Hello, this is the Chorus Call conference operator. Thank you for standing by. Welcome to the Boston Pizza's Q4 2022 quarterly earnings conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded on February 9th, 2023. After the presentation, there will be a question-and-answer session. Participants on the call may also pose their questions via email to Boston Pizza's Investor Relations Department at investorrelationsatbostonpizza.com. Should anyone need assistance during the conference call, they may signal an operator by pressing * 0 on their telephone. At this time, I would like to turn the conference over to Michael Harbinson, Chief Financial Officer. Please go ahead.
Thank you, and welcome to the call. Today we'll be discussing the 2022 Q4 results for both Boston Pizza Royalties Income Fund, or the Fund, and for Boston Pizza International, or BPI. For complete details on our financial results, please see our Q4 materials filed earlier today on SEDAR or visit the Fund's website at bpincomefund.com. Should you require additional information after the call, you can reach us via the investor relations phone number that's listed in our press release. The Fund is a limited purpose, open-ended trust established under the laws of British Columbia to acquire, indirectly, certain trademarks and trade names used by BPI in its Boston Pizza restaurants in Canada. BPI pays royalty and distribution income to the Fund based on franchise revenues of Royalty Pool restaurants.
For a complete description of the Fund and its business, please see the annual information form dated February 8, 2023, which was filed on sedar.com. Before I turn the call over to Jordan Holm, President of BPI, I would like to note that certain information in the following discussion may constitute forward-looking information. For a more complete definition of forward-looking information and the associated risks, please refer to the Fund's management discussion and analysis issued earlier today. Forward-looking information is provided as of the date of this call and except as required by law, we assume no obligation to update or revise forward-looking information to reflect new events or circumstances. With that, I will turn the call over to Jordan. Jordan?
Thank you, Michael, and welcome everyone to Boston Pizza's Q4 investor conference call. Today, I'll be discussing our Q4 results and share a brief outlook. Michael will summarize our key financial highlights, and as usual, we'll save time for your questions at the end of today's call. COVID-19 continued to impact the business of Boston Pizza during 2021 and the H1 of 2022. Since then, COVID-19 case counts have improved, government restrictions related to COVID-19 have largely been eliminated, and sales levels at Boston Pizza restaurants have returned to pre-pandemic levels.
Turning to our financial results, the Fund posted Franchise Sales from restaurants in the Royalty Pool of CAD 227.2 million for the quarter and CAD 855 million for the year, representing an increase of 24% and 29.5% respectively versus the same periods 1 year ago. Same Restaurant Sales was 24.5% for the quarter and 30.4% for the year. The increase in SRS for the quarter and year compared to the same periods in 2021 was principally due to increases in restaurant guest traffic, mainly due to the easing and elimination of dining restrictions and increased average guest check. We are pleased that our sales results have supported another monthly increase to the Fund's distribution rate and a special cash distribution, which Michael will elaborate on later in the call.
From a marketing standpoint, we began the Q4 of 2022 with our Hockey Night in Canada partnership, which was supported by significant TV, digital, and social media channels, along with in-restaurant promotions at participating Boston Pizza restaurants across the country. In addition to this, we launched our 2022 holiday menu, which featured a selection of innovative items along with a promotional bonus card offer. Guests also receive a free Ferrero Rocher 3-pack with the purchase of any qualifying holiday menu item. Also, we had the highest gift card sales in 2022 than we've had in any previous year, helped by a successful year-end holiday gift card promotion. Turning to restaurant development, Boston Pizza opened no new restaurants and closed 3 Boston Pizza restaurants during the quarter. BPI also completed 8 restaurant renovations during the Q4 and 18 renovations for the full year.
Restaurants typically close or partially close for 2 to 3 weeks to complete a renovation, which incorporates updated design elements that result in a refreshed and more appealing restaurant. We have some exciting initiatives planned to drive sales in 2023, which I'll speak about in a moment. 1st however, I'll turn the call back to Michael for a review of the Fund's financial performance. Michael?
