Mr. Jordan Holm reports

BOSTON PIZZA ROYALTIES INCOME FUND ANNOUNCES 2023 FIRST QUARTER RESULTS AND APRIL 2023 CASH DISTRIBUTION OF $0.107 PER UNIT

Boston Pizza Royalties Income Fund and Boston Pizza International Inc. (BPI) have released financial results for the first quarter period from Jan. 1, 2023, to March 31, 2023. A copy of this press release, the condensed consolidated interim financial statements and related management's discussion and analysis ("MD&A") of the Fund and BPI are available at www.sedar.com and www.bpincomefund.com. The Fund will host a conference call to discuss the results on May 10, 2023 at 8:30 am Pacific Time (11:30 am Eastern Time). The call can be accessed by dialling 1-800-319-4610 or 604-638-5340. A replay will be available until June 10, 2023 by dialling 1-800-319-6413 or 604-638-9010 and entering the access code: 9986 followed by the # sign. The replay will also be available at www.bpincomefund.com. Capitalized terms used in this press release that are not otherwise defined have the meanings ascribed to them in the Fund's MD&A for the Period.

HIGHLIGHTS

• Franchise Sales1 of $224.2 million for the Period, representing an increase of 25.5% versus the same period one year ago.
• Same Restaurant Sales2 of 25.7% for the Period.
• Cash flows generated from operating activities of $9.2 million for the Period, representing an increase of 38.6% versus the same period one year ago.
• Distributable Cash3 increased 53.0% for the Period, and Distributable Cash per Unit4 increased 53.2% for the Period.
• Payout Ratio5 of 91.6% for the Period and 94.5% on a trailing 12-month basis. Cash balance at the end of the Period was $6.0 million.
• On April 5, 2023, the Fund increased its monthly distribution rate commencing with the March 2023 distribution from $0.102 to $0.107 per unit of the Fund ("Unit").
• On May 9, 2023, the trustees of the Fund declared a distribution for the period of April 1, 2023 to April 30, 2023 of $0.107 per Unit, which will be payable on May 31, 2023 to unitholders of the Fund ("Unitholders") of record on May 21, 2023.

COVID-19 impacted the business of the Fund, BPI and Boston Pizza Canada Limited Partnership ("BP Canada LP"), and the operation of Boston Pizza Restaurants significantly during 2020, 2021 and the first half of 2022. Since then, COVID-19 case counts improved, government restrictions related to COVID-19 were largely eliminated, and sales levels of Boston Pizza Restaurants have returned to more normal levels when compared to times prior to COVID-19.

"We are pleased to report strong sales results for the first quarter of 2023, which exceeded our expectations and demonstrated the resilience of our restaurant operations despite current macroeconomic conditions and other challenges facing the restaurant industry," said Jordan Holm, President of BPI. "Our commitment to providing exceptional guest experiences, along with innovative menu offerings, has led to increased sales. As economic uncertainty and inflationary pressures persist in 2023, we will work diligently to support our franchisees and continue the positive sales momentum that was achieved in 2022 and the start of 2023."

PERIOD RESULTS

SRS, a key driver of distribution growth for Unitholders, was 25.7% for the Period compared to 39.1% reported in the first quarter of 2022. SRS for the Period was principally due to increases in restaurant guest traffic compared to the first quarter of 2022, during which pandemic-related restrictions still existed, and increased average guest cheque due to a combination of increased menu pricing and larger per guest ordering levels.

Franchise Sales of Boston Pizza restaurants in the Royalty Pool were $224.2 million for the Period compared to $178.6 million for the same period one year ago. The $45.6 million increase in Franchise Sales for the Period was primarily due to positive SRS.

The Fund's net and comprehensive income was $6.7 million for the Period compared to $12.9 million for the first quarter of 2022. The $6.2 million decrease in the Fund's net and comprehensive income for the Period compared to the first quarter of 2022 was primarily due to a $9.3 million increase in fair value loss, partially offset by a $2.4 million increase in Royalty and Distribution Income and a decrease in income tax expense of $0.7 million.

The Fund's cash flows generated from operating activities was $9.2 million compared to $6.7 million in the first quarter of 2022. The increase of $2.5 million was due to an increase of Royalty and Distribution Income of $2.4 million and an increase in changes in working capital of $0.6 million, partially offset by an increase in income taxes paid of $0.4 million.

