Tully's Coffee facts for kids
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| Owner | Keurig Dr Pepper |
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| Introduced | 1992 |
Tully's Coffee is a brand that makes and sells special coffee. It is owned by a company called Keurig Dr Pepper. They bought the Tully's brand and its coffee-making business in 2009.
Before this, Tully's was also a chain of coffee shops. These shops started in Seattle, Washington, in 1992. They were founded by Tom "Tully" O'Keefe. The stores sold special coffees, espresso drinks, and tasty baked goods. The coffee shop chain in the U.S. closed down in September 2018.
However, the Tully's brand is still used in Japan. There are over 600 Tully's coffee houses there. These Japanese stores have been owned by Ito En, Inc. since 2006. Tully's coffee shops were known for opening stores right next to Starbucks, another big coffee chain from Seattle.
Contents
The Story of Tully's Coffee
How Tully's Started
The very first Tully's store opened in Kent, Washington, in September 1992. Tom "Tully" O'Keefe, who started the company, wanted to compete with the fast-growing Starbucks.
Tully's quickly became a popular coffee seller in the Puget Sound area. This area in Washington state loves coffee, with many coffee shops everywhere. In 2006, Tully's made a profit for the first time. The company then focused on making great coffee for its local Seattle shops.
Tully's also had stores run by other companies (franchisees). You could find their coffee shops in grocery stores in the U.S. and Asia. They had stores in San Francisco, Los Angeles, Idaho, Arizona, and California. Tully's also allowed its brand to be used in South Korea and Japan. They even opened stores in Singapore, Metro Manila, Beijing, and Stockholm, Sweden.
Tully's in Japan
Tully's opened its first store in Ginza, Tokyo, Japan, in 1997. A Japanese bank employee named Kota Matsuda really wanted Tully's to open in Japan. He asked Tom O'Keefe to bring the coffee shops there.
Matsuda became the boss of Tully's Coffee Japan. This was a joint company with Tully's and other investors. Unlike Starbucks, which ran its own stores in Japan, Tully's grew by letting other companies open stores using its name. In 2006, a Japanese tea company called Ito En bought Tully's Coffee Japan.
Changes and Challenges
In 2007, Tully's planned to sell shares of its company to the public. This is called an IPO. But they stopped these plans because the stock market was not doing well. The company then looked for other ways to get money.
In 2009, Tully's sold its business that distributed coffee beans to stores. They also sold their brand name and coffee roasting business to Green Mountain Coffee Roasters. This deal brought in $40.3 million. It helped Tully's pay off all its debts. Tully's still kept the right to open coffee shops in North America. They also kept all rights for the rest of the world, except Japan.
In 2010, Tully's Coffee International made a deal to open up to 100 stores in South Korea. The company's founder, Tom T. O'Keefe, retired in 2010.
Closing of Coffee Shops
In October 2012, the Tully's Coffee company had money problems. They decided to file for a type of bankruptcy. This helped them try to make new deals with their landlords. At this time, Tully's had already closed many stores that were not making money.
An investment group called Global Baristas wanted to buy Tully's. This group was led by actor Patrick Dempsey. They offered $9.15 million to buy the company in January 2013. A judge approved this sale. All employees kept their jobs and even got a bonus. Later, Patrick Dempsey left the partnership.
In March 2018, Tully's announced that its remaining stores were closing for a short time because they ran out of coffee. Soon after, many stores stayed closed. Landlords put up notices saying rent had not been paid.
Tully's coffee shops officially closed in September 2018. Global Baristas agreed not to open coffee shops under the Tully's name again. Keurig continues to sell Tully's brand coffee products.
Images for kids
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Tully's Coffee logo
