> A question arises in my mind though, shouldn't I just pay $4 for a coffee at an actual small business?
Sure, assuming you actually prefer the coffee from the small business. Lots of people prefer Starbucks coffee.
The idea of big businesses funding local competition does seem absurd from a competitive standpoint-- but I think it could actually work out really well. If Starbucks still has the better coffee they will still get more business, meanwhile a healthier local economy will mean a bigger market for Starbucks. Especially vs. Dunkin Donuts or McDonalds, which currently beat Starbucks in lower-income markets.
Sure, assuming you actually prefer the coffee from the small business. Lots of people prefer Starbucks coffee.
The idea of big businesses funding local competition does seem absurd from a competitive standpoint-- but I think it could actually work out really well. If Starbucks still has the better coffee they will still get more business, meanwhile a healthier local economy will mean a bigger market for Starbucks. Especially vs. Dunkin Donuts or McDonalds, which currently beat Starbucks in lower-income markets.