Starbucks announced it was closing all of its 23 bakery-cafes called LaBoulange because the shops are not “sustainable for the company’s long-term growth.” Starbucks bought the brand in 2012 and paid USD 100 million for it, in addition to buying Bay Bread. The move was an attempt to keep up with the developing food business, and it has links to the fact that fast-food chains introduced an improved coffee line.
At the time Starbucks was boasting with being specialized in baking, too. The latest news says that the company is to close the bakeries in the next three months, as well as two factories that were producing the pastry. LaBoulange food would still be sold in Starbucks cafes. According to Starbucks’s website, the brand will "continue to play a significant role in the future of Starbucks food in stores."
The Evolution Fresh retail location will also be closed. It is located in San Francisco. It seems as if the company has decided to focus on its cafes instead of wasting energy on two separate businesses. "While they've had some success with La Boulange-branded products, running the stores was a distraction," said David Henkes, vice president at a restaurant research and consulting company. "You see that a lot: with big brands buying smaller brands, they decide to put their energy in growing the bigger brand."
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