The Stout Republican

Starbucks is in the news…not for their fantabulous coffee, but for their cut-throat Capitalism. A mom-and-pop coffee shop is suing them for monopolistic activity:

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.

So…Harry Reid is now planning a protest to express their concern and rage for Starbucks pushing small businesses out of the market…no? They’re not? But….

The end justifies the means. What is considered ruthless practice by Walmart, is considered okay for Starbucks because they pay their employees better. (Still the unions aren’t happy because they don’t get their “piece”). Yet still…based on a free market, a more effectively run business that’s larger should defer to smaller local business…why? Because they’re smaller…corporations are evil…Man.

However, Starbucks enjoys the privilege of being “cool” (see that modern jargon) with the liberal crowd. They spend millions on “alternative advertising”, instead of commercials, they put their money into buying coffee from small farms, and call the P.R. wing. Spend more on benefits than raw materials, and call the P.R. wing. Starbucks is a marketing marvel, they’ve been able to divert what most companies spend in advertising to their benefits and charity projects, and it’s made them billions…the conscientious company…a model of altruism (*ahem*) and commerce.

Is this wrong? Of course not…but Starbucks is reaching that size (a la Walmart) where the corporate disgust is turning against them, hence the lawsuit, and the publishing of the lawsuit by the media. Remember, this is the liberal loved company that sues artists for parody they don’t like…so don’t think they aren’t a ruthless corporation like the rest of them, they just play it better.

I love Starbucks, they’re a model corporation, their coffee is fantastic, and I wish them the best, but you can’t keep the anti-enterprise “you owe me because I exist” wing of the business world away for ever.

Welcome to the Jungle.

Economy, Random