As you know McCafe’s, and other coffee sellers have been appearing lately to pounce on the Grandfather of modern branding, Starbucks. In a 2007 article By Nichola Groom, you can read the article here. Nichola points out that McDonalds is will be competing against Starbucks directly. Since then, Starbucks has closed stores and relaunched their brand.
I know why Starbucks is declining in market share. When they started they created what they called the 3rd place. The 3rd place is a place between home and work. When they began installing drive-thrus, they lost the uniqueness of the 3rd place. You could now get your coffee and head home.
There is no meeting, no social and no loyalty when you have no vested interest. McDonalds and others can compete with Starbucks on the basis of product and price, and in fact I do think that there are better coffee vendors out there.
Because of this dilution of the 3rd place Starbucks is now fighting for their life.