Diedrich Signs Deal to Open 50 Shops in Florida

Irvine-based Diedrich Coffee Inc., in the midst of an aggressive expansion effort, announced Monday that it has signed a development agreement to open 50 new coffeehouses in northern Florida.

The agreement was struck with Paradise and Associates Inc., which operates Taco Bell franchises in Florida, Alabama, Louisiana and Mississippi.

Previously, Diedrich lined up Taco Bell franchise operators in San Diego and North Carolina to open a total of 89 coffeehouses.

Diedrich Chairman John Martin and his second-in-command, Tim Ryan, are former Taco Bell executives widely credited with turning a regional chain into the world’s largest Mexican-themed fast-food operation.

“This agreement represents another major step in our national expansion efforts and provides a great opportunity for Diedrich Coffee to enter the Florida market,” said Ryan, president and chief executive.

Diedrich has 36 coffeehouses and seven coffee carts in Southern California, Denver and Houston. Martin has vowed to secure a strong second-place position for his company, behind industry leader Starbucks, with 1,500 stores during the next few years.

In February, Diedrich agreed to buy Castroville-based Coffee People Inc. in an effort to increase the company’s cash flow and size. The $35-million deal is expected to close this summer.

Diedrich has also struck a deal with El Torito Restaurants Inc. to serve coffee in El Torito, El Torito Grill and El Torito Express restaurants in five states, including California.