Explanation
The best place to build your shop, if you are the owner, is at the half-way mark. You know that people at the farthest end of the street will still go to your shop, since it is closest. You will also avoid being taken advantage of by the other coffee café shop owner. This game demonstrates that the best solution for the owners is not the best solution for their customers.
The most efficient solution for everyone is if each coffee café was one third of the way from each end of the road. If this were the case nobody would have to walk farther than a third of a mile to get a cup of coffee. Each shop would still get half the customers. Everybody wins.
But what if your competitor edges his coffee café just a little closer to the center of town? If he did that, then some people near the center will go to the other shop instead. Of course, you know that, so you move your coffee café a little closer to the center too. Eventually, all this moving toward the center results in the two shops right next to each other at the middle. So, we see that the most efficient solution is not necessarily the best solution for the two individual coffee café owners.