Attempting to improve food quality, Starbucks Coffee purchased San Francisco local bakery chain for $100 million dollars.
Although Starbucks wanted to build on the 19 chain brand, its main focus was to better compete with Dunkin’ Donuts and McDonald’s.
Nearly three years since they sell, America’s largest chain of coffee shops backtracked on their decision. Late Thursday night Starbucks announced it would be closing what now is 23 locations. Stating “La Boulange stores are not susatinable for the company’s long-term growth.”
Starbucks is taking the brand in house to continue building its food business. Over the years they have purchased various brands and integrated them into their operations.
They also purchase Evolution Fresh Juice Bar. Fresh pressed juices can be found at most Starbucks locations. With La Boulange’s closure, they slid the closing of Evolution Fresh retailer in the mix.
Clover French press brewing system was purchased in 2008 and is now the systems that make all of their delicious coffee.
Starbucks tends to act more like a tech chain than a restaurant chain. Instead of creating new juices line they purchase companies who specialize in certain areas.
Restaurant brands are usually bought to expand itself not integrate into another company.
When Starbucks purchases a company, it does so for its talent and technology.
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