SEATLLE -- Starbucks Corp. has decided to close all 23 La Boulange retail bakery cafés, as well as the two manufacturing facilities that serve those locations, by the end of September 2015. It will also close the Evolution Fresh retail location in San Francisco.
Starbucks acquired the chain in 2012 for approximately $100 million to help boost its foodservice and snack menu.
"As a standard course of business, Starbucks continually evaluates all components of its business to confirm they are aligned with key priorities and strategies for growth, which includes the continued analysis of the store portfolio. Based on our ongoing evaluations, Starbucks has determined La Boulange stores are not sustainable for the company’s long-term growth," the company announced.
Starbucks has successfully delivered an up-leveled food experience with the rollout of La Boulange products in its U.S. and Canada stores, which have been well received by customers, it said.
"The La Boulange brand will continue to play a significant role in the future of Starbucks food in stores, and the company looks forward to serving delicious La Boulange food at its Starbucks retail locations in San Francisco and across the U.S. and Canada," it said.
The company added, "Partnering with Pascal Rigo, founder and creative force behind La Boulange, to bring his passion for developing authentic, homemade specialties made with simple, high quality ingredients to customers on a broad scale through Starbucks has resulted in a reinvented and elevated food portfolio, delivering the best possible customer experience at Starbucks. Now that the rollout of La Boulange products within Starbucks stores in the U.S. and Canada is complete, Pascal will move on from Starbucks to continue his passion for food in San Francisco while dedicating more time and resources toward his nonprofit ventures in an effort to supply quality food to schools with underprivileged children and bring innovative after-school clinics to help children with learning disabilities."
For the company's second-quarter and full-year 2015, food delivered growth of 16% year-over-year and contributed two points to the comp growth with every day-part, platform and region contributing to the increase. Sales of Starbucks new breakfast sandwiches have contributed 35% year-over-year growth in the breakfast platform. And, the company’s lunch platform delivered double-digit year-over-year gains.
Starbucks said its goals to grow its food business and deliver an incremental $2 billion in the next five years in the United States are "unchanged."
"Starbucks will continue to deepen its commitment to customers’ food experience in stores, ensuring it surpasses their expectations, just as the company has done with coffee and beverages," it said.
Seattle-based Starbucks has more than 21,000 retail coffeehouse outlets around the globe.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.