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Starbucks shuttering all 23 La Boulange bakeries, 14 San Francisco locations to close

Just three years after buying up La Boulange as part of its strategy to be a bakery brand, Starbucks is shuttering all 23 La Boulange bakery café locations and the brand’s two manufacturing locations by the end of September.

June 17, 2015

Just three years after buying up La Boulange as part of its ongoing strategy to be a bakery retailer, Starbucks is shuttering all 23 La Boulange bakery café locations and the brand’s two manufacturing locations by the end of September.

Fourteen of those 23 locations are based in San Francisco, California.

“Based on our ongoing evaluations, Starbucks has determined La Boulange stores are not sustainable for the company’s long-term growth,” stated a Starbucks release..

The decision announced late Tuesday comes at a time when Starbucks’ strategy regarding food offerings is going strong with 16 percent growth compared to a year ago. Its new breakfast sandwiches are delivering 35 percent double digit growth year-over-year, stated the release, as is the company’s lunch platform. Yet it has closed several other food brands acquired over the years, including Seattle's Best.

“Starbucks has successfully delivered an up-leveled food experience with the roll-out of La Boulange products in its U.S. and Canada stores, which have been well received by customers,” notes the release.

That’s likely the main reason the company plans to continue offering the La Boulange brand within its own stores. Starbucks is also closing its San Francisco-based Evolution Fresh retail location.

Employees at the closing locations are being provided with personal employment transition materials and where possible will be relocated into new roles, stated the company.

“In addition, retail partners from La Boulange and Evolution Fresh will be offered incentives to continue employment with the company through their store closure,” the release said.

La Boulange Founder Pascal Rigo is leaving his role within 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.”    

According to a Fortunereport,the La Boulange bakeries have been a favorite meeting spot for the Silicon Valley set. The small pastry chain was sold to Starbucks in 2012 for $100 million.