Posted on 09/25/2006 4:45:45 PM PDT by hophead
LOS ANGELES (Reuters) - The owner of a small coffee company sued Starbucks Corp. (SBUX.O: Quote, Profile, Research) on Monday, claiming the coffee shop's anti-competitive business practices put her store out of business.
The suit, which seeks class action status, was filed in Seattle federal court by Penny Stafford, the owner of Belvi Coffee and Tea Exchange Inc.
According to court papers, Starbucks violated federal antitrust laws by leasing prime commercial real estate at above-market prices in return for the exclusive right to sell espresso drinks or specialty coffee in those locations.
A Starbucks spokeswoman said the Seattle-based company was not aware of the complaint and could not provide further comment.
The suit alleges that Belvi Coffee and Tea's efforts to enter such buildings in Seattle and Bellevue, Washington were blocked by Starbucks "through unlawful use and abuse of its monopoly power."
Starbucks is the world's largest coffee shop chain, with more than 12,000 locations in 37 countries. The lawsuit alleges the chain "possesses monopoly power" because it has "at least" a 73 percent market share of the U.S. coffee shop industry.
Starbucks has said it has a less than 8 percent market share of all coffee consumed in the United States.
The suit also claims that, after Stafford found a space at one prime Bellevue office building, Starbucks employees "were directed to stand at the entrance of Ms. Stafford's business for the purpose of handing out free Starbucks drinks."
Stafford's store closed four months after opening. She still operates one other store outside Bellevue's main central business district.
The suit asks that Starbucks' "exclusionary conduct be declared invalid" and seeks attorneys fees and other relief.
© Reuters 2006. All Rights Reserved.
No American Dream for you.
GO BELVI COFFEE GO!
The left loves their venti expresso, so Starbucks is safe. Middle Amreica shops at Wal-Mart, so Wal-Mart must be bad.
Offer equivalent coffee at a lower price and you'll put Starbucks out of business.
Quick, someone call the Wambulance!
http://www.belvicoffee.com/video.htm
I knew my town was going to hell when they changed the Taco Bell into a Starbucks.......
I must not be in touch with my inner feelings. I don't think of a cup of coffee as an experience.
Starting an exclusive coffee shop in Seattle must be like cranking up a software company in Redmond.
Everything is under contract to the competition.
Quik Trip (a conveneince store chain in the mid-west) has a frozen capuchino that's every bit as good as Starbucks' but it costs $1.19 for a 52oz cup. One of those, and I'm wired for about the next 14 hours. If that's not quite enough, I'll sometimes add a Starbucks "DoubleShot" Espresso from the drink cooler (it costs a lot more than the $1.19!), and I'm good to go for about 26 hours.
Sometimes I like a mocha, so I'll add a few ice cubes and a little bit of hot chocolate.
Mark
My small suburban town (western suburb of Chicago) with a 2-block business district has a Starbucks and a mom-n-pop. Both seem to be doing well, even though the mom-n-pop is only open in the morning.
Okay, if this doesn't show how far from the American spirit we have come nothing will.
Only in the USSA.
The other day I saw them buiilding a Starbucks.
Inside a Starbucks ;)
It is also about using secret code words, too. One day I said "the duck flies a midnight" and they handed me 7 coffee beans and charged me 5 bucks.
I love Walmart...why you insist on overpaying is your problem.
Our Starbucks samples all the time...and they walk 500 yards to the Ralphs supermarket and hand out new drinks to customers.
That was the first thought that popped into my head when I read the headline.
The left loves their venti expresso, so Starbucks is safe.
That was the second thought.
That, plus liberals are selfish, egotistic, hypocritical, fundamentally insane people.
They may say they're for the "little people", but if it interferes with their stylish status symbol coffee served up by effete homosexuals, they'll make up some excuse.
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