In the case of Starbucks, I think the effect of price on demand is more dramatic than commonly thought, as quality coffee can now be had at McDonald's for a fraction of Starbucks' prices.
FORBES: Magazine Article
Schultz made mention of rising commodity costs and the favorable effect of a weak dollar, as Starbucks brings in profits from around the world.
FORBES: Starbucks Gets Everything Right: Sales, Margins, Profit Growth, Raises Guidance, Targets China
There are mutual restraining orders in effect and Robin gets nervous whenever in the vicinity of a Starbucks.
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