Slate Magazine: Why Starbucks actually helps mom and pop coffeehouses
“After all, if Starbucks can make a profit by putting its stores right across the street from each other, as it so often does, why couldn't a unique, well-run mom and pop do even better next-door? And given America's continuing thirst for exorbitantly priced gourmet coffee drinks, there's a lot of cash out there for the taking. As coffee consultant Dan Cox explained, ‘You can't do better than a cup of coffee for profit. It's insanity. A cup of coffee costs 16 cents. Once you add in labor and overhead, you're still charging a 400 percent markup—not bad! Where else can you do that?’ Until Americans decide they need to pay four bucks a pop every morning for a custom-baked, designer-toast experience, probably nowhere.”