This is already happening in NYC.

There are two chains -- one is called Matto and the other is Blank Street Coffee. They're both undercutting Starbucks on price significantly, and they both suddenly have locations EVERYWHERE.

Matto is especially cheap -- their gimmick is that every drink is $2.50. Doesn't matter if it's an espresso drink or a drip coffee or a flavored latte or whatever -- it's $2.50.