Remember Portland about 15 years ago? Before starbucks exploded there used to be small, locally-owned coffee shops all over this city. Long before the coffee craze hit the rest of the county, Cascadians were drinking lates. We started the trend. Starbucks was just one little seattle coffee shop (known for burning their blends too much.)
When Starbucks started to spread, there was a certain tollerance in Portland because there we so many coffee drinkers. But we soon learned the affects of "Self-Cannabalizing Markets"
This model has been embraced on-line by Microsoft and Netscape, and in the marketplace by companies like McDonnalds and Starbucks.
It's simple really, you oversaturate an area, meaning you start up more stores then could possilby survive, most of them go out of business and take the competition out with them, the remaining starbucks now dominates the market.
In Portland, there have been less Starbucks that have gone under, mainly because there is such a demand here. But the effect is the same, where once there were hundreds of coffee houses, there now are only a few.
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The only places that might have been called "coffee shops" before Starbucks opened in Pioneer Square were greasy spoon diners like the Hot Cake House, Tom's on 39th and Division, Space Age on Hawthorne, and Ruthie's on Division. Guess what? They are all still thriving but Ruthie's and they all still serve the same brown water crap coffee they always have. If any chain coffee shop killed Ruthie's, it was the nearby Stumptown, and that is not likely, they had vastly different types of customers.