SAN FRANCISCO (CBS SF) – Starbucks will be closing all 23 Bay Area La Boulange retail locations by the end of September.
Starbucks acquired La Boulange parent company Bay Bread LLC for $100 million in 2012, looking to bolster its food-product menu. Starbucks ended up replacing its own baked goods with pastries from La Boulange, expanding its menu to include lunch sandwiches, along with the pastries and breakfast sandwiches from La Boulange.
In the most recent quarter, Starbucks reported a growth of 16 percent year-over-year in terms of food delivered, while sales of Starbucks new breakfast sandwiches contributed to a 35 percent year-over-year growth in the company’s breakfast platform.
But citing its “commitment to achieve long-term growth,” Starbucks decided to close the locations and two manufacturing facilities that serve La Boulange.
“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,” the company said in a statement. “Based on our ongoing evaluations, Starbucks has determined La Boulange stores are not sustainable for the company’s long-term growth. 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.”
Starbucks said the Evolution Fresh retail location in San Francisco will also close.
Starbucks said it is working to help employees find new positions at Starbucks stores in their area.