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No. of Recommendations: 1
I think it's pretty simple - when you get $2-5 for a cup of coffee, obviously vey high profit, I am rather amazed that the MCD's of the world and others did not come after their market a lot sooner than this.

Generally a hot new concept/market attracts a lot of competition very quickly, then it takes some time for all the players to sort it out down to the few power houses left, e.g. drug stores, office supplies, sporting goods, hamburgers and the list goes on and on.

With food it is even harder as it is also trendy, and people move to the next trend, not because the quality slips. Ditto clothes. IMO very hard sectors to invest in due to this added dimension, as well as monthly sales reports in addition to quarterly earnings.

Good luck,

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