Boston Pizza is accelerating investment across its Canadian restaurant network, with more than 40 locations potentially undergoing renovations this year and three new restaurants under construction in British Columbia, Ontario and Manitoba.
The activity coincides with record second-quarter franchise sales from restaurants in the Boston Pizza Royalties Income Fund’s Royalty Pool. Sales reached $256.5 million for the quarter ended June 30, up 1.9 per cent from a year earlier, while same-restaurant sales increased 2.3 per cent. It marked the seventh consecutive quarter of positive same-restaurant sales for Boston Pizza.
The development activity is significant for one of Canada’s largest and longest-established casual dining chains, with Boston Pizza investing heavily in existing restaurants while selectively adding locations in markets where it sees opportunities.
More Than 40 Renovations Possible in 2026
Boston Pizza completed 21 restaurant renovations during the first half of 2026, including 10 during the second quarter. By the company’s August earnings call, Boston Pizza International President Jordan Holm said the number was approaching 30 and could finish the year above the company’s target of approximately 40.
That follows 40 restaurant renovations completed in 2025 and 28 in 2024. If Boston Pizza reaches its target this year, at least 80 restaurants will have been renovated over 2025 and 2026 combined.
Holm has described the projects as significant investments in restaurant interiors and exteriors, including new fabrics and finishes and upgrades to televisions and sound systems. Full renovations can require restaurants to close for approximately seven to 10 days while work is completed.
Renovations are also a recurring requirement within the Boston Pizza system. Holm said earlier this year that franchise agreements require restaurants to renovate every seven years, while noting that franchisees have been actively pursuing upgrades and discussing the results of completed projects with other operators.
The audiovisual investments are particularly relevant for a chain that continues to position its restaurants as destinations for major sporting events. During the second quarter, management said hockey and basketball playoffs and the FIFA World Cup contributed to restaurant activity.
Three Restaurants Under Construction
Boston Pizza did not open any new restaurants during the first half of 2026, but three are now under construction in Revelstoke, B.C.; Dryden, Ont.; and The Pas, Man.
Holm said the projects are approaching their opening dates. Boston Pizza is also working on other potential restaurants, although permitting, construction trades and supply-chain timing could determine whether those locations advance during the current construction season or move into early 2027.
Revelstoke represents a smaller British Columbia market with a significant tourism economy. Holm has described it as a growing four-season recreational community, pointing to skiing, golf, mountain biking, tourism and an expanding local population as factors supporting the market.
The Dryden restaurant is part of a broader development on Government Street, which carries the Trans-Canada Highway through the northwestern Ontario community. The project is being developed by Wabigoon Lake Ojibway Nation Real Properties, which is also developing a nearby 70-suite Studio 6 extended-stay hotel.
The third confirmed restaurant is under construction in The Pas, Manitoba. The three projects are part of a wider development pipeline, with Holm saying Boston Pizza has identified additional markets across Canada that it considers underserved by full-service restaurants.
Guest Traffic Remains Positive
Royalty Pool restaurants generated $494.9 million in franchise sales during the first six months of 2026, an increase of 2.5 per cent from $483 million during the comparable period last year. Year-to-date same-restaurant sales increased 2.7 per cent.
Holm said guest visitation has been an important contributor during Boston Pizza’s seven consecutive quarters of positive same-restaurant sales. During the second quarter, menu pricing made a somewhat larger contribution to growth, although both traffic and pricing remained positive year over year.
Boston Pizza generally makes its main menu price adjustments in June and November, according to Holm, making the timing of the June increase a factor in the latest quarter.
The company has also been using promotions and major events to drive visits. It began the second quarter with campaigns around the hockey and basketball playoffs before introducing promotions tied to the FIFA World Cup and Team Canada in June. Management specifically cited increased restaurant traffic associated with the World Cup as one of the contributors to second-quarter same-restaurant sales.
Takeout and delivery also continued to support sales. During the summer, Boston Pizza introduced its Live & Local program, featuring live music at restaurants across the country, while another promotion is planned around the beginning of football season.
Canadian Restaurants Continue to Face Cost Pressures
Boston Pizza’s positive traffic comes as restaurant operators across Canada continue to contend with higher costs and pressure on profitability.
Restaurants Canada said in July that inflation-adjusted commercial foodservice sales are forecast to increase 1.5 per cent in 2026. Its latest quarterly report found that 64 per cent of restaurant operators had lower profitability than a year earlier, while 41 per cent said they were operating at a loss or breaking even.
The organization has warned that persistent cost pressures are limiting investment across the industry, with some operators delaying equipment purchases, renovations and expansion. Boston Pizza’s continued spending on renovations and new development therefore comes during a period when many operators have less capacity to invest.
Boston Pizza is monitoring those pressures as well. Holm said the company is watching the trade environment and geopolitical developments for potential effects on restaurant input costs and consumer discretionary spending.
Four Restaurants Closed in First Half
Boston Pizza permanently closed four restaurants during the first half of 2026, including two during the second quarter. That compares with no permanent closures during all of 2025.
Holm said management does not view the closures as evidence of broader weakness in the brand. Individual circumstances have included lease expirations, redevelopment or expropriation and decisions about the long-term viability of older locations.
Earlier this year, Boston Pizza provided additional detail on two closures in Western Canada. An Edmonton-area restaurant was affected by plans to redevelop its site, while a restaurant in British Columbia’s Lower Mainland closed because of a combination of location-specific factors.
Real estate can play a significant role in those decisions. Boston Pizza franchisees often lease their sites or buildings, meaning a property owner’s redevelopment plans can result in a closure even where the broader market remains attractive. Management has said reopening elsewhere may be considered in those circumstances.
Holm also pointed to the age and size of the Boston Pizza system. With the brand operating for more than 60 years and close to 370 restaurants in Canada, some locations have been operating from the same sites for extended periods, eventually requiring decisions about their long-term viability.
The closures are occurring alongside a much larger program of investment in the existing network. Boston Pizza completed 40 renovations without opening or permanently closing a restaurant in 2025; this year, more than 40 renovations are possible while three new restaurants move toward opening.
Additional projects could follow. Boston Pizza says some may advance before the end of 2026, while others could move into early 2027 depending on permitting and construction timelines, adding to the restaurant investment already underway in Revelstoke, Dryden and The Pas.
