Tully’s operators rebrand, end franchise pact

Brad Carlson//April 19, 2012

Tully’s operators rebrand, end franchise pact

Brad Carlson//April 19, 2012

Tully's Coffee shops are being rebranded in the Boise area. Photo by Brad Carlson

Tully’s Coffee closed on Saturday, April 14, at Eighth and Broad streets in downtown Boise. It reopened Monday, April 16, as Caffe D’arte.

The Pennington family of Boise sold the shop to Caffe D’arte, which has a coffee roasting operation in Seattle and coffee shops in Seattle and Portland. The Penningtons are ending their franchise agreement with Tully’s and launching a new brand, Caffe Capri, for their other shops: Idaho Street in downtown Boise, Gowen Road in Boise, Eagle Road in Meridian and Marketplace Boulevard in Nampa. These stores will sell Caffe Capri-branded coffee that Caffe D’arte will roast.

Manual espresso machines replaced automatic machines at the Caffe D’arte shop, which was also redecorated.

The Pennington family sold the store to help fund the plan for the other stores, Carl Pennington said.

He said the family signed a licensing agreement with Caffe D’arte to operate as Caffe Capri and a coffee supply agreement for Caffe D’arte, which roasts coffee in small batches that can be shipped within 24 to 36 hours of roasting.

The Idaho shops will be the first to use the Caffe Capri brand and logos and do not have to pay a fee to use the brand, Carl Pennington said.

Ending the franchise agreement with Tully’s saves an annual franchise fee that is 8 percent of revenue and enables independent management of the shops, he said.

“This gives the locations much more flexibility to make local decisions and cater to each neighborhood,” Carl Pennington said.

The shop on Idaho Street in downtown Boise was rebranded April 16. They others will start operating as Caffe Capri April 21.

Store manager Beth Young moved from the Nampa shop to Caffe D’arte at Eighth and Broad. Former manager Teri Becker is moving to the Gowen Road location.