Growth in the number of restaurants in Vancouver-based Boston Pizza Royalties Income Fund’s royalty pool has slowed with each passing year.
Last year officially became the first year the fund had the same number of restaurants in its royalty pool – 340 – at the end of the year as at the beginning.
The company (TSX:BPF.UN) announced Tuesday that it added six new restaurants to its royalty pool in 2010. But it closed five full-service restaurants and one Quick Express location.
Despite the global economic downturn being more prominent in 2009, Boston Pizza was able to add a total of 17 restaurants into its royalty pool in that year. It opened 18 new restaurants in 2009 while closing an underperforming one.
Growth was faster in 2008 when the chain opened 25 new restaurants. It closed two, resulting in 23 more restaurants in the fund’s royalty pool.
In 2007, the chain opened 34 restaurants that were added to its royalty pool. It did not close any restaurants that year.
The Boston Pizza Royalties Income Fund owns the Boston Pizza trademarks and trade names used by Boston Pizza International (BPI) in its restaurants in Canada.
In 2002, the fund licensed BPI to use its trademarks for 99 years and in return, BPI pays the fund a top-line royalty of 4% of franchise revenues of royalty pool restaurants.
Jim Treliving, who is now well known for being one of the dragons on CBC’s hit show Dragon’s Den, is one of BPI’s co-owners.