Boston Market started within the 1985 by Steven Kolow and Arthur Cores in Newton, Massachusetts, and is a chain of restaurants that provides an easier alternative to cooking at home for the family as it offers delicious and fresh, home-style cooked meals. It was previously known as Boston Chicken prior to the founders, who had by then partnered with George Nadaff, took it public and renamed Boston Market in 1995. The company has its headquarters in Golden, Colorado with George Michel as the Chief executive officer.
The growing success of the franchise fascinated many investors who were constantly turned down by the founders. George Nadaff finally was able to convince his business partner to expand their store leading to a simple expansion creating a chain of successful franchises that increased their revenues. The shops were so successful they even passed the anticipated income projections, doubling in just 30 days, and from over $8 million in 1990 to almost $21 million in 1991.
The company’s chain of stores continued to develop rapidly using a total of 530 company owned restaurants in 28 different states in 2007. Becoming a home-style oriented restaurant, Boston Market introduced frozen menu items in every franchise for sale in supermarkets all around the US. There are also side dishes available in over 700 supermarkets with all the Boston Market name brand.
The fast development of the franchise stores led to the company’s financial mishap. The main contributors in the franchise were mostly management oriented with poor employee training, high operating expenses along with its lending consumer demand. This made the market share fall by approximately $24 per share in 1997. Slow service inside the restaurants also made sales go down as it was no more a preference from the customers. The business began suffering huge losses as high as $312.6 million in only the very first 90 days of 1998 and reaching $437.1 million by July.
The almost defunct Boston Market company was purchased by McDonald’s for $173 million and it also begun to slowly rebuild and expand the franchise as opposed to the initial plan of replacing it using its other food market brands. Its purchase by McDonald’s gave it a whole new lease of life and currently the chain of restaurants appears to be returning on its feet, but instead it can experience rapid growth as before is still yet to be noticed.
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