seemingly, Starbucks only competes on "better coffee," which is , of course, subjective. This is why I believe Starbucks is like Apple in that regard, as it seems to be more about the culture and inferred status of the product, than the actual value of the product itself.
I tend to notice this on my way to a local 24/7 coffee shop with better quality beverages, competitive prices, free wireless, and less business, carrying my Thinkpad.