Small coffeehouses battle for a share of the caffeine market

By Cox News Service | June 3, 2007

ATLANTA -- You have money. You need a caffeine fix. You have so-o-o many options.

Starbucks, the giant java icon pushing a lot of latte into America's heartland, is on pace to add 2,400 stores this fiscal year, bringing its total to nearly 15,000. Competitors from McDonald's to Dunkin' Donuts are scrambling to sell America cups of premium coffee.

That has smaller coffeehouses searching for ways to grab a corner of the market.

"It's pretty hard for an independent to try to stay away from where a Starbucks is," said Bruce Milletto, president of Oregon-based consultant Bellissimo Coffee InfoGroup.

In fact, Milletto said he advises clients to be close to a Starbucks, which does extensive research before choosing store locations. "It tells me that must be a great area demographically to sell coffee in."

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