Starbucks CEO Howard Schultz cites 'enthusiastic response to our La Boulange bakery items'

From the July 25 Starbucks conference call with analysts:

"Our lunch offerings continue to expand in popularity. While Howard mentioned the enthusiastic response our La Boulange bakery items are receiving it is important to know that this quarter's comp growth contribution from food is not impacted by La Boulange due to this still early stage of the roll out."

More from Starbucks US president Cliff Burrows:

"I am delighted to say in every market we have introduced La Boulange so far has been extremely well received. The product is fantastic and we are seeing really, really encouraging results. So, the strategy is being justified and we are now through 1,000 stores by the end of Q3 and every market we open we are seeing great reception, particularly around the pastries, the croissants which is the core product of the La Boulange and it gives every confidence that we are on the road to a fantastic food platform will start with breakfast, we will then enhance lunch and the opportunity to enhance the current experience for the customers and grow sales is really strong."

* Read the transcript of the Starbucks conference call

Comments

[Frank]

Here in the Seattle test market, I'm wondering how this can be. Some of the La Boulange bakery items are okay, but I've talked with or heard of many people who miss many of the old items, especially the iced lemon pound cake.

[Teeles]

From the customers I've talked to they are not very fond of them and want the old pastries to return.

[MrsPotato]

Would they admit if the products weren't going over well, so early in the game?

[jude]

great. so when are we getting the sonics back?

[ImChiquita]

Remember when we changed menu items and menu recipes back in '08?

Good times.

[mbpushkin]

I have to say that looking at the new layout in the pastry case makes one wonder if anyone has any food sense. They've upped the ante from the pre-WWII apple fritters for worst appeal.

[MD]

The new products are disgusting. So disappointing, and I'm just shocked that anyone is saying they are well received. So gross.

[L.A. Jim 90025]

My two minute pastry purchase just went to 10 minutes. The selection isn't broad, the size of the pastries in smaller, and I DON'T LIKE THINGS HEATED UP. Everything softens up. Give me the old crumb bun or the raspberry swirl pound cake.

How it gores from 2 minutes to 10 minutes:
You order the pastry, the cashier writes down your order and your name. You pay.
Then the pastry runner picks up the order,goes to the pastry case, puts the pastry in the bag, and walks to the oven.....where it is heated up. After some time, she removes it from the over and they bring it to the person who hands out the coffees etc, and when she gets to it, she calls your name out. I HATE IT.

[Art]

Clearly Howard Schultz doesn't actually GO to a Starbucks. Especially now that service is slow because everything has to be heated up. He's likely trying to save face for the decision to buy La Boulange, which for my point of view as a longtime customer of Starbucks was a TERRIBLE decision. Certainly no one I know likes the new Starbucks.

[Debbie]

the new pastries are just horrible. I haven't met anyone who thinks they are better than the previous offerings. I've tried to like them and I've tried most of them. I will not buy them again. They lost my families business for treats. We now go Paradise Bakery (Panera) prior to going for our coffee. Very sad.

[Robert S.]

Just awful, Starbucks! I've seen better looking/tasting pastries at the school bake sale. Will never buy another pastry there.

[Ed S]

I absolutely hate the La Boulange pastries. In the display case, they look all dried out, or like they have varnish on them. On top of that, they are so dry! Marble pound cake loaf was disgusting. I will never eat this crap!

[Derek G]

Reckon it's a backward step. The new loaf cakes are very dry compared to the previous. Scones fall into crumbs and are half the size. Have stopped buying pastries and just come in for coffee.

[Steve]

You Never reheat a donut. The old ones hand the nice sugary crust. These just sit there and sweat. But reheated? They are simply awful. It was my one true indulgence. Haven't had a donut in months now. My body thanks you.

[Kim Bellone]

I live in Long Island, NY and my entire neighborhood Starbucks have just recently introduced the “La Boulange” menu. It is just plain AWFUL! I now look at the pastry case and nothing appeals to me. I don’t mind change, its part of life. But for the love of Pete, what were they thinking. Couldn’t they have just introduced several new offerings and kept the old favorites. With the holidays fast approaching I’m praying that they don’t go totally off the grid and not bring back the “Cranberry Bliss Bar’. It might just put me over the edge. UGH!! I want my “old” Starbucks back!

[Jill]

I'm wondering if Starbucks corporate executives, including Schultz, actually bothered to taste these new offerings before rolling them out with such fanfare. Had they done so, certainly they would have thought twice before forcing such a large-scale change on customers.

[Deborah]

I used to be able to dip into my nearby Starbucks to buy a coffee and a treat before my 1 hour+ commute. Last week, I had to wait 15 minutes--they heat each item separately while they have 7-8 more lined up waiting. I ordered three items and explained I did not need them heated--and was told, "We are now required to heat everything." I was taking a couple of them to co-workers and did not want them heated. I told them, "they're half the size, I've been here 15 minutes, and you're doing things to my food I don't want you to do. I won't be returning, and I haven't. My favorite lemon pound cake that I actually used to DREAM about is now some shrunken piece of wet cardboard--Plus, I was late to work!! Unbelievable.

