We look forward to the road to 400 Boston Pizzas in Canada and beyond: Boston Pizza CEO

Key Concepts

• Same Restaurant Sales (SRS): A key metric for restaurant chains indicating sales growth from existing locations, excluding new openings.
• Check Size: The average amount a customer spends per visit.
• Menu Inflation: Price increases on menu items, often due to rising ingredient costs.
• Guest Visitation: The number of customers entering a restaurant.
• Takeout and Delivery: Off-premise dining options that contribute to overall sales.
• Restaurant Renovations: Updates to restaurant interiors and exteriors to maintain brand standards and enhance guest experience.
• Supply Chain: The network of organizations and activities involved in producing and delivering a product or service.
• Domestic Sourcing: Procuring goods and services from within the country.
• Consumer Confidence: The degree of optimism consumers feel about the general state of the economy and their personal financial situation.
• Affordable Luxury: A product or service that offers a premium experience at a price point accessible to a broad range of consumers.

Boston Pizza's Record Sales and Growth Strategies

Boston Pizza is experiencing a period of strong performance, reporting record sales for the latest quarter, marking the third consecutive quarter of record results. This success is attributed to a combination of factors, with a particular emphasis on increased guest visitation rather than solely relying on higher check sizes driven by menu inflation.

Record Sales Performance and Drivers

• Third Consecutive Quarter of Record Results: Boston Pizza has achieved record quarterly sales for the first, second, and third quarters of 2025.
• Same Restaurant Sales (SRS) Growth: The company reported a 4.1% increase in SRS for the latest quarter, bringing the total SRS for the first nine months of 2025 to 5%.
• Primary Driver: Guest Visitation: Jordan Holmes, President of Boston Pizza, highlighted that the record sales are predominantly driven by more guests coming into their restaurants. This is a more sustainable growth driver compared to relying on increased check sizes, which can be influenced by menu inflation.
• Contribution of Takeout and Delivery: The takeout and delivery business now accounts for approximately 25% of annual sales, serving as a significant contributor to growth and a platform for future expansion.

Strategies for Sustained Growth

Boston Pizza's approach to navigating a potentially challenging economic environment, characterized by consumer caution and trade uncertainties, focuses on innovation and leveraging its established brand strengths.

• Innovation and Differentiation: As a 61-year-old Canadian company, Boston Pizza continuously seeks ways to innovate and adapt.
• Restaurant Renovations: A key initiative involves restaurant renovations, with a policy requiring renovations to current design standards every seven years. Over 40 Boston Pizza restaurants are undergoing complete renovations in 2025, with an average closure period of 10-14 days. These renovations are seen as a powerful investment by franchisees, significantly impacting the guest experience.
• Leveraging Sports and Events: Boston Pizza leans into its DNA of being associated with big groups, families, and sporting events. The company actively engages with major Canadian sporting events, such as the NHL Stanley Cup finals and the Blue Jays' recent performance, to drive guest traffic and serve customers at home through takeout and delivery.

Supply Chain Resilience and Economic Concerns

Boston Pizza's operational strategy prioritizes domestic sourcing to mitigate the impact of trade conflicts and tariffs.

• Domestic Supply Chain: Over 90% of Boston Pizza's supply chain is domestically sourced, with Canadian supply partners for key ingredients like cheese and pizza dough mix.
• Minor Exposure to Tariffs: This strong domestic sourcing strategy has resulted in minor direct exposure to tariffs and counter-tariffs. While some concerns exist regarding packaging and fresh produce, there have been no significant negative impacts to date.
• Broader Economic Uncertainty: The primary concern for Boston Pizza is consumer confidence and the broader uncertainty surrounding the Canadian economy, particularly regarding trade with the United States and its potential impact on employment and household spending.
• Focus on Controllables: In response to these broader economic concerns, Boston Pizza focuses on aspects it can control: restaurant operations, brand building, providing excellent guest experiences, and maintaining its position as an "affordable luxury" for Canadians.

Expansion Plans

Boston Pizza has a clear vision for continued growth and expansion across Canada.

• Continued Growth: The company opened four new restaurants last year and has several more under construction, with plans for further openings in 2026.
• Targeting Underserviced Markets: Boston Pizza aims to expand into new markets, particularly underserviced areas and smaller communities and suburbs across Canada.
• Road to 400 Locations: The company is working towards its goal of reaching 400 Boston Pizza locations across Canada and potentially beyond.

Key Arguments and Perspectives

• Guest Visitation as a Sustainable Growth Driver: The transcript emphasizes that increased customer traffic is a more robust and sustainable driver of sales growth than price increases alone.
• Resilience Through Domestic Sourcing: Boston Pizza's strategic decision to prioritize domestic supply chain partners has provided a buffer against the negative impacts of international trade disputes.
• Focus on Brand Experience and Value: The company's commitment to restaurant renovations and leveraging its association with popular events underscores its dedication to enhancing the guest experience and offering value.
• Proactive Management of Economic Uncertainty: While acknowledging broader economic concerns, Boston Pizza's strategy is to focus on operational excellence and brand strength, which are within its control.

Notable Quotes

• "And to get to the question that you're asking about how it's being achieved, it really is uh we're encouraged by the level of guest visitation that we're seeing more guests coming into our restaurants and that is helping to contribute to the record uh quarterly sales results that we were reporting this morning." - Jordan Holmes, President of Boston Pizza.
• "So we deal with Canadian supply partners uh for cheese, for our dough mix, for example, for our pizza dough. Just so many of our products are sourced domestically that the direct exposure to the um uh tariffs and counter tariffs and all of that that's been going on this year has been pretty minor for us." - Jordan Holmes, President of Boston Pizza.
• "So, we focus really on the things that we can uh control, which are the operations of our restaurants, the building of our brand, you know, really hosting great occasions for our guests day in and day out, and making sure that Boston Pizza remains an affordable luxury for many Canadians who want to get out and enjoy uh time with friends and family, whether it's about sports or family or food." - Jordan Holmes, President of Boston Pizza.

Conclusion

Boston Pizza's recent success is a testament to its strategic focus on driving guest visitation, investing in the customer experience through renovations, and maintaining a resilient domestic supply chain. While acknowledging broader economic uncertainties, the company's proactive approach to controllable factors and its commitment to offering an "affordable luxury" position it well for continued growth and expansion.