Starbucks Corp is to shut 61 of its 85 coffee shops in Australia and focus its remaining operations on three major cities.
The Seattle-based chain said earlier this month it would close 600 unprofitable outlets in the United States.
Starbucks first opened in Australia in 2000 as part of a rapid global expansion, but faced a highly competitive market with a well-entrenched coffee culture in the major cities.
The company said in a statement on Tuesday it would now refocus its operations on the cities of Sydney, Melbourne and Brisbane.
Starbucks stores in New Zealand are not affected by the closures.
New Zealand stores are owned by the company Restaurant Brands, not Starbucks.
