What Happened to Boston Market? Is Boston Market Going Out of Business?
by Abinaya | Updated Jul 13, 2023
What Happened to Boston Market?
Boston Market had been taken over by McDonald’s in May 2000. In 1998, Boston Market faced financial difficulties and filed for Chapter 11 bankruptcy. The bankruptcy filing was a result of various factors that had impacted the company's operations and profitability. However, this marked a turning point for Boston Market as it underwent significant changes in ownership and continued its operations under new management.
In May 2000, McDonald's Corporation acquired Boston Market. Initially, McDonald's was primarily interested in the real estate assets of the company. However, upon further evaluation, McDonald's recognized the potential and value of the Boston Market brand. As a result, McDonald's decided to continue operating and expanding the Boston Market chain.
Under McDonald's ownership, Boston Market underwent certain changes and adaptations while maintaining its focus on serving high-quality, home-style meals. McDonald's recognized the demand for the brand's offerings and the loyalty of its customer base, which led to the decision to keep the Boston Market brand alive.
Despite the challenges and bankruptcy filing, Boston Market has managed to persist and grow under the umbrella of McDonald's Corporation. Today, the chain continues to provide customers with its signature rotisserie chicken, homestyle meals, and other delicious offerings across its various locations.
Is Boston Market Going Out of Business?
Boston Market is still in operation but is said to be going out of business. While the company has faced challenges over the years, it has made efforts to expand its business with an ambitious expansion plan. Part of this expansion plan includes the opening of new restaurants featuring modern and takeout-friendly designs.
Boston Market aims to cater to the evolving needs and preferences of its customers by providing convenient dining options. However, it is important to note that Boston Market did face financial difficulties in the past. In 1998, the company filed for Chapter 11 bankruptcy. This filing was a result of various issues and problems that arose over time, leading to a decline in business performance.
Initially, Boston Market owned an estimated 1,200 units across the United States. However, the number of restaurants steadily declined to 326 as of 2022. The company has grappled with challenges and has experienced a decline in its overall restaurant count. Despite these challenges, Boston Market has persevered and continues to serve its customers.
The company remains committed to providing its signature rotisserie chicken and homestyle meals. While Boston Market has experienced setbacks, it remains an active player in the fast-casual restaurant industry. The brand's focus on quality food and customer satisfaction has allowed it to maintain its presence and serve its loyal customer base.
Boston Market Closing 2023
No, Boston Market is not closing in 2023. As of July 2023, Boston Market has not announced plans to close all of its locations. However, the company has experienced a significant number of restaurant closures in recent years, and there is a possibility of further closures in the future. Currently, there are approximately 312 Boston Market restaurants operating across the United States.
In 2019, the company closed 45 locations, followed by an additional 40 closures in 2020. In 2021, Boston Market closed 12 locations. The closures have been attributed to several factors, including declining sales, increased competition, and financial challenges. Boston Market has faced difficulties in adapting to evolving consumer tastes.
With a shift towards healthier dining options, traditional fast-food restaurants have encountered challenges in meeting the changing preferences of consumers. Boston Market's menu has remained largely unchanged for a significant period, making it challenging to keep pace with evolving trends. While Boston Market is implementing certain changes to address these challenges, such as expanding its delivery and catering services, the outcome of these efforts is uncertain.
The company is striving to find ways to remain relevant in a competitive market, but it remains to be seen whether these changes will be sufficient to ensure the company's long-term success.
What is Boston Market?
Boston Market Corporation, formerly known as Boston Chicken, is an American fast casual restaurant chain with its headquarters in Golden, Colorado. The company is owned by the Rohan Group and has a notable presence in the Northeastern and Midwestern regions of the United States. Additionally, it has established a significant presence in California, Florida, Texas, and other states.
As of November 2020, Boston Market operated approximately 346 company-owned restaurant locations across 28 states, Puerto Rico, and Ramstein-Miesenbach. With a workforce of around 14,000 employees, the chain continues to provide employment opportunities in various communities. While primarily operating within the United States, Boston Market briefly expanded beyond its home market.
In the early 2000s, the chain operated two locations in Toronto, Ontario. Furthermore, Boston Market ventured into the Australian market in early 2002, opening nine stores in the Sydney metropolitan area. However, due to competitive pressures, the company made the decision to convert some of these stores into McDonald's locations and subsequently withdrew from the Australian market later in 2004.
Boston Market is recognized for its focus on serving rotisserie chicken, along with a variety of homestyle meals and side dishes. Customers can enjoy convenient and satisfying dining experiences at their restaurants, which feature a fast-casual format.
Boston Market History
Boston Market, formerly known as Boston Chicken, has a rich history that began in 1985 when Steven Kolow and Arthur Cores founded the chain in Newton, a suburb of Boston. The early and mid-1990s witnessed rapid expansion for Boston Chicken, fueled by significant debt raised to finance its growth.
This expansion strategy allowed the company to generate revenue from development fees and royalties, but it also increased interest rates on its loans. In 1998, Boston Chicken faced financial difficulties and ultimately filed for Chapter 11 bankruptcy. The following year, McDonald's Corporation acquired the struggling company in May 2000.
Initially intending to leverage Boston Chicken's real estate, McDonald's recognized the brand's potential and decided to continue operating and expanding it. However, in 2007, McDonald's announced its intention to explore strategic options for the subsidiary. On August 6, 2007, McDonald's confirmed the sale of Boston Market to Sun Capital Partners, a transaction that was completed on August 27, 2007.
This change in ownership marked a new chapter for the company. While originally known for its specialty in rotisserie chicken and a variety of side dishes, Boston Chicken underwent a significant transformation. In February 1995, the menu expanded to include turkey, meatloaf, and ham, leading to the name change to Boston Market later that year.
The company's corporate name also transitioned from "Boston Chicken, Inc." to "Boston Market Corporation" in 1997, reflecting the brand's popularity. Throughout its history, Boston Market introduced various menu additions and limited-time offers to cater to evolving consumer tastes. This includes the launch of "Boston Carver Sandwiches" in 1996 and the subsequent introduction of "Extreme Carver" sandwiches in 1997.
The company continued to innovate by offering new dishes such as Crispy Country Chicken and seasonal items like baked whitefish during Lent. Over the years, Boston Market expanded its menu with popular offerings like BBQ Ribs, Oven Crisp Chicken, and Parmesan Tuscan Chicken. Beyond its restaurant locations, Boston Market expanded its reach through supermarkets, introducing branded items in 1999.
Chilled menu items became available in supermarkets in 2004, while frozen meals and side dishes bearing the Boston Market name were distributed nationally. Additionally, Boston Market provides catering services for office meetings, holiday parties, and private events, offering delivery or pick-up options.
In April 2020, Boston Market underwent another ownership change, as Sun Capital Partners sold the company to Engage Brands, LLC, a subsidiary of Rohan Group owned by Jignesh Pandya.
What Happened to Boston Market - FAQ
Boston Market faced financial difficulties and filed for Chapter 11 bankruptcy in 1998. It was subsequently acquired by McDonald's Corporation in May 2000.
No, Boston Market is still in operation. It has not announced plans to close all of its locations.
As of July 2023, there are approximately 312 Boston Market restaurants operating in the United States.
Boston Market has experienced closures due to factors such as declining sales, increased competition, and financial challenges.
Boston Market is known for serving rotisserie chicken, homestyle meals, and a variety of side dishes in a fast-casual dining format.