010566 Boston Market is Cooking Under McDonald’sMay 26, 2001Golden, CO - Known for its high-quality, home-style meals, Boston Market Corporation is producing solid financial results since its acquisition by McDonald's Corporation one year ago. With an increased focus to grow and renew the business last year, the leader in “home meal replacement” now operates nearly 700 company-owned restaurants in 28 states. Fueled by consistent comparable store sales growth, restaurants now average $1 million in annual unit sales volume. “Boston Market is financially sound and profitable, and we've exceeded McDonald's initial expectations,” said Jeffrey Kindler, chairman and CEO of Boston Market Corporation. “The Boston Market brand has tremendous potential, and we intend to continue growing the company with several key initiatives that will enhance the Boston Market experience for our customers, and ultimately, continue to drive our overall profitability.” Acquisition History and Vision McDonald's acquired the Boston Market chain on May 26, 2000. McDonald's initial interest was based upon the potential to convert sites to McDonald's restaurants or other McDonald's-owned brands. However, McDonald's soon recognized the potential of the Boston Market brand's equity and strong consumer loyalty. Convinced that Boston Market had a bright future, McDonald's appointed Jeffrey Kindler, a McDonald's executive, as chairman and CEO, and Mike Andres, an 18-year McDonald's veteran, as president and chief operating officer. With a strong focus on building sales and overall profitability, Boston Market's promise to consumers is to provide “great meals made easy” - delicious home-style meal solutions that are easy and convenient. Boston Market continues to deliver the great-tasting food its consumers love, with contemporary new options to introduce new dining experiences that fit well with today's tastes and broaden the restaurant chain's appeal to more consumers. New initiatives include refreshing the brand with a more inviting interior decor, expanding the menu with new products, such as grilled chicken entrees and more dessert varieties, and enhancing catering services to extend Boston Market's reach beyond its restaurants. As part of a broad three-year enhancement plan, Boston Market is implementing the changes that represent the “new Boston Market” in all of its restaurants in order to improve the overall dining experience and to further spur sales growth. The changes, which have been tested in Tucson, Ariz., to positive consumer feedback and increased sales, feature an expanded menu with new grilled chicken entrees, salads and sandwiches; a new, more inviting decor with warmer colors, and booths and padded seats; and a more family-friendly environment with baby cradles, kid's cups and coloring books. The “new Boston Market” improvements were recently introduced at company restaurants in Milwaukee and Pittsburgh. The changes will be rolled out market by market with system-wide completion targeted for year-end 2003. Catering Services Expanded Boston Market also has expanded its catering services at Boston Market restaurants nationwide. Menus are designed to deliver wholesome meals for a variety of occasions - from business meetings and graduation parties to church events or even weddings. In addition, broader delivery options at select restaurants allow Boston Market customers the choice of pick up, delivery or delivery with set-up. Moreover, Boston Market is testing several other delivery initiatives, including enhanced drive- thru operations and call-ahead pick up services. “One of Boston Market's greatest competitive advantages is its brand equity and strong consumer appeal,” Kindler said. “Our assets - Boston Market's high-quality food, enviable customer loyalty, strong leadership team and dedicated, talented employees - combined with McDonald's industry expertise are a powerful formula for continued growth and success.” About Boston Market Boston Market Corporation, based in Golden, Colo., specializes in quick, convenient meals, featuring home-style entrees, fresh vegetables, sandwiches, salads, soups, side dishes and desserts. Boston Market restaurants combine the freshness and quality of traditional home cooking with convenience, value and contemporary flair. With nearly 700 restaurants, Boston Market Corporation operates in 28 states. The company is a wholly owned subsidiary of McDonald's Corporation.
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