Get All Access for $5/mo

Starbucks Is Shutting Down the Bakery Chain It Acquired Three Years Ago La Boulange's pastries are staying on the menu, but its 23 locations are closing up shop.

By Kate Taylor

Opinions expressed by Entrepreneur contributors are their own.

Monica Dipres

As Starbucks focuses on food, the chain is closing up its bakery concept.

On Tuesday, Starbucks announced that it is closing all 23 La Boulange bakery cafes, plus the two manufacturing facilities that serve these locations, by September 2015. La Boulange branded food will remain on the menu at Starbucks locations in the U.S. and Canada.

Starbucks is also closing the Evolution Fresh retail location in San Francisco, while continuing to sell the concept's juice line in Starbucks stores. The three other Evolution Fresh stores will remain open.

Starbucks acquired La Boulange for $100 million in 2012. The small but established San Francisco bakery chain helped revamp the company's food selection, with a line of La Boulange-branded sweet and savory baked goods.

Related: Deep-Fried Starbucks Coffee Is on the Menu at Fairs This Summer

Over the course of the last three years, Starbucks has rolled out La Boulange offerings across the U.S. and Canada. At the same time, the company has launched new breakfast sandwiches and taken steps to more fully engage lunchtime customers. Food sales jumped 16 percent year-over-year in the most recent quarter, according to the company.

As La Boulange's roll out in the U.S. and Canada wraps up, Starbucks says that La Boulange founder Pascal Rigo is leaving the company. The company reports former employees at the shuttered locations have received personalized transition materials, and will, when possible, move to positions at Starbucks stores in the area.

In other Starbucks news, the company also announced on Tuesday that Mobile Order and Pay has expanded from the Pacific Northwest to 21 mores states in the southern and central U.S. The feature, which was first tested as a pilot in Portland last December, allows customers to place orders on their smartphones, skip waiting in line and pick up their order directly from the barista. If the service isn't yet available in your state, never fear – Mobile Order and Pay will roll out at Starbucks nationally over the course of 2015.

Related: San Francisco's Law Targeting Sugary Sodas May Mean Trouble for Starbucks

Kate Taylor

Reporter

Kate Taylor is a reporter at Business Insider. She was previously a reporter at Entrepreneur. Get in touch with tips and feedback on Twitter at @Kate_H_Taylor. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Franchise 500 Annual Ranking

50 Franchise CMOs Who Are Changing the Game

Get to know the industry's most influential marketing power players.

Thought Leaders

6 Tips From a Clean Beauty Entrepreneur

Sarah Biggers went from a newbie in the natural beauty space to a pro in just a few years. Here are six things she wishes she'd known at the beginning.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.