• Report: #387079
Complaint Review:

Palm Beach Specialty Coffee LLC

  • Submitted: Sat, November 01, 2008
  • Updated: Tue, April 19, 2011

  • Reported By:San Diego California
Palm Beach Specialty Coffee LLC
3965 Lane Ste A-8 West Palm Beach, Florida U.S.A.

Palm Beach Specialty Coffee LLC Don't Even Think About Wasting Your Money On Palm Beach Specialty Coffe Business Oportunity SCAM West Palm Beach Florida

*Consumer Comment: I am a dissatisfied distributor who lost money on this business

*General Comment: Chamber of Commerce "Award" - Scam Information

*REBUTTAL Owner of company: Rebuttable to PBSC Anonymous Report

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I was set up by Craig Schmoll and Joseph Kelly. All they do is lie to you about everything. They say that their primary business are the coffee capsules, and that is a lie. Their primary business are the Espresso machines, which they sell at four times more than the real value, which they claim to be the only Distributors. Example: You can get the same machines from Comobar 2000 at $799.00 USD, and Palm Beach Specialty Coffe LLC charges $3,600 USD for the same machine, making it impossible to get your Investment Return with their business scheme.

You can also get the capsules online, either with Comobar 2000, or espressoitalia.com. If you even consider doing this, which I STRONGLY recomend you don't, try to get the machines from Comobar 2000, or EspressoItalia.com, and do it slowly, buy one machine first, and go from there. Palm Beach Specialty Coffee, talks you into investing at least $15,000.00 USD to start with, and I can assure you that you will never get your investment back. I made a huge mistake by falling for this, I paid $19,900.00 USD and now I am desperately trying to get out of this BS business, DON'T DO IT!

San Diego, California

This report was posted on Ripoff Report on 11/01/2008 07:49 PM and is a permanent record located here: http://www.ripoffreport.com/reports/palm-beach-specialty-coffee-llc/west-palm-beach-florida-33404/palm-beach-specialty-coffee-llc-dont-even-think-about-wasting-your-money-on-palm-beach-sp-387079. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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#1 Consumer Comment

I am a dissatisfied distributor who lost money on this business

AUTHOR: Nat - (U.S.A.)

I would like to share with everyone, my experience as a distributor with Palm Beach Specialty Coffee. Hopefully readers will learn a lesson from my sad experience doing business with them.

Here are the things I was told when I first considered doing business with them:

1. Craig Schmoll, one of the marketing managers of the company told me when I spoke to him that they have hundreds of distributors in the USA.

2. He told me that their company will place the Model Itala Coffee Machines for you in your area and that they will only place these machines in places where they are certain will sell on average 20 to 25 capsules a day. Schmoll tells me that this is the AVERAGE their distributors sell.

3. Schmoll tells me that their machines are sturdy, reliable and heavy duty and their distributors have not had problems with the machines for years.

4. Machines have a one year warranty. You can send the machine to them for repair if it does not work.

5. You will be in business for yourself but not by yourself, Palm Beach Specialty Coffee will always be there to help and guide you.

pHow have the promises panned out ?

Here's my experience.... I started out with $20,000 which gave me 5 machines, 20 cases of coffee capsules, and a trainer who came with me to place the machines in locations they believe will provide me with the volume of sales they promised.

Palm Beach Specialty Coffee called up 30 possible locations for visitation and placement.

My profit calculations based on the 20 to 25 capsules sales average they promised indicate that I would make my initial investment back in about 18 months.

Craig Schmoll advised me to charge a mark up of $50.00 per box ( 100 capsules ) which they tell me is reasonable for my area.

It took close to a month to place these 5 machines. They were placed in 4 eateries and one deli ( their estimate was it would only take 5 days ).

Most locations we visited complained about the steep price of each capsule (0.80/capsule), that is why it took us over a month to place all 5 machines.


1. The BEST location I get could sell on average, 5 to 7 capsules a day ( I asked them to promote the coffee, they did try ).

The rest of them sell on average 1-3 capsules a day. The Deli where they placed one of the machines could not even finish one box after 6 months !!

2. The machines started to get into trouble after 6 months. The handles that held the mechanical jaws that held the capsules were easily broken. I sometimes get calls from my best customer a few weeks apart telling me the machine isn't brewing cappuccino.

When I called Craig Schmoll up for support, I only get an answering machine and it would take him over a week to respond after I leave my message.

He would apologize by telling me that he had a health condition ( I would expect a competent business to at least have someone take his place when he is away ).

To fix a non-working machine, I would have to ship it back to Florida AT MY EXPENSE to have it fixed !!

This means that I don't do any business while waiting for the round trip.

I was fortunate to find out that there was a local affiliate of COMOBAR in my area where I can drive an hour to have the machine fixed.

The technician told me that the parts were no good and the machine was not assembled in Italy but in China. I had to pay a stiff amount to have the parts replaced and fixed.

3. When I needed new capsules to distribute, Schmoll would tell me to call COMOBAR directly and NOT Palm Beach Specialty Coffee.

So, the original complaint was right.... WHY BOTHER DEALING WITH Palm Beach Specialty Coffee when your supplier is going to be COMOBAR?

I have been doing this distribution business for 2 years and am closing down my business for good because the machines in each location are having problems and fixing them is going to cost lots of money.

