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.










Reader Comments (Page 1 of 10)
9-21-2006 @ 2:37AM
borg said...
As a Starbucks Fan I must comment that I grew up through the 60's as a hippie and still have that attitude. As do many of the workers on many levels at Starbucks. So I am all for Starbucks to continue to do the good things it does for local communities. Here in Seattle they just gave over half a million bucks for redoing a large park. Now instead of a underused space it is a fantastic Signature Park. kids are there with families every day. Thank you Starbucks for the money and volunteered labor. To have local kids and adults come out and pitch in to remake a park in a week or so seemed just like my old hippie days. Perhaps you should adjust your attitude, or maybe you don't like parks?
9-30-2006 @ 6:24AM
RB said...
I must admit, I have been to Starbucks on several occasions and I don't see the attraction. The coffee is OK at best, the prices are overpriced and the staff seems to be snobby. Is that the attraction to you people?
9-30-2006 @ 7:21AM
WWeston455@aol.com said...
The coffee is great, a little over priced though.
9-30-2006 @ 7:33AM
SMiller said...
I think it is a very sad thing that corporate America has taken over all of the little funky coffee shops. While I have nothing personal against Starbucks, and do think they support good causes, I hate to see the independents go under. In Portland ME where there is a Starbucks, and 2 independents on the same street, I would always choose the independents over Starbucks. Why? Their coffee is better and you don't feel like a clone out of 1984.
9-30-2006 @ 7:43AM
Art said...
I guess I can say that I lived through but don't truly remember all of the sixties, so I must be a hippie! So as a hippie, it has been our desire to avoid the establishment and certainly the chain stores! Regardless of that path, I fail to see the attraction to Starbucks! The coffee is bitter, expensive and over-populating their presence. My younger brother loves the Starbucks franchise movement but he lost his way when he found money and Polo attire. Now I do try and avoid the Starbucks establishment and when I slip, I must set fire to their cup holders when finished. I still prefer a cup of coffee that is Good To The Last Drop and doesn't require a mortgage! Peace without franchise dominance!
9-30-2006 @ 7:47AM
Leslie said...
Starbucks....the epitome of corporate america hiding under "hippie" clothing. First off, "hippie" is almost a thing/person/icon/idea of the past. (Much to some of our saddness) Today's coffee drinking generation could care less about the implications of Starbucks taking over Coffee People (even in Eugene, OR!). Starbucks is over priced, their coffee isn't that great, their "food stuff" is terrible BUT they are an icon for the up and coming generation that want to combine what they THINK is "hippie" with Ipods and laptops; meshing together two very distinct ideologies in my opinion. Well, oil and water...Starbucks will stub that big toe one day and the independents that held out and held on will reap the benefit. I for one don't go to Starbucks and won't as long as there are independents out there.
9-30-2006 @ 7:54AM
REB said...
Dunkin Donuts has got Starbucks running scared in many parts of the country. There's always a bigger fish to swallow up the big fish that swallowed up the small fish.
9-30-2006 @ 8:22AM
dand said...
every generation needs their own matra. once it finds it way into others, it either fades away or transforms. starbucks has and continues to find ways to evolve into other "life forms". it has nothing to do with the coffee. the coffee is the "vehicle", not the roadway. look to see who's in line every morning...from highschoolers to the boomers parents. you have to appreciate the business model and thank God their involved with the community.
9-30-2006 @ 8:24AM
Heinz T Lehwald said...
Aw, gee whiz Mother
9-30-2006 @ 8:29AM
bbbuckeye said...
I'm no hippie, and I've never heard of "Coffee People" or Deidrich. I have heard of Starbucks, and occasionally drink their coffee. I do find it funny that everyone wants to blame SBUX for buying up good retail coffee LOCATIONS. After all aren't there TWO sides to a business transaction? The hippy-owned "Coffee People" at some point said, 'it's a good offer, and we want the money,' just like the people of Deidrich did earlier this month.
If you're a die hard hippie and committed to living that life, it's cool, but at some point (like when someone offers you $13,000,000) financial reality sets in and you have to make a decision that is best for your family's financial health. There are too many factors that go in to why someone is willing to give up their dream... but they ARE the sellers - Starbucks in this case is the willing buyer, apparently willing to pay a crazy large amount of money for a handful of places that simply serve coffee. Welcome to America!
By the way, I prefer Koa Coffee from the Koa Coffee Plantation in Hawaii - maybe they're hippies, but I don't really know or care.
9-30-2006 @ 8:35AM
Ascher Carl said...
Just thinking about spending my bucks there, makes me see stars.
9-30-2006 @ 8:38AM
Grace said...
I love starbucks, not just because of their VERY good coffee and EXELLENT service but because of what it is doing daily to take care of our community.It is going above and beyond to support our troops, giving back to the community is all i hear from this wonderful company. So if it is taking over every small companies, let be it because eventually the world will be a better place due to good morals that this company is bringing to our country. GO SBUX!
9-30-2006 @ 8:38AM
j said...
Back in the late 60's, when my beard covered the top three buttons on my shirt, I was often referred to as a "Hippie". While not displeased with the name, I would always ask the person for a definition. The blank stares I got gave me the standard assumption that the person asking MUST be on drugs.
9-30-2006 @ 8:41AM
Carol said...
I'm hooked on Starbucks Decaf Mocha Frappachino's and Iced Americanos. When I visit my daughter's in Anderson, SC there is no Starbucks there. They have to travel to Clemson or settle for Cappachino Blasts from Dunkin Donuts.
9-30-2006 @ 9:09AM
Rich said...
The owner of the local starbuck is a good business operator. He has hired a gaggle of very cute girls to work behind the counter and flirt with all the guys that come in. I go on a regular basis. The coffee is OK too.
I'm not so sure I'd go into a coffee place with a bunch of hippies behind the counter.
9-30-2006 @ 9:16AM
George said...
3$ for a fucking cuppa coffee.. Are ya nuts?
9-30-2006 @ 9:17AM
Paul Orth said...
I'am with j and echo so many of the other comments, coffee is coffee, I have a local spot that I prefer but thank goodness there are no SBUX in this back of the woods town I live in. I think they would loose out to Mickey D's and BK. Not only that but where I live money is an asset closely guarded.
9-30-2006 @ 9:22AM
Jessica said...
I love Starbucks but I loved it more when it first came out and nobody knew about it.
9-30-2006 @ 9:28AM
blackfish said...
at least PEET'S is still around... YAY!
9-30-2006 @ 9:30AM
Rachel Saldivar said...
If Starbucks can buy a coffee chain for 13 million why do they keep asking ME to buy a pound of coffee to send to the troops in Iraq? American soldiers are dying around the globe to "protect" American business interests (including Starbucks) around the globe, it would seem that Starbucks could send some coffee to the soldiers on thier own dime. For this reason and that the fact that they are over priced, and lack product diversity I have to chosen to fully support my locally owned and independent coffee provider.