Thursday, December 02, 1999
McDonald's buying Boston Market chain
The Associated Press
CHICAGO — Fast-food giant McDonald's Corp. plans to buy the Boston Market restaurants for $173.5 million in cash, promising to revitalize the struggling chain even as it expands its own new food-related endeavors.
McDonald's Golden Restaurant Operations Inc. subsidiary will obtain 751 Boston Market restaurants and the franchise rights for an additional 108 restaurants from Boston Chicken Inc., officials of both companies said Wednesday. The chain operates nine Boston Markets in Greater Cincinnati.
The sale will not include Boston Chicken's interest in Einstein/Noah Bagel Corp., though it does include some liabilities.
“We're just thrilled to jump-start the concept,” McDonald's Chairman Jack
Greenberg said in an interview Wednesday, adding that — despite financial difficulties — the chain is now operating in the black.
“They've made a lot of mistakes ... but there's no question that there's life here,” Mr. Greenberg said.
Denver-based Boston Chicken sought U.S. Bankruptcy Court protection from its creditors in October 1998 as it attempted to reorganize its finances while continuing to operate.
Mr. Greenberg said it's likely that some Boston Market restaurants will be closed or turned into McDonald's or, perhaps even more likely, one of the company's other new endeavors — Chipotle Mexican Grill or Donatos Pizza.
Mr. Greenberg also said that while this was an effort to diversify, McDonald's restaurants would remain the company's focus.
Between May 1992 and 1996, Boston Chicken grew from 34 stores — named Boston Market as of 1995 — in the Northeast to 1,143 nationwide before financial problems forced it to begin closing shops.
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McDonald's buying Boston Market chain
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