Kinko's founder all shook up as FedEx drops the K-name

From Times staff writer Alana Semuels:

Kinko’s as Elvis?

That’s the anguished analogy that the copy chain’s founder, Paul Orfalea, makes in his belated comments on FedEx Corp.’s decision to drop the Kinko’s name.

FedEx, which bought Kinko’s in 2004 for $2.4 billion, announced on June 2 that it was changing the name of its stores from FedEx Kinko’s to FedEx Office, which "better describes the wide range of services available" at the stores, the company said.

This was, of course, not the first time an iconic corporate name has been junked. The dust bin of history is filled with once-revered retail names, including Marshall Field and Filene’s (both swallowed by Macy’s). And this year, Matsushita Electric Industrial Co., which produces Panasonic products, said it would change its name to Panasonic Corp. in the fall, dropping Matsushita, the name of its founder.

But Orfalea, who founded Kinko’s in 1970, said in a statement on Friday that FedEx’s decision "hit me hard."

He built Kinko’s from a single shop in Santa Barbara to a national chain with more than 1,000 locations and 25,000 employees. (Orfalea was called "Kinko" because of his frizzy red hair, and named the shop after that sobriquet.)

Orfalea, 60, stepped down as chairman of the firm in 2000, and has since spent much of his time donating money to various causes in Southern California.

In his mournful comments, Orfalea said that Kinko’s used to be about "shared power, shared profits, and shared knowledge," but that the Kinko’s he created "has been gone for a very long time."

Just like Elvis -- in more ways than one, he suggests.

Orfalea ended his statement remembering what John Lennon reportedly said when asked about the death of Elvis Presley in 1977: "Elvis died when he went in the army."

"As music historians note," Orfalea said, "Presley entered the army [in 1958] as a rock and roller, but returned as a crooner and movie star. The rebellious independence Lennon loved in Elvis was gone long before the King died."

Hmmm. So Kinko’s, like Elvis, had its soul sucked out of it? Sounds like a good subject for a biz book.

Sure enough, Orfalea notes that’s he’s at work on a tome to be titled, "Kamelot: Kinko’s Brief Shining Moment in American Business History."

He says: "We want more entrepreneurs to know how Kinko’s became so successful with its unconventional partnership structure, why the corporate culture was unique, how we listened to our counter folks to focus on customers, and ultimately how the remarkable in-store and corporate culture and innovation was lost."

For book marketing purposes, FedEx might just have done Orfalea a favor.

Photo: Elvis gets his first Army haircut at Fort Chaffee, Ark., in March 1958./Associated Press

Comments

[Pete]

Yes, oh how sad for this man. They destroyed the precious thing he loved years after he reluctantly agreed to be paid hundreds of millions of dollars for it. I grieve for him and hope the splendid opulence of his retirement years will not be too heavily burdened with this sad, sad event.

[Sten]

Dear Pete, people do care about more things than just money.
The fact that he sold his company for good money doesn't mean he sold his memories of when and how he built that company.

[Maurice Colgan]

Funny how John Lennon during a concert at Madison Square Gardens exclaimed "Elvis, I love You", back in 1972!

It looks like Elvis Presley's EARLY death was greatly exaggerated.

Kinko ko'd is just time marching on.

One day FedEx may be flying it's goods out of the "Elvis Presley International Airport, Memphis".

[Kissa Pittman]

Oh, I do feel so sorry for poor Orfalea.
May he learn a few history lessons before he puts foot in mouth.
John Lennon also said of Elvis..."Before Elvis, there was nothing".
John Lennon was also noted for wearing an ELVIS pin on his lapel after Elvis died on a number of occasions. I feel sure Lennon also saw the '68 Special with Elvis at his most gorgeous and growling best in his black leather. And, in the famous white suit singing "If I Can Dream".
And that "crooner", as he is unaffectionately called here, sang some of the most beautiful songs of his life in the '70's. Hmmm no soul left? That means you haven't listened. That means speaking of something of which you know nothing.
If this is all poor, poor Orfalea can muster up to make a comparison where he feels jilted, isn't that just too bad.
Leave Elvis out of your pity stories.

[Dan Hartman]

Paul was a great man to work for. I gave 10 years to the organization and he along with others taught me about business, life and service. What a great man and a sad day doing away with the Kinko's name. Kinko's will always be remembered for its legendary customer service and 24 hour operations. We worked hard, but we had a fun doing it. Thank You Kinko's.

[Alan Miller]

They should call it FedExConvenience since the stores now look like your basic 7-11, rather than the fantastic print shop it was. Why is it airlines don't have a clue when they buy other businesses? What a waste. And this from a Kinko's customer who runs up a $25K plus bill annually. Hopefully they'll retain a few copying machines.

[sevendolphins]

hmm... the first Kinko's was not in Santa Barbara, but Isla Vista, which is not a part of Santa Barbara.

[PNW Trojan]

Sten...you're quite correct, and I add, 'If FedEx had brains and a heart, Kinkos, the name EVERYBODY KNOWS, would be a much BETTER contributor to FedEx profits. Just more, uncaring neglect, by the over-paid attendants at FedEx.

[allegro805]

This quote bothers me a bit: "Orfalea said that Kinko’s used to be about "shared power, shared profits, and shared knowledge," but that the Kinko’s he created "has been gone for a very long time.""

The truth is, he could still be running a mom-and-pop operation with a manageable number of stores, and reaping enough for a "comfortable enough" lifestyle if he wanted to -- many people manage to do it -- instead, he chose to grow the company to a size so that all those values of "sharing" were apparently no longer viable. Mourning (very publicly) the fact that the "Kinko's he created is gone" just seems disingenuous. Life's full of tough dilemmas, innit?

