Steve Coffey, who worked to turn around Irvine-based Diedrich Coffee Inc. since late 2005, says his job is done.
Coffey recently stepped down. J. Russell Phillips, a board member since early 2007, now is chief executive.
Coffey transformed Diedrich, founded in 1983, from a struggling coffeehouse chain into a growing wholesale and distribution business. It now sells coffee at golf clubs, workplaces and restaurants.
Sales are booming.
Diedrich’s sales rose 30% year-over-year to $12.4 million for its quarter ended Dec. 12. It also cut its losses to $1.1 million in the quarter compared to a net loss of $2.1 million a year earlier.
“The stores were bleeding money,” Coffey said. “But there was an opportunity to make money in manufacturing.”
The company beefed up its 60,000-square-foot Castroville, Calif., plant, where it roasts and packages beans, and closed most of its Diedrich coffeehouses and its Coffee People stores. Diedrich sold them to Starbucks Coffee Co.
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Christian Louboutin shoes: plans to open in South Coast Plaza |
There is one company-owned Diedrich shop left at the Crossroads Shopping Center in Irvine. That lease expires this year, Coffey said.
Crevier BMW and McKenna Audi in Norwalk are Diedrich franchisees at the moment, he said. That could eventually end and those businesses could become wholesale customers, he said.
The company has kept its 125 mall-based Gloria Jean stores, which sell flavored coffee.
“That does have an opportunity down the road,” Coffey said.
Competition among coffeehouses is stiff. Even market leader Starbucks announ-ced plans to cut back on the number of its U.S. stores. To revitalize sales, it recently tapped chairman Howard Schultz to resume the chief executive role.
The coffee market has changed, said Coffey, who’s name is pronounced “coffee.”
“The original reason to go to a coffeehouse was to get a great cup of coffee,” he said.
Chains such as Peets Coffee & Tea, Starbucks and Diedrich raised the quality of coffee, he said. Premium coffee now can be bought at the grocery store and made at home with all sorts of elaborate coffee machines.
“Fewer people feel the need to go to the coffeehouse,” he said.
Coffey’s immediate plans: to dust off his golf clubs. But he says he’s planning on consulting when he finds an interesting project.
As for Diedrich’s founder, Martin Diedrich, he’s opened Kean Coffee in Newport Beach, across the street from his original shop, now Buon Giorno Coffee.
Louboutin Comes to South Coast
French women’s shoe designer Christian Louboutin plans to open a store at South Coast Plaza. The shoemaker, busy with Fashion Week, didn’t offer details.
Louboutin is the shoemaker of the hour again.
Oprah Winfrey featured Louboutin’s shoes on her show recently and wears them often. His shoes are distinguishable because they have shiny red soles and skyscraper stilleto heels.
They sell for upward of $1,500. Lou-boutin recently expanded into handbags.
Louboutin opened his first shoe store in Paris in 1992. The Christian Louboutin boutiques also are found at The Shoppes at The Palazzo in Las Vegas and in New York. His shoes also sell in Neiman Marcus, Bergdorf Goodman and Barney’s, among others.
Winning Technology
The Costa Mesa-based Orange County Automobile Dealers Association has a winning team in its annual automotive technology competition that was held late last month at Hyundai Motor America Inc.’s National Technical Training Center.
Loara High School seniors Francisco Lopez and Breck McVay won the competition, which was sponsored by Toyota of Orange. Instructor Russ Bacarella helped out. The team will compete at the National Automotive Technology Competition in New York in March.
The association sponsors the competition to help attract and nurture promising auto technicians, who are in short supply.
Kenneth Heil and Jose Luna, from North Orange County Regional Occupational Program at La Habra High School, placed second in the competition and were sponsored by Don Steves Chevrolet in La Habra. Ayoub Gara and Erick Jagosz from San Clemente High School, sponsored by Allen Hyundai in Laguna Niguel, took third.
Other participants in the competition included Sonora High School, sponsored by Hardin Honda of Anaheim; Mission Viejo High School sponsored by Phillips Buick Pontiac Mazda of Laguna Hills, and Los Alamitos High School sponsored by Suzuki Depot/Kia Depot.
All of the contenders received full one-year scholarships from the auto association to pursue studies in the automotive industry and partial scholarships from Universal Technical Institute, Advance Technology Institute and Perry Technology Institute.
