Starbucks is closing all 23 of its La Boulange bakery café locations by the end of September 2015, signifying the company’s exit from the freestanding bakery store business. The coffee chain also will close the two manufacturing facilities that serve these bakery locations.
Based on ongoing evaluations, Starbucks determined that La Boulange stores are not sustainable for the company’s long-term growth, according to a statement. North American Starbucks locations will still serve La Boulange brand food.
Starbucks initially acquired La Boulange parent company Bay Bread LLC in 2012 for $100 million in an effort to expand its menu of pastry and sandwich options. With the stores’ closing, Pascal Rigo, Founder of La Boulange, will move on from Starbucks and continue to work on food ventures in San Francisco and non-profit efforts such as supplying food to schools.
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Despite the closings, Starbucks still plans to grow its food business and over the next five years, plans to drive an incremental $2 billion in the U.S.
Starbucks also announced it is closing its Evolution Fresh juice store in San Francisco by the end of June 2015. The three other Evolution Fresh locations — two in Seattle and one in Bellevue, Wash. — will remain open.
