Starbucks has long been considered to have a near monopoly on coffee shops. In fact, a lawsuit was just
recently brought against Starbucks regarding its monopoly power in Seattle, driving a certain
independent coffee retailer out of business (“Starbucks sued,” 2006). Regardless of its apparent
monopoly in the business of coffee shops, however, Starbucks by no means has a monopoly in the
business of shops that offer high-end coffee. McDonald’s, for example, has been slowly developing their
line of espresso beverages, known in whole as their McCafe brand. The first McCafe opened in the
United States in 2001, and McDonald’s plans to switch the remainder of its 14,000 US stores over by
mid-2009 (“McCafe,” 2009). As espresso beverages and specialty coffees become more incorporated
into menus of other restaurants, Starbucks faces the challenge of losing ‘third place’ power to these
restaurants.