A Nice Cuppa

In a move which is sure to ruffle the feathers of Diedrich Coffee and Coffee People fans, parent company Diedrich Coffee has decided to ???focus resources on growing wholesale and franchise businesses??? by closing and/or selling their corporate branded stores as well as company-owned Coffee People locations. To that end, Diedrich Coffee announced yesterday from their Irvine headquarters the sale of most of its 47 company-owned locations to Starbucks Coffee Company for approximately $13.5 million. Assuming all conditions of a sale like this are met, the transaction should be complete within the next few months.

Starbucks hasn???t said much about the deal, but a corporate representative did tell The Oregonian, which is based in Portland, Oregon where Coffee People was first started before being acquired by Diedrich Coffee in 1999, that they would ???operate the acquired locations — under its own name within a couple months — even in areas???where it has nearby locations.???

There???s also a story about the sale in the Los Angeles Times, which is located in Southern California not too far from the Irvine-based Diedrich???s headquarters. While the Diedrich and Coffee People names will be going away it looks like, ???Diedrich will continue to franchise and supply coffeehouses under its Gloria Jean’s and Diedrich Coffee brands???.