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Transcript
00:06it's a 150 billion dollar a year global industry with over 350 slices eaten in america every
00:15second pizza is both an artisanal art form and a crowd-pleasing delicacy love the world over
00:22but it wouldn't be possible without an epic three-way race
00:26pizza hut little caesars and domino's changed the pizza game to become the largest pizza chain
00:33on the planet the reason that we even know pizza in this country is because of the big chains
00:39when a new upstart little caesars challenges the reigning titans we're better than domino's
00:45and pizza hut this is the beginning of the pizza war they'll each have to think outside the box
00:51the pan pizza it was like pizza on steroids by reinventing pizza it's like a mutant pizza
00:59creation as we know it he took leftover product and turn it into something else why don't you try
01:05an order of our new crazy crust it's really a stroke of genius and before the war is over
01:10pizza hut isn't your company anymore one bold decision he's switching to a rival company
01:16will upend the entire industry and it changes the landscape of pizza forever papa john's and all
01:26of a sudden it goes from domino's and pizza hut to the big four
01:53in 1979 the burgeoning pizza industry has become one of the fastest growing markets in the u.s. food
02:01at this time there's thousands of pizzerias in the united states many of them are mom and pops
02:07in major cities yet none of them offer much in the way of variety it's not what you imagine today
02:15it's a couple of sizes and that's it it's a thin crust it's got cheese it's got sauce you didn't
02:21walk
02:22in to a pizzeria and have fancy pizza toppings thrown in your face nobody put pineapple on a pizza
02:28there were no breadsticks no wings no crazy bread no dessert sticks there was none of that but there's
02:35this growing collection of chain pizzerias centralizing in the midwest who introduced pizza
02:42to the masses among these midwestern chains are the leader in pizza delivery domino's and the overall
02:51industry leader pizza hut where the co-founder and current president frank carney has recently sold
02:58his 21 year old company to pepsico for over 300 million dollars by 1979 pizza hut had undergone this
03:07huge transformation to suddenly a massive nationwide business
03:16which means frank carney is now beholden to a board to shareholders and to pepsico as a whole
03:22so he is no longer the big cheese he is an employee so now he's in the hot seat as
03:29they're expecting
03:29results frank we do need something in the two years since the sale to pepsico pizza hut sales were
03:37slipping so they had to do something to shake up the business have you thought of adding delivery
03:42service like domino's yeah we tried that once years ago but trust me the headache is not worth it
03:50unlike domino's frank carney wanted to keep pizza hut a sedentary restaurant dining experience and not
03:58focus on delivery that was a no-go for him and perhaps a two-for-one deal like little caesar's
04:05little caesar's at this point he's laser focused on beating domino's he's not remotely concerned
04:14about this little weird upstart chain little caesar's but this regional pizza chain has just hit the
04:21airwaves with their first national ad campaign only little caesar's had the famous pizza pizza
04:28pizza pizza pizza and it's about to transform a two-horse race into a three-way battle for
04:35supremacy pizza pizza it means never having to say you're hungry but before little caesar's enters the
04:42big time it all started 20 years earlier when just outside of detroit a former baseball player
04:51is chasing a new dream mike illich was a minor league baseball player for the detroit tigers and
04:58when he sustained a career-ending knee injury his major league dreams go up in smoke he had to have
05:05surgery the tigers were interested in keeping him around so now here he is 29 years old he's got a
05:12wife
05:13marion and now three children to support desperate to make ends meet illich is going all in on an
05:21unproven concept when he finished his baseball career he had a short period where he ran a kitchen
05:28at a local bar where he grew to love making pizza he actually taught himself how to bake it illich
05:37believes
05:37pizza has the potential of being the next big thing up there with hamburgers and hot dogs so he said
05:42i love this i want to make this my mission in life to create it so he and marion took
05:49their life
05:50savings and opened a little pizzeria in garden city and it starts with a name
06:02pizza treats yeah what you don't like it
06:10one day their small pizzeria will grow to over 5 000 locations around the world generate over 4