My guess is that the lifestyle afforded by $2.4B will soothe this existential hangover.

[Rich]

Not to be mean, but if retaining the Kinko's name was of paramount importance, wouldn't it have been better to not sell the company? I'm just putting it out there.

[Gary, Dallas TX]

I work for FedEx Kin.... er Office. It is very difficult getting used to saying "FedEx Office". I think it is a positive change. The era of "Copies" is over. Most everything is electronic now. Kinko's has lost money for several years now (even before FedEx). OfficeMax, Office Depot and Staples type stores sell copies for under cost because it isn't their main business. Kinko's can't compete. FedEx needed an answer to the "UPS Store" other than their always remote "drop off" centers. the way I see it, FedEx saved Kinko's from an undignified ending and in the process gave themselves a head start to their own store fronts. Kinko's has always been known for it's convenience when it comes to a place for people on the road to have an office to work out of. It is more of a "remote office" than a copy center now. "Office" is a common sense replacement.

[Dennis]

I have no sympathy for rich people. Cry all you want, but if you wanted to keep the Kinkos name, you should have made that a plank in your agreement when you sold to Fedex.

[Dean]

Democratic ideals do not lose viability as organizations grow larger. Before CD&R's "strip it and flip it", Kinko's still offered generous profit sharing throughout the very large company, and coworkers had a voice protected by a company philosophy/constitution that valued BOTH independent thinking and teamwork. But CDR viewed money distributed to coworkers as money left on the table. I worked at Kinko's from the mid-80s to the end of the 90s, and it was a pretty amazing journey. I hope the book I'm writing with Paul will show that tyranny is not the only road to success, despite what the Cheney/Skilling crowd thinks.

[Jackie]

I liked FedEx Kinko, it rolls off the tongue nicely, the new name sounds really dull and boring. I don't know who suggested it but they should have asked people off the street for their imput, they made a mistake. But then who cares!

[Jim]

Everyone will still call it Kinko's--not FedEx Kinko's. Why are they fighting the customers?

However, ultimately, the success about this is not about the name but the service and how the FedEx Office stores are run.

In Chicago, Marshall Field's was more than a shop like Kinkos. It was an institution that over 150 years transformed Chicago from another midwest town into an international destination.

Two years later, the Chicago area stores that were formerly Marshall Field's are still faltering hugely as Macy's. This is because they not only changed the name but also because Macy's downgraded the quality of service and merchandise. Sales are rumored to be down over 30% by some accounts CUSTOMERS still picket the store and they have even taken the CEO to task at last month's shareholder meeting.

This seems to be just a name change on the part of FedEx. Some people will always call it Kinko's. I think they should stick with FedEx Kinko's.

But if they make changes beyond the name, it will be another disaster like Chicago's Marshall Field's being downgraded in to Macy's.

[ArmyVet]

I think FedEx made a huge mistake....not just today, but when they initially named the operation FedEx Kinko's. That was too long, and confusing. What, in my opinion, they should have done was built the Kinko's sites, and had them do what they do best, plus be a shipping location for FedEx, UPS, DHL, etc. The Kinko's brand could have warranted about 10,000 more small, possibly franchised, locations. Now, with only one brand, FedEx, they are head to head with UPS with gas prices looming higher.

[RD]

Fed ex will one day be a thing of the past. Can't feel too bad for a person that made hundreds of millions. JMO

[David]

I knew several employees woeking at Kinko's corporate office in Ventura, CA before their IPO. A lot of good, happy employees lost thier jobs when the suits came in and Kinko's became not such a nice company to work for. Too bad Paul Orfalea's legacy died before he did...but ultimately it was his own greed which did him in.

[Jerry Gropp Architect]

I once met Paul Orfalea in one of his early stores and found out why so many of his employees revered him and worked so hard with him to make Kinkos the success it is.

Jerry Gropp Architect AIA
Mercer Island, Washington

[k]

thanks "kinko" for supporting ucsb! found his name on a building plaque there recently.

[go]

Students and former students (like me) who have used Kinko's a lot may have grown accustomed to the name Kinko's.

But people who are not familiar with the name Kinko's always ask "What's Kinko's"? Instead, the name FedEx Office may be more self-explanatory and easier.

[RJA]

Hate to break the news to everyone, but the FedEx brand is more reliable,
noteworthy and embraced than Kinko's. For anyone to assume that FedEx should have left the name Kinko's instead of adding FedEx to it doesnt have a complete understanding of Brand recognition. Kinko's is so 90's..time to turn the page, FedEx will keep on growing in spite of this transaction.

[dorky]

please.....could of spent the money or put into the drivers pension..891bill
for the name office(office depot,office max, im lost.....oh kinkos)

[Cory Cooper]

How ironic, Kink'os has made billions of copies but nobody can ever copy Elvis Presley.

My best to Mr. Orfalea. He revolutionized the way we do business.

Cory Cooper
Elvis Historian, Consultant and Technical Advisor
ElvisExpert@aol.com

[Nancy H]

I was a part of Kinko's then FedEx Kinko's for over 20 years. Paul and his partners created a huge following of customers and co-workers alike through dedication, hard work, loyalty and listening to each other. One thing we all know (except FedEx, I guess) You SHIP things at FedEx you don't make copies there. You make copies AND ship things at FedEx Kinko's.
Glad to see you're still around Dr. "Z".