Thank you, Jordan. The Fund posted royalty income of CAD 9.1 million for the quarter and CAD 34.2 million for the year, compared to CAD 7.3 million and CAD 26.4 million, respectively, for the same periods 1 year ago. The Fund posted distribution income of CAD 3 million for the quarter and CAD 11.3 million for the year, compared to CAD 2.4 million and CAD 8.8 million, respectively, for the same periods 1 year ago. Royalty and distribution income for the quarter and year were based on 383 Boston Pizza restaurants in the Royalty Pool that reported Franchise Sales of CAD 227.2 million for the quarter and CAD 855 million for the year.
For the same periods in 2021, royalty and distribution income were based on the Royalty Pool of 387 Boston Pizza restaurants, reporting Franchise Sales of CAD 183.2 million for the Q4 and CAD 660 million for the year. The Fund's net and comprehensive income was CAD 6.4 million for the quarter, compared to CAD 12.6 million for the Q4 of 2021.
The CAD 6.2 million decrease in the Fund's net and comprehensive income for the period compared to the Q4 of 2021 was primarily due to a CAD 7.5 million increase in fair value loss, an increase in income tax expense of CAD 0.7 million, and an increase in interest on Class B units of CAD 0.6 million, all partially offset by an increase in royalty and distribution income of CAD 2.3 million and lower interest expense on long-term debt of CAD 0.2 million. The Fund's net and comprehensive income was CAD 30.6 million for the year compared to CAD 37.4 million in 2021.
The CAD 6.8 million decrease in the Fund's net and comprehensive income for the year compared to the same period in 2021 was due to a CAD 13.5 million decrease in fair value gain, an increase in income tax expense of CAD 2.6 million, and an increase in interest on Class B units of CAD 1.2 million, partially offset by an increase in royalty and distribution income of CAD 10.3 million and lower interest expense on long-term debt of CAD 0.3 million. The Fund's cash flows generated from operating activities was CAD 8.9 million for the period, compared to CAD 8.5 million for the Q4 of 2021.
The increase of CAD 0.4 million was due to an increase of royalty and distribution income of CAD 2.3 million, partially offset by a decrease in changes of working capital of CAD 1.1 million and an increase in income taxes paid of CAD 0.8 million. The Fund's cash flows generated from operating activities was CAD 34.4 million for the year, compared to CAD 30.5 million for the same period in 2021. The increase of CAD 3.9 million was due to an increase of royalty and distribution income of CAD 10.3 million, partially offset by a decrease in changes in working capital of CAD 4 million and an increase in income taxes paid of CAD 2.4 million.
While net and comprehensive income or loss and cash flows from operating activities are both measures under International Financial Reporting Standards or IFRS, the Fund is of the view that net income or loss and cash flows from operating activities do not provide the most meaningful measurement of the Fund's ability to pay distributions. Net income contains non-cash items that do not affect the Fund's cash flows, whereas cash flows from operating activities is not inclusive of all of the Fund's required cash outflows and therefore is not indicative of the cash available for distribution to unitholders. Non-cash items include the fair value adjustments on the investment in Boston Pizza Canada Limited Partnership, the Class B unit liability, interest rate swaps, and changes in the deferred income taxes.
Consequently, the Fund reports the non-IFRS metrics of Distributable Cash and Payout Ratio to provide investors with the Fund's opinion more meaningful information regarding the Fund's ability to pay distributions to unitholders. The Fund generated Distributable Cash of CAD 7.2 million for the period, compared to CAD 6.1 million for the Q4 of 2021. The increase in Distributable Cash of CAD 1.2 million or 19.2% was primarily due to lower repayments of long-term debt of CAD 0.7 million, an increase of cash flows generated from operating activities of CAD 0.4 million, and a SIFT tax on units adjustment of CAD 0.2 million, partially offset by increased Class B Unit entitlement of CAD 0.2 million.
The Fund generated Distributable Cash of CAD 25.6 million for the year, compared to CAD 20.4 million for the same period in 2021. The increase in Distributable Cash of CAD 5.2 million or 25.2% was primarily due to an increase in cash flow generated from operating activities of CAD 3.9 million and a decrease in repayments of long-term debt of CAD 2.3 million, partially offset by increased BPI Class B Unit entitlement of CAD 0.9 million and SIFT tax on units adjustment of CAD 0.2 million. The Fund generated Distributable Cash per unit of CAD 0.336 for the period, compared to CAD 0.282 per unit for the Q4 of 2021.
