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Supposedly the same thing happens with coffee too. Starbucks does the expensive market research, and then other chains build near Starbucks.

I thought Starbucks had simply reversed the process. They appear to open a coffee shop on every corner (sometimes several on the same corner) and just close the ones that don't do well.

From what I've seen it's not just other chains that locate stores near Starbucks. Even Starbucks locates stores next to Starbucks.

I heard the rumor about Burger King (combined with the idea that McDonalds would do the extensive market research and study traffic counts and so forth.)

I think Burger King was the first to follow McDonalds - the others were just following Burger King

Heard the same about Wendy's.

Likewise, with Borders following Barnes & Noble.

Very common tactic.