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".

[Roberto Minadeo]

Well, everyone must understand the personal problem of the founder. However, since he selled his company, it´s impossible to him continue in charge. Most important: all the things he made are alive, but in the form of an important piece of FedEx. So, he must be proud of it.

[Remember how it was]

Well I too thought, how sad. The death of a copy giant. Paul if you ever think of reopening Kinko's as it was... let me know.
I met Paul Orfalea back in 1993. What a terrific person and one passionant man. Give me the good old days of a fabulous Kinko's era. I worked for Kinko's for 15 years and enjoied every minute of it. I wish FedEx the best in their quest to ship the world, but killing Kinko's.... maybe not such a good idea.
If you really think it's time to make changes and keep up with the times, then you never walked in a Kinkoid shoes. Kinkoid's are loyal and like family to each other. Can't say that about FedEx. My theary, if its not broken... don't fix it! Thanks Paul for the good years.

[Dean]

The name change may or may not be a good business move for the company as it exists today. What irks me is that the brand was neglected. Kinko's was so 90s, as someone said, but before that it was very 80s and very 70s, too. It could have been very today if the new owners had understood the reflexive innovation built into the culture. For example, Kinko's today should be a leader in digital photography and video, online storage and retrieval, etc., because our real business was providing access to useful technologies while they were still too expensive for individuals or small businesses. In some ways, we were a simple rental business, or a co-op for new technology access.

And to all the obsessed Elvis apologists: yes everyone loves Elvis, including Paul and I, but Lennon's comment reminded us how much it hurts when you feel you've lost something you love. It's just a metaphor, not an attack.

[Charles Bindert]

The name change is a good strategic brand management move that should have been made a year or two ago. It is a tough business decision to throw out a strong existing brand asset, but the long term opportunities that come from focusing on the FedEx name are worth the switch.

Does this mean a mistake of made when they first chose to keep the Kinkos name? Absolutely not. Kinkos is a powerful brand. That’s one reason why FedEx bought them in the first place. And initially keeping Kinkos in the name gave FedEx the instant credibility in a market where they had no presence.

This was a tough decision that should have been made sooner. I agree that the entire asset should be managed better. Dean’s post is right on the money about how the Kinkos asset should have evolved. The crazy thing is that the very mismanagement that is causing the chain to lose money may have given them the courage to make the right decision about the name.

[James]

Kinko's is dead. Fred Smith killed it. Also, FedEx Office is officially losing money. It won't be long before it is a completely different operation.

[Lee J. DeMeo]

I worked at Kinko's during the Paul Orfela partnership era and also after CR&R took over. Paul sold to CD&R because he felt that, in order for Kinko's to expand and grow, this was necessary. This was several years before he sold his remaining stake and retired. The early days after the "roll up" of the individual partnerships into one corporation were invigorating..raises..new training plans and opportunities for employees like me, WHILE WE KEEP ALL OF THE INNOVATION, CLOSEKNITTEDNESS, Company Culture etc that Paul and others here have talked about. But sometime along the way, the corporate execs lost their way and stopped listing to the employees (who listened to their customers. And it all changed. It was a great company to work for (several years in a row listed in the top 100 companies to work for list.

You folks who are decrying Paul here were those who did not work for his organization and for the things he stoo for and brought into the company.
THERE ARE ALMOST NO companies today who understand customer service like we did at Kinko's (at least I can't find any...they all pay lip service to it but don't do it.

Paul, if you ever want to want to start Kinko's up again, or buy out those fools at Fedex who now don't understand the business. let me know... I'd like to be there.

[Jim C]

I worked at "Kinko's" before Fed-Ex and now I currently work at Fed-Ex Kinko's. I enjoyed work much more years ago before Fed-Ex. It was more about the customer and the job you performed. You had store meetings and managers and supervisors actually cared. Customer Service is a thing of the past ! Store Managers don't care about stuff like that anymore. Their main objective is to use the store a stepping stone on the way up the ladder. All we are now is a Drop - Off Center for Fed-Ex. I wouldn't be surprised in the next ten years if they didn't get rid of the copying side all together. Little by little you can see it going away !

[Fred Smith]

Don't worry. The UPS Store is open to service all of your document service needs. They have the ability to complete all the services you wil be losing now that Kinko's is gone. They also have over three times the amount of locations.

[Once a Kinkoid... always a Kinkoid!]

Kinko's is a household name that will NEVER be forgotten… Changing the name is not going to erase the imprint that Kinko’s made on the world.

For those who were lucky enough to be a part of the Kinko’s family, you understood Paul’s philosophy about loyalty and taking care of the customer and the coworkers.

We had hoped that FedEx would carry the torch… but they didn’t. Now they’re just another “office”.

[APRILLE SUNSHINE]

Because of Kinkos, I was able to complete all of my graphic design assignments, including my senior exhibition back as an undergraduate. This was from 1995-2000. FedEx wasn't even an option. So I will always have much respect for the founder of Kinkos, and Kinkos as a former business.

[claritygraphics]

Kinkos used to be an amazing resource for freelancers and beginning graphic designers. No longer. The company lost its soul and the quality of the people and services when it was bought by FedEx. The name change just completes the job.

[enrique]

i work for fdx express and most of us still call it kinkos

[Sam Chapman]

I'm with Paul on the ouch factor. Kinko's was becomming a generic name for copy and print shops. Fedex - you are idiots.