The increase in Distributable Cash per unit of CAD 0.054 or 19.1% was primarily due to the increase in Distributable Cash as previously described. The Fund generated Distributable Cash per unit of CAD 1.189 for the year, compared to CAD 0.95 per unit for the same period in 2021. The increase in Distributable Cash per unit of CAD 0.239 or 25.2% was primarily due to the increase in Distributable Cash as previously described. The Fund's Payout Ratio for the period was 115.1% compared to 90.4% in the Q4 of 2021.
The increase in the Fund's Payout Ratio for the period was primarily due to distributions paid increasing by CAD 2.8 million or 51.8%, partially offset by Distributable Cash increasing by CAD 1.2 million or 19.2%. The Fund's Payout Ratio for the year was 99.4% compared to 109.5% in 2021. The decrease in the Fund's Payout Ratio year-to-date was due to Distributable Cash increasing by CAD 5.2 million or 25.2%, partially offset by distributions paid increasing by CAD 3 million or 13.7%. The Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period.
Accordingly, the Payout Ratios for 2021 factor in the 2020 special distribution that was paid on January 29th, 2021, even though the cash generated to fund the 2020 special distribution was generated during 2020. If the 2020 special distribution was excluded in the calculation of Payout Ratio for 2021, the Payout Ratio would be 88.4%. The Fund's Payout Ratio is typically higher in the Q1 and Q4 compared to the Q2 and Q3 , since Boston Pizza restaurants generally experience higher Franchise Sales levels during the summer months when restaurants open their patios and benefit from increased tourist traffic.
As Jordan mentioned earlier, with the recent solid financial performance of Boston Pizza International in the fund, the fund increased its monthly distribution rate payable to CAD 0.102 and issued a special cash distribution of CAD 0.085 that were both paid on December 30th, 2022. The new monthly distribution rate per unit is now equal to the level it was at immediately prior to the start of the pandemic. Trustees will continue to closely monitor the fund's available cash balances and distribution levels based on the goal of stable and sustainable distribution flow to unitholders.
On February the 8th, 2023, the trustees of the fund approved a cash distribution for the period of January 1st, 2023 to January 31st, 2023 of CAD 0.102 per unit, which will be paid on February the 28th, 2023 to unitholders of record at the close of business on February 21st, 2023. The trustees objective in setting a monthly distribution amount is that it be sustainable. The trustees will continue to monitor closely the fund's available cash balances given the volatile economic outlook. With that, I'll turn the call back over to Jordan for more on the outlook. Jordan?
Thank you, Michael. Boston Pizza began its Q1 of 2023 with our new Pasta Tuesday all month long promotion, where guests were able to enjoy pastas every day of the week, starting at CAD 10.99, and gourmet pastas for CAD 14.99 throughout January. This promotion paired perfectly with the lineup of sporting events this winter as we continue our partnership with Hockey Night in Canada throughout the full regular NHL season. On Saturdays, guests will be offered access to a predictive hockey trivia game with every qualifying purchase and many great prizes up for grabs throughout the hockey season. We're also looking forward to our popular Valentine's Day promotion next Wednesday, when heart-shaped pizzas will be served and CAD 1 from each pizza sold will go to help local charities.
This year, the iconic Boston Pizza paper heart is celebrating its 30th anniversary of raising funds to support charities across Canada. We continue to be extremely pleased with the efforts of our team and franchisees during the current recovery phase. The easing and elimination of government-imposed restrictions in Canada related to COVID-19 has enabled Boston Pizza to continue to drive improved performance and guest traffic. With supply chain challenges, rising interest rates, and increasing input costs and labor shortages impacting most of the restaurant industry, BPI's management remains cautious. BPI's management continues to adapt the business to mitigate these challenges and capitalize on the recent sales momentum resulting from the elimination of COVID restrictions across the country. With that, I'd like to begin the question and answer session. Operator?
Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press * then 1 on their touch tone phone or send the question via email to investorrelations@bostonpizza.com. Please note those questions that we do not get to during the call will be answered via email immediately following the end of the investor conference call. Our 1st question comes from Megan Bergen of Acumen Capital. Please go ahead.
