Boston's the Gourmet Pizza ready to slice into Mexican market

Nation's Restaurant News, Nov 25, 2002 by Paul King

DALLAS -- Boston Pizza Restaurants L.P., took a major step recently toward living up to the name of its parent, Boston Pizza International, by signing an agreement to bring its first restaurant to Mexico.

The company, whose concept is a combination pizza parlor and sports bar called Boston's The Gourmet Pizza, signed a seven-store franchise agreement with German Torrado, an entrepreneur from Merida. Merida, a city of 1.2 million, is located on the Yucatan peninsula, about three hours away from Cancun.

Torrado, whose franchise will be called Boston's Mexico, said he would open the first Boston's in Merida in November. He added that he plans to open one unit every six months after that, with a goal of opening a restaurant in Cancun by 2004.

"We had been searching for a casual-dining concept, and the first time we saw Boston's we thought it would fit very nicely into the Mexican market," Torrado said. "The atmosphere is very friendly, the kind of environment that will attract local traffic."

Ron Jones, vice president of operations for Boston Pizza Restaurants, said Torrado had approached company officials about the possibility of franchising.

"The deal [with Torrado] really was not part of a planned process," Jones said. "But in the act of selling franchises in the U.S. we attracted some attention there.

"At first we weren't interested," he added, "but the more time we spent with German and his people, the more impressed we became. We became convinced that they could pull it off. And when you think about it, the Merida restaurant will be closer to our headquarters than many of our U.S. units."

Jones noted that Torrado's father is an attorney in Mexico City, and one brother is a Domino's franchisee. However, Jones added that the brother is not part of Boston's Mexico.

Boston's The Gourmet Pizza is an offshoot of Boston Pizza Intemational, a 28-year-old chain founded in Edmonton, Alberta. It was created in 1998 by Jim Treliving, who along with George Melville had bought Boston Pizza from its founder, Konstantinos Agioritus, in 1983. The chain reported 2001 sales of just over $200 million.

Company executives brand the chain as upscale pizza and pasta with the addition of a sports bar. The menu features more than 100 items, including 20 types of gourmet pizza in four sizes.

There are 162 units, all but 11 of which are in Canada. However, Treliving explained that after the first U.S. restaurant was opened in Phoenix, the company decided to relocate from British Columbia to Dallas.

"We thought that if the concept was going to make it in the U.S. it would have to sell here in the Southwest," he noted. "So we opened our corporate offices here to be closer to our franchises. Our corporate unit in Dallas also serves as our training center."

The check average is between $10 and $12.50, which Jones said positions Boston's against chains like California Pizza Kitchen or Pizzeria Uno, versus Pizza Hut or Domino's.

If Boston's seems a strange name for a Canadian company whose owners -- original or current -- have never even been to Boston, Treliving says there is a logical explanation.

"It was not the first choice," Treliving explained. "When the owners went to register a name, they wanted something that spoke of their Greek heritage, like Parthenon. Boston's was a third option, and it came about basically because a man who lived upstairs of the original restaurant was named Boston the company had an accountant named Boston, and the Canadian hockey player Bobby Orr had just signed with the Boston Bruins."

As fate would have it, he added, the first two names requested already were registered, so Boston's became the moniker by default.

"I'd love to have a store in Boston," Treliving noted. "I think it's a super area, and we've talked about the possibility."

However, executive vice president Ron Jones explained, there would be hurdles to overcome should Boston's seek to locate in Boston or anywhere else in the Northeast.

"If we got interest from the right people, we might do it," Jones said. "But we'd also have to consider the maturity of the market, the cost of real estate, the difficulty of obtaining a liquor license."

Similarly, company executives have not seriously entertained thoughts of taking the concept overseas.

"We've talked about it, but we haven't gone out of our way to do anything about it," Treliving said.

"I think there are great opportunities there for us and other restaurant companies. But it would have to be done with a strong franchisee. Distance from the corporate office would also be a factor."

RELATED ARTICLE: Chain Fact Box:

Name: Boston's The Gourmet Pizza

Headquarters: Dallas

Market segment: casual dining

Menu: gourmet pizza and pasta items, along with chicken wings, ribs, salads and wrap sandwiches

Total no. of units: 162

Systemwide sales: $200 million in 2001

Leadership: Jim Treliving, chief executive and founder; Mike Cordoba, president; Ron Jones, executive vice president

Year founded: 1998