Starbucks is to close its La Boulangerie
Starbucks is to close its La Boulange bakery outlets, but the bakery will continue to serve the brand in US stores.
The coffee giant acquired the bakery in 2012 in a USD 100m (GBP 63m) deal, and has rolled out 23 La Boulange bakery cafes in the US and Canada- however these will shut by the end of September.
This comes as it deemed the cafes ‘not suitable for the company’s long term growth.’
Despite this, it said the brand would still play a “significant” role in Starbucks in-store food offer, although the possibility of it moving into the UK sounded unlikely, as the company explained it had completed the roll out of La Boulange branded products in stores.
In 2013 the Starbucks UK managing director at the time, Kris Engskov, said it would be investing in its food offer across the UK. He has since been replaced by Mark Fox.
In a statement, it said: “Starbucks has successfully delivered an up-leveled food experience with the roll-out of La Boulange products in its US and Canada stores, which have been well received by customers.
“The company looks forward to serving delicious La Boulange food at its Starbucks retail locations in San Francisco and across the US and Canada.”
Along with the 23 La Boulange cafes, the company will shut two manufacturing sites which serve these locations.
Starbucks explains:
“Food is a key element of Starbucks growth strategy to create new occasions to visit stores, and the company has seen tremendous response to these efforts since the acquisition of La Boulange.
“In the most recent quarter, (Q2 FY15) food delivered growth of 16 per cent year-on-year.
“Sales of Starbucks new breakfast sandwiches have contributed a noteworthy 35 per cent year-on-year growth in the breakfast platform.”
The company explains that all partners (employees) who work in these locations are being treated with the utmost care – receiving personalized transition materials and having in-person conversations with their managers to explain this decision. Where possible, Starbucks will help partners find new positions at Starbucks stores in the area. In addition, retail partners from La Boulange and Evolution Fresh will be offered incentives to continue employment with the company through their store closure.
“Starbucks goals to grow its food business and deliver an incremental $2 billion in the next five years in the U.S. 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”, they said.
The company already closed its Tazo tea store, and closed nearly all of its Seattle’s Best outlets. It turned both into grocery products instead.