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No. of Recommendations: 2
(In response to Pencils recent post on the Peet's Board.) Thanks for the post. My response is below.

Just recently my wife and myself were in a Marriot Hotel (very high class place, we were just using the pay phone. lol) by the Berkeley Ca pier. You may know the place. Anyhow, they used to serve Peet's in their "gift shop". To our dismay they are now serving Starbucks, exclusively of all things! geeeeeez yikes!!! (-; Peet's has very high standards as far as having their associates brew fresh, frequently.(I think it is every half hour. I know it is at their stores)

One of the keys to Peet's succes IMO is that they do not compromise on freshness....(one of the many things that distinguishes them from the competition). I hope they are able to market their fresh coffee effectively on the "drink" level (in the abbove mentioned scenerio), in addition to their 100 plus stores & growing), along with their grocery store and other outlets for their beans. I remember on a 1/4ly report they said they lost this (so and so) account because the ( I believe this was a Hotel chain in SF) was not able to keep up with the high standards of Peets. This chain no longer serves Peet's.

It seems to me this could potentially hurt Peet's (to what degree I don't know) as it is possible many people/outlets will be unwilling to keep up with the constant brewing.

Any thoughts?

Long on Peets

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No. of Recommendations: 2
I'm familiar with Peet's Coffee because I've been to one a few times in my area. From the sound of it, it seems like Peet's Coffee would be a great place to go to for a good cup of cofee. However, I think the high standards could hurt the business in the long run.

First, we have to think about customer experience. How many people will actually become loyal customers to Peet's? I'm sure they have a group of loyalists that love the fresh coffee, but will the everyday person want to switch over to Peet's ? (From SBUX) I think the masses will continue to go to SBUX because they can get their coffee fast, and it's convenient. I doubt there will be many "fresh coffee" zealots.

Second, I'm worried about competition/expansion. Peet's already is a high maintenance coffee shop, and that hurts their margins. I don't see rapid expansion because of their strict standards and high competition.

I have no doubt that this is a great company which will take pride in it's name and also make a great cup of coffee. But success for a company doesn't always equal success for the shareholders.

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