Breaking: Starbucks Buying La Boulange

There was a collective shudder from foodies local business boosters around the Bay Area this afternoon as this news hit the wire:

Next World Group Sells La Boulange Café & Bakery To Starbucks Coffee Company for $100 Million

SAN FRANCISCO, CA – (June 4, 2012) – Next World Group (NWG), a privately-held global investment firm, today announced that it has reached a definitive agreement to sell La Boulange Café & Bakery to Starbucks Coffee Company (NASDAQ: SBUX) for $100 million in cash.

The transaction is expected to close in the third quarter of 2012 (Starbucks’ FY 12 fourth quarter). Next World Group is the majority investor of La Boulange, a rapidly growing San Francisco-based, fast-casual restaurant chain that embodies the authenticity of the French bakery experience.

Founded by Pascal Rigo, La Boulange has grown to 19 Bay Area locations and has more than quadrupled revenue since NWG’s investment. NWG is a long-term, growth investment firm headquartered in San Francisco, with offices in Brussels and Paris. 

“We have worked closely with Pascal over the past six years to build an artisanal bakery brand with a track record of profitable growth – exactly the kind of enterprise we look for in our investments,” said Sébastien Lépinard, founder of Next World Group. “La Boulange and Starbucks share similar values and a common vision for creating premium products in a socially responsible way. 

We have confidence that Starbucks will stay true to the ‘La Boulange’ brand while bringing the romance of an authentic French bakery to consumers across the United States.” “Our long-term partnership with NWG and Sébastien brought solid financial management and strategic vision to help La Boulange through its growth and success over the last few years,” said Rigo, founder and CEO of La Boulange. “Their involvement and commitment attracted the caliber of management and financial partners we needed to achieve our potential.”

Next World Group invested in La Boulange in 2006, beginning the implementation of a focused strategy to sell distinctive, high-quality products and develop a local cafe-bakery-retail concept under the ‘La Boulange’ brand. Since then, the business has grown geometrically as the strategy to bring enjoyable products to an ever-growing customer base has remained intact.

InsideScoopSF talked to owner/seller Pascal Rigo and broke it down this way:

• Within 12-14 months, there will be La Bou-branded goods in every Starbucks’ pastry case 

• La Bou will expand to 200 to 400 units nationwide within the next four to five years

KQED's News Fix rounds up the Twitter reaction (lots of: Ugh, Nooooooo! AYEEE) here.

What do you think Noe Valley? Good thing for Starbucks or will you be taking your business elsewhere?

Food Labeling: Not Just for Packaged Food Anymore

Back in May, the SF Supervisors approved a measure "that requires chain restaurants to post nutrition information on their menus." The idea is that if people actually know what's in their food they won't eat it. And they'll be skinny. So look for that (probably scary) info soon at In & Out, McDonald's, Pinkberry, etc.

But what does that info do if you have nothing to compare it to? Does anyone really understand recommended daily allowances (or even what that means)? This week, Church Produce (Church/30th St.) labeled it's bulk produce, ostensibly to show us how healthy their food is.

So just for kicks, let's compare a couple basic carb foods:

McDonald' French Fries (Medium, 4.1 ounces)

Carbs: 380g
Protein: 4g
Fat: 19g
Sodium: 270mg
Other good stuff: Vit A (0% Daily Value), Vit C (15%), Calcium (2%), Iron (6%)

Butternut Squash (1/2 cup, 4 ounces):

Carbs: 14g
Protein: 1g
Fat: 0g
Sodium: 0mg
Other good stuff: Vit A (260% Daily Value), Vit C (40%), Calcium (6%), Iron (1%), Potassium (420mg)

Duh. We all know squash is healthier than french fries. But it is nice to have the info posted for all foods at the grocery store. Good job, Church Produce! Let's just hope we don't see it in every restaurant on every menu. That would be annoying.

Speaking of... the ordinance requires that all chains with more than 20 stores post info. Best we can tell, that means that Pomodoro and Starbucks are the only chains in Noe Valley that will have nutrition info posted. Do we have that right? Any guesses how many restaurants in the Castro or on Chestnut St. will have to comply...?

[SFGate: S.F. Supes Require Posting of Nutrition Info]
[McDonald's: Nutrition Facts]