26 Jun '12, 12am

Here's a great piece on the Starbucks-La Boulange deal. How will the bakery get croissants to 11,000 stores?

"Local retail bakeries don't get bought for a hundred million dollars" the way that La Boulange was, writes Maury Rubin. (Starbucks was the buyer.) "What about the baking in this bakery deal?" he asks. "Assuming La Boulange produces a great croissant, how will they get them to 11,000 Starbucks everyday on a timetable that says quality? [I'm assuming retrofitting 11,000 Starbucks with ovens is not possible given lease considerations]. Operationally, this will need a Marshall Plan-like approach. Great croissant, God bless 'em, have non-negotiable physical properties and know not of hundred million dollar acquisitions. "I'm not rooting for or against, I just can't wait to see how this unfolds. With $100 million already spent, will it cost Starbucks tens of millions more to get the quality they seek into customer's hands?" * The Starbucks Deal (City Bakery Daily)

Full article: http://starbucksgossip.typepad.com/_/2012/06/in-bakery-la...

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