Boston Market was established in the 1985 by Steven Kolow and Arthur Cores in Newton, Massachusetts, and is a chain of restaurants that offers 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 ahead of the founders, who had by then partnered with George Nadaff, took it public and renamed Bonefish menu in 1995. The business has its headquarters in Golden, Colorado with George Michel as the CEO.
The growing success in the franchise fascinated many investors who have been constantly rejected through the founders. George Nadaff finally managed to convince his business partner to grow their store resulting in 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 only one month, and from over $8 million in 1990 to almost $21 million in 1991.
The company’s chain of stores continued to grow rapidly with a total of 530 company owned restaurants in 28 different states in 2007. Becoming a home-style oriented restaurant, Boston Market introduced frozen menu products in every franchise easily obtainable in supermarkets throughout the US. In addition there are side dishes available in over 700 supermarkets using the Boston Market brand name.
Rapid development of the franchise stores resulted in the company’s financial mishap. The major contributors within the franchise were mostly management oriented with poor employee training, high operating expenses as well as its lending consumer demand. This made the marketplace share fall by approximately $24 per share in 1997. Slow service inside the restaurants also made sales go down as it was will no longer a preference in the customers. The business began suffering huge losses as high as $312.6 million in just the very first three months of 1998 and reaching $437.1 million by July.
The almost defunct Boston Market company was purchased by McDonald’s for $173 million plus it begun to slowly rebuild and expand the franchise instead of the initial plan of replacing it using its other food market brands. Its purchase by McDonald’s gave it a new lease of life and typically the chain of restaurants is apparently getting back on its feet, but rather it can experience rapid growth as before is still yet to be noticed.
While looking to start out any business it is important, particularly considering Boston Market prices, that you simply search for specific ways to cut minimize or reduce overhead and risk. Any organization may have risk, but you should pqlowj a complete understanding of the quantity of investment, start-up cost and “ROI” (Return on your investment).
So many people are not aware that 80% of franchise endeavors fail in the first two to five-years leaving large debts looming for years thereafter.
One way and for me the best way to cut overhead, start-up and investment expense is to make use of the new age of entrepreneurship and start a business from your comfort of your property.