Pizza Hut Business Strategy

Pizza Hut was existing since 56 years ago. It was founded in 1958 by Frank and Dan Carney which both of them are brothers from Kansas. They started up their business by borrowed $600 from their mother. The equipment was all second hand and furnishings of the restaurant. Today, there are more than 13,000 Pizza Huts in over 100 countries worldwide. Nowadays, Pizza Hut is one of the largest pizza restaurant company in the world by the amount of outlets and the percentage of market. Both of the brothers were still a college students at that time, they had followed up on a suggestion which made by a friend and they believed in a gastronomy concept still relatively unknown in America at that time.

Pizza had grew on the strength of aggressive marketing

This turning point had occurred when Pizza Hut went public and began growing at an unprecedented pace. They were about lost control of the operations. Then they had figured out that they had to learn how to plan. In 1972, the corporate strategy arrived at after consultation and boardroom debate had emerged. Both brothers would later remark that the process of introduce a management structure did much to persuade PepsiCo, Inc., that the pizza franchise was worthy of purchase. The most important of this corporate strategy was increasing sales and profits for the chain. Following by build a strong financial base for the company to provide suitable financing for growth was the second priority of the corporate. Besides that, the corporate was emerging and growing markets by adding new restaurants to the chain. After that, Pizza Hut made its long-anticipated offer of 410,000 shares of common stock to the public. Company had expanded by purchasing 3 restaurant divisions, there are Taco Kid, Next Door and the Flaming Steer. Moreover, Pizza acquired Franchise Services which is a restaurant supply company, and J&G Food Company which is a food and supplies distributor. Furthermore, Pizza opened more outlets in Japan which is the first Asia outlet and Great Britain. After 3 years, the chain had more than 100 restaurants outside United States and 2000 units in its Franchise network. Advertising played an increasingly influential role at Pizza Hut at this time, broadening the chain 's public profile. Campaigns were run on both a national and local level in the U.S. market. Spending on local advertising increased from $942,000 in 1972 to $3.17 million in 1974. This advertising had triggered a boom for Pizza Hut and was so famous during the