Legal News

Starbucks Buys La Boulange, a Bay Area Bakery, for $100 Million
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

Starbucks has purchased a bakery chain for $100 million in cash. The bakery is La Boulange and its baked goods will begin replacing the current baked goods offered at Starbucks beginning in early 2013. The new baked goods will begin appearing in stores in the Bay Area and then appear in stores around the rest of the country. Starbucks is planning to turn the bakery, from the San Francisco area, a nationally known bakery in the coming years.

“We’ll take it one store at a time, starting in metropolitan areas around the U.S. where there’s demand,” said Cliff Burrows, president of Starbucks Americas.


Food purchases at Starbucks has generated close to $1.5 billion per year in revenue, with close to one-third of purchases at U.S. Starbucks including an item of food. La Boulange also offers sandwiches and salads in its 19 locations around the Bay Area. Next World Group, an investment firm from San Francisco, is selling the bakery to Starbucks.

For the holiday season of 2012, Starbucks is planning to sell a single-cup coffee brewing machine called the Verismo. The machine will allow customers to brew lattes and other drinks from Starbucks at home. Starbucks is also planning to open its first Evolution Fresh Inc. juice store sometime this year. The deal with the bakery permits Starbucks to enter the restaurant industry, currently dominated by Panera Bread Co. There are roughly 1,500 locations for Panera, which is headquartered in St. Louis, which is an increase from the 1,000 locations it had five years ago. During that same timeframe, the sales for Panera have increased by 73 percent, according to Technomic Inc, a food industry researcher. The sale should close by the fiscal fourth quarter for Starbucks. Starbucks has said that it expects its earnings per share to range from $1.81 to $1.84.

“After more than 40 years, we will be able to say that we are bakers too,” CEO Howard Schultz said in a statement.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!



Litigation Associate


MYERS, WIDDERS, GIBSON, JONES & FEINGOLD, L.L.P. Litigation Associate Respected Ventura Count...

Apply now

Associate Corporate Counsel


About Clipboard Health Clipboard Health (YC W17) is a marketplace that connects healthcare facili...

Apply now

Legal Assistant - Paralegal 2+ yrs exp req


Qualifications Experience: Legal Assistant / Paralegal, 2 years (Required) ...

Apply now

Associate Attorney

USA-CA-San Francisco

Adler & Colvin is a seventeen-attorney, nationally-known San Francisco firm that exclusively advises...

Apply now




Search Now

Litigation Associate Attorney

USA-LA-New Orleans

New Orleans office of a BCG Attorney Search Top Ranked Law Firm seeks litigation associate attorney ...

Apply Now

Labor and Employment Associate Attorney

USA-CA-Rancho Cucamonga

Rancho Cucamonga office of our client seeks labor and employment associate attorney with 1+ year of ...

Apply Now

Associate Attorney


Chicago office of a BCG Attorney Search Top Ranked Law Firm seeks associate attorney with 1-3 years ...

Apply Now

Most Popular


To Top