> Additionally I think this move by Starbucks is putting even more pressure on small boutique coffee shops and potentially marginalizing them even further because now casual consumers can just go to Starbucks and get what they think is a "boutique experience" when, in fact, their money and their time would be better spent going to the actual boutique coffee shop.
Turns out that the presence of a Starbucks ends up evangelizing the public on coffee, converting non-coffee drinkers into coffee drinkers and making people more likely to seek coffee from all sources. And they will: as soon as the local Starbucks gets too crowded for comfort, people will move to another coffee shop so they don't have to wait on line.
The rest of your comment was excellent, except for this part. Starbucks actually has the exact opposite effect on small coffee shops: http://www.slate.com/articles/news_and_politics/hey_wait_a_m...
Turns out that the presence of a Starbucks ends up evangelizing the public on coffee, converting non-coffee drinkers into coffee drinkers and making people more likely to seek coffee from all sources. And they will: as soon as the local Starbucks gets too crowded for comfort, people will move to another coffee shop so they don't have to wait on line.