STRATEGIC PARTNERS
April 22, 2021
Despite the economic challenges of last year, Boston's Pizza Restaurant & Sports Bar posted a 20% increase in unit growth and is on pace to double in size by the end of 2023. The Dallas-based franchise is also experiencing higher sales in 2021, exceeding 2019 comparable, pre-COVID numbers while also opening four new restaurants in 2020.
"What we and our owners accomplished in 2020 is nothing short of incredible," Ryan Reeves, vice president of franchise sales and development for Boston's, said in a company press release. "Like many people said, the realities of 2020 were unprecedented, and we had to create a plan of action that not only prioritized the survival and success of our current franchisees but also put us in a position to grow once we came out on the other side. We were able to devise a plan that did just that, and we couldn't be more thankful for and appreciative of our great group of stable franchisees. They put their unwavering trust in us, and it's paying great dividends now."
As Reeves mentioned, Boston's — a restaurant concept heavily reliant on the in-person dining and community-focused experience — was able to overcome the restrictions of last year thanks in large part to the strength of its COVID-19 response plan and the resiliency of its owners demonstrated in the face of uncertainty.
The franchise quickly pivoted at the onset of the pandemic, shifting its focus and refining operations to include curbside pickup, delivery and online ordering. These new avenues for revenue helped supplement initial losses from a lack of indoor dining and is now creating even greater profit opportunities for new and existing owners alike.
Additionally, Boston's supported its owners during the worst months of the pandemic with measures, including deferring royalty payments and easing other financial burdens.
As a result of these efforts, the franchise's development pipeline continues to grow with five additional restaurants coming this year and four future locations in the Southwest. In addition to new candidates investing in the brand, Boston's is seeing extensive organic growth as well with signed development agreements that could add up to 18 locations across the country.
"Altogether, these efforts are a reflection of our core company values in taking care of our franchisees and creating a profitable investment for them that supports the communities in which they operate," Reeves said. "It's our dedication and nimble support structure that has proven to be very attractive to more and more prospects."
Nearly 80% of Boston's openings will be non-traditional locations; end-cap, inside or adjacent to hotels. Interest in second-generation and conversion opportunities is on the rise as well.
"We're seeing new candidate interest in cities where there's an opportunity to establish the Boston's brand for the first time," Reeves said. "Almost all of the new-candidate conversations are targeting a mix of new development along with second-generation opportunities. This will allow us to capture greater market penetration and awareness as developing partners will grow more quickly than pre-COVID."
This chain is also developing a new restaurant prototype, which is being tested in Canada, that features a more efficient design, 30% smaller than pre-COVID prototypes. Boston's is also looking at handheld tablets for service to help improve efficiency between ordering and kitchen, eliminate mistakes, reduce labor costs and improve the guest experience. Additionally, Boston's is exploring virtual concepts along with a lower-cost, third-party delivery partnership, Reeves said.
"As restaurants re-open and restrictions are lifted, our guests are eager to return to their local Boston's," Katie Borger, VP of marketing, said in the release. "We're hearing about waves of people who can't wait to get together with friends and family in a fun, inviting atmosphere, and that's what we provide. We look forward to bringing that long-awaited experience back to loyal and new guests alike."
Throughout North America, Boston's sees $1.1 billion in system-wide sales, with more than 400 locations across Canada, the United States and Mexico.
