Fast-food chicken chain closed most locations after bankruptcy

Rotisserie chicken may have been around back in the 1980s, but it wasn’t the staple food it is today.

For example, Costco is famous for selling whole rotisserie chickens for $4.99, but it didn’t actually start selling this popular item until 1994.

“The famous $4.99 chicken officially debuted at Costco in 1994. Except for a brief price increase during the Great Recession of 2008, Costco has remained committed to keeping chicken prices stable despite persistent inflation,” Eat This, Not That reports.

In fact, Warehouse Club loses money selling its popular chicken. But Rose Sioson, founder of Delicious Rushed and an avid Costco shopper, thinks Costco more than makes up for it just by getting customers in the door to buy the great value chicken.

“Technically, Costco may lose money on every rotisserie chicken they sell, but trust me — when it comes to the next thing I buy, they don’t lose money,” Siosson told me. “That chicken usually ends up in a shopping cart with a salad kit, ready-made mashed potatoes, a bottle of wine, maybe a dessert, and some random items that I have no intention of purchasing. It’s a classic Costco tactic.”

It’s never good for business when a major retailer sells your core product at a loss, but it’s just one of the reasons the Boston market is being pushed to the brink of disappearing entirely.

When I was a kid growing up outside of Boston in the 1980s, my aunt came to visit often, and she would often bring a chicken that was then called a Boston chicken. At the time, the company was a small local chain that was actually founded in a suburb of Boston.

This was my first experience with grilled chicken and the concept quickly caught on. McDonald’s even briefly served as an investor.

  • Peak Footprint: boston market once had More than 1,200 U.S. restaurants It reached its peak nationwide in the 1990s.
    From the late 1990s to 2023, this number dropped from 1,200 to 300.

  • Decline 2023-2024: Chain shrinks sharply Reduce 300 locations to less than 30 in early 2023 By early 2024, according to Restaurant Business Online.

  • Footprints at the beginning of 2025: Estimates indicate less than 20 locations across the country remain open through early 2025Flavor365 added that many stores disappeared without notice, plummeting from their previous size.

  • Fluid number: Official company listings on the website and app clearly overstate open stores; Restaurant Business Online reports that many listed units are confirmed to be closed.

See also  Stocks catch up with BTC's earlier crash to $60,000 as bond yields surge

Technically, the chain still exists, but its owners have tried to file for bankruptcy twice.

“Boston Market owner Jay Pandya, who faces hundreds of lawsuits from vendors, franchisees and employees over unpaid bills, filed for personal bankruptcy in the Bankruptcy Court for the Eastern District of Pennsylvania on December 8, 2023. In his bankruptcy filing, Pandya listed liabilities of $10 to $50 million and assets in the same range,” Nation’s Restaurant News reported.

This application and a subsequent application were dismissed by the court.

The company’s headquarters in Denver was seized by local authorities in 2023 for $300,000 in unpaid taxes, and multiple vendors have filed lawsuits against Boston Market over unpaid taxes. In addition, many stores have been forced to close as supplier contracts have been exhausted or cancelled, or employees are stocking stores with food purchased from supermarkets, NRN reported.

The chain also faces a court ruling requiring it to pay US Foods, its main supplier, $15 million, PacerMonitor reported.

According to Restaurant Business Online, multiple locations have been affected by lawsuits from American Foods Inc., highlighting how unpaid supplier bills can lead to store closures.

<em>Only a handful of Boston Market locations remain open.</em>Shutterstock” loading=”lazy” height=”540″ width=”960″ class=”yf-lglytj loader”/></div>
</div><figcaption class=Only a handful of Boston Market locations remain open.Shutterstock
  • Chapter 11 Try: Owner of Boston Market (Jay Pandya) Twice filed for Chapter 11 bankruptcy protection on behalf of the companybut the court Two applications were rejected According to RetailWire, due to program and file issues.

  • Boston Market owner Jay Pandya files lawsuit Personal Chapter 11 Bankruptcy December 8, 2023, listing liabilities and assets of $10-$50 million. (source:Nation’s Restaurant News)
    Restaurant Business Online added that the application had been terminated early due to procedural flaws.

  • Unpaid obligations: The brand faces legal action Unpaid rent, vendor debt (such as US Foods claims) and unpaid wagesAccording to Flavor365, this forced the company to shut down.

  • Evictions and closures: Several locations were evicted or ordered to close by authorities due to non-payment of obligations.

  • The brand still exists, but on life support: A handful of Boston Market restaurants are still technically open, but The chain has a small footprint Compared to its previous size, Flavor365 reports.

  • New openings in the crash: RetailWire said that despite the closures, the company opened at least one new location in its post-bankruptcy filing, suggesting it is trying to turn a profit.

See also  2 Ultra-High-Yield Pipeline Stocks to Buy With $10,000 and Hold Forever

In 2024, Pandaya unveiled a new franchise plan to bring Boston Market to non-traditional locations. He is licensing the brand because it is not legally set up to offer a traditional franchise.

“The name Boston Market speaks for itself and it is famous across the country,” Pandya said in a statement to Nation’s Restaurant News at the time. “Now, with your support, we will be able to offer our famous rotisserie chicken along with delicious homemade sides and family meals to everyone. We encourage anyone who has a spot and would like to add Boston Market virtually to contact us and partner.”

More restaurants

Many are skeptical of the plan.

“At this point, it’s just a way for him to defraud people,” Gina Busby, former regional director of operations for the Boston market, told RetailWire. “He owes his employees millions of dollars in unpaid wages, including me. He doesn’t report wages earned so people don’t lose their jobs. He fraudulently [reported] The number of supervisors is 1,099 employees. He has yet to pay what he owes. More lawsuits and class action lawsuits are coming. “

Restaurant analyst Aaron Allen told FCNews the chain contributed to its own decline.

“In the 1990s, after it differentiated itself beyond fast food, it tried to compete with these brands by lowering costs, a move that ultimately led to a decline in quality that only declined further,” he shared.

See also  Final Four: Four stats that matter from Ohio State’s 92-82 loss at Wisconsin

“If you go after the lower-priced consumer, you may be priced out of the market,” Allen said.

Grocery stores are also eating up Boston Market’s lunch, and are starting to add rotisserie chicken to their ever-expanding prepared food aisles.

“In essence, Boston Market became a victim of its own success,” wrote retail and restaurant expert Steve Feldman. “After helping popularize grilled whole chickens — and in some cases, introducing consumers to the concept — the chain ended up seeing the likes of Costco offer the same thing at a much cheaper price.”

Former employee Josh Taylor posted about the brand’s decline on Linkedin.

“Oversaturation, competition, and food costs have killed the Boston market. Perhaps you could argue that the food costs are due to an expanded menu, but people love everything on the menu,” he wrote.

Jorge Franchi, president of business research firm Franchi Business Enterprises, shared his thoughts on the chain’s decline.

“The kitchens became complex, quality dropped, and service slowed. Customers were confused as to what Boston Market was really about. The introduction of the sandwich put them in direct competition with McDonald’s and Subway on price. Operating two businesses under one roof blurred the brand’s identity and took away its edge,” he shared.

RELATED: Walmart adds exclusive new Coca-Cola products

This article was originally published by TheStreet on January 8, 2026, and first appeared in the Restaurant section. Click here to add TheStreet as your preferred source.

Spread the love

Leave a Reply

Your email address will not be published. Required fields are marked *