Popular chicken chain shuts down 1,000 outlets as it couldn't match Costco's pricing

Rotisserie chicken has been one of the most popular quick meals across America, and no one expects a well-established franchise selling to go wrong. Around the suburbs of Boston, one such rotisserie chicken chain called Boston Market gained popularity. But it seems to be on its way out of the American food market, after 1,000 outlets shut down following two bankruptcy filings, according to The Street.

Boston Market wasn't able to match the competitive pricing that Costco was offering on its rotisserie chicken. That was the only item the chain sold, and the losses proved to be too much for it. This was just one of their reasons for Boston Market's downfall.

At its peak, Boston Market boasted of having close to 1200 outlets open across the country, and now almost all of its restaurants in America have shut down. McDonald's had been the crutch that saved the Boston Market from bankruptcy by infusing almost $173 million in the year 2000. In 2007, just ahead of the big recession, McDonald's exited as an investor by selling its Boston Market equity stakes to a private equity firm, Sun Capital and Partners. In 2020, Boston Market was acquired by Rohan Foods, run by Jay Pandya, a surprise buyer of Boston Market for a throwaway price by Sun Capital. But by early 2024, Boston Market's Jay Pandya was slapped with close to 200 lawsuits for pending wages and nonpayment to vendors such as U.S. Foods, and the number of open outlets had come down to less than 30.

Both instances of bankruptcy filing were rejected by the court, citing procedural deficiencies. Boston Market was eventually evicted from their corporate headquarters in Golden, Colorado, and multiple outlets in Massachusetts, to downtown Chicago, and then to suburban Los Angeles closed their doors to customers without notice.

However, its current ambitious owner still seeks to bring the brand back into relevance despite Boston Market's existence hanging by a worn-out thread that can be snipped anytime. Jay Pandya still believes that Boston Market could pull off a turnaround.

“The Boston Market name stands for itself and it is well known throughout the country,” Pandya said, before adding, “Now, with everyone’s support we will be able to provide our famous rotisserie chicken and delicious, homemade sides and family meals to everyone. We encourage anyone with a location and a desire to add Boston Market virtually to reach out and partner with us.”

According to restaurant analyst Aaron Allen, Boston Market's unprecedented success eventually became its downfall. “If you chase a lower price- point consumer, you can price yourself out of business,” Allen said. When you price your products for less, the first thing that takes a hit, especially in the food biz, is quality.

“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,” wrote Steve Feldman, a retail and restaurant expert.

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