It’s safe to say that everyone knows what Starbucks is. It all began in 1987 by Howard Schultz in Seattle, WA. He starting off with espresso and drip coffee then expanding to breakfast and lunch options. As of November 2006, the chain has established 12,440 stores worldwide, which includes the joint venture and licensed outlets� which are the small stands commonly found in airport, grocery stores and other locations like Barnes & Nobles. The United States accounts for nearly half of these stores, a total of 5,668.

In major metropolitan cities it is hard to walk more then a block without passing one store, there are usually more within eyesight. Many Americans have criticized the number of Starbucks locations. In a 5 mile vicinity in my city (Santa Clara, CA), there are close to 50 stores. This is a mere drop in the bucket compared to 164 branches of Starbucks in central London. Certainly, there is a demand for these stores, as leases in major cities are not cheap, but at what point are the independent store owners starting to step on each others toes. It may not be such a bad thing for the consumers as they may not need to walk that extra 40 yards to get their cup of swirled caramel mocha, but for local independent businesses it poses a serious threat.

While Starbucks may have tried to establish a sense of community with a local coffee shop, it has expanded to something bigger. Why does Starbucks [parent company] cluster stores together? One could answer, to make more profit, another could answer, to drive other companies out of business. Supply and demand drives our economy, and Starbucks offers a disposable commodity, one that people are willing to consume several times a day. With their stores being on what seems to be every city corner, they are clearly looking to be the most available, but perhaps they are starting to fall short in the customer service and commitment to quality products that made them world renowned in the first place.

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