The Beloved Restaurant Chain That's Had To Close 95% Of Its Locations
During the 90s and the early 2000s, when meal delivery services were still a few years away from gaining popularity and supermarkets had not hunkered down on selling pre-cooked poultry yet, a significant portion of the American population was dining at Boston Market. A fast-casual restaurant chain popular for its rotisserie chicken and a family-centric ambiance, Boston Market once had thousands of locations across the country.
However, this number has slowly dwindled over the years, owing to some major corporate mismanagement as well as the rise of new food options that trumped the brand for affordability and convenience. What is startling is the fact that ever since a change in ownership in 2020, when the company still had about 300 locations nationwide, its outlets have come down to below 20. Since the end of 2022, nearly 95% of its locations have shuttered, according to Restaurant Business Online.
Boston Market was founded by Arthur Cores and Steven Kolow in 1985 as "Boston Chicken". The brand has had its years of growth, however, long before sliding down the slippery slope that is currently threatening the business towards closure. It's bounced from filing for bankruptcy in 1998, to being bought by McDonald's and let go, and being eventually purchased by Rohan Group in 2020. When asked about its sorry state in 2024, owner Jay Pandya remained optimistic about the future, telling Today that they could "bounce back into over 100 restaurants" by the end of the year.
Boston Market has suffered from constant legal and financial troubles
While increased labor costs and rent prices seemed to be the cause of so many restaurants struggling in 2024, the reason behind Boston Market's miseries points towards a totally different direction. The recent decline of this once prominent beacon of homestyle cooking can be traced to a number of lawsuits inflicted on the company.
Rohan Group, after taking over the reins of the enterprise, refused to pay land rent and utility bills on time, causing mass shutdowns of locations by landlords. On the other hand, stories of employees not being paid on time also surfaced during this period. Some of the employees were also kept in the dark about the company's failure to pay premiums on health insurance. They had to encounter surprise bills for medical expenses. The gravity of the company's problems is also evident from the fact that the state of New Jersey had to order Boston Market to close several locations for violations of worker rights in 2023.
There are ways that restaurants save money, some at the customer's expense, but Boston Market certainly went a few steps further. The mess that the company finds itself in can also be estimated from the fact that its creditors have had a tough time fighting over the company's assets –- because of the sheer numbers that are claiming access to those assets. US Foods, one of the most prominent names in the list, won a $15 million lawsuit against Boston Market, only to realize that the company's bank account it was trying to garnish had been given collection orders from multiple other parties via different courts.
Boston Market is trying to find a way back
While a number of other beloved restaurant chains faced bankruptcy in 2024, long-time fans of Boston Market reminisce and hope for one last revival of the brand in America. Boston Market itself, however, seems to be looking towards a completely different corner of the world to regain lost ground. The company has opened a restaurant in New Delhi, India, in the hopes of reconciling "American tradition with Indian hospitality", per a LinkedIn post from Boston Chicken India. Boston Chicken India has also made sure to keep local Indian culinary preferences in mind while laying out its menu.
Moreover, Boston Market has also previously tried to expand its business with a low-cost entry program called Boston Market Connect. This program allowed entrepreneurs to run operations without fulfilling the buy-in requirements needed for a typical franchise outlet. Existing restaurant owners could open and run a Boston Market outlet within their venue. In an effort to make a comeback, Boston Market has also ventured to open new outlets in western New York, a state that still has the most Boston Market locations.