Management believes that Boston Pizza is well positioned to attract guests, achieve positive same restaurant sales
over the long term and continue to strengthen its position as the number one casual dining brand in Canada. In
addition, management continues to believe that Boston Pizza remains well positioned for long term future expansion.
Same Restaurant Sales (SRS):
The primary driver for yield growth of the Fund is SRS.
In 2023, SRS was: 8.7%
“Same Restaurant Sales” or “SRS” is a supplementary financial measure under National Instrument 52-112 Non-GAAP and
Other Financial Measures Disclosure (“NI 52-112”) and therefore may not be comparable to similar measures presented
by other issuers. Prior to the fourth quarter of 2021, the Fund defined SRS as the change in gross revenues of
Boston Pizza Restaurants as compared to the gross revenues for the same period in the previous year (where
restaurants were open for a minimum of 24 months). Commencing with the fourth quarter of 2021, the Fund defines SRS
as the change in Franchise Sales (defined later) of Boston Pizza Restaurants as compared to the Franchise Sales for
the same period in the previous year (where restaurants were open for a minimum of 24 months). The Fund believes
that the current method of calculating SRS provides Unitholders more meaningful information regarding the
performance of Boston Pizza Restaurants since Royalty and Distribution Income are payable to the Fund by BPI and BP
Canada LP on Franchise Sales and not gross revenues of Boston Pizza Restaurants.
Restaurant Growth:
Restaurant openings in 2023 - 1
Restaurant closures in 2023 - 6
Annual Gross Sales Per Location
Annual gross sales per location is the cumulative effect of SRS. As annual gross sales per location increases so does
the financial strength of Boston Pizza Franchisees.
“Gross Sales per Restaurant” is a supplementary financial measure under NI 52-112 and therefore may not be comparable
to similar measures presented by other issuers. Gross Sales per Restaurant for any particular year is calculated by
taking the aggregate annual Gross Sales of Boston Pizza Restaurants that have been open a minimum of 24 months for
that year and dividing it by the number of Boston Pizza Restaurants that have been open a minimum of 24 months. The
Fund and BPI believe that Gross Sales per Restaurant provides useful information to investors regarding the average
performance of Boston Pizza Restaurants that have been open a minimum of 24 months.
System Growth:
System wide sales 2023 - $1.2 Billion
Franchise sales 2023 - $925.7 Million
“Gross Sales” is a supplementary financial measure under NI 52-112 and therefore may not be comparable to similar
measures presented by other issuers. Gross Sales is the gross revenue: (i) of the corporate Boston Pizza restaurants
in Canada owned by BPI; and (ii) reported to BP Canada LP by Franchised Boston Pizza restaurants in Canada, without
audit or other form of independent assurance, and in the case of both (i) and (ii) including revenue from the sale
of liquor, beer, wine and revenue from BP Canada LP approved national promotions and discounts, but excluding
applicable sales and similar taxes. The Fund and BPI believe that Gross Sales provides useful information to
investors regarding the overall performance of Boston Pizza.
“Franchise Sales” is a supplementary financial measure under NI 52-112 and therefore may not be comparable to similar
measures presented by other issuers. However, Franchise Sales of Boston Pizza Restaurants in the Royalty Pool is
reported in the Fund’s financial statements in accordance with IFRS. Franchise Sales is the basis on which Royalty
and Distribution Income is payable and is Gross Sales after deducting revenue from the sale of liquor, beer, wine
and revenue from BP Canada LP approved national promotions and discounts. The Fund and BPI believe that Franchise
Sales (as opposed to Franchise Sales of Boston Pizza Restaurants in the Royalty Pool) provides useful information to
investors regarding the performance of Boston Pizza with respect to sales upon which BP Canada LP earns royalty and
contributions into its cooperative advertising fund.