Even though I concur that Starbucks coffee tastes burnt, I’ve never been as down on Starbucks as other coffee snobs are wont to do. But my jaw drop 15 minutes ago when I learned that Starbucks is about to purchase the local La Boulange empire for $100 million. Part of me worries that Starbucks will mess with it, the same way it shuttered Torrefazione Italia, which used to make a pretty good latte. But the huge thing that jumped out at me was what this means for Starbucks’ real estate holdings in SF.
The La Boulange web is everywhere in the City, from the Crocker Galleria Farmer’s Market to the original location on Pine St. Starbucks will now own all of these. For some locations, such as Pac Heights, or the FiDi, or Laurel Village, this won’t matter much, because Starbucks already has a presence in the neighborhood. But there are bunch of locations, including Hayes Valley, Cole Valley, and the Lower Haight, that have fought a little bit harder to preserve their neighborhood character and to keep Starbucks out. In one stroke, Starbucks now has a toe-hold in these ‘hoods. I must admit that this is a huge coup for Starbucks, but it’s akin to Amazon buying out Amoeba records.
Addendum: Business people used to always cite La Boulange / Bay Bread as an example of a local business hurt by San Francisco’s anti-chain ordinance. This purchase shows how attractive a local chain can be to a major national corporation, looking to make their way into SF. There’s nothing stopping McDonald’s from purchasing the SF Soup Company.
Addendum 2: I completely forgot to list North Beach on the list above of anti-Starbucks neighborhoods, but a comment on this InsideScoop piece reminded me of this notable omission.