The difference between Starbucks and Walmart

I just learned that coffee houses, even mom and pop ones, can be a great business. If you can offer a little ambiance with original and delicious coffee blends, you can make great money, perhaps more if you’re near a Starbucks. That’s a seeming paradox to understand:

In contrast to so-called “downtown killers” like Home Depot or Wal-Mart, Starbucks doesn’t enjoy the kinds of competitive advantages that cut down its local rivals’ sales. Look at Wal-Mart. It offers lower prices and a wider array of goods than its small-town rivals, so it acts like a black hole on local consumers, sucking in virtually all of their business. Starbucks, on the other hand, is often more expensive than the local coffeehouse, and it offers a very limited menu.