Starbucks Looks to Improve Food Items by Buying Bay Area Bakery

In an attempt to boost its food menu, Starbucks has bought the San Francisco-based restaurant chain La Boulange Bakery for– wait for it– $100 million.

Starbucks has generated $1.5 billion a year in food revenue and is responding to its food popularity by giving its food menu a makeover that will provide more choices.

By this time next year, we are likely to see scones and pound cakes replaced with croissants and French frankfurters.

La Boulange is a French-inspired restaurant and will be replacing the current food items on the menu by the start of 2013.

The coffeehouse will begin the transition by rolling out in its Bay Area restaurants and slowly making its way nationally.

This isn’t Starbucks’ first big menu shift as it also bought Evolution Fresh Inc. last year and has already started rolling out its Evolution Juice bars.

As it will now fight Panera Bread Co. for bakery supremacy, La Boulange will bring several signature soups, salads and sandwiches to the soon-to-be souped-up Starbucks menu.

La Boulange is known for its intimate feel and providing freshly made signature items, and that is probably the setting Starbucks is looking for, a change from its current fast food feel.

La Boulange founder Pascal Rigo spent time baking in Bordeaux and Paris, France. In 1999 he took his baking talents to San Francisco where La Boulange became a household name with 19 store locations around the Bay Area. If things go to Starbucks’ liking, La Boulange will become a household name nationally.

[Thx Businessweek and La Boulange]