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Subject: Re: UKNM: Wimps?
From: Phil Gyford
Date: Tue, 27 Oct 1998 22:09:22 GMT

At 16:16 27/10/98 +0100, you wrote:
>>Does anyone know who started Seattle, was it ex Starbuck employee's ??
>
>As far as I remember - no

>From Electronic Telegraph, 30/4/98:

Coffee couple drink to 12m gold blend By Simon Anderson

SEATTLE Coffee Company, the husband-and-wife operation started in 1995 from
a single store in Covent Garden, yesterday sold out to US giant Starbucks
for 50m, valuing each of its coffee bars at nearly 1m.

The deal will leave Scott and Ally Svenson - who set up their own
coffee-shop when they could not find a decent espresso in London - some
12.5m richer, and put them in charge of Starbuck's European expansion. Mr
Svenson said yesterday that Seattle Coffee had a choice between joining the
giant Starbucks, which has 1,600 coffee bars in America, or competing
against it. He said: "Ultimately, Starbucks is going to be a global coffee
brand."

Seattle Coffee shareholders will get 1.8m Starbucks shares under the deal,
valuing the 56-store chain at more than $83m (50m). Mr and Mrs Svenson own
about a quarter of Seattle Coffee's shares, with the balance held by around
50 private investors.

The deal is the first step in a major European expansion programme for
Seattle-based Starbucks, which plans to open 500 coffee-bars across Europe
in the next five years to add to its worldwide chain.

Mr Svenson said Seattle Coffee - which will be rebranded Starbucks over the
next year - had an annualised turnover of about 20m, but the costs of
rolling out new coffee-bars throughout Britain meant that it was not yet
profitable.

Seattle Coffee's Aim-listed competitor, Coffee Republic, yesterday welcomed
Starbucks to the UK market. Bobby Hashemi, Coffee Republic's managing
director, said: "Having a large, established market player serves to expand
the market for everyone." He said the UK coffee-bar market was in its
infancy, with just 200 outlets in total in a market able to sustain more
than 1,500.


Replies
  Re: UKNM: Wimps?, Jamie Unwin
  Re: UKNM: Wimps?, Peter Beech

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