[NYC Phil]

So now this has reached the New York City market and I can't help to think this is the Starbucks "New Coke" experience. One one side is the Company and the Press promoting these bakery items as the best thing ever, but overall, my personal Starbucks experience has been seriously degraded with the increased wait times for so-so pastries.

[Susan McCormick]

I've sampled many of the new items, in a desperate attempt to find something that I can reliably order and enjoy, and...I still haven't found anything. I don't believe this is helping Starbucks' bottom line. I will bet anything that their revenue for baked goods has taken a big hit. The quality of the new stuff is not as good; the taste isn't as good. Forget the danishes and morning bun. These classics are now mediocrities not worth ordering. And let's not talk about the jelly doughnuts! The worst I've ever had. And they wanted me to heat it up. Who heats up jelly doughnuts?

[Greg Cal]

Bakery items are pretty dreadful, with the exception of the morning bun. Lemon loaf has gone from being great to plain awful. One of the staff told me that they all come in frozen and are left out to defrost overnight. Anything unsold is supposed to be thrown or given away at the end of the night. With Starbucks losing customers with the new food, I can't see them wasting any more money. Anyway, they taste a few days old as it is. Like others I have given up on the food and just go in for coffee.

[Liz Lang]

I must agree with many of the comments about LaBoulange, it's just been disappointing. First, not everyone likes their pastries warm, including me. And if you get them right out of the case they taste a day old. Change is inevitable, but I used to walk into starbucks and it was hard to make a choice on which pastry to order, because they were all so delicious! Now, after trying a few items, I just walk right by...no temptation what-so-ever. Sorry Starbucks, you've lost a fan.

[Neal Stockwell]

The Boston area just changed over. I believe that the majority of Starbucks pastry customers will think this change is for the worse. I will still buy the coffee, but there isn't a single pastry item I will buy after a few samplings. Bring back the scones and banana chocolate chip coffee cake. Sales are increasing only because they raised the prices!

[Michelle]

Just had my first Starbucks La Boulange experience. I used to absolutely LOVE the pumpkin scone and couldn't wait for Fall to come so I could indulge in my favorite morning treat and now they have been replaced with a pumpkin loaf... Starbucks I don't want your pumpkin loaf, I want the old pumpkin scone back. Not only is the food flavorless, you have to wait for it to be heated?! i dont want my food heated and it just leads me to believe it would be that much worse straight from the case! Also all the pink?? your colors are white and green, stick to who you are! Bring back your old self...we miss you!

[Heidi]

Please, please bring back the old pastries. My daughters and I would always get banana bread for a treat. Now it's a banana loaf, and it is gross. I tastes like it came out of a vending machine. My (toddler) daughters wouldn't eat it either, which is very telling. I won't order it again, or any of the new stuff.

[Janet]

Here in LA. the bakery items have just about rolled out everywhere. As others, we have tried and they just ain't good at all. Have been calling into Target stores for our coffee where they still have some of the old range. If Target go over to the new pastries, We will just drink the coffee, no way we are paying for the new items, We. ( 4 of us in the office ). Have decided to miss out on these dire bakery items. Backward step.....change your mind Starbucks before it's too late

[Mark Miller]

Just had to add my thoughts. This change has come to the Raleigh, NC area. The store employee I talked to claimed that he didn't know what the change was about, that corporate hadn't told them anything. This isn't believable.

I have the same concerns and comments as a lot of you. I don't like the extra wait. I don't want my pastry heated up. I bought a donut this morning because it was literally the most appetizing item. Everything else was half the size at the same price or higher. I couldn't get my warmed donut out of the bag it was in because it was sticking to the inside.

I lived near San Francisco for a while but never heard of La Boulange. Now I know why, it's no good!

I hate that Starbucks is trying to twist this around to say that everyone loves this change. I used to be a fan of Starbucks but not anymore.

I thought the pink was a breast cancer promotion.

[Francis]

No iced lemon, no pumpkin scones, donuts...it's actually working out better for me, I just go to Dunkin or McDonalds since I don't have the bakery options at Starbucks anymore. And I am saving money and eating less, win win for me. Loss for Starbucks.

[Erin L.]

I am also in Raleigh and totally distraught. I loved having a chai and a piece of pumpkin bread, but the new pumpkin loaf is just not the same. Bad move, Starbucks. Bad move.

[Jennifer]

New pastries are horrible. The only pastry left that I would eat at starbucks is the old-fashioned donut, but that tastes exactly the same so I don't think they've changed that. Not to mention the wait, I have to leave for work @ least 15 minutes earlier just to stop for coffee...not sure if I will continue to go there for breakfast. I mean I don't want to get up earlier especially for food I don't like.

