<?xml version="1.0" encoding="UTF-8" standalone="yes"?><oembed><version><![CDATA[1.0]]></version><provider_name><![CDATA[richard2496]]></provider_name><provider_url><![CDATA[https://richard2496.wordpress.com]]></provider_url><author_name><![CDATA[rkochers]]></author_name><author_url><![CDATA[https://richard2496.wordpress.com/author/rkochers/]]></author_url><title><![CDATA[Starbucks/Princi]]></title><type><![CDATA[link]]></type><html><![CDATA[<h1 class="fs-headline">Before It Settled Down With Princi, Starbucks Had A Hot Fling With La Boulange</h1>
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<div class="contrib-container"><a class="fs-author-avatar" href="https://www.forbes.com/sites/ronaldholden/"><img class="fs-author-image" src="https://2.gravatar.com/avatar/51c758185f733167ed9ca3ebbd03e6ca?s=400&amp;d=mm&amp;r=g" width="92" height="92" /></a></p>
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<div class="contrib-byline"><span class="fs-author-name contrib-byline-author"><a href="https://www.forbes.com/sites/ronaldholden/">Ronald Holden </a></span><span class="comma">, </span><span class="contrib-byline-type"><span class="fs-text-s author-type">CONTRIBUTOR</span></span></div>
<p><span class="contrib-tagline fs-text-xs fs-responsive-text">I write about food &amp; drink as a pleasurable activity and as a business</span> <small class="legal-disclaimer">Opinions expressed by </small></div>
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<p><img data-attachment-id="1599" data-permalink="https://richard2496.wordpress.com/?p=1599" data-orig-file="" data-orig-size="" data-comments-opened="0" data-image-meta="[]" data-image-title="" data-image-description="&lt;h2&gt;&lt;strong&gt;12 shopping secrets to save time and money at Kroger&lt;/strong&gt;&lt;br /&gt;
Kate Taylor&lt;/p&gt;
&lt;p&gt;Jun. 16, 2016, 12:23 PM&lt;/h2&gt;
&lt;p&gt;&lt;img src=&quot;http://static4.businessinsider.com/image/5672fb6b72f2c12a008b67dc-2400/ap120612173738.jpg&quot; alt=&quot;kroger supermarket&quot; /&gt;Kroger has some of the best bargains in the business. But, savvy shoppers know that there are ways to save even more at the grocery chain.&lt;/p&gt;
&lt;p&gt;Even as Kroger increases its organic offerings, Kroger is working to maintain its position as a value-centric retail chain. The company has invested $3.6 billion in beating out the competition when it comes to prices, Kroger said in an earnings call on Thursday.&lt;/p&gt;
&lt;p&gt;While the company is investing to keep price low for all shoppers, there are some secrets to saving more money than the average customer.&lt;/p&gt;
&lt;p&gt;Here&#8217;s how to get the most out of every Kroger shopping trip.&lt;br /&gt;
&lt;img src=&quot;http://static2.businessinsider.com/image/5762c84f52bcd024008c9af7-1200/sign-up-for-a-digital-account.jpg&quot; alt=&quot;Sign up for a digital account&quot; /&gt;Sign up for a digital account&lt;br /&gt;
Kroger&lt;br /&gt;
Linking a digital account to a Shopper&#8217;s Card (Kroger&#8217;s loyalty card) means you can load online coupons on the card, instead of bringing your clipped coupons to the store. The digital account also lets you keep track of your fuel points, shopping lists, and prescriptions, so it&#8217;s a convenient (and free) way to shop more efficiently.&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://static6.businessinsider.com/image/5762c74352bcd020008c996b-1200/go-online-on-fridays.jpg&quot; alt=&quot;Go online on Fridays&quot; /&gt;Go online on Fridays&lt;br /&gt;
Kroger&lt;br /&gt;
Every Friday, shoppers with Kroger.com accounts can visit the Free Friday Download website to get a coupon for a free item. Past offers have included bread, yogurt, pet food, and candy, reports the Krazy Coupon Lady.&lt;/p&gt;
&lt;p&gt;While you can only claim the coupon on Friday, you can use it while shopping any time for the next two weeks.&lt;br /&gt;
&lt;img src=&quot;http://static3.businessinsider.com/image/5762c76552bcd066018c9a9c-1200/keep-track-of-your-fuel-points.jpg&quot; alt=&quot;Keep track of your fuel points&quot; /&gt;&lt;br /&gt;
