Industry News | June 6, 2001

Boston Market Goes Down Under

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Boston Market Corporation and McDonald's Australia, both wholly owned subsidiaries of McDonald's Corporation, have announced a partnership to develop the first Boston Market® restaurant outside the USA, set to open in suburban Sydney in 2002.

Boston Market brings to the table its powerful brand equity, strong menu and high consumer appeal. McDonald's Australia will bring its 30 years of experience serving the Australian consumer, well-developed site selection expertise, and a solid supply and distribution infrastructure.

Since being purchased by McDonald's Corporation in May 2000, Boston Market Corporation has renewed its focus on restaurant operations, its core menu and the look and feel of its dining rooms. The results have been same store sales increases in the mid-to-high single digits across nearly 700 restaurants.

"We are taking a patient and methodical approach to growing this brand moving forward,'' said Boston Market Chairman and CEO Jeffrey Kindler. "Our primary focus is, and will continue to be, to strengthen and expand our operations in the USA. Nevertheless, there are some striking similarities between what Americans and Australians like to eat, and we think there's a very real opportunity to expand the Boston Market concept outside the USA. When this Australian opportunity came up, we owed it to ourselves to look at it very seriously.''

McDonald's Australia Managing Director and CEO Guy Russo described the announcement as an exciting new venture. ``We are honored that Australia has been chosen to be the first country outside the USA for Boston Market to begin its international expansion,'' he said. "Boston Market will give us the opportunity to develop a taste and leadership position in another area of the restaurant business. It will assist us in our quest to capture more of the 'eating out' market without impacting on the growth of our existing business. We believe Boston Market also will bring a whole new high quality home-style meal experience to the Australian consumer,'' said Russo.

"While we recognize that it's just one restaurant, we're very excited about this opportunity,'' said Kindler. "Boston Market's unparalleled home-style meals and strong customer loyalty, combined with McDonald's global development experience and supply and distribution infrastructure, is definitely a formula for success.''