Starbucks is phasing out Schultz’s popular pastry brand

The chain is eight Roasteries and reserve locations in the U.S. and China will phase out the label, according to an internal memo obtained by Bloomberg News, which did not outline the timeline for the removal. The stores’ food selection — including items like a salami sandwich on focaccia bread and an Italian-style croissant — won’t change. But the Princi branding will be phased out.

Starbucks’ withdrawal from Princi marks another failed dream for Schultz, along with a goal of opening more than two dozen roasteries around the world. The company bought a stake in the European baked goods supplier in 2016 after Schultz met baker Rocco Princi.

Schultz, who served as Starbucks CEO three times and built the coffee chain into a global giant, described the encounter as one of two revelations he had in Italy – the other being the espresso bars that provided the inspiration for the entire business.

“We look forward to continuing to offer customers the same menu of handcrafted, artisanal foods made from high-quality ingredients prepared daily by our chefs at our Starbucks Reserve locations across the U.S.,” a Starbucks spokesperson said in a statement. The chain will continue to use the Princi brand at twelve locations: its Milan roastery, its Tokyo roastery and ten other stores in the Japanese capital.

The decision was made before Brian Niccol took over as CEO on September 9 to address the company’s revenue woes. It is unclear why the branding is being removed.

In 2017, Starbucks announced that “freshly baked Italian food using recipes from Rocco Princi” would become the exclusive offering at all of its Reserve Roasteries, starting with the Seattle location. According to the company, the partnership resulted in baking at Starbucks for the first time in the chain’s history.

At the time, Schultz said Rocco Princi had created an “unprecedented” Italian dining experience. “I think our customers will fall in love with Princi,” he added.

Schultz, who no longer has an official role in the company but remains one of its largest shareholders, declined to comment for this story.

In addition to selling the products at its high-end locations, Starbucks also opened three standalone Princi bakeries in the United States. All have now closed.

Princi did not respond to a request for comment.

It’s not the first time Starbucks has launched a food brand only to change course. In 2012, the company spent $100 million on La Boulange Bakery before closing its 23 stores three years later, but continuing to offer the products at Starbucks locations. The company also acquired the Evolution Fresh juice brand in 2011, later closing its retail stores and also maintaining the range in its cafes.

“Immersive” experience

Starbucks began opening its roasteries in 2014 as an upscale alternative to its everyday stores, which became increasingly commoditized as the company added locations and expanded its to-go business. The stores are billed as an “immersive coffee experience” with tailored menus and on-site roasting of the “rarest, freshest beans.” This year, Schultz also said Starbucks would open the first of 100 or more Reserve stores around the world, which also offered a fancier experience without the on-site coffee roasting.

In 2016, Schultz said there were opportunities to open up to 30 roasteries in “influential cities” around the world. The company now has six locations in Seattle, Chicago, New York, Shanghai, Tokyo and Milan.

Only some of the roasters make money, Schultz said in a podcast published in June. The shops are popular attractions. The Chicago and New York locations are often bustling with customers sipping specialty drinks like a whiskey barrel-aged cold brew or indulging in a caprese egg ciabatta sandwich.

“You can’t put a price on the hundreds of thousands of people who come to this roastery and have an unforgettable experience,” Schultz said on the podcast.