In my hometown of Portland, Ore., Starbucks Corporation (NASDAQ:SBUX) is seen as the interloper, even though the company's headquarters are only a few hours' drive away. Starbucks gets none of the important descriptors. It's not "local." It's not "independent." And it's very, very not "hippie."
Coffee People, on the other hand, has historically received all of those storied monikers. Founded in 1970s as a booth in Eugene, Oregon's Saturday Market (oh you have never known hippy until you've known the Eugene Saturday Market), the owners burst in the coffeeshop scene in 1983 with a store in the very center of hippy Portland hip-ville, NW 23rd Avenue. When I was a teenager, Coffee People was a mecca of caffeine and I, too, sipped Black Tiger milkshakes (full of ground-up chocolate-covered coffee beans) and munched on Hippie Cookies.
In 1999, Diedrich Coffee Inc. bought Coffee People and the hippiness slowly began to drain away. Quality diminished and the chains lost much of their verve. On Thursday, Starbucks announced it had purchased every last one of the Coffee People retail stores, 40 total and 15 in Portland, for $13.5 million. Deidrich is exiting the company-owned retail business entirely, but will retain the Coffee People brand names, including Black Tiger espresso, its Gloria Jean's Coffee brand, and the franchising arm of 168 retail locations.
As it has with so many other acquisitions, Starbucks plans to conduct rapid-fire conversion, keeping all 40 locations open even though it will mean a bit of cannibalization in some neighborhoods. Coffee People stores will be converted to Starbucks in a few months' time and the hippieness will be lost forever. Good thing Coffee People founder Jim Roberts is still hippy-happening at the little Jim & Patty's Coffee in NE Portland. Will Starbucks soon own every single chain coffee store in the U.S.? It seems not a bit unlikely. And the very antithesis of hippie.
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Reader Comments (Page 10 of 10)
10-01-2006 @ 4:56AM
realestgurl said...
I hate Starbucks coffee. It is to strong and leaves a bitter taste in your mouth. On the other hand I do like Dunkin Donut's coffee.
10-01-2006 @ 5:53AM
vartan garnighian said...
starbucks coffee is good especially the decaf brands
however they are a little expensive...but it's worth
it as flavor is good beans .....the specialty drinks
latte etc are way overpriced but i guess people who like that sort of drink don't care about the price
10-01-2006 @ 10:31PM
Annie said...
Every generation has what they consider their own "icon" of sorts, and Starbucks just happens to symbolically represent the "current generation"!?! (That’s scary). In our “college” town, if you are craving a cup of coffee or you are a Starbucks fan, you will wait in line to order, and don't even think about sitting down to relax and enjoy your cup of java, you will NOT be able to find a seat. An incredible number of college students and their laptops are just "HANGING OUT/studying" for hours ......... It appears the students buy only one drink and fill up the space/seats for hours!! I wonder how profitable this is for Starbucks .... Maybe they should be creative and find a way to “turn over the space/seats” to create additional revenue, instead of increasing prices again! Starbucks may have a long "wall street" history, IF they keep their prices within REASON! Look around, and you will notice many of the large chains that slowly increased their prices (GREED) found that new competitors "stole" their customers. If they didn't close the doors, they had to roll back prices or offer two for one prices just to get their old customers back, and jump through hoops to attract new ones!! I do visit Starbucks on occasion for the healthier drinks, mainly the Pomegranate & Green Tea Frappachino. This is definitely a draw for the Baby Boomers (with all the $) who are looking for healthier refreshments! America is the heart and soul of true entrepreneurship… so respect and applaud Starbucks for continuing their AMERICAN OWNERSHIP!!!
10-06-2006 @ 6:17PM
robert said...
well i find the atmosphere at starbucks good and the coffee medium.
there is still petes for more straight forward stores and better coffee.
10-10-2006 @ 8:15PM
Thomas said...
Look I have nothing against Starbucks. I am mad at the people with the poor taste who like the burnt coffee beans that it serves. I also wish I was one of those people so I wouldn't care that Starbucks will soon be my only choice.
Rachel Saldivar makes a great point. American troops are dying overseas primarly to protect American business interests. Starbucks wants nothing more then to open up locations in Iraq. Under Sadaam it could not. Accordingly, it should be spending its own money on supporting the troops. Moreover, my idea of supporting the troops is bringing them home.
10-10-2006 @ 9:02PM
SAMBO said...
STARBUCKS! What a success story. What a humane type of company which gives back to the community. I am a proud stockholder of this company and glad I am. They are doing things right and quite successfully! Yeah, their coffee may be a little high, not bad though. People are paying the price for it. The KEY here is their locations, strategically located and draw solid interest and business. They ARE the GOOGLE in the coffee world!!!
10-22-2006 @ 3:47PM
Dan said...
I'm 60, have had maybe 2 dozen cups of coffee at best, long ago. I never did like the taste. I'll continue to have my Diet Pepsi every morning to get me started. Thank you
11-11-2006 @ 9:03PM
paul j bokowy said...
Starbucks I have been to a couple dozen stores in all difference states and the chain has alot going for it.I think that the coffee is to strong for me,I have been at more dunkin donut stores then any other coffee places,and I think there coffee is always good.Starbucks is more sitdown kind of place to relay and enjoy but at there prices you could go broke buying a cup of coffee and roll seven days aweek,with a family of five it cost me forthy six dollar for five coffee and rolls that comes to threehundred and twenty two for one week,Starbucks needs to slow those prices down abit.
11-15-2006 @ 8:33AM
Zy said...
I'm a bit late commenting, but I currently work at Coffee People, and even though I'm fairly new it's ridiculous to see it go. Despite the fact that Coffee People became slightly less "hippie" in the last few years (which has brought in some customers and made others move away slightly), 'tis still more than a step above Starbucks.
It's not a conglomerate (I'm tired, and allowed to spell that wrong ^_^), doesn't feel like it, and now half the people who come through our store talk about how much they like us over Starbucks. Diedrich Coffee sold over 40 stores for 13.5 million dollars, and my store makes 1.5 a year in sales. Oh, and sales have been rising constantly and consistently in the last few years.
Also, the coffee isn't months old and nasty. ^_^