La Boulange is a San Franciscan bakery that has been acquired by Starbucks over three years ago. This acquired local bakery was purchased with the intent of building a bakery brand for the company. Starbucks made good words on its promise at the company opened 23 La Boulange bakeries throughout the city. However much this company has expanded, Starbucks has stated recently that the newly opened stores are not beneficial for the company’s growth.
The acquisition of this local brand name has had some bad news as the stores will now be closing. The is similar to Starbucks’ acquisition of a tea company as well as a juice business that have all been bought to change Starbucks’ image and brand name. Though the stores will be closed, Starbucks will continue to offer La Boulange baked goods at the Starbucks stores. The bakery goods have increased sales by 16 percent in the last quarter.
Starbucks currently owns over 22,000 shops that are all around the globe. Starbucks even has the intention of continuing to grow. As they continue to grow, the company wants to keep the brand name as seeming like a local coffee shop where people go to enjoy good coffee and fresh bakery goods. Legal genius Sam Tabar recently noted that CEO Howard Schultz has every intention of expanding the business through other products such as tea which presents a 90 billion dollar business opportunity that must be taken advantage of.