January 30, 2007
Bye, Bye, Birdie!!
There is no reason for McD to hold on to Boston Market -- it will not deliver significant results in the foreseeable future.
The market conditions that drove McDonald's purchase of Boston Market in 1999 have long changed.
Analysis:
The sooner McDonald's completes the divestiture of Boston Market, the better. Boston Market has no more purpose to be a part of McD than did Chipotle, Pret a' Manger, or that Italian concept (who even remembers it's name?)
Boston Market will soon go the way of Chipotle; Baja Fresh and Tim Horton's; and Togo's, as national chains tighten their focus on their core brands.
A few years ago, McD had lost it's vision -- Quick-casual was the darling of the industry, and traditional fast-food QSR's were seen as dinosaurs in an evolving world, stuck in a low-growth mature segment. Now that has changed -- McD, like many of it's competitors, has recast itself--new image, new menu, new improved service, and a back-to-the basics focus that has revitalized the brand.
Within this scenario, Boston Market is little more than a distraction. In the short run, Boston Market cannot improve sales and profits or build enough new locations to make a significant contribution to McDonald's.
Chicken items will certainly continue to have an importance place on McD's menu, but McD's does not need this brand within it's portfolio.
On the part of Boston Market, it would probably benefit from a dedicated executive team -- one solely focused on the success of the brand. Who would buy Boston Market? ..probably either a private equity firm or a group of it's existing management team in a LBO.
Both brands will be better off without the other.
Report a Concern
More GLG News in
Consumer Goods & Services
Carmakers Deserve Loan Guarantees, G.M. Official Says
www.nytimes.com
GM recalling 944,000 vehicles
www.forbes.com
GM Sues to Recoup $450K in Employee Discounts
www.forbes.com
Sear's Profits Fall 62% In Second Quarter
www.chicagobusiness.com
Maker of Snickers and M&Ms is raising prices
www.msnbc.msn.com
Petty Cash
September 5, 2008
Mars follows lead of Hershey in raising prices.
September 1, 2008
Turns Out GM's Employee Discount Isn't For "Everyone" As The Ads Say
September 1, 2008
Carmakers Deserving of a Bailout? Taxpayers and Consumers Take Notice, it's Your Wallet
September 1, 2008
Austrian struggles as deadline approaches
August 25, 2008