06:17billion dollars a year and sell roughly 1 million pizzas every single day but first
06:26they need to agree on what to call it his wife marion wants to incorporate her little nickname for him
06:32he's a take charge kind of guy and he's a short king at 5 9 so she likes to call
06:37him affectionately
06:42little caesar
06:44little caesar's pizza treat
06:47pizza treat or little caesar's pizza treat neither name is very ideal
06:55on may 8 1959 little caesar's pizza treat opens its doors it was marion at the register mike at the
07:04oven making pizza it was handmade with the best quality ingredients and soft fluffy dough
07:12but the vast majority of americans had never tried pizza there was only one pizza hut and dominoes
07:17hadn't even been invented yet hedging their bets mike also includes more familiar items
07:23on the menu they didn't just serve pizzas they had chicken fish and chips so there's something for
07:29everybody little caesar's pizza treat your name another medium pepperoni got it to save money
07:37illich does something no other pizzeria is doing how can i help you can i get a table
07:45sorry we're take out only
07:47in the 1950s fast food restaurants like mcdonald's had takeout but they also had dining areas where
07:54people can sit down to eat food the concept of a takeout only restaurant was basically unheard of
08:02but his belief was i need to keep overhead low and one huge cost is table service
08:09i'll tell you what first order's on us so just take the pie with you and enjoy the home forget
08:15it
08:22illich's cost-saving measures lead to sluggish sales and by early 1960 he's so desperate for a
08:30lifeline the margins are really tight he seeks advice from a total stranger
08:37mike was incredibly gregarious he could strike up conversations anywhere and one day he starts a
08:44conversation with a completely random individual about his restaurant you'll never get rich running
08:51a pizza shop you need several i can barely afford one you expect me to open several it's called
08:58franchising the franchising model works by a company leasing out its name image and know-how
09:05to a franchisee in exchange for royalties and fees for marketing so by franchising he realizes
09:12he can grow a brand and get paid while doing it
09:18we're going to give people good value okay lots of cheese lots of pepperoni
09:22so his business model doesn't just remain selling pizzas it's selling franchises
09:28now you're learning in 1962 mike illich becomes the first person in michigan to start a franchise
09:36food chain it's kind of amazing that little caesar's might never have been a chain if a random stranger
09:42hadn't put that idea in mike illich's head and by 1963 there are eight locations throughout the state
09:50pizza quickly became the restaurant's bestseller and as that happens it becomes the hip cool food especially
09:57for the youth culture so they removed fish and chips and chicken from the menu and they started serving
10:05just pizza with the menu streamlined illich takes things one step further once he had narrowed that focus
10:13mike changed the name from little caesar's pizza treat which is a mouthful to say to just little caesar's
10:20with an eye toward going national illich goes all in on franchising increasing the number of
10:26locations in michigan and the neighboring states to over 150 by the end of the 1970s but with dominoes
10:35and pizza hut growing to roughly 300 and 3 000 locations respectively illich is desperately trying to catch up
10:47little caesar's what can i get you mike illich is still a fledgling pizza restaurateur with the idea of
10:53having a nationwide chain and he realizes that just having takeout is not enough of course our pizza's
10:59good we're better than dominoes and pizza hut but he needs to find an angle something that the big guys
11:06are not yet doing and a way to garner his own market share why don't you come see for yourself
11:12first order's on us great i'll see you soon then
11:20who gives away whole pizzas for free
11:25when mike illich is put into a position of competition
11:29his immediate reaction is to always be better be bigger be bolder
11:38and the light bulb goes off and he says to beat the competition i'm going to offer a promotion the
11:46likes of which no pizza chain has ever done buy one pizza get one free this is a massive gamble
12:00in 1979 mike illich is determined to turn little caesar's into a national chain
12:07so he meets with an ad agency to pitch his unprecedented idea
12:12you want to give away an entire pizza with every order
12:15exactly
12:18usually you buy one get one free soda something that has easy profit margins to deal with
12:23but this is your main product you're offering a second one for free
12:27it's ridiculous miriam show them the box
12:40i know what you're thinking why not just stack two pizza boxes on top of each other
