Diedrich takes the Starbux

WiFi06.JPGOrange County coffee house chain, Diedrich Coffee is selling out to Starbucks. They’re only selling their retail locations and will remain a coffee wholesaler but the current stores will become Starbucks or close.

Almost all locations are in Orange County but the had two here in the LA area – one in Santa Monica and one in Malibu (which I’ve been to a few times). They offer a free hour of wifi with purchase at most of their locations, but that wasn’t enough to keep them in the black. The sale was for $13.5 million according to the LATimes, which seems a little low to me but then again they also reported that they lost $1.7 in their most recent reported fiscal quarter.

Diedrich was Orange County’s coffee house, their first store opened in 1983.

OC Register Article / The Oregonian article (covering the effects on the Coffee People side of the business).

3 Replies to “Diedrich takes the Starbux”

  1. This is awful news. After Peet’s, Diedrich’s was the best coffee house in SoCal. Oh well, I guess I’ll save the walk off campus to go to their Irvine location now.

  2. i take it this means the one in Malibu will become a starbucks? and I will also assume that I can no longer go there for coffee and free wifi?

    Lame, it was nice to have a variety here instead of just starbucks starbucks starbucks.

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