Pareto Improvement?

According to this article, Starbucks isn't slaughtering mom and pop coffee shops. It may actually be helping them. Slate takes an interesting look at how Starbucks differs from corporate killers like Walmart or HomeDepot.

It seems that Starbucks settling next door may be a blessing in disguise. While they expand the area's customer base through advertising, people still respond to incentives. If there is another option 5 feet away with shorter lines, or cheaper coffee the local outfit is likely to benefit from the new larger customer base while maintaining their original base. Also, it is likely that the demand for coffee is fairly elastic. Someone who did not previously view the area as a coffee nexus will choose the coffee shop that will maximize their utility, not necessarily the one that has advertised.