Starbucks To Invest In Bagel Firm
Starbucks, the Seattle-based specialty coffee company, plans a minority investment of $11 million in San Franciscobased Noah’s New York Bagels.
Starbucks is not getting into the bagel business, but the two companies will try to locate stores side-by-side in some markets, Starbucks chairman Howard Schultz said.
The companies already have adjacent shops at two California locations, with two under development.
Starbucks operates more than 500 coffee shops across the nation.
The two companies announced an agreement in principle for the arrangement Monday. The transaction is expected to close within the next 60 days.
Noah Alper, founder and chairman of Noah’s, said the arrangement will provide financial support for expansion opportunities in California and other markets.
“We foresee major cost savings in acquiring and sharing adjacent sites for new stores. And while Noah’s will remain an independent company, we’re looking forward to broadening the relationship we’ve already informally established with Starbucks,” Alper said.
Noah’s bakes and sells more than 500,000 bagels a week and carries 14 varieties of bagels. The company’s wholesale unit sells to more than 300 restaurants, grocery stores, delis, cafes and institutional foodservice accounts. It has 20 stores throughout California.
© Copyright 1995 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.