Francorp Client - Boston Pizza

Francorp worked with Boston Pizza to structure their US franchise operations and grow the concept into the US market. The company and brand continue to make strides and become a powerful player in the franchise market both in the U.S. and Canada.

The Boston Pizza concept began in Edmonton, Alberta in 1964 when Greek immigrant Gus Agioritis opened “Boston Pizza and Spaghetti House”. Although he lacked any significant restaurant experiences, Agioritis achieved success by combining hard work with a business strategy that included a focus on growth through franchising. This strategy established the early success of the Boston Pizza chain, and by 1970 Boston Pizza had 17 locations throughout Western Canada, of which 15 were franchised.

One of the first franchisees attracted to the Boston Pizza concept was an RCMP officer named Jim Treliving. Treliving noticed the growing popularity of Boston Pizza and in 1968 opened his first franchise restaurant in Penticton, British Columbia. In Penticton, Treliving met George Melville, a chartered accountant and then manager of the local Peat Marwick office. Melville acted as Treliving’s business consultant for four years before becoming his partner in the business in 1973. Over the next 10 years the two men built a chain of 16 restaurants throughout B.C., giving them the hands on experience that would prove invaluable in their future position as the franchisor of the Boston Pizza concept.In 1983, Treliving and Melville acquired the chain of 44 Boston Pizza restaurants from then owner Ron Coyle, who had bought the company from Agioritis in 1978. The pair immediately divested 15 of their restaurants to individual franchisees, converted one restaurant to a corporate training restaurant and set about establishing systems and operating standards designed to enhance the already successful franchise system. In 1986 Boston Pizza made a corporate commitment to be the official pizza supplier for Expo 86 in Vancouver, B.C. The exposure that Boston Pizza received through the course of the world’s fair created significant interest in the franchise opportunity, leading to 17 new franchises in 1987 and 1988.By 1995, Boston Pizza had grown to 97 restaurants in Western Canada, with total system sales in excess of $110 million. Over the years the concept had evolved into a full service restaurant, the sports bars had been established as an integral part of the business, and the menu had been expanded to include a variety of appetizers, entrées, salads and desserts. On the corporate side the organization was preparing for future growth and evolution by adding core management resources to the corporate management team.In order to ensure the success of its eastern expansion, BPI made significant commitment of finances and personnel in Eastern Canada.

In 1997, BPI opened a regional office in Mississauga, Ontario and Jim Treliving moved to Toronto to oversee the operations, hiring senior experienced foodservice management and transferring a senior operations person from Vancouver. The organization signed its first development agreement for the city of Ottawa in that same year and opened the first restaurant in September 1998. As the company continued to grow in eastern Canada, Boston Pizza opened a regional office in Laval, Quebec in April 2004. Today there are over 90 Boston Pizza restaurants in Eastern Canada, including 18 in the Maritimes, and BPI has signed agreements and/or collected deposits for another 75 restaurants. At the same time, development continues in Western Canada, as strength of the brand provides new opportunities for growth.It took 12 years for the Boston Pizza chain to grow from $25 million in annual system sales to $100 million in 1995. Five years later the chain had reached $200 million in annual system sales and in 2005 it surpassed $500 million in annual system sales.

Growth has been accelerating, and Management believes that the necessary conditions exist to continue the level of growth achieved over recent years as the strength of the Boston Pizza brand continues to grow. In 2006 Boston Pizza reported sales in excess of $647 million.Jim & GeorgeAfter 32 years in the business, partners Jim Treliving and George Melville still love the business they are in. Though they have sold off all but five of their restaurants to devote all of their attention to managing the corporate operations, their attitude remains the same as the day they entered the restaurant industry. "Think like a customer, deliver outstanding food value and work closely with your partners."www.francorp.com