NEW YORK — Starbucks Corp. is looking to offer a more tempting menu, with a $100 million cash deal to buy a small bakery chain.
The Seattle-based coffee shop chain says baked goods from La Boulange will start replacing its current lineup early next year, starting with French pastries such as the croissant. Products will start appearing in Bay Area stores first then roll out nationally.
Starbucks also says it plans to make the San Francisco bakery into a national presence in the years ahead.
"We'll take it one store at a time, starting in metropolitan areas around the U.S. where there's demand," said Cliff Burrows, president of Starbucks Americas.
Food has become an important part of Starbucks' revenue stream in recent years, with the segment now generating $1.5 billion a year. About a third of the purchases in its U.S. locations include a food item.