|
|
Tully Coffee Chairman and CEO Tom O’Keefe talks about “trying harder.”
|
The BBRC was treated to a first-hand account about the creation and growth of one of Seattle’s newest companies, The Tully Coffee Company. Chairman and CEO of the upstart company, Tom O’Keefe
has been in the commercial real estate industry for over 25 years and takes this experience into his new venture. Described by Bob Holert, who handled introductions, “Tully’s is like Avis …
they’re trying harder.”
O’Keefe brought his bright smile and disarming demeanor to the BBRC lectern and fit right in. “Since 1991, when Tully’s was formed, we’ve had a commitment to each community we serve.” O’Keefe answered the
question “How would we do the Starbuck’s thing differently?”
The points of difference between the two Seattle-based coffee companies are as follows:
“Tully’s offers: 1) dark roasted coffee; 2) our people are assigned to our stores with the idea they will be there for awhile: 3) our stores are bigger
and we expect our patrons to hang out there with us; and 4) our ‘philanthropy’ involves demonstrated support of local charities, especially kids’ programs.”
O’Keefe had a twinkle in his eye as he described how “the Avis of Coffee Companies goes after the Hertz. First, we try as best we can to locate as
near to our competitor as possible – across the street is preferable. We have a love-hate relationship …we love them, they hate us!”
In 1992, Tully’s opened its first store in Seattle. “It was kind of run like a hobby. By 1995-96, we had five stores, but we finally got serious and
now can boast 120 stores, with 28 more openings through October.”
|
Tom O’Keefe chats with BBRC members Wendi Fischer (left) and Bob Holert.
|
Along the way, Tully’s has captured some big accounts with lots of visibility. Tully’s has the coffee account at Safeco Field and at PacBell Park in San Francisco. In September and October,
the first stores will open in Los Angeles and “we’re really pleased with our new store in Sun Valley … we’re in a great location,”
says O’Keefe. “We can count among our customers Jamie Lee Curtis and Arnold and Maria Schwartzenegger on their recent visits to Sun Valley.”
Growth areas in the near future include Seattle, San Francisco, Los Angeles, Portland, and Chicago. Tully’s has 14 stores in Tokyo, 6 in Stockholm, and new openings in Singapore and Taipei. Two new stores
will open soon in Bellevue. “We’ve opened on the Sammamish Plateau and will soon have 11 stores open on the Eastside.”
Tully’s has over 5,000 shareholders as employees of the firm. The company has purchased the old Rainier Brewery and recently replaced the
red “R” with the green “T”. “Our fund raising efforts so far have netted $16 million for our growth plan,” O’Keefe observed. He explained that
the company’s name comes from an old family name … “an uncle was named Tully and it’s my middle name. All of our stores in the U.S. are
company-owned, while we seek joint ventures in all of our overseas markets. The big thing for Tully’s is that every store is absolutely identical so our customers feel at home wherever they go.”
Serving on the Governor’s Task Force on Liquor Distribution, formed by Governor Gary Locke, O’Keefe ask his BBRC audience how they felt
about privatization of liquor stores in the state of Washington. His simple poll showed a solid majority in favor of that measure.
O’Keefe was given a Starbuck’s mug, which turned into a Tully’s mug when the Star and the Dollar Signs were removed. Thanks to Bob Holert for his introduction.
|
