Starbucks (NASDAQ:SBUX) will shutter all La Boulange pastry shops, a brand it purchased three years ago. Instead, the coffee chain will focus on expanding the brand in-house.
La Boulange's breakfast sandwiches and pastries have been an important growth factor in Starbucks' sales, the Wall Street Journal reported. However, Starbucks' group president for the U.S., Cliff Burrows, calls the free standing stores—mostly located in San Francisco—a distraction.
The shops were a $100 million acquisition in 2012 as a way to better Starbucks' food menu. In fact, the brand has been expanded to include lunch sandwiches in order to attract midday customers. In total, food sales grew 16 percent in the last quarter and breakfast sandwiches rose 35 percent.
It wasn't for lack of success, but Starbucks chose to close La Boulange cafes so that it could focus on the core business instead of two retail chains.
Although La Boulange is being incorporated into Starbucks, another one of the company's brands, Teavana, will continue to expand. Starbucks acquired the mall-based tea shops in 2012.
-See this Wall Street Journal article
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