The original concept was that they believed that a customer would only venture out a limited distance for coffee. On that priciple, the viral placement of small stores suceeded.
Lewis Black had a routine about the coming of the appocalypse drawing near when he walked out of a Starbucks and from the door he could see another Starbucks across the street.
From my window right now, I can see two Starbucks, one with a connected Jamba Juice, on the same side of the same street, with less than 200 yards between them. People in Honolulu don't walk much.