Saturday, January 05, 2008

Does Starbucks hurt small cafes?

One of the worst fears that small business owners have is when the big boys roll into town and open up shop right next door. In many cases it is a ligitimate fear as they have more money so they can buy more of those fiber optic cables, DVD players, televisions, etc. than you can so they get a big discount. Is this always the case though? If you have a little Radio Shack and Best Buy rolls in next door you may be in a bit of trouble, but what about fear of a Starbucks when you own a coffee house? Not necessarily. They aren't undercutting you. So does Starbucks hurt small Cafes?