Boston Market

Boston Market Corporation
Boston Market
FormerlyBoston Chicken
(1985–1995)
Company typePrivate
IndustryRestaurants
GenreFast casual
Founded
FoundersSteven Kolow
Arthur Cores
Headquarters
Newtown Township, Pennsylvania[1]
,
United States
Number of locations
27 (2024[2])
Area served
United States
Key people
Jay Pandya (owner)
Products
RevenueUS$ 373 million[3] Increase (2020)
OwnerEngage Brands LLC
Websitebostonmarket.com

Boston Market Corporation, known as Boston Chicken until 1995, is an American fast casual restaurant chain headquartered in Newtown Township, Pennsylvania. Since 2020, it has been owned by Engage Brands, LLC, a company of Rohan Group. Frozen meals and side dishes are sold nationally under the Boston Market brand name.

In November 2020, the chain had approximately 342 company-owned restaurant locations in 28 states and Puerto Rico.[4] It had its greatest presence in the Northeastern and Midwestern United States, but also had a large presence in California, Florida, and Texas. As of August 2024, the chain was struggling financially and had closed most of its locations.

History

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Boston Chicken was founded by Steven Kolow and Arthur Cores in 1985 in Newton, a suburb of Boston. The chain expanded rapidly in the early and mid-1990s.

A former Boston Market in Durham, North Carolina

When it was known as Boston Chicken, restaurants specialized in rotisserie chicken and a variety of side dishes, but in February 1995, the chain expanded its menu to include turkey, meatloaf, and ham and changed the name to Boston Market[5] in fall 1995 to reflect this.

In 1995, Boston Chicken created the Einstein Bros. Bagels chain of bakery cafés, after acquiring several smaller chains of bagel-centric bakeries.

In 1996, the chain launched a line of sandwiches known as "Boston Carver Sandwiches" that feature chicken, turkey, ham, and meatloaf; in 1997, due to the success of the new line, the "Extreme Carver" sandwiches were launched, filled with more portions of the above meats and more cheese than the originals. The corporate name remained "Boston Chicken, Inc." until 1997, when it became so popular with the new name, the corporate name was changed to "Boston Market Corporation".

The company raised a lot of debt to finance its expansion.[6] The rapid expansion allowed the company to create a steady stream of revenue from one-time development fees and increasing royalties, but also raised interest rates on its development loans. In 1998, the company filed for Chapter 11 bankruptcy.[7]

Since April 1999, a selection of Boston Market-branded items have been available in many supermarkets across the United States.

Boston Market was purchased by McDonald's Corporation in May 2000. McDonald's purchased the company for its real estate, but found the brand serviceable and therefore continued to operate and expand.

In the early 2000s, Boston Market operated two locations in Toronto, Ontario. In early 2002, Boston Market entered the Australian market, opening nine stores in the Sydney metropolitan area by 2004, before converting some stores to McDonald's and quietly exiting the Australian market later that year due to competitive pressures.

In April 2004, Boston Market introduced chilled menu items to be sold at supermarkets. In December 2005, these chilled menu items were available in 700 supermarkets.

In 2005, Boston Market also started offering limited-time offers, such as Crispy Country Chicken, an oven-baked chicken breast with gravy.

In 2007, McDonald's announced that it was "exploring strategic options" for the subsidiary.[8] On August 6, 2007, McDonald's announced plans to sell the chain to Sun Capital Partners,[9] a transaction that was completed on August 27, 2007.[10]

In April 2018, Boston Market announced that it was expanding its menu to offer rotisserie prime rib nationwide, three days a week.[11]

In April 2020, Sun Capital Partners sold Boston Market to Engage Brands, LLC, a company of Rohan Group, owned by Jignesh "Jay" Pandya.[12]

In 2023 and beyond, Boston Market experienced financial problems and closed most of its locations.[1]

Trademark dispute and grocery brand

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In 2002, Boston Pizza commenced a lawsuit against Boston Market in the Federal Court of Canada over the trademark use of the word "Boston" in Canada.[13] In its defense, Boston Market alleged that Boston Pizza's trademarks were invalid because it described a style of pizza from a specific area.[14] The dispute continued after Boston Market ceased operations in Canada in 2004. The parties settled the dispute in 2008 under an agreement that Boston Market would not use the words "Boston" or "Boston Market" in Canada for five years for restaurants or any food or drink products (other than pre-packaged food products, but not including pizza and lasagna). Boston Market also agreed that it would not challenge Boston Pizza's use in Canada of any trademark that uses the words "Boston" or "Boston Pizza" (with certain exceptions).[15]

Financial problems of 2023-2024

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On July 3, 2023, a complaint in court was filed stating the Danbury, Connecticut Boston Market owed in excess of $61,000 in unpaid rent and connected charges. A ruling in the landlord's favor July 28, 2023 led to an eviction.[16]

On July 25, 2023, US Foods sued Boston Market for $11.3 million, accusing the company of owing them over $10 million for food distributed over several prior years.[17]

On August 14, 2023, the New Jersey Department of Labor and Workforce Development gave a Stop-Work Order at 27 of the 31 Boston Market stores in New Jersey over multiple violations of workers rights, including owed backpay of up to $607,471 from up to 314 employees. An investigation on the matter began in November 2022 when an employee in Mercer County filed a complaint. The affected employees have since been reimbursed for their lost wages, and the stores were allowed to re-open a month later.[18]

In September 2023, investigative journalists of Restaurant Business Magazine revealed Pandya has over 200 lawsuits against him related to unpaid wages of employees, unpaid suppliers, and other violations related to his restaurants. The report described Pandya's ownership of Boston Market as "chaotic".[19]

