Starbucks growth strategy is similar to what Nordstrom dept stores executed in the late 1980’s. Build stores on top of each other with the idea that “saturation” and availability will eventually capture a market.

Nordstrom ended up with many new stores that “canibalized” sales growth of old established stores in a region.

The example of this was the Tyson’s Corner, VA store, first store built on the East Coast, which began losing growth to the Pentagon City store and others built within 15 mile radius in Maryland.

The other HUGE factor is the fact that Starbuck’s charges an obscene $20 per month for WiFi.

As a consultant 90% of my meetings are held in coffee houses. We avoid Starbucks due to this policy; in turn they lose my 5 lattes per week business along with whatever my client would order.