Tully's Coffee
| Company type | Private |
|---|---|
| Industry | Restaurants |
| Founded | 1992 |
| Headquarters | , United States |
Number of locations | About 180 coffee houses in five western U.S. states; brand licensed to Tully's coffee houses in Japan and South Korea |
Key people | Tom T. O'Keefe, Chairman Scott Peterson, President and CEO |
| Products | Coffee |
| Revenue | $50.8 million (2004)Sales |
Number of employees | 899 (2004) |
| Website | tullys.com |
Tully's Coffee is a specialty coffee retailer and wholesaler based in Seattle, Washington, United States. Its stores serve specialty coffees, espresso, baked goods, pastries, and coffee-related supplies. It also has overseas licensing agreements in Japan and South Korea where its brand name is used for Tully's coffee houses in those countries. Tully Coffee is well known for once following an expansion strategy of opening stores adjacent to the opposing coffee giant Starbucks, also based in Seattle. There's a running joke in Seattle that the easiest way to find a Tully's is to stand in front of a Starbucks and turn around. The busiest Tully's in the world is located inside the Boeing Everett factory,[citation needed] near where 747 aircraft are built.
History
Tully's opened its first store in Seattle, Washington in 1992. [1]
The founder of Tully's Coffee, Tom Tully O'Keefe, planned to rival the quickly expanding Starbucks coffee. Tully's quickly developed into a strong regional specialty-coffee retailer that was concentrated in Puget Sound, where coffee loyalty is so deep there is one coffee shop for every 4000 people. In 2006, Tully's made its first net profit. But more recently, the president and CEO has described Tully's focus as no longer on competing against the mega giant Starbucks, but on serving fine hand crafted coffee (and expanding into the Wholesale market).
It now operates nearly 200 stores in the Greater Puget Sound area of Washington, San Francisco, Los Angeles, Idaho, Arizona, and licenses its brand for use in South Korea and Japan. It has also opened one store in Stockholm, Sweden. Tully's sold the most profitable unit of the company—its Japan partnership—for US$17.9 million in September, 2005.
In August 2007 plans for an IPO were placed on hold with the company citing a "volatile market." This decision though was made right after the company was unable to secure investor financing for the IPO. Fiscal 2006 losses amounted to $9.7 million.
Tully's sold its bean distribution business and brand to Green Mountain Coffee Roasters in 2008, earning $40.3 million in the deal, allowing them to pay off part of its balance sheet of 102.1 million dollars and expand its retail business.[2]
In 2010, Tully's Coffee International and DK Retail Co., Ltd. entered into a Master Licensing Agreement to develop up to 100 retail stores in South Korea.[3]
The founder of Tully's Coffee, Tom O'Keefe, retired in 2010 as chairman of Seattle's second-largest coffee retailer.[4][5]
Tully's Coffee filed for Chapter 11 bankruptcy in October 2012, citing low cash reserves and the need to renegotiate leases with landlords. At the time of the filing Tully's had recently closed or was about to close 17 unprofitable company-owned stores.[5]
Drinks
Tully's uses standard hot cup sizes: 8 US fl oz (240 ml) short, 12 US fl oz (350 ml) tall, 16 US fl oz (470 ml) grande, and 20 US fl oz (590 ml) viente. Until October 2009, iced drinks were 4 US fl oz (120 ml) larger in order to accommodate for the addition of ice to the drinks. All of its espresso drinks were made using organic and fair trade beans, but this was discontinued near the end of 2008.
Wi-Fi
As of January 14, 2007, Tully's Coffee offers free wireless internet at designated hotspots.
References
- ^ http://www.tullyscoffeeshops.com/franchise/domestic/
- ^ Vermont coffee company will buy Seattle brand
- ^ [1]
- ^ [2]
- ^ a b Struggling Tully's new plan: bankruptcy protection Seattle Times, October 10, 2012