Hello, this is Megan on behalf of Nick Corcoran at Acumen. My question is, has takeout and delivery normalized?
Hi, Megan, thank you for the question. As background, during the COVID period, Boston Pizza, many Boston Pizza restaurants across the country were restricted to takeout and delivery only, and we saw as a result of that, the percentage of our sales from off-premise grow considerably. Pre-COVID, it would have been 18% of total sales. Throughout the pandemic period, depending on what the restrictions were at the time, it was at times double the volume that we had been doing previously through takeout and delivery. We have seen a continued over-indexing on off-premise or takeout delivery sales throughout 2022.
While we have reopened the dining rooms, bars, and patios of Boston Pizza restaurants in most or in all regions, certainly since about mid to late February of 2022, despite the on-premise activity ramping back up, we still saw an over-indexing or a higher level of takeout and delivery sales. Part of that was evident before COVID started. It was an area of guest demand. People were choosing the convenience of eating at home or eating off out of the restaurant versus coming and dining in-restaurant.
Nonetheless, we are continuing to see a higher percentage of takeout and delivery sales. That's 1 of the reasons that the January Pasta Tuesday all month long promotion was specifically targeted at in-restaurant dining to attract people back into the restaurants.
Okay. Thank you. Another question that I have is, have you had any feedback from customers on the price increases with the larger check sizes?
We haven't. We are very careful with how we take menu price increases, and we know that consumers are seeing the effects of inflation in all aspects of their lives. We don't, we don't want to stand out, and we want to avoid sticker shock. We are a value player in the mid-scale casual dining space, and we want to make sure that each visit for a Boston Pizza guest result in them feeling good value for their money. We haven't had any specific feedback and we want it to stay that way. Appreciate the question.
Okay. Thank you. Then can you speak a little bit about the pipeline for new restaurants, if you have any that you expect to open in 2023 and how it's going with new franchisees?
Yes. Obviously during the last couple of years, we haven't been able to move forward on some of the projects that we have in our pipeline, but we expect to get back to new restaurant development in 2023. The last restaurant we opened, brand new restaurant, would've been Keswick, Ontario in August of 2020. We do have a few in the pipeline for 2023. We don't give a specific forecast, but I know 1 in BC has already been, you know, published locally in a small town in British Columbia that it's under construction currently.
Just depending on how the construction cycle works for this season, we expect to add to that maybe a couple more as we ramp back up to new restaurant development.
Okay. Thank you. 1 final question here. Can you speak a little bit about the system sales growth throughout the previous quarter and then going into 2023? How have system sales been so far?
Michael, do you wanna take that 1?
T hank you, Megan, for the, for the question. System sales on a franchise basis and on a Same Restaurant Sales basis for the Q4 of 2022, just the quarter we finished, compared to the Q4 of 2019, which would be the pre-pandemic baseline, the Same Restaurant Sales were up 10.8%. That was a very kinda positive trend and a very good indicator for us that on a Same Restaurant Sales basis, the average restaurant in our system was kinda seeing some growth compared to the pre-pandemic numbers. That was a kinda positive trend that built towards Q4, the back half of 2022.
As Jordan mentioned, we started 2023 with a strong value promotion in the form of a Pasta Tuesday promotion. Yeah, in terms of the overall trend, it's been positive. Jordan, anything to add?
Nope. I agree with that, Michael. Thanks.
Just to follow up to that, I guess I was kind of looking, month by month, did it kind of ramp up towards the end of the quarter, or was it pretty steady throughout the quarter?
It was pretty steady throughout the quarter. We tend to, when we report publicly anyway, look at, kind of quarter-by- quarter results just because there can be quite a bit of variability month to month. If you look at the quarter -to- quarter results throughout the year, we definitely saw a positive trend in that respect.
Great. Thanks so much. Those are all my questions.
Very good. Thanks, Megan.
This concludes the question and answer session. I would like to turn the conference back over to Jordan Holm for any closing remarks.
Great. Thank you, operator. As there are no further questions, I'd like to thank you all for taking the time to listen in. We look forward to speaking with you again at our Q1 conference call in May 2023. Thanks, everyone.
Thanks, everyone.
This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.