Starbucks: Croissant sales doubled after makeover

Published on NewsOK Modified: January 24, 2014 at 1:51 pm •  Published: January 24, 2014
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NEW YORK (AP) — Starbucks was never exactly known for its croissants — or any of the baked goods, for that matter.

Now, however, the company is seeing early signs of promise for its revamped lineup of sweets, which has made its way to about a third of its U.S. cafes. In an earnings call Thursday, Starbucks' chief financial officer Troy Alstead said croissant sales have doubled wherever the new recipes have been introduced.

The changes started back in 2012, after Starbucks paid $100 million to acquire La Boulange, a small bakery chain based in the San Francisco Bay Area. Starbucks had long been criticized for its underwhelming baked goods, so the company saw it as an opportunity to improve its image — and significantly boost sales.

The idea: Get more people to add a croissant or lemon loaf to their purchase whenever they stop in for a latte.

Right now, only about a third of transactions include food and the company wants to push up that figure.

It's not just the new croissants that are doing well. The company says it's also selling twice as many of its new "morning buns" and cheese Danishes, although it didn't provide details on the performance of other new items, such as its loaves or savory croissants.

During the call, however, Alstead said that the staggered rollout of the new baked goods is "complex," given the size of the company's business.

"It's a big operational change, it's a big supply chain change" he said.