Pizza Hut
Strategic Concepts & Mechanics
Primary Evidence
"That criteria led to a culling of possible expansion targets—as when Sacks rejected one employee’s proposition that Pizza Hut or Amazon were ripe for the taking. For Sacks, offline retailers were “a revolutionary (rather than evolutionary) step from where [PayPal was] today, and it’s also not clear that PayPal adds much over existing options.” He also considered expansion to Amazon and similar sites a nonstarter: The team understood all too well the frustration and friction of burrowing into eBay’s payment process. Established sites, he wrote, “are loathe to outsource their checkout line to PayPal.”"
"That criteria led to a culling of possible expansion targets—as when Sacks rejected one employee’s proposition that Pizza Hut or Amazon were ripe for the taking. For Sacks, offline retailers were “a revolutionary (rather than evolutionary) step from where [PayPal was] today, and it’s also not clear that PayPal adds much over existing options.” He also considered expansion to Amazon and similar sites a nonstarter: The team understood all too well the frustration and friction of burrowing into eBay’s payment process. Established sites, he wrote, “are loathe to outsource their checkout line to PayPal.”"
"Couche-Tard quickly developed a model that would guide its future stores. “Strategy 2000” is no doubt the best example of the four founders’ willingness to use the best ideas developed by other members of the Couche-Tard group as inspiration. The project was originally developed by the Mac’s division, just before Silcorp was taken over by Couche-Tard. It was then known as “Store 2000.” The model store was somewhat larger than most existing ones, sometimes as big as 280 square metres (3,000 square feet). It included a self-serve food court, with a coffee and bakery counter, as well as a fast-food section that was often concessioned to a well-known chain like Pizza Hut or Subway. Its most original feature was its decor: it could take the look of an old-time general store, mirror a European bistro or even an exotic jungle. Each establishment would determine its own interior design, based on its customer demographics. The idea was to make it an attractive destination, rather than a last resort that was convenient and nothing more."
"And as if that were not enough, competition is intensifying. New players in fast food are making an appearance in the market. Nineteen seventy-two marks the strong arrival of the “empire” McDonald’s in Quebec. Six years later, about fifty establishments will be set up there. In 1973, it was ten Mikes Submarines restaurants that made their home in the beautiful province. In the United States, where spending on food away from home exploded between 1960 and 1972, increasing by 103%, the growth of fast food is showing signs of slowing down. Canada and Quebec thus appear as a Klondike for American chains in search of new markets: Pizza Hut, Kentucky Fried Chicken, and Burger King are also preparing to cross the border. Although indirect, this imminent competition threatens to shake the foundations—and the plates!—of St-Hubert Bar-B-Q. It’s fair play, but a counterattack is becoming urgent."