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The fast-food chicken chain nearly collapsed after 1,000 stores closed

In the 1980s, rotisserie chicken may have existed, but it wasn’t as mainstream as it is today.

Costco, for example, which has become famous for selling a whole rotisserie chicken for $4.99, didn’t actually start selling the popular item until 1994.

“The famous $4.99 chicken made its official Costco debut in 1994. Except for a brief dollar increase in 2008 during the Great Recession, Costco is committed to keeping chicken prices stable despite ongoing inflation,” according to Eat This, Not That.

The warehouse club actually loses money when it sells its popular chicken. But in the opinion of Rose Sioson, founder of Deliciously Rushed and Costco shopper, Costco makes up for it very little just by getting customers through the door for that price of chicken.

“Costco may technically lose money on every rotisserie chicken they sell, but trust me — they’re not losing money on the next one I buy,” Sioson said. “That chicken is usually in the cart with salad kits, ready-made mashed potatoes, a bottle of wine, maybe dessert, and some random items that I had zero intention of buying. It’s a classic Costco strategy.”

When a major retailer sells your main product as a loss leader, that’s never good for business, but that’s just one reason why the Boston market is being pushed to the brink of being completely out of existence.

When I was a child growing up outside of Boston in the 1980s, my aunt would come to visit, and she would often bring chicken, then known as Boston chicken. At the time, the company was a small local chain that was actually founded in the Boston suburbs.

It was the first time I was exposed to rotisserie chicken, and the concept quickly caught on. MacDonald was also an investor for a short period of time.

  • Peak Footprint: Boston Market once was Over 1,200 American restaurants At its national height in the 1990s.
    A decline from 1,200 to 300 occurred from the late 90s to 2023.

  • Fall 2023-2024: The chain was immediately removed Less than 300 positions by early 2023 By early 2024, according to Restaurant Business Online.

  • Initial 2025 footprint: Assumptions show less than 20 positions remain open nationally through early 2025After several stores disappeared without notice, drastically reduced from its former scale, Flavor365 was added.

  • Liquid Number: Official company listings on websites and apps significantly increase open stores; Several listed units have been confirmed to be closing, reported Restaurant Trade Online.

Technically, the chain still exists, but its owner has tried to file for bankruptcy twice.

“Boston Market owner Jay Pandya — who is facing hundreds of lawsuits from vendors, franchisors and employees over unpaid bills — filed for personal bankruptcy on Dec. 8, 2023, in the Eastern District of Pennsylvania bankruptcy court. Pandya cited $10-$50 million in liabilities for his restaurants, according to the news release.

That filing, and a subsequent one, were denied by the court.

The company’s headquarters in Denver were seized by local authorities in 2023 over $300,000 in unpaid taxes, and the retailer has filed a lawsuit against Boston Market for unpaid bills. In addition, many locations have been forced to close, or employees were storing food purchased at supermarkets, because vendor contracts expired or were canceled, according to NRN.

According to PacerMonitor, the chain faces a court order to pay its major supplier, US Foods, $15 million.

While several locations were affected by the US Foods lawsuit, Restaurant Business Online reported how unpaid supplier bills contributed to store closures.

A handful of Boston Market locations are still open.Shutterstock
  • Chapter 11 Efforts: Owner of Boston Market (Jay Pandey) Filed twice for Chapter 11 bankruptcy protection on behalf of the companyBut the courts Denied both filings Due to procedural and documentation issues, according to RetailWire.

  • Jai Pandya, the owner of Boston Market, has filed an application Personal Chapter 11 Bankruptcy On December 8, 2023, listing $10-50 million in liabilities and assets. (Source:(The Nation’s Restaurant News)
    That filing was terminated early due to procedural deficiencies, Restaurant Trade Online added.

  • Unpaid Liabilities: The brand is facing legal action Unpaid rent, supplier debt (eg, US Foods claims), and back wagesThat forced the closure, according to Flavor 365.

  • Removals and Closures: Several locations were ordered closed by authorities due to eviction liabilities.

  • The brand still exists, but on life support: A handful of Boston Market restaurants are still technically open, however The chain’s footprint is small Compared to its old scale, Flavor365 reports.

  • New Openings Mid-Fall: Despite the closings, the company opened at least one new location after filing for bankruptcy, indicating a turnaround effort shared by RetailWire.

Related: 90-Year-Old Party Supply Retailer Files for Chapter 11 Bankruptcy

In 2024, Pandey released a new franchise plan to bring Boston Market to non-traditional locations. He is licensing the brand because it is not legally set up to offer traditional franchises.

“Boston Market’s name stands for itself and is well-known across the country,” Pandey said in a statement to Nation’s Restaurant News. “Now, with everyone’s help, we’ll be able to offer everyone our famous rotisserie chicken and delicious, homemade sides and family meals. We encourage anyone who wants to add the location and Boston Market virtually to reach out and share with us.”

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Many doubted the plan.

“At this point, it’s just a way for him to scam somebody,” Gina Busby, former regional director for Boston Market, told RetailWire. “He owes employees millions in unpaid wages, myself included. He didn’t report wages so people wouldn’t get unemployment. He cheated. [reported] Supervisors as 1099 employees. He has not paid the expenses. More lawsuits and class actions are coming his way. “

RELATED: Forget the Steakhouse Whopper, Burger King Unveils the Breakfast Whopper

Restaurant analyst Aaron Allen told FCNew that the chain brought about its own decline.

“After distinguishing itself as a cut above fast food in the 1990s, it tried to compete with those brands by lowering its costs – a move that ultimately led to a reduction in quality, which further undermined it,” he shared.

“If you go after the lower price-point consumer, you can put yourself out of business,” Allen said.

Grocers also ate up the Boston market as they began adding rotisserie chickens to their expanding prepared-food aisles.

“Inevitably, Boston Market became a victim of its own success. After helping to popularize the fried, whole chicken — in some cases, introducing the concept to consumers — the chain eventually saw Costco offer the same thing at a much cheaper price,” wrote Steve Feldman, a retail and restaurant expert.

A former employee, Josh Taylor, posted on Linkedin about the brand’s decline.

“Oversaturation, competition and food costs have killed the Boston market. Perhaps you could argue that food costs are the reason for the expanded menu, but people love all the menu items,” he wrote.

George Franchi, president of business research firm Franchi Business Enterprises, shared his thoughts on the chain’s decline.

“The cuisine became more complex, the quality decreased and the service slowed down. Customers were confused about what Boston Market really was. The push into sandwiches put them in direct competition on price with McDonald’s and Subway. Running two businesses under one roof blurred the brand identity and took away its advantage,” he shared.

Related: Walmart Adds Exclusive New Coca-Cola Product

This story was originally published by TheStreet on January 11, 2026, where it first appeared in the Restaurants section. Add TheStreet as a preferred source by clicking here.

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