for it’s “iconic location”.

Real estate bosses said it was the highest rental deal every signed in Manly.

But the store — which is already advertising for staff — has been given a lukewarm welcome by cafes as well as business leaders.

Manly Centre manager Meegan Clancy said she’s expecting the news to be met with disappointment, while Manly Chamber of Commerce said the giant will have to work hard.

Starbucks CEO Howard Schultz speaks at the coffee company's annual shareholders meeting in Seattle earlier this month.

The chain pulled out of Australia eight years ago, closing dozens of cafes.

The Withers Group, which runs convenience stores 7-Eleven, bought the licence for the remaining handful and is now expanding.

Clancy said she hopes the brand will do things differently this time.

“The common reaction from residents to a Starbucks opening in Manly will be disappointment, but I believe they have learnt from their mistakes, and this may present a unique offering for locals and visitors as a blended, community hub,” she said.

The old Surfection store, which opened in 2000 and closed in 2014.

Manly Chamber President Drew Johnson, said the company will need to do a lot to compete with local cafes.

“Starbucks have reinvented themselves after a period where they had to close thousands of stores and change how they do what they do.

“They’re coming into a town where awesome coffee can be found in dozens of venues, so despite a perfect location they’ll have to be at the top of their game.”

A Starbucks coffee shop in Riyadh, Saudi Arabia, ones of more than 24,000 around the world. Picture: AP Photo/Hasan Jamali

Cafe owners said they expect the store will be a hit with tourists — but not locals.

Adriano Vieira, owner of Silo on Sydney Rd, said: “Any business that comes to Manly I look on it with good eyes, but what I don’t understand is Starbucks, they’re not a coffee shop that embraces the Australian way.

The shop which was in Martin Place in the CBD.

“Coffee drinkers won’t go to the shop, it will be kids who like to have a Frappuchino.”

Manager of Hemingway’s, Theo Gibson, said he’s disappointed it’s not an independent brand moving in.

“It’s not what Manly is trying to be,” he said.

Manly Centre Manager Meegan Clancy said she thinks people will be disappointed. Picture: Anthony Johnson

A sign posted on Starbucks window in Melbourne in 2008 as the news was announced it was to close.

American fast food giant KFC, which is renovating a unit at the other end of the Corso, was met with a similar response when it announced it was opening in the suburb.

A statement from Starbucks Australia CEO Chris Garlick and leasing agents Colliers International, said: “Starbucks chose Manly given its iconic beachside location being highly attractive to visitors, combined with a wonderful local community feel to match.”

The top two floors of the building remain vacant.

The prime Corso spot will become a Starbucks on the ground floor, with the rest still vacant Picture: Adam Yip

Starbucks in Australia

The chain, which started in 1971 in Seattle has more than 24,000 branches.

The first Australian branch opened in 2000, and more than 80 followed.

According to reports, the firm lost $140 million in eight years — and came under fire for paying no Australian tax.

In 2008 it closed around 60 stores and shed 600 jobs.

The first Starbucks Coffee shop in Sydney in July 2000.

Experts said established chains, prices and locations along with the Aussie coffee culture contributed to the failure.

In 2014 The Withers Group, which runs 7-Eleven, bought the Starbucks licence and took over the 24 remaining Australian stores.

Nine remain in Sydney and Manly’s thought to be the first new location.

Charles Passy: Things Starbucks won’t tell you, 2014