Boston Market shutters 10% of stores
45 closures are part of the struggling brand’s ‘transformation plan’
Joanna Fantozzi, Nation's Restaurant News
Jul 08, 2019
Boston Market said Monday that it has closed 45 stores, or about 10% of its 454-unit system, due to store underperformance, according to a letter circulated by CEO Frances Allen to employees.
The Golden, Colo.-based chain owned by Sun Capital Partners Inc., closed six restaurants on June 30, while the remaining 39 closed on July 7.
“We must take steps to ensure our operational structure will support long-term sustainability,” Frances Allen said in the letter. “Part of that effort involves continuously analyzing our geographic footprint and real estate portfolio to assess the ongoing viability of locations. The dynamics of geographic areas can change dramatically over time, sometimes impacting the performance of a location.”
The Boston Market system had reported U.S. sales of $557.8 million from 454 U.S. units, including 435 company restaurants, for the fiscal year ended in December 2018, which was down 1.3% from $565.3 million in system sales and 461 locations, including 443 company units, in fiscal 2017.
In terms of the parent company’s estimated U.S. revenue from company-restaurant sales, initial franchise fees and franchisee sales royalties, Boston Market had fiscal 2018 revenue of $546.5 million, which was down 1.7% from fiscal 2017’s estimated U.S. revenue of $555.7 million.
The news comes shortly after Boston Market announced...
more, including links