Judge lets coffeehouse sue over Starbucks' site clout

Nation's Restaurant News,  Dec 10, 2007  

Tags: Starbucks Corp.

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SEATTLE -- A U.S. District Court judge here reportedly has cleared the way for a trial to determine if Starbucks Corp. illegally blocked a small-scale coffeehouse operator from opening stores in the area.

Penny Stafford last year sued the 15,000-unit Seattle-based coffee giant, saying Starbucks violated antitrust regulations by blocking her from opening competing stores in Seattle and Bellevue, Wash., where she already operates a coffeehouse. Stafford contends that Starbucks' saturation strategy is designed to prevent rival concepts like hers from opening nearby.

In the lawsuit, Stafford argued that she was repeatedly told by leasing agents that Starbucks would be given priority in securing prime locations because of exclusivity agreements. A trial is tentatively set for November 2008.

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