From its original location at Bluff and
Kellogg through its rise as the World’s Largest Pizza Chain, Pizza Hut isn’t
just a home-town story, it’s a neighborhood story that began right here in
the College Hill. Dan and Frank Carney, with a little help from their
fraternity brothers, opened their first Pizza Hut Restaurant in May 1958.
Now, 50 years later, Robert Spector has written The Pizza Hut Story,
which describes how a local hangout survived rapid growth, adapted to
changing customer and owner demands, and grew to dominate the global
marketplace.
In the early days, Pizza Hut employees were
motivated by brotherhood, beer and a small hourly wage. Franchise agreements
were made with a handshake; regions defined and distributed over beers;
borders redrawn with just a phone call. The Carneys and their pals succeeded
almost in spite of themselves. When the growing pains began and they needed
money, the Carneys took back control of underperforming stores and regions,
packaged themselves for Wall Street and began a new era Pizza Hut.
In January 1969, the Carneys offered more than
400,000 shares of Pizza Hut stock to the public, and there were suddenly a
lot of millionaires in town—at least on paper. The business’s “new owners”
brought $5 million in capital and a demand for financial accountability.
National marketing and strategic planning required that franchisees and
owners loosen their grip on their businesses—a major change in culture and
approach. Now national marketing plans would prove to be the both a point of
contention and also the glue that held the company together.
In November 1977, Pizza Hut, Inc. became part
of PepsiCo, Inc. Frank Carney, acting as CEO of Pizza Hut, provided
continuity for the company but this new role also presented challenges for
the fiercely independent Carney. Cultural clashes and leadership initiatives
challenged the identity of the hometown culture of Pizza Hut.
In June 1980, Frank Carney resigned, bringing
the Carney era to an end. Franchisees were skeptical about their corporate
“partners,” but more competition, more need for delivery, and new markets
demanded a “bigger than hometown” approach to their business.
The Pizza Hut Story is a must for
anyone interested in business, anyone who has worked at Pizza Hut, or anyone
who has lived in Wichita over the last 50 years. Robert Spector tells of the
highs and lows, near misses and home runs that made this familiar company
such a success. Illustrated with photos of the players, the facilities and
the product and marketing plan The Pizza Hut Story is an extra-large
supreme, served up in a box ready to deliver.
Review by Sarah Bagby
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