Regarding "The Rise of Starbucks" by Phil Dotree

A response to The Rise of Starbucks.

I certainly understand the appeal of the "mom-and-pop" shops in your town however there is something to be said about a guy named Adam Smith and his "invisible hand" as it relates to each individual's tastes and preferences. At the end of the day, when all is said and done, people are going to consume to what suits them best. Consequently, those whom evolve to the big picture scheme of thinking are going to build it bigger and better, as measured by market behavior. In the end, it's apparent that your own tastes and preferences are dictated by buds that are different and a uniquely dissimilar comfort level regarding service and surrounds.

And by the way Phil, I personally have somewhat of a unique pleasure of having been disgruntled at the second Starbucks built east of the West Coast. Imagine two XGen types, possibly planted from Portland, Seattle or San Francisco into a cold and wet Chicago in October of 1988. On my first visit I requested a flavored coffee and was visually and verbally chided in a fashion that left me more uncomfortable than I'm willing to scribe. At the time Starbucks only served regular coffee drinks and, by today's standards, a limited number of espresso drinks. I left the shop only to return a month later, having grown intrigued by the concept. Later that day I made a call to Howard Schultz, the CEO, and was referred to their investment banker, the then Donaldson Lufkin and Jenrette, in Los Angelis as an interested investor. The company was doing, I believe, their second round of financing. They were raising $10,000,000 through an offering of 12.75% yielding three year convertible debentures. The minimum investment, which I certainly didn't have at the time, was $100,000 by an "accredited investor" (someone already with tons of dough). After three years the investor of a 100 Gs had received $38,250 of his original investment back (that's the three years of 12 ¾ % interest) and the option to by Starbucks shares several years before they went public.