O'Keefe first began thinking about opening a gourmet coffee business in , when, as president and chief executive officer of O'Keefe Development Corporation--a real estate development and investment firm he'd founded in he helped Starbucks and other coffee companies find retail sites for their coffee shops.
Known for his fun loving, but extremely competitive nature, O'Keefe was puzzled by the fact that no company had stepped forward to challenge Starbucks. There were a lot of mom-and-pop operations. There were a lot of franchises. But nobody was competing with Starbucks' profile. O'Keefe named his new company Tully's, using the middle name he shared with his Greek uncle, Tully, a man in his seventies who lived in New Hampshire.
Its coffee houses were modeled after Starbucks but featured warmer interiors and targeted customers who wanted to spend time lingering over their espresso. In later years, select stores featured electrical outlets for computers, fireplaces, shoeshine stands, outdoor seating, and a "strictly business" section with local and national newspapers.
Tully's further differentiated itself from Starbucks by its lighter roast and by investing its marketing dollars directly in the community instead of advertising. The company grew at a steady pace. By late , Tully's had close to ten retail outlet stores in the Seattle area ranging in size from to 1, square feet and had added Italian-style "Tullini" sandwiches to its offerings.
It was also the official coffee of the Seattle Space Needle restaurant. The money raised went toward leasing new corporate headquarters and a roasting plant where Tully's began roasting its own coffee blends.
The new roasting plant and corporate offices, which opened in January , had previously been those of Starbucks Coffee Co. The impetus for this trend emanated from San Francisco, Portland, and Seattle. Tully's was founded in Washington in by Tom O'Keefe, but it struggled to compete with the rise of Seattle-based Starbucks.
Behind the scenes, Avenatti was the original sole owner and manager of Global Baristas before Dempsey joined as a partner, according to a complaint filed by Dempsey. Dempsey who left Global Baristas in August and Avenatti said at the time that the company planned to revamp and expand Tully's. Global Baristas struggled to pay suppliers and landlords, with more than 45 lawsuits filed against the company for issues such as unpaid rent and late payments. In March, all remaining locations suddenly shut down.
Many are single moms that seriously depended on their income to support their families," the employee continued. At the time, Suzy Quinn — Tully's head of communications who is now working as Stormy Daniels' head of media relations — told the Associated Press that the company was "rebranding," an effort that could take months.
Since then, a number of shops that formerly hosted Tully's have been reopened under new names and ownership, completely separate from Global Baristas. Avenatti has faced more general scrutiny regarding his finances since Business Insider initially reported on Tully's in April. Avenatti told reporters that Frank instead owed him millions for "fraud" he committed.
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Foursquare City Guide. Log In Sign Up. Planning a trip to San Francisco? Foursquare can help you find the best places to go to. Find great things to do. Tully's Coffee. The reason for the closure: It ran out of coffee. Keurig has an ongoing legal battle with the coffee company.
The company has also been pelted with lawsuits. Some of its stores have been evicted by landlords. He originally bought the company out of bankruptcy in
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