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Old 01-08-2008, 09:53 AM   #14
Alex
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On the other hand, unlike McDonald's the coffee isn't the main thing so they don't have to derive all their profit from it. They don't have to build stores and pay the rent off of coffee sales. Their overhead in expanding into coffee is much smaller than Starbucks so I've no doubt that they could sell coffee at fractions of the Starbucks' price and it would still be a fair profit. And if they are able to even approach Starbucks pricing it'll be easy money.
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