The Fund generated Distributable Cash of $7.2 million for the Period compared to $4.7 million for the first quarter of 2022. The increase in Distributable Cash of $2.5 million or 53.0% was primarily due to an increase of cash flows generated from operating activities of $2.5 million and lower repayments of long-term debt of $0.5 million, partially offset by increased BPI Class B Unit entitlement of $0.4 million and SIFT Tax on Units adjustment of $0.2 million.

The Fund generated Distributable Cash per Unit of $0.334 for the Period compared to $0.218 per Unit for the first quarter of 2022. The increase in Distributable Cash per Unit of $0.116 or 53.2% was primarily attributable to the increase in Distributable Cash outlined above.

The Fund's Payout Ratio for the Period was 91.6% compared to 116.8% in the first quarter of 2022. The decrease in the Fund's Payout Ratio for the Period was due to Distributable Cash increasing by $2.5 million or 53.0%, partially offset by distributions paid increasing by $1.1 million or 20.0%. Payout Ratio is calculated by dividing the amount of distributions paid during the applicable period by the Distributable Cash for that period. The Fund's Payout Ratio is typically higher in the first and fourth quarters compared to the second and third quarters 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. On a trailing 12-month basis, the Fund's Payout Ratio was 94.5% as at March 31, 2023.

DISTRIBUTIONS

During the Period, the Fund declared distributions on the Units in the aggregate amount of $4.4 million or $0.204 per Unit. During the first quarter of 2022, the Fund declared distributions on the Units in the aggregate amount of $3.7 million or $0.170 per Unit. During the Period, the Fund paid distributions on the Units in the aggregate amount of $6.6 million or $0.306 per Unit. During the first quarter of 2022, the Fund paid distributions on the Units in the aggregate amount of $5.5 million or $0.255 per Unit. The amount of distributions declared during the Period increased by $0.7 million or $0.034 per Unit due to the monthly distribution rate increasing from $0.085 per Unit to $0.100 per Unit commencing with the July 2022 distribution, and increasing again from $0.100 per Unit to $0.102 per Unit commencing with the November 2022 distribution (collectively, the "2022 Distribution Increases"). Distributions paid during the Period increased by $1.1 million or $0.051 per Unit due to the 2022 Distribution Increases.

On April 5, 2023, the trustees of the Fund declared a distribution for the period of March 1, 2023 to March 31, 2023 of $0.107 per Unit, which was paid on April 28, 2023 to Unitholders of record on April 21, 2023. This was an increase of $0.005 per Unit, or 4.9%, from the previous monthly distribution rate of $0.102 per Unit. On an annualized basis, this new monthly distribution rate equates to $1.284 per Unit compared to $1.224 per Unit for the previous monthly distribution rate.

On May 9, 2023, the trustees of the Fund declared a distribution for the period of April 1, 2023 to April 30, 2023 of $0.107 per Unit, which will be payable on May 31, 2023 to Unitholders of record on May 21, 2023. Including the April 2023 distribution, which will be paid on May 31, 2023, the Fund will have paid out total distributions of $404.5 million or $25.16 per Unit which includes 244 monthly distributions and two special distributions.

FINANCIAL SUMMARY

The tables below set out selected information from the Fund's condensed consolidated interim financial statements together with other data and should be read in conjunction with the condensed consolidated interim financial statements and MD&A of the Fund for the three month periods ended March 31, 2023 and 2022.

SHORT-TERM OUTLOOK

The two principal factors that affect SRS are changes in guest traffic and changes in average guest cheque. BPI's and BP Canada LP's strategies to drive higher guest traffic include attracting a wide variety of guests into the restaurant, sports bar and take-out and delivery parts of each location, offering a compelling value proposition to guests and leveraging a larger marketing budget versus the previous year along with a revised calendar of national and local store promotions. Increased average cheque levels are expected to be achieved through a combination of culinary innovation and annual menu re-pricing.

The actions taken by BPI and BP Canada LP to strengthen its business during COVID-19 have allowed BPI and BP Canada LP to be in a good position to address any on-going COVID-19 related challenges or other future challenges in the restaurant industry. 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. However, with supply chain challenges, rising interest rates, increasing input costs and labour shortages impacting most of the restaurant industry, BPI's management remains cautious. The focus of BPI's management is to adapt the business to mitigate these challenges and capitalize on the recent sales momentum resulting from the elimination of COVID restrictions in the restaurant industry.

The trustees of the Fund will continue to closely monitor the Fund's available cash balances given the volatile economic outlook.

We seek Safe Harbor.