Starbucks and Giants
Home Starbucks not Supporting Troops Seattles Best Coffee

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Competitive Analysis

Predatory, Monopolistic, Exclusives in Malls

Starbucks does not sell Flavored Coffee

We can all exploit this.

Starbucks - by buying Seattle's Best Coffee and teaming with Sysco Distribution is after the independent retailer and roasters.  Any store using SBC is actually using Starbucks and providing them with more money to increase the pressure on the independent retailer and roaster.  If you buy other goods from Sysco you are supporting a company that is trying to monopolize the industry.

Starbucks uses predatory business practices.

Starbucks behaves like a monopoly. 

This is a copy of what appears in Java Junctions page.

This is Steve from a distance and surrounded by syrups.  steve f.jpg.JPG (116149 bytes).  He was quite open about Starbucks and related a story that he is involved in.  Steve was offered another store in the Wilmington Mall.  The Cinabon store closed and the mall is looking for another cinnamon bunn  operator, which Steve did in spades in other locations.  The Wilmington Mall has his information from years ago.  He would want to bring coffee with him and he made that point with the mall folks.  They refused it.  Why????

Starbucks is in the Mall with a small store, but Starbucks has an exclusive use clause in their lease.  Steve can not sell coffee, in a cinnamon bun store.  This makes no sense, since people always buy the two together.  Coffee and cinnamon buns are a natural duo.  Does Starbucks have to worry about another local independent operator whose primary business is baking?  Is Starbucks so concerned about their sales that they will keep Steve and others from making a living.  

I think it is more of a predatory practice, and a good attorney is needed to file suit, not necessarily in this situation, since Steve is still considering the location.  Independent coffee stores need to have access to malls.  I've had a store in a mall and its profitable (was at least).  I had all the sales of all the Barnies Coffee and Tea stores in malls in 1990, which is a long time ago.  They were mostly over $400,000 and quite a few were in the million dollar range.  

Geese this gets me angry.  Starbucks is behaving as a monopoly.  

 

 

This site is sponsored by Kaffe Magnum Opus, the coffee roaster.  To contact Bob please call his cell 609-247-9683 or e-mail bob@gtc3.com or bob@kmocoffee.com.  Or call the office at 800-652-5282 and the folks there will find me.

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