Locational Analysis of Boston Pizza

Location Analysis of a Franchise Resturaunt

Kristoffer Eyvindson <[email protected]>
University of Saskatchewan
Geography 319.3

Problem Statement:
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.