Keep track of your fuel points&lt;br /&gt;
Kroger&lt;br /&gt;
For every $1 customers with Shopper&#8217;s Cards spend at Kroger, they earn 1 fuel point. One hundred fuel point is equal to 10 cents off each gallon of gas.&lt;/p&gt;
&lt;p&gt;Be sure to check your current fuel point count, which resets every month, at the bottom of your receipt or online, so you can be strategic in your fuel point strategy — if you have 1,000 fuel points, and you&#8217;re filling up your tank with 35 gallons of gas (the limit for a fuel points fill-up), you can save $35.&lt;/p&gt;
&lt;p&gt;&lt;img src=&quot;http://static1.businessinsider.com/image/5762c94252bcd020008c997b-1200/get-more-fuel-points-with-gift-cards.jpg&quot; alt=&quot;Get more fuel points with gift cards&quot; /&gt;&lt;br /&gt;
Get more fuel points with gift cards&lt;br /&gt;
Kroger&lt;br /&gt;
Gift cards — as well as mobile phones without contracts and some other promotions — allow you to earn double the fuel points. So, a $20 gift card means 40 fuel points, not 20.&lt;/p&gt;
&lt;p&gt;Unfortunately for the super-dedicated bargain shopper, you can&#8217;t buy a Kroger grocery gift card and then use it to buy groceries to double your fuel points as a work around, reports the Krazy Koupon Lady.&lt;br /&gt;
&lt;img src=&quot;http://static5.businessinsider.com/image/5762c8b852bcd05c658c9801-1200/download-the-app.jpg&quot; alt=&quot;Download the app&quot; /&gt;&lt;br /&gt;
Download the app&lt;br /&gt;
Kroger&lt;br /&gt;
Kroger is investing big in tech, so downloading the app will keep you on the cutting edge of new deals and offers. You can do everything you can on your digital account on the app — keep track of rewards and fuel points, load coupons, see specials, order groceries for pickup, and manage prescriptions.&lt;/p&gt;
&lt;p&gt;Know when to shop&lt;br /&gt;
Know when to shop&lt;br /&gt;
AP&lt;br /&gt;
The Krazy Koupon Lady reports that weekends and after work are the worst times to visit Kroger, as the stores tend to be swarmed with customers. Instead, you can avoid long lines by shopping earlier or later in the day on weekdays.&lt;br /&gt;
Strategize for mega sales&lt;br /&gt;
Strategize for mega sales&lt;br /&gt;
REUTERS/Mike Blake&lt;br /&gt;
Kroger is known for its mega sales, where customers can save money by buying a certain amount of a product. In a mega sale, when you buy a certain number of participating items (usually 10), you automatically get a certain amount of money off your purchase. Picking the perfect 10 items can take a little planning, so check out Kroger Krazy&#8217;s extensive breakdown of how to get the most for your money.&lt;/p&gt;
&lt;p&gt;Check out manager&#8217;s specials&lt;br /&gt;
Check out manager&#8217;s specials&lt;br /&gt;
Business Insider/Hayley Peterson&lt;br /&gt;
&#8220;Manager&#8217;s special&#8221; is Kroger&#8217;s term for clearance sales. Usually, an item is overstocked, nearing expiration date, or simply not selling well, reports Kroger Krazy. The specials are specific to each store, so don&#8217;t expect to see what the deals will be simply by looking at print or online coupons.&lt;br /&gt;
Investigate organic deals&lt;br /&gt;
Investigate organic deals&lt;br /&gt;
Kroger&#8217;s Simple Truth Organic productsSimple Truth Facebook&lt;br /&gt;
Kroger is investing big in the organic and fresh produce business, while still working to keep prices low. As a result, you can find some great organic deals, both at full price and on deals on Kroger&#8217;s organic brand, Simple Truth.&lt;/p&gt;
&lt;p&gt;Understand how &#8220;buy one, get one&#8221; works&lt;br /&gt;
Understand how &#8220;buy one, get one&#8221; works&lt;br /&gt;
Megan Feeney for Business Insider&lt;br /&gt;
While some stores (and even Kroger&#8217;s mega sales) require you to buy two of the same product to cash in on a buy one, get one free deal, Kroger&#8217;s is not one of them, reports Queen of Free. Instead, both items are half price, so, if you only need one bag of pretzels, there&#8217;s no need to buy two — the deal will apply either way.&lt;br /&gt;
