6502367 100% BP From Family Favourite to Category Killer Set one foot inside a Boston Pizza restaurant and the nuances are like a familiar reminder of a comforting place where you've been before. There's that one-of-a-kind aroma that can only be produced by real pizza made of real ingredients in real pizza ovens. Tables are buzzing with chatter and laughter among families and friends as ener- getic young employees welcome incoming guests, busily prep tables, and of course deliver heaping trays brimming with steaming hot dishes from the kitchen. It is an ambience that has become familiar to 40 million guests every year across North America, but mostly in Canada, where its 370 locations have made it more than just the country's number one casual dining brand, but quite possibly a category killer. To be fair, the term category killer here is not to be confused with the big box, where the aggressive tactics of the more dominant retailers have leveraged their sheer brute force against the competitive landscape. Nope, in Boston Pizza's case, the meaning of the term suggests a firm so efficient, so dominant that it's almost synonymous with the category. As president and CEO Mark Pacinda indicates, "The BP concept and model is now so scal- able that a stringent screening process is required to ensure that each new franchisee is going to be a strong brand ambassador." The creation of the wholesome family brand and the overwhelming corporate success are not coincidental. They are interdependent. The business concept, established in 1964 in Edmonton, evolved into a number of same-style, same-values franchises scattered around Alberta and B.C. over the next three decades. The expansion through the remain- der of Canada in the late 1990s gave way to a natural penetration into the United States and then Mexico in the early 2000s. The Boston Pizza Royalty Income Trust Fund, launched in July 2002, has provided extraordinarily consistent positive returns to investors while maintaining the cash reserves required to seize opportunities and maintain an aggressively frequent store-renovation cycle. "Our focus on our four pillars strategy has formed the decision-making process that has led to the success of the organization," says Pacinda, referring to BP's long-held policy of improving the guest experience, continually building the brand, committing to franchise profitability, and doing good work in the community. With a checklist like that, the "Cana- da's favourite family restaurant" brand is well supported by a sound overarching strategy. QUESTIONS 1. What is more important to BP's brand: its reputation for family-friendly dining or its commitment to sound business philosophy? Support your answer. Research BP's competitors in Canada's casual dining category. List the names of other restaurant chains with properties across most of the country, and provide any available data about them, such as number of restaurants, history, financial results, and any other performance metrics. Compare and analyze your findings with Boston Pizza, using information found at www.bpincomefund.com