I planned to be a coffee distributor, I ended up not only distributing coffee but having to worry about fixing their UNRELIABLE machines and earning the ire of some of the locations
using the machines.

I expected the machines to work well for years. It took only a few months to realize that these machines were LEMONS.

I have not recovered even a quarter of my initial investment in this distribution business. This is a sad experience I am sharing with everyone who reads this.

In the meantime, the last time I asked for support ( Craig Schmoll was not responding, so I went directly to the president of Palm Beach Specialty, Joseph Kelly ), I received an e-mail informing me that Palm Beach Specialty Coffee was NO LONGER IN BUSINESS.

A call to COMOBAR at this number : 1-888-922-0876 confirmed this. Palm Beach Specialty Coffee CLOSED DOWN.

In retrospect, I should have been very suspicious at the dubious profitablity of their business model by taking to as many of their so called distributors around the country.

When I asked Craig Schmoll to provide me with the names of at least 10 satisfied distributors in the USA, he balked and told me he could not do that because most of them were busy people. I insisted and he finally gave me the name of only one. I spoke to that one distributor in the Georgia/Alabama area and she seemed satisfied. However, having hundreds of distributors and being able to only show ONE satisfied partner and balking at giving out the names of others should have been a signal that something was not right with the business model.

 I am slowly winding down my business and have 3 of the 5 UNWORKABLE machines in my garage.
I plan to junk them as soon as my other two locations wind down due to broken machines. 

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#2 General Comment

Chamber of Commerce "Award" - Scam Information

AUTHOR: Twirls - (United States of America)

I don't know anything about your company, but I do know that your "Best Of" award is fake. You aren't a member of the Palm Beach Chamber of Commerce (I checked), but you actually PURCHASED an award from the U.S. Commerce Association, which is a scam company that is soley in the business of selling awards. I've received their solicitation emails myself, trying to sell my company an award for "Best of Environmental Resources for 2010".

Information regarding the scam can be read here: (((Redacted))) and here: (((Redacted))) as well as numerous other articles throughout the web.

Pretty hard to say you didn't know, when you do know that you never actually joined the local Chamber or attended an awards ceremony. You simply placed your order and PAID for a plaque.

I would suggest removing that tidbit of information from your company's bragging rights, as this scam is pretty well known.

CLICK here to see why Rip-off Report, as a matter of policy, deleted either a phone number, link or e-mail address from this Report.
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#3 REBUTTAL Owner of company

Rebuttable to PBSC Anonymous Report

AUTHOR: Joseph - (U.S.A.)

We at Palm Beach Specialty Coffee take a very strong exception to the above aforementioned incorrect, slanderous report sent by an anonymous person.(spelled anonymous incorrectly) The fact that this person chose to remain anonymous is a cowardly and non creditable act in itself. What type of person are you? Joseph Kelly is an owner and president since 2002. He has also been an active Licensed Florida Real Estate Broker since 1976 and has never had one complaint. The truth is Mr. Craig Schmoll nor any other business consultant ever, ever sold a business distributorship with Comobar 2000 espresso machines in San Diego, California.We have never offered for sale a business distributorship with the sale prices quoted by the anonymous person. We take great pride in offering a total turn key specialty coffee business at a fair market value and price.

Palm Beach Specialty Coffee is about to enter its seventy year of business with not one complaint (fiction or non fiction) with the South Florida Better Business Bureau who by the way will not accept anonymous complaints. We are also Accredited Members of the Better Business Bureau OnLine Reliability Program. What does that tell you about the creditability and validity of the above report? We are also members of the Palm Beach Chamber of Commerce as well as other business related associations. In September of 2008 we received a plaque and were recognized as the Best of West Palm Beach in our category of Coffee and Tea.

We do not sell just equipment. We market a total turn key specialty coffee business concept. Included with every distriburorship are the following all inclusive items:
*A supply of Regular, Dark and De Cafe coffee capsules
*Gourmet Syrups and Gourmet Toppings
*Frothing Pitchers of 20 oz and /or 32 oz
*Espresso Cup and Saucer Set
*Cappuccino Cup and Saucer Set
*Shot Glasses for Measuring Espresso
*Cappuccino Thermometer
*Four Color Posters 16 x 20
*Four Color Table Tents
*Marketing Brochures
*Electric Espresso Cappuccino Signs
*Espresso Machine Demonstration Cart
*PBSC Training Manual
*PBSC Sales and Demonstration Manual
*PBSC Corporate Trainer who will travel to your home town and place espresso machines for up to 1 week.

We have always maintained our in house location department who will supply appointments for the Corporate Trainer and the Distributor during the week of training. Most important we will always supply free of charge ongoing leads and appointments FOR THE LIFE OF THE DISTRIBUTORS BUSINESS. Yes, we do have a vested interest in our distributors business. The more productive the location for sales the more coffee PBSC and the Distributor will sell long term.

We service what we sell. We have our own in house repair department. PBSC offers a one year warranty on parts and labor for all espresso machines.

If this person is truley desperate trying to get out of this business, why hasn't PBSC ever been contacted? If this is a true PBSC Distributor that is failing, you need to contact this company ASAP. We are here to assist and as you may or may not know you are in business for yourself but never by yourself.

To conclude, I beleive the above report is a total hoax. I demand that the anonymous person provide proof that the transaction/Distributorship sale really occured.

Joseph P. Kelly
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