If you&#8217;re a dedicated shopper, get the 1-2-3 Rewards Visa&lt;br /&gt;
If you&#8217;re a dedicated shopper, get the 1-2-3 Rewards Visa&lt;br /&gt;
racorn/Shutterstock&lt;br /&gt;
Kroger&#8217;s prepaid debit card allows you to earn money for groceries when you use the card outside of Kroger. The name comes from the card&#8217;s rewards structure: 1 point for every $1 spent on the Visa, 2 points per every $1 spent in Kroger stores, and 3 points for every $1 spent on Kroger brand products. 1,000 points equals $5 in free groceries.&lt;/p&gt;
&lt;p&gt;Pick up Catalina coupons on the way out&lt;br /&gt;
Pick up Catalina coupons on the way out&lt;br /&gt;
Catalina&lt;br /&gt;
After you pay at registers and self-check out, the Catalina machine will spit out long, thin sheet of paper that many shoppers dismiss as junk. In fact, these are coupons that you can cash in on your next shopping trip.&lt;/p&gt;
" data-medium-file="" data-large-file="" class="size-large wp-image-1599" src="https://blogs-images.forbes.com/ronaldholden/files/2017/11/La-Boulange-convection-oven-1200x804.jpg?width=960" alt="" /></p>
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<p class="wp-caption-text">Convection ovens like this one at a Starbucks store in Seattle warmed up pastries from La Boulange</p>
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<p>Every publication in the country seems to have covered the opening, in Seattle this week, of the first <a href="http://www.princi.com/" target="_blank" rel="nofollow noopener">Princi</a> bakery in North America. The popular mini-chain of artisanal bakeries (six shops in Milan, one in London) had caught the fancy of the then-CEO of <a href="http://www.starbucks.com/" target="_blank" rel="nofollow noopener">Starbucks</a>, Howard Schultz, who admired founder Rocco Princi&#8217;s dedication to his craft and saw a fit for Princi bakeries inside the new mega-stores he wanted to build. Reserve Roasteries they would be called, vast showcases to coffee, &#8220;Willy-Wonka&#8221; palaces (Schultz&#8217;s words).</p>
<p>Sure enough, the first Reserve Roastery opened in Seattle three years ago. But the food was not Princi&#8217;s, not yet. At the time, Starbucks was still digesting its $100 million purchase of another popular mini-chain of artisanal bakeries closer to home: La Boulange in San Francisco.</p>
<p>And that&#8217;s where things get complicated, depending on whom you talk to. Though Starbucks was &#8220;married&#8221; to La Boulange (which had its own whiz-kid founder, a Frenchman named Pascal Rigo), Schultz was now seduced by Princi.</p>
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<p>And the company wasn&#8217;t in a rush to make a change. Rigo, it turned out, was a genius at baking pastries &#8220;at scale&#8221; and getting them into Starbucks stores.  During his 30-month tenure Rigo put convection ovens into 12,000 stores around the country, doubled food revenues, and changed the entire supply chain.</p>
<p>&#8220;We used real butter, organic English muffins, cage free egg whites,&#8221; he  reminded me in an email this week. &#8220;We used Stallbush blueberries, real bananas, real lemon and lemon juice, re-invented the breakfast sandwiches platform, served everything warm.&#8221;</p>
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<p>The 230-calorie sandwich sold for $3.45. &#8220;This is great food!&#8221;</p>
<p>Rigo kept hoping Starbucks would do more to promote its food program. &#8220;Why not tell the world?&#8221; Rigo would ask.</p>
<p>&#8220;Princi is seven stores, nice.&#8221; Rigo says, eyeing the <em>femme fatale</em> who has stolen his boss&#8217;s heart. &#8220;What has been done in 12,000 stores in North America is just unbelievable…nobody knows it! What are they waiting for ?&#8221;</p>
