No restaurant chain wants to miss out on the current fast causal craze, it seems. Consumers continue to fork over a premium for food and décor that’s a step up from a local drive-through but not measurably slower. Yum (YUM) has been testing upscale versions in the KFC and Taco Bell families, and now, Starbucks (SBUX) is debuting a continental diner.
The company is extending its existing partnership with with San Francisco chain La Boulange Bakery and opening a new restaurant June 12 in Los Angeles called La Boulange. Unlike its bakeries (and competitor Le Pain Quotidien), which close by about 7 p.m., the new La Boulange restaurant will be open until 10 p.m. to serve dinner; the menu builds off the bakery’s sandwich, salad, and omelets menu, but adds later-in-the-day options like croissant burgers, as well as cocktails, beer, and wine.
It’s easy to see why Starbucks wants an entry into dinner. After sundown, the cafe chain largely loses to competitors like PaneraPanera (PNRA), which does 22 percent of sales at dinner. Starbucks has already announced an Evenings” menu at its cafes too–and will no doubt try to apply any lessons to the new La Boulange restaurant.
Starbucks has also been tweaking its food offerings to respond to customer complaints about the new backed goods from La Boulange, which not only got mixed reviews but also ousted favorites like iced lemon loaf cake. In April, Starbucks acknowledged the grumbling and brought back the loaf cakes. Opinions of La Boulange’s several Bay Area locations are better, and Pascal Rigo, founder of La Boulange, said he expects breakfast, lunch and weekend brunch will still be the mainstays of the new restaurant. No one has vouched yet for the croissant burger.
