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 before the founders, who had by then partnered with George Nadaff, took it public and renamed Boston Market hours in 1995. The business has its headquarters in Golden, Colorado with George Michel as the Chief executive officer.
The growing success in the franchise fascinated many investors who had been constantly turned down from the founders. George Nadaff finally managed to convince his business partner to grow their store ultimately causing a quick expansion making a chain of successful franchises that increased their revenues. The shops were so successful which they even passed the anticipated income projections, doubling in only 30 days, and from over $8 million in 1990 to almost $21 million in 1991.
The company’s chain of stores continued to cultivate 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 all around the US. Additionally, there are side dishes offered in over 700 supermarkets with all the Boston Market brand name.
Rapid growth of the franchise stores led to 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 market share fall by approximately $24 per share in 1997. Slow service in the restaurants also made sales drop since it was no more a preference of the customers. The business began suffering huge losses as much as $312.6 million in only the first 3 months 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 begun to slowly rebuild and expand the franchise as opposed to the initial plan of replacing it featuring its other food market brands. Its purchase by McDonald’s gave it a whole new lease of life and currently the chain of restaurants seems to be returning on its feet, but alternatively it can experience rapid growth as before continues to be yet to be noticed.
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