12:46mike was excited about telling his customer how much value they were getting he didn't want to stack
12:51the two pizzas on top of each other because that looks and feels like one pizza
12:55i want people to feel like they're getting an unbelievable deal
12:59and i want everyone who sees them walking down the street to notice
13:03so what he does is create a double wide pizza box
13:07that in and of itself is kind of crazy
13:10but illich is convinced he needs to make just a gigantic splash
13:14if he wants to go up against these powerhouses like dominoes and pizza hut
13:18i want a slogan something people will remember
13:22this is how we go nationwide
13:23a nationwide ad is a massive gamble
13:26he's going to spend millions of dollars on a commercial
13:29that's going to air in places where they don't even have a little caesars within 100 miles
13:32but i think that speaks to the genius of mike illich
13:36because ultimately the commercials were not designed to reach customers
13:41but rather potential franchisees
13:44in 1979 little caesars launches their first national television campaign
13:51featuring their soon to be iconic slogan
13:55pizza pizza pizza pizza pizza pizza pizza pizza
13:58and in addition to creating the buzzword of the time
14:03they also developed the most viral pizza box ever
14:07they also made these funny quirky memorable commercials
14:10that just really made the big box look like fun
14:13little caesar's pizza pizza
14:15the very large value
14:17the pizza pizza was genius
14:19he had found that little thing
14:21that would differentiate him
14:23from delivery or a sit-down restaurant
14:25and it really shook up the pizza industry
14:28and the number one pizza chain in the country
14:31takes notice
14:32so much good food for so little money
14:35pizza pizza pizza it means never having to say you're hungry
14:39frank
14:40your thoughts
14:42on little caesars
14:44i don't think they're really anything to worry about
14:46i mean they're a takeout chain right
14:48for the past two years earnings have slipped
14:50and with little caesar's very fun advertising campaign
14:53now the board is concerned about pizza hut's ability to maintain its position as number one
14:57i think what we need to focus on
14:59is improving the dine-in experience
15:01and making sure that our customers get the best quality pizza they can find
15:06according to our surveys
15:08customers prefer a pizza with a thicker crust
15:12pizza hut's original menu had two pizza styles
15:15they had thin crust
15:16and a slightly thicker crust
15:18what we would now just call standard crust
15:20but frank realized that customers wanted a thicker pizza style
15:24so i say
15:26let's give the people what they want
15:31this
15:31is the future
15:33of pizza hut pizza
15:38the pan pizza
15:41what we now know and love
15:43is the classic pan pizza
15:44that has a thicker crust
15:45like chicago deep dish pizza
15:47but it's much breadier
15:48it's not dense
15:50and flaky
15:51and pastry like
15:52it comes out of the kitchen
15:53blazing hot
15:54and this pan sizzling there in front of you
15:56that's a world of difference
15:58from getting a pizza in a cardboard box
16:00and this is revolutionary
16:01it will be one of the most popular
16:03and most enduring pizzas of all time
16:08you're not going to serve it in that thing are you
16:11that's the idea
16:11yeah
16:13except they don't get it
16:14they don't like it
16:15they don't understand it
16:17well it's all part of an experience
16:19we don't need to waste our energy on gimmicky promotions
16:23our sales say otherwise
16:27frank carney is a successful guy
16:29he's run this huge company
16:31he's probably thinking
16:32what more do i have to prove
16:35i think i know how to run my own company
16:38frank
16:39pizza hut isn't your company anymore
16:45in 1980
16:46just three years after selling pizza hut to pepsico
16:50frank carney resigns
16:52clearly frank carney's vision for the company
16:55does not align with that of pepsico
16:57and
16:58he didn't want to stick around
16:59but then pepsico
17:02makes an unexpected decision
17:04just months after rejecting carney's new idea
17:08pepsico releases the pan pizza
17:11nationwide
17:15the pan pizza
17:16is not just a menu item
17:18it's a spectacle
17:19there's almost like a crispy
17:20caramelized
17:21fried quality to the dote
17:23it's like pizza cake
17:25it's like pizza cake
17:26it quickly became pizza hut's
17:28number one seller
17:29and it still is today
17:30the pan pizza
17:32helps separate pizza hut
17:33even further from the pack
17:35you have domino's
17:36which is all about delivery
17:38you've got little caesars
17:39which is smaller
17:39and all about takeout
17:41but pizza hut is a restaurant
17:42and a restaurant's job
