Locational Analysis of Boston Pizza
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>Location Analysis of a Franchise Resturaunt
>Kristoffer Eyvindson <[email protected]>
>University of Saskatchewan
> Boston Pizza International Inc. is a Canadian owned and operated
>restaurant. It has many facilities in Canada and has opened facilities in
>the United States and in Southeast Asia. Boston Pizza is penetrating
>further into the Canadian market and is opening at a new location on 8th
>Street in Saskatoon. The chosen location has been the home of many previous
>restaurant failures. It seems odd that any restaurant would want to open in
>a location which has proven to be unsuccessful. What characteristics does
>Boston Pizza have that other restaurants don't have that may allow this
>location to be successful? This new location will be the second Boston
>Pizza franchise in Saskatoon, complimenting the facility operating on 50th
>Street. Will the market areas of these two restaurants overlap?
>* * * * *
> The early beginnings of this restaurant occurred in Edmonton,
>Alberta. In 1963 the first Boston Pizza and Spaghetti House opened. The
>name of the restaurant is seemingly odd because Boston is the name of a city
>in the United States, and has nothing to do with a pizza restaurant located
>in Edmonton. Ron Coyle, the original owner, named the restaurant 'Boston'
>because the Boston Bruins NHL hockey team was the favorite of the Edmonton
>area in the 1960's and he wanted his business to use sports as a promotion.
>Another reason, which may have been more of a coincidence, was that his
>accountant's surname was Boston ("only way", 37).
> Boston Pizza and Spaghetti House became a popular restaurant and in 1968 it
>began to operate as a franchise. In mid-1968, Jim Treliving, a former drum
>major for the RCMP, and his friend Don Spence bought the franchising rights
>for British Columbia with the exception of Vancouver. They opened their
>first unit in Penticton, British Columbia, and in the first year of
>operation the pizza restaurant grossed $52,000 and the nightclub which was
>co-located with the restaurant grossed $80,000 (Cameron, 16).
> Meanwhile, franchise units opened in Edmonton, Winnipeg and Vancouver. As
>the pizza chain grew, Treliving and George Melville (who had become involved
>with Treliving's restaurants as a financial planner) became involved in real
>estate ventures in Hawaii and the Okanagon Valley and also in oil
>investments in British Columbia (Cameron, 16). In 1983, these two men
>purchased Boston Pizza Spaghetti House from the original owner Ron Coyle for
>$3 million. This money was raised from private lenders ("recipe is simple",
>16). During that same year, the headquarters of Boston Pizza was moved from
>Edmonton, Alberta to Richmond, British Columbia where it is found today.
> In the past decade, #1601 8th Street East has not been a very successful
>location from which to operate a restaurant. Since 1985, four different
>restaurants have occupied the facility. This location originally housed
>Ponderosa Steakhouse from 1975 until 1984. The restaurants which occupied
>the facility over the past decade were: Geno's Pizza (1985-87), East Side
>Sids (mid-1987-88), Taster's Whole Earth1(1989-1990), and Just Buffets
>(1991). Since 1992, the facility has been vacant.
> In 1994, Boston Pizza became interested in this location. Although the
>location had been unsuccessful in the past, a new Boston Pizza facility will
>more likely operate successfully. The previous building, torn down only a
>few months ago, was a dull brown color which didn't attract attention. The
>new Boston Pizza building will use the kitchen of the old facility, but the
>service area is being constructed similar to other Boston Pizza restaurants.
>It is shaped and colored in a way that will grab the attention of vehicular
>traffic. The building has an angular bright red roof and will have a bright
>red and blue sign when construction is complete.
> When the 8th street location opens its door, a market will already exist.
>People working at the nearby businesses Bank of Montreal and Jubilee Ford,
>may decide to eat lunch at Boston Pizza. In the evening, after work these
>same people may stay and relax at BP's lounge. Families looking for a
>convienient place to eat quality food may decide to eat here.
> One problem remains, and it is a problem that Boston Pizza can not change.
>The center barrier on 8th Street makes Boston Pizza accessible to vehicles
>traveling west only. Vehicles traveling east would find it difficult to
>access Boston Pizza. Therefore many potential customers will pass by and
>find another place to eat.
> The location of this new Boston Pizza will not affect or be affected by
>the operation of the 50th street location which has been in operation since
>1987. The 50th street facility
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