[Laura]

This tasteless junk just showed up her in Phoenix. I ordered a pumpkin scone in the drivethru and they acted like they had never carried it there before. They then offered me the pumpkin loaf, which I wrongly assumed was like the old lemon loaf slice.....it was not. Gross is the only word to describe it. It being heated made it worse. I am not going to waste my money on this stuff.

[Dirk Petrini]

I too hate and I mean hate the LaBoulange pastries. They have been in our Starbucks since July 2013 and I am happy to say I bring my own pastries and will never buy this crap and I too mean crap. I always look for a Starbucks in a supermarket or Target. They carry the old pastries. Howard Shultz as smart as he is really blew this decision. You would have to be out of your mind to like this low value, low quality, small size items. They actually take it out of a package to put it in the case. Howard should have just gone to the local Supermarket and brought hostess brand to the store. Congratulations on this fa nominal decision.

[Sharon Hayes]

What the heck were the corporate office thinking when they made the switch to LaBoulange pastries?? Awful tasting pastries and I don't want any of my pastries heated up! I won't be going to Starbucks anymore except to buy their beans. Really sad to see the corporate office make bad decisions without a trial or consulting for consumer feedback before making any changes. I don't think many of us complained before so why fix if it ain't broke!!?! Sigh!! Good bye Starbucks....you've lost my business!

[Maria]

I, too, am disappointed in Starbuck's decision to present sub-par pastries in their stores. I will only buy my coffee in grocery store kiosks now because they still carry some of my favorite goodies. I hope Starbucks woes up before they lose too much money over this.

[David]

Where can one get the old pastries - I can't eat that La boulange its gross! Tastes and feels like McDonalds fast food now - anyone have an idea how to find the old supplier or know who they were?

[Allison]

The La Boulange items are AWFUL. My kids won't even eat them! Bring back the cinnamon cake and iced lemon loaf and the banana nut / pumpkin bread! We've tried all of the La Boulange counterparts and we will NOT be going back to Starbucks. Sorry, Starbucks.... BAD MOVE.

[Natalie]

"Extremely well received"? "The product is fantastic"? I don't know which pastries the execs at Starbucks are looking at, but La Boulange products in their stores resemble something that came out of an Easy Bake Oven. They are complete garbage and certainly not worthy of the Starbucks brand. I really hope they are saving a TON of money with this new supplier... that is the ONLY logical explanation I can come up with for why they thought this was a good idea. I am (was) a die-hard Starbucks fan so I will continue as a patron but ONLY for the coffee. Very disappointing indeed. The old pastries ROCKED. Please please please bring them back.

[Barbara Rogers]

Just had my first La Blulange faux morning bun
in Tucson,AZ. I knew the product looked different but trusted the Starbucks brand so I tried one with my coffee.
What a horrible product it is! Yuck. Every trace of tastiness, crispiness and flakiness is gone. What were they thinking? Terrible decision to replace something fabulous with a gummy, dry substitute. If it isn't broken; don't fix it!

[Wendy]

I just received my fist shock regarding the change to the new Starbucks bakery. The cheese danish was awful. Vending machine quality. At least the old items tasted high quality. The old McDonald's cheese danish seem to have found a new life at Starbucks. I should mention I always preferred Dunkin coffee to Starbucks except when I wanted bakery. Starbucks has lost the small contribution I made to their overall profit. My waistline appreciates the switch cuz I won't buy bad bakery.

[curtis]

You people are absolutely stupid. you have no idea that these new pastries contain no additives or preservatives. They aren't full of crap like the old pastries. the la boulange line is 1day shelf life because of the 100% real ingredients. The old stuff was 2day shelf life because of its preservatives and additives. No wonder America is obese, you all like shit food.

[Carla]

Sorry, add me to the list of people who also don't like the new pastry line-up. Doesn't look good and doesn't taste good. Nice that they apparently don't contain additives or preservatives but that's no excuse for the way they taste. Healthy baking doesn't mean flavorless baking.

[Scott Karlins]

What I wrote to Starbucks:

Your new line of La Boulange pastries are very disappointing!

First, they are smaller (almost by half) from the original pastries. And now, even more expensive.

When I saw that they were individually wrapped, I thought, what an environmentally un-friendly method to deliver daily to all your store locations. I witnessed an employee literally filling a large trashcan to the top with these individual wrappers!

I tried two of these new pastries. Sorry to say, the original pastries were much better in flavor. I really feel you are taking a step backward in changing your baked goods. I will not be purchasing any of these pastries ever. This has also reduced my daily morning trip to Starbucks down to maybe once a week now.

I just do not understand why you would take such a drastic step backward. Please bring back the original pastries!!

[Chris Polas]

La Boulange is for la toilette.