17:43is to provide its customers
17:45with an experience
17:45not just food
17:46so the pan pizza
17:48is exactly that experience
17:50ending the chain's
17:52three consecutive years
17:53of slipping profits
17:54by 1981
17:55the game changing product
17:57boosts pizza hut's annual sales
18:00to nearly one billion dollars
18:02at a time when thin crust pizzas
18:05are the only pizzas
18:07the pan pizza
18:09the pan pizza at pizza hut
18:09inspires a treasure trove
18:12of thicker pizzas
18:13across the country
18:14but frank's not pleased
18:17the pan pizza
18:19this was his baby
18:21he knows he deserves full credit
18:24for that product
18:25so frank's not done
18:27with the pizza business
18:28he'll come back
18:29and he will alter
18:30the industry yet again
18:36in 1981
18:37little caesars has over 220 locations
18:41across the midwest
18:42yet mike illich
18:44is still struggling
18:45to keep his head above water
18:47okay so that's two medium pepperoni
18:49their two for one pizza pizza deal
18:52has been a runaway success
18:54but it's also caused them
18:56to cut their profit margins
18:57dangerously thin
18:58how can he keep
19:00the profits coming in
19:02and still run the promotion
19:04without tanking the business
19:06would you like anything else
19:07so illich is looking for a way
19:10to increase profits
19:10without increasing costs
19:13what do we have
19:19working in a pizza shop
19:21you know you're going to end up
19:22with extra dough
19:23by the end of the day
19:24this is going to be food waste
19:26why don't you try
19:27an order of our new side
19:30great we'll see you soon
19:32he thought
19:33why not turn this
19:34into our advantage
19:40and so in a moment of inspiration
19:45he takes the ingredients
19:47he already has
19:48and creates this brand new product
19:52made of pizza dough
19:53with butter garlic
19:55and parmesan cheese on top
19:57illich gives his new creation
19:59a clever name
20:02now breadsticks are everywhere
20:04but crazy bread
20:05was the first bread-based side
20:07for a pizza restaurant
20:08in america
20:09and it's so wild
20:10because ultimately
20:11you're just eating
20:12repurposed pizza dough
20:13but he really paves the way
20:15for a whole new dimension
20:17to the pizza menu
20:19when he adds
20:20pizza adjacent sides
20:22much like a hamburger
20:24has the accompaniment
20:25of french fries
20:26little caesar's pizza
20:27is now accompanied
20:28by this delicious
20:30buttery carmesan
20:32covered treat
20:33so essentially
20:35give people
20:36an extra pizza
20:37for free
20:37but get them to pay
20:38for side dishes
20:43meanwhile
20:44pizza hut
20:45has been hard at work
20:46on their own
20:46new menu item
20:47to increase profits
20:49and stay ahead
20:50of the pack
20:50after combing
20:52through their numbers
20:53the top brass
20:54spot a potential target
20:56not wasted scraps
20:58but wasted time
21:02pizza restaurants
21:03are not popular
21:04at lunchtime
21:05because pizzas
21:06take longer to bake
21:07and they require
21:09multiple people
21:09to consume
21:10the average fast food chain
21:12makes the bulk
21:13of their daily revenue
21:14at lunch
21:15between 35 and 40 percent
21:18at pizza hut
21:19lunch orders
21:20only account
21:21for around 15 percent
21:23pizza hut
21:24has no lunch market
21:26so there's millions
21:28of dollars
21:28that are not being made
21:30during that period
21:31of time
21:32and so pizza hut
21:33pivots
21:34to something
21:35that addresses
21:35the lunch crowd
21:37something that is
21:39iconic
21:39and adorable
21:40and deeply delicious
21:46the personal pan pizza
21:48i think the genius
21:51behind the branding
21:52of the personal pan pizza
21:54is not just that it
21:55sounds better
21:56than extra small
21:57but also allows
21:59people to really
22:00have their own
22:01choices
22:02when they're ordering
22:03it's a little
22:04six inch pie
22:05you can get
22:06the same toppings
22:07that you would get
22:08on the larger format pizza
22:09but it's not meant
22:10to be shared
22:10so instead of
22:12one family getting
22:13one large pizza
22:14everybody can get
22:15their own
22:15personal pizza
22:17priced at $1.49
22:19and guaranteed
22:20to be ready
22:20in just five minutes
22:22pizza hut's
22:23lunchtime business
22:24quickly jumps
22:25by 70 percent
22:27it totally upended
22:29the thinking
22:30about eating lunch
22:31at pizza restaurants
22:32and if we're thinking
22:33about this
22:34like a pizza war
22:35this is like
22:36pizza hut
22:36gaining an important
22:38territory
22:38on the battlefield
22:41pizza hut's
22:42latest victory
22:43isn't just bad news
22:44for little caesars
22:45but for america's
22:47number two pizza chain
22:48dominoes
22:50since launching
22:51nearly 25 years ago
22:53tom monahan's
22:54chain has gone
22:55from a single storefront
