Boston Market, once deemed a worthy competitor in the fast-casual restaurant space, has suffered
in recent years, and as delectable as that fall-off-the-bone rotisserie chicken might
be, a lot has gone wrong for this once-prominent chain.
Here are all the reasons Boston Market is disappearing.
In the early ‘90s, the chain then known as “Boston Chicken” rocketed to fame and
fortune with an aggressive expansion strategy that was built on a house of lies.
Essentially the company would loan money to potential franchisees, who would then use
that money to pay the company a franchise fee, along with other costs, including interest
on the loan.
The parent company then reported all this income as pure profit, leaving the franchisees
to bear the burden of startup costs.
As a result, individual franchises suffered while the home office reported record growth
and profit.
This allowed them to launch a stock offering in 1996 which saw the price of shares double
in a single day, and then double again before the end of the year.
Since the profit model was based on constant expansion, you can guess what happened.
The market reached saturation, struggling franchisees couldn't repay their loans, and
suddenly the whole thing collapsed.
In 1998, the company declared bankruptcy and was forced to close over 700 locations.
"I invested in Boston Market many years ago, and I lost my shirt!"
In the year 2000, McDonald's swooped in and acquired Boston Market out of bankruptcy.
It seemed like a win-win, with a Boston Market executive saying in a press release,
"With the benefit of McDonald's resources and expertise, we'll now be able to provide
our customers with an even better restaurant experience and our employees with great new
growth opportunities."
But even the marketing muscle of McDonald's couldn't quite crack the chicken code.
Attempts to expand the brand into grocery stores were… weird… and after stabilizing
the chain at around 500 locations, McDonald's quietly bowed out, selling Boston Market in
2007 in a quick sale.
"McDonald's has found a buyer for it's Boston Market chain.
The private firm Sun Capital Partners will buy the chain for an undisclosed amount."
So why did McDnoald's get out of the chicken game?
In the early 1990s, being able to pick up a whole, cooked rotisserie chicken from Boston
Market to feed the family was a time saver and a game changer.
That's the problem though: it changed the game, and now you can get those chickens cheaper
and easier at almost every supermarket in America.
It's hard enough to compete with other restaurants, but as then-CEO George Michel told The Washington
Post in 2015,
"Between 4:30 and 6:30, we compete with the supermarkets."
And that's a battle that's hard to win.
Boston Market has tried some innovative marketing moves over the years, and for the most part,
those moves have blown up in their face.
Most infamously was a 2009 event where they offered a coupon online for a $1 chicken.
The coupon went viral, and when thousands of customers showed up demanding their cheap
meat, Boston Market couldn't keep up with the demand.
Some locations even refused to honor the coupons and gave out discount meatloaf instead, resulting
in a public relations black eye.
More generally, the company made the mistake of highlighting the cheapness of their food
rather than the quality.
That has recently changed, as the company is attempting to reach modern consumers who
prioritize healthy, fresh food.
George Michel, who stepped down as CEO in 2018, told Fortune that the new marketing
direction
"...highlights in a bold way what sets Boston Market apart from our competitors.
Fresh from the farm to our ovens, and then to our customers."
When you're considering a romantic night out, or even trying to imagine a place where you
can bring the family without the kids getting vinyl booth-burn on the backs of their thighs,
Boston Market probably doesn't spring immediately to mind.
But with many diners now choosing delivery or takeout in order to eat at home, atmosphere
matters more than ever.
Boston Market exists in a middle ground between fast food and luxury dining a middle ground
that is rapidly vanishing from the restaurant landscape.
Boston Market's whole business was based around the idea of a good old fashioned home cooked
meal.
There's just one problem with that though: Old fashioned is kind of… old fashioned.
What do modern-day diners want?
Multi-cultural offerings, including Korean, Filipino, and Persian flavors.
Healthy, plant-based options, including meatless burgers and Yucca fries.
Creative, over-the-top dipping sauces and glazes.
According to QSR, these are the trends that will drive quick service consumer spending
in 2019.
And though Boston market has responded by adding sweet Thai chili garlic sauce and honey
habanero sauce to their menu, that may not be enough to keep up with modern trends.
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