<p>One of the things they were waiting for was, apparently, Italian  capital.  Starbucks told the <em><a href="https://www.wsj.com/articles/starbucks-to-open-princi-bakery-inside-seattle-roastery-1510041660?tesla=y" target="_blank" rel="nofollow noopener">Wall Street Journal</a></em> yesterday that it is planning to open 1,000 stand-alone Princi bakeries around the world, with hundreds in the U.S. alone, serving small-batch Starbucks “reserve” coffee. The financing for that expansion will come from two Italian private equity funds, Milan-based <a href="http://acm.capital/glance.html" target="_blank" rel="nofollow noopener">Angel Capital Management</a> and <a href="https://www.bloomberg.com/profiles/companies/1427128D:SM-pekepan-investments-sl" target="_blank" rel="nofollow noopener">Pekepan Investments</a>.</p>
<p>Well, when the Reserve Roastery finally did open its doors in Seattle, the cafe inside, occupying a third of the store&#8217;s footprint, was not La Boulange but a perfectly fine pizza parlor from local restaurateur Tom Douglas. (My colleague George Anders <a href="https://www.forbes.com/sites/georgeanders/2016/03/03/how-starbucks-created-the-roastery/#68c5b5f74dc6" target="_self">wrote about the space</a> for Forbes.com last year.) And La Boulange? Well, <a href="http://fortune.com/2015/06/17/starbucks-closing-la-boulange/" target="_blank" rel="nofollow noopener">La Boulange <em>went away</em></a>. She actually disappeared. Vanished.</p>
<p>Rigo licked his wounds, then shook himself off, marched right back to Seattle, and went to call on <a href="https://www.forbes.com/sites/ronaldholden/2017/05/25/costco-adds-fresh-breads-from-bakery-spurned-by-starbucks/#41aed2346809" target="_self">Costco</a>. After all, Costco sells food, too. So why not sell good stuff? And yes, Costco has started to do just that, selling Rigo&#8217;s products in  Northern California.</p>
<p>Rigo re-established a handful of his neighborhood bakeries as &#8220;La Boulangerie&#8221; and took back his 40,000 square-foot production warehouse. He has 300 employees in the US, and is setting up a chain of independent mini-bakeries, <em>La P&#8217;tite Boulangerie</em>, to serve small towns on the French Riviera.</p>
<p>Despite his shabby treatment (the &#8220;Princi is higher level&#8221; comment by a Princi manager was unfair, he feels),  he still thinks Starbucks is &#8220;a genuinely great company.&#8221; For whatever reason, Starbucks didn&#8217;t move fast enough, or didn&#8217;t realize how important food could be to a company that, even today, defines itself by its caffeinated beverages.</p>
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<p>&#8220;We&#8217;re not a coffee company serving people,&#8221; Schultz has said many times, &#8220;we&#8217;re a people company serving coffee.&#8221;</p>
<p>Yes, but.</p>
<p>The average ticket at a Starbucks is $5. The average at the Seattle Reserve Roastery is $20. You&#8217;d be tempted to concentrate on the $20 customer, right? But keep in mind that there are 26,000 stores where people spend $5, and <em>only one</em> where they spend $20.</p>
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<p>Wouldn&#8217;t it make sense to get the tens of millions of customers who frequent the 12,000 stores were Rigo rolled out his pastries to spend a little extra? Maybe buy a decent sandwich, freshly warmed? Not some plastic-wrapped hockey puck, either.</p>
<p>Rigo feels he cleaned up the category by offering food without preservatives, artificial colors, artificial flavors. &#8220;What do you think this category would do if customers knew all of that,&#8221; Rigo asked in an email. &#8220;One ingredient at a time, one sandwich at a time, we were changing what people eat in this country.&#8221;</p>
<p>Sounds like <a href="https://www.amazon.com/Pour-Your-Heart-Into-Starbucks/dp/0786883561" target="_blank" rel="nofollow noopener">a motivational book</a> by a business leader, a tome with a title suggesting you need to build a company &#8220;one cup at a time.&#8221; We all know the author, a guy named Howard Schultz.</p>
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