In November 2023, the company failed to pay workers in Massachusetts.[20]

On November 14, 2023, all Detroit-area Boston Market locations were permanently shuttered and were handed eviction notices due to unpaid rent.[21] On November 20, 2023, all 8 remaining Connecticut Boston Market locations, located in East Haven, Meriden, West Hartford, Wilton, Stratford, Milford, Bristol, and Newington, were all permanently shuttered and handed eviction notices due to unpaid rent.[22] As a result of rising eviction notices and unpaid rent, Boston Market and owner Pandya filed for Chapter 11 bankruptcy in December 2023.[23][24]

On January 10, 2024, the company announced that it would allow anyone to open a Boston Market franchise without the usual franchise fees or other buy-in requirements.[25]

On January 11, 2024, Boston Market's bankruptcy case was dismissed after being unresponsive to court requests.[26] On February 1, 2024, US Foods won its lawsuit against Boston Market, with federal judge Manish Shah claiming that Boston Market's defenses in the lawsuit were "gossamer".[27] On February 12, 2024, shortly after getting their second bankruptcy dismissed, Boston Market filed for bankruptcy for the third time after losing its lawsuit against US Foods.[28]

See also

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References

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  1. ^ a b Sofield, Tom (May 8, 2024). "Newtown-Based Boston Market Has Closed Several Hundred Locations". NewtownPANow.com. Retrieved July 14, 2024.
  2. ^ "Only 27 Boston Markets Are Still Standing". www.thetakeout.com. March 13, 2024. Retrieved July 13, 2024.
  3. ^ "Boston Market Overview".
  4. ^ "All Boston Market Locations | Rotisserie Chicken, Catering, Food Delivery". www.bostonmarket.com. Archived from the original on January 25, 2022. Retrieved November 19, 2020.
  5. ^ Theresa Howard (February 27, 1995). "Boston Chicken chain targets new Market". BNET.
  6. ^ The Storied History of Boston Market Don Daszkowski. liveabout.com December 23, 2018.
  7. ^ "A Chicken Autopsy". Archived from the original on August 22, 2011. Retrieved June 21, 2011.
  8. ^ "McDonald's exploring options for Boston Market". Reuters. January 12, 2006. Archived from the original on October 14, 2007. Retrieved August 28, 2007.
  9. ^ Chris Burritt (August 7, 2007). "McDonald's to Sell Boston Market to Sun Capital". Bloomberg.com. Retrieved August 28, 2007.
  10. ^ "McDonald's Wraps Up Boston Market Sale". Dow Jones & Company, Inc. News Services. August 27, 2007. Archived from the original on September 28, 2007. Retrieved August 28, 2007.
  11. ^ "Boston Market Expands Menu to Offer New Rotisserie Prime Rib Nationwide, Unveils New 'Rotisserie Kitchen' Logo" (PDF). Boston Market Corporation. April 23, 2018.
  12. ^ "Affiliates of Sun Capital Partners Complete Sale of Boston Market". www.businesswire.com. April 29, 2020. Retrieved January 28, 2023.
  13. ^ "Boston Pizza battles Boston Market over name rights in Canada". Pizza Marketplace. October 11, 2002. Archived from the original on September 28, 2011. Retrieved May 28, 2011.
  14. ^ Charlie Smith (March 17, 2005). "Pizza chain battles McDonald's over name". The Georgia Straight. Retrieved May 28, 2011.
  15. ^ "Boston Pizza settles dispute with Boston Market over the name Boston". Welland Tribune. 2008. Archived from the original on July 27, 2011. Retrieved May 28, 2011.
  16. ^ Baker, Kendra (October 12, 2023). "Boston Market evicted from Danbury location for unpaid rent: 'They weren't paying us'". News Times.
  17. ^ "US Foods sues Boston Market". Crain's Chicago Business. July 25, 2023. Retrieved February 7, 2024.
  18. ^ "NJDOL Orders Work to Halt at 27 Boston Market Locations Statewide" (Press release). New Jersey Department of Labor and Workforce Development. August 15, 2023.
  19. ^ "Inside the Chaotic World of the Owner of Boston Market". restaurantbusinessonline.com/. September 11, 2023. Retrieved November 9, 2023.
  20. ^ "Workers at Fall River's Boston Market Are Fed Up, Say They Haven't Been Paid in Weeks". Herald News. November 6, 2023.
  21. ^ "Boston Market locations in metro Detroit area all closed". November 14, 2023. Retrieved November 20, 2023.
  22. ^ Pitts, Amanda (November 20, 2023). "CT's Boston Market locations face evictions and lawsuits for unpaid rent". NBC Connecticut. Retrieved November 20, 2023.
  23. ^ Maze, Jonathan (December 12, 2023). "Boston Market owner files for bankruptcy". Restaurant Business Online. Retrieved December 12, 2023.
  24. ^ Kline, Daniel (December 16, 2023). "Beloved fast food chain enters a bankruptcy death spiral". Lexington Herald Leader. Retrieved December 23, 2023.
  25. ^ "Struggling Boston Market will let anyone open a location". Restaurant Business Online. January 10, 2024. Retrieved February 7, 2024.
  26. ^ "Boston Market owner's bankruptcy case is dismissed". Restaurant Business Magazine. January 11, 2024. Retrieved February 7, 2024.
  27. ^ Canham-Clyne, Aneurin (February 1, 2024). "US Foods wins $11.9M suit against Boston Market by default". Yahoo! Finance. Retrieved February 7, 2024.
  28. ^ "The owner of Boston Market has filed for bankruptcy again". Restaurant Business Online. February 12, 2024. Retrieved February 12, 2024.
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