Every so often I come across an article about a once-popular chain that either filed for bankruptcy or is going out of business. I am interested in these stories to learn what factors—internal and external—contributed to the demise. More importantly, to see if this is something our readers can learn from.
The chain that most recently fell into this category is Boston Market. It was a booming brand back in the mid-1990s, a pioneer of what we now know as the fast-casual landscape. It existed in a space that restaurant goers were just realizing they wanted to be in, somewhere between the greasy burgers of fast-food drive-throughs and the sit-down experience at the Olive Garden or TGI Fridays.
People flocked to its homey meals; its signature rotisserie chickens seemed fresh, even healthy, in that era of Healthy Choice frozen dinners. After being founded in 1985 as Boston Chicken, it eventually expanded to more than 1,200 locations. (It changed its name to Boston Market in 1995.) Now, only a few dozen remain—27, according to the trade publication Restaurant Business. Most locations sit empty.
An article in The Washington Post cited the Newark, Del., location where the soda fountain was out of order. They were also out of pot pies and all the desserts. In some locations, according to reports, workers are resorting to shopping at local grocery stores themselves for ingredients to make the dishes—even the signature rotisserie chicken—since supplies stopped coming in. This is what the end of an era looks like.
So why did it happen? The immediate cause of death seems to be its current management, a company called the Rohan Group, which bought the chain cheaply from a private equity firm in 2020. The owner promised to turn the brand’s fortunes around and open new stores. Instead, locations around the country began shuttering by the dozens, with landlords claiming unpaid rent.
Earlier this year, Massachusetts labor officials fined the chain for late payments to employees; last year, New Jersey issued a stop-work order for 27 locations over failure to pay $630,000 in back wages. Boston Market’s Colorado headquarters was seized. The biggest blow came in the form of a lawsuit from supplier U.S. Foods over unpaid bills in which a judge in January ordered Boston Market to pay $15 million.
Restaurant analyst Aaron Allen said many of the brand’s problems predated its change of ownership. For one, after distinguishing itself in the 1990s as a cut above fast food, it attempted to compete with those brands by holding its costs down—a move that ultimately led to a reduction in quality, which only undercut it further. “If you chase a lower price- point consumer, you can price yourself out of business,” Allen said.
Grocery stores, too, ate Boston Market’s lunch as they began adding rotisserie chickens to their expanding prepared-meal aisles. Essentially, Boston Market became a victim of its own success. After helping to popularize the roasted, whole chickens—in some cases, introducing the concept to consumers— the chain eventually saw the likes of Costco serve up the same things for far cheaper.
It’s hard to imagine a time when rotisserie chickens weren’t everywhere, but from the early to mid-1990s they seemed new and exactly what diners were clam- oring for. Boston Market led the way. Eventually, though, the chain’s all-Amer- ican, homestyle fare, often served in family-size portions, fell out of step with consumer tastes. Diners were drawn to ultra-customizable bowls at Chipotle and the varied menu at Panera Bread—two leaders in the market now infiltrated by chains offering healthier options.
So what are the takeaways?
- The first and most obvious is you have to pay your bills—that includes your employees, your suppliers and your rent. On time.
- As Allen stated: “If you chase a lower price-point consumer, you can price yourself out of business.”
- If you’re successful, you will be copied. Inevitably, someone will do it or sell it more economically than you. Therefore, you must evolve and/or come up with ideas that are extremely hard to replicate.
- Even your best ideas have a shelf life. Consumers’ tastes change. Trends change. Hone in on the latest trends and preferences.
- Take advantage of the latest technology being offered to you—anything to facilitate that shopping experience for the consumer.
Just remember all this the next time you’re pining for a rotisserie chicken joint.
