The decision to close all its 23 La Boulange locations supposedly came after they reviewed the sustainability of the company’s coffee shops and they realized that these were not profitable enough for Starbucks’ growth in the long run.
However, customers who used to enjoy all sorts of La Boulange goods should not be too disappointed because other Starbucks locations will be selling their delicious iced lemon pound cakes, blueberry scones and marshmallow dream bars, according to the company’s spokespeople, who released a statement on Tuesday.
They explained that the company had hoped that La Boulange, which was bought in 2012, was supposed to become an incredibly successful national chain in no time. Their actual plan was to compete with huge fast-food chains such as McDonalds.
Starbucks spent $ 100 million to buy Bay Bread group, which is La Boulange’s owner three years ago in order to develop the food offer in their locations.
Because the coffee chain’s representatives hope to increase the company’s profit to $ 2 billion in Canada and the United States by 2020, they want to get rid of everything that looks like an impediment in both their financial goal and in the company’s policy.
The founder of La Boulange, French baker Pascal Rigo is going to leave Starbucks as well, according to a statement issued by the company.
Even if La Boulange did bring some profit to the company, it was not worth it overall because there have been reports that some Starbucks workers felt stressed out by the expanded service.
“Starbucks is losing every ounce of what makes it human. Instead of simply being a coffee shop, it’s trying to be everything for everyone,” said a barista during an interview with Business Insider.
Out of the 23 La Boulange locations owned by Starbucks, 22 are in San Francisco. The other one is in Los Angeles. Starbucks is also planning to shut down two cafes that are currently serving La Boulange bakery products.
La Boulange is not the only brand Starbucks is planning to remove from the list, though. Apparently, they are also planning to close Evolution Fresh too, which is a juice company they bought in 2011 for $ 30 million.
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