Boom Time for Boston Pizza
According to Boston Pizza's Royalties Income Fund, the popular chain of restaurants has achieved record-breaking franchise sales from its royalty pool of restaurants during the fourth quarter of 2012, with totals of $185.2 million. The totals reported for the same period in 2011 were $177.5 million.
This growth trend continued throughout the year, resulting in sales of $731.5 million for 2012, compared to sales of $699.3 million in 2011.
These revenue numbers represent a 10.9 percent increase of distributable cash for the fourth quarter of 2012 and an 8.0 percent increase for the entire year compared to the same periods during 2011.
In addition, same store sales growth increased by 2.2 percent for the fourth quarter of 2012 and by 3.3 percent for the entire year, compared to same store sales growth numbers from 2011.
All in all, these are record sales numbers for the Boston Pizza franchise, which also experienced growth in its franchise locations. During 2012, Boston Pizza opened seven new restaurants. Of these new additions, six are full service and one is a fast/casual dining restaurant. In addition, there are five new Boston Pizza restaurants currently under construction.
According to Boston Pizza President and CEO, Mark Pacinda, Boston Pizza is continuing to aggressively grow its franchise sales and to open new locations. As of January 2013, Boston Pizza owns 348 restaurants and plans are to continue coast-to-coast expansion throughout Canada. Pacinda added that these factors will further strengthen the franchise's position as the No. 1 casual dining brand in Canada.
For entrepreneurs looking to invest in a franchise in Canada, Boston Pizza offers key benefits that include prominent locations in high traffic areas such as big box retailers, offices and theatres and a comprehensive support system that assists franchisees in dealing with every aspect of their business. In addition, Boston Pizza franchisees have the satisfaction of partnering with a highly recognizable brand that, in just a few short years, has come to dominate the Canadian casual dining market.
According to the Canadian Restaurant and Food Services Association, the outlook is a positive one for the full-service restaurant industry during 2013. The forecast indicates a potential average annual sales increase of 3.9 percent for Canada's full-service restaurants, including Boston Pizza. Addressing these numbers, Boston Pizza executives have expressed their belief that the franchise is in a good position to outperform this growth rate in revenues, thanks to the popularity of its restaurant and sports bar format, in addition to its take-out/delivery services. With Boston Pizza's continuing plans for expansion, the outlook continues to be positive for future franchisees who want to invest in a lucrative food service business.
In addition to expansion, Boston Pizza continually improves its overall services throughout the years. These improvements include innovative additions and changes to the menu, as well as annual menu re-pricing. Boston Pizza restaurants are also required to undergo a complete renovation and cosmetic update every seven years, a policy that has helped keep its locations contemporary, fresh and up-to-date.