September 16, 2006

Diedrich’s Coffee whimpers into that good night

Filed under: Orange County — Professor Salt @ 10:55 pm

Don’t screw with my car, my family, or my morning coffee. That’s not too much to ask, is it? The OC Register reported that Starbucks assimilated Orange County’s own Diedrich’s Coffee into the collective.

Even though Diedrich’s combined holdings made them the nation’s second largest coffee retailer, the Irvine based corporation roasts a decent bean. Their many locations made it easy to get a quick cuppa joe, though I seldom bought my beans there. I’m not privy to the workings of their company, but I’m guessing a series of wrongheaded corporate decisions (like selling out to the Borg for a piddling $13.5 million) caused Martin Diedrich to leave his family’s company and start Kean Coffee in Newport Beach.

What does this mean to Orange Countians? Diedrich’s dumped their 40 company owned retail stores and will focus only on its wholesale business. Those 40 locations will close over the next few months, then reopen as Starbucks clones. Diedrich franchisees will continue to operate their stores as always, although I can’t imagine they’re excited to report to their new bosses. Why would they have bought into Diedrich’s in the first place?

We have industry iconoclasts like Peets and Starbucks to thank for launching America’s coffee revolution in the 1970`s against the Maxwell Houses and Folgers of that day. Ironically, their successes have made them targets of today’s artisan roasters. The coffee revolution enters a new phase, and I’m taking sides with local independent roasters like Kean, Polly’s Coffee and Javatinis.

Kean Coffee
2043 Westcliff Drive Suite 100
Newport Beach, CA
949-642-5326

Javatinis
148 Main Street
Seal Beach, CA
562-626-8202

Polly’s Gourmet Coffee
4606 East 2nd Street
Long Beach, CA
562-433-2996

9 Responses to “Diedrich’s Coffee whimpers into that good night”

  1. Chubbypanda Says:

    Hey Prof,

    That’s some truly heartbreaking news. I’m not a big coffee person, but I spent two and a half years working at a French bakery in high school and was trained to recognize and brew good coffee. Starbucks has good coffee. Diedrich’s has better and more interesting coffee.

    One of the most depressing aspects of incorporation in the food industry is the effect it has on product variety. When a national or international chain needs to worry about procuring enough of a new product to stock all of their stores over a period of years, they’re far less likely to take chances on stocking artisan products unless those products can reliably be mass produced. Producing on a scale large enough to satisfy a national chain is incredibly difficult for a small producer. This is why I’m leary of anything labeled “artisan” in large chain stores. Chances are, it’s a hefty markup for nothing special.

    I’ll definitely be checking out your coffee recommendations. Large chains definitely offer standardized and reliable levels of product quality, but small mom & pops are where the interesting and unique can be found.

    - CP

  2. OC in OC Says:

    Diedrich Coffee goes homeless…

    Surprising news in the Reg. — Diedrich Coffee has agreed to sell its coffee shops (all 40 of ‘em) to none other than Starbucks. Franchised stores won’t be affected, only company-owned retailers. But the 21 Diedrich Coffee shops in……

  3. LBQT Says:

    I understand from Dave, owner of Javatinis, that he has just opened, or will very shortly open, another shop, just past the office buildings at South Coast Plaza. His objective is to give the office worker bees and commuters a good cuppa coffee/espresso as an alternative to the Evil Empire.

  4. elzapato Says:

    Hey QT,

    I just called Javatinis and the woman I spoke to didn’t have much info on the new location. She thought it was opening in November in Laguna Hills, but clearly had no firm idea. Since you spoke to the owner, I’m betting on your intel.

  5. coffee Says:

    I ran across your site while just surfing around, wanted to say hi and I like the blog.

  6. -m Says:

    It is truly the moron’s route to equate success with evil. Unfortunately the internet is full of under-informend over-oppinionated blowhards who wouldn’t know a good cup of coffee if it bit them in the ass.

    Starbucks Coffee has been consistently making some of the best coffee in the world for over 30 years. They’ve also been the pioneers behind what we know as “espresso drinks” today. All that while treating their employees with respect and dignity; ie, providing good working wages, profit sharing and health insurence for part timers.

    Diedrich’s was a nice little shop. They roasted some pretty nice coffee and provided cheap slackers some free wifi. And now they’re gone. If they had planned a little better, you would all be calling them the Evil Empire too. Because, as we all know, success only comes if you kill puppies and piss on babies.

  7. eura nidiot Says:

    wow, a little late for what ifs. but check out these coffee shops, then you’ll know what coffee really is. until then keep drinking milk that goes sour before you even get it.

  8. David Vallejo Says:

    Hey Professor,

    Thanks for the nod. I just wanted your readers to know about our second location (Javatinis Coffee)which just opened at 22972 Moulton in Laguna Hills. It’s on the corner of Lake Forest and Irvine Center Drive. We also have a third in the works on the intersection of Sunflower and Main near South Coast Plaza. Soon all OC’ers will be within 15 minutes of one of our 3 locations. We will be roasting daily in each of them.

    By the way, I for one don’t hate Starbucks or even think they’re evil but they certainly didn’t “pioneer” anything. True espresso beverages pre-date Starbucks, foundend in the early 70′s, by hundreds of years. Even their famous “frappuccino” is copied. They were merely the first to successfully mass produce their model, which by the way, is not popular because of beverage quality but rather the experience and environments they provide. JMO
    They have certainly increased awareness and demand for better coffee, and for that I thank them!

    Thanks again,
    David Vallejo
    Javatinis Coffee

  9. stephanie Says:

    Well, the burnt roasted beans have finally hit our Houston area Diedrich’s as well!
    Where the heck am I gonna enjoy my cup of coffee?
    Any advice for us in Houston as to where we can purchase good coffee?

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