Tags: La Boulange Closing Along With Pastry Factory | Says Starbucks

La Boulange Closing Its Cafes, but Its Food to Stay at Starbucks

Image: La Boulange Closing Its Cafes, but Its Food to Stay at Starbucks
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By    |   Thursday, 18 Jun 2015 10:13 AM

All 23 La Boulange bakery cafes in the San Francisco area will be closed, Starbucks announced, saying the chain purchased for $100 million in 2012 was "not sustainable for the company's long-term growth."

Starbucks said La Boulange food will still be served at Starbucks stores in San Francisco and other outlets in the United States and Canada, reported the Los Angeles Times.

 


"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," said a Starbucks statement issued on Tuesday..

"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," the statement continued.

Buzz Feed News' Venessa Wong said the announcement shows how Starbucks has continued to struggle to build brands outside its flagship, having already closed other attempts like its Tazo tea store and almost all of its Seattle's Best cafes.

"While Starbucks may eventually own several large restaurant brands — as Yum Brands owns KFC, Pizza Hut, and Taco Bell — it may prove too difficult for Starbucks to build new chains with the scale it has reached with its cafés," said Wong. "These smaller brands might end up instead as supporting cast in Starbucks' 22,000 global stores, or in supermarkets, where Starbucks can develop them into large at-home brands,"

Pascal Rigo, La Boulange's founder who joined Starbucks as its senior vice president of food, will be leaving the company as well, reported the Times.

"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," the Starbucks statement said.

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All 23 La Boulange bakery cafes in the San Francisco area will be closed, Starbucks announced, saying the chain purchased for $100 million in 2012 was "not sustainable for the company's long-term growth."
La Boulange Closing Along With Pastry Factory, Says Starbucks
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2015-13-18
Thursday, 18 Jun 2015 10:13 AM
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