Say you want to open the eleventh pizza shop in a town. Everyone tells you that the town only needs ten pizza shops. OK, economics may force one shop to fold. Who will collapse?
Your shop will be new and inviting with a great product and a friendly staff. Yes, one shop may close but it will not be yours. Let the grumpy greasy spoon owner be the one who is forced to toss in his apron. In fact, you goal is to be the premier pizza spot in town and then to open a chain of pizza shops.
Yes, all the average pizza shop owners in town should be concerned, should be quaking, if you become their competition.