22:56to over 2,000
22:58locations nationwide
22:59all offering
23:01something pizza hut
23:02and little caesars
23:03don't
23:04he just told us
23:05to go out 40 minutes
23:05to go
23:06come on
23:06dominoes distinguishes
23:07itself by being
23:08incredibly simple
23:10good to go
23:11all right
23:12they focus on delivery
23:13and speed
23:14but then
23:15tom monahan
23:16hears that
23:17pizza hut's promising
23:19this personal pan pizza
23:20in five minutes
23:21or less
23:22but you have to
23:23go to pizza hut
23:25to order one
23:26so he realizes
23:28dominoes
23:29needs to create
23:30their own little gimmick
23:32tom monahan
23:34knows that
23:35the average
23:35delivery time
23:36is around
23:3624 minutes
23:37so he decides
23:39to do something
23:39unprecedented
23:40in the history
23:41of pizza
23:44dominoes
23:45guaranteed delivery
23:46in 30 minutes
23:46or less
23:47in 1984
23:49dominoes revamps
23:50their successful
23:51delivery service
23:52by offering
23:53a 30 minute
23:55guarantee
23:55or your pizza
23:57is free
23:57it's absolutely
23:59brilliant
23:59because they're
23:59not giving away
24:00that many free pizzas
24:01that attracts
24:02a ton of attention
24:03and really gets them
24:05going on the national
24:05scene
24:06it was almost
24:07unsustainable
24:08but it captured
24:09the imagination
24:10a gamified pizza
24:11for heaven's sake
24:13suddenly you weren't
24:13just ordering a pizza
24:15it was a race
24:16against time
24:17by the end
24:18of 1985
24:19dominoes hits
24:20record sales
24:21of over 1 billion
24:22dollars
24:23across their
24:242800 locations
24:25the 30 minute
24:26guarantee
24:27made dominoes
24:28not just the fastest
24:29growing pizza restaurant
24:30in the united states
24:31it also made it
24:32the fastest growing
24:32restaurant chain
24:33in history
24:35expanding
24:36his lucrative empire
24:37monahan becomes
24:39the first pizza chain
24:40owner to buy a
24:41different type
24:42of franchise
24:44for 53 million
24:46dollars
24:46monahan buys
24:48the detroit
24:48tigers baseball
24:50it was one of the
24:52highest amounts
24:52paid for a franchise
24:54at that time
24:55meanwhile
24:55by the mid-1980s
24:57little caesar's
24:58national ad campaign
24:59is finally paying
25:01off
25:01potential franchisees
25:03just love this
25:05pizza concept
25:06with outlandish
25:07boxes
25:07and crazy commercials
25:09and so little caesar's
25:11is just booming
25:12they're growing
25:13so incredibly fast
25:14they're adding
25:15store after store
25:16by 1986
25:18there are
25:191000 locations
25:20across 38 states
25:22and all of a sudden
25:23it goes from
25:24two big pizza players
25:25to the big three
25:27and these three companies
25:28are all in their own lanes
25:30little caesar's
25:31is a takeout business
25:33domino's focuses on delivery
25:35and pizza hut
25:36is a sit-down experience
25:39but that delicate balance
25:40is about to be shattered
25:42in 1986
25:43pizza hut decides
25:45that it's going to go
25:45head to head
25:46with domino's
25:47in the delivery space
25:48and they have an ad campaign
25:50that shows two guys
25:51playing domino's
25:52and they actually say
25:53maybe some people
25:54just don't like domino's
25:55anymore
25:55guess not
25:56this is a real insult
25:58to them
25:58so this really kicks off
26:00the pizza wars
26:01where these different companies
26:03all start eyeing each other's
26:06businesses
26:06as a way for them
26:07to expand
26:08and get ahead
26:10by 1991
26:11pizza hut's
26:12delivery business
26:13becomes a 1.2 billion
26:15dollar a year
26:16cash cow
26:17allowing them to control
26:19over 20 percent
26:20of the pizza delivery market
26:22and cut into domino's
26:24bottom line
26:25with pizza hut
26:26introducing delivery
26:27the 30 minute guarantee
26:29becomes more important
26:30than ever
26:31to succeed
26:32in this market
26:33that's now getting
26:34pretty crowded
26:34while less than 10 percent
26:36of domino's deliveries
26:37are late
26:38those free pizzas
26:39cost domino's
26:40nearly 80 million dollars
26:42a year
26:43and this is forcing managers
26:44to pressure their drivers
26:46to make those deliveries
26:47on time
26:48that causes the drivers
26:49to speed
26:50to drive recklessly
26:51to make
26:51that 30 minute cut off
26:53and unfortunately
26:55an accident occurs
26:57domino's is found
26:59liable for nearly
27:0080 million dollars
27:01in damages
27:02and more lawsuits
27:04follow
27:04after other
27:05delivery driver accidents
27:07domino's got sued
27:08like 200 times
27:10so following
27:11those lawsuits
27:11monahan and domino's
27:13decided to shut down
27:14the 30 minute guarantee
27:18forced to cancel
27:19their guarantee
27:20after less than a decade
27:21sales slip
27:22two years in a row
27:24and by 1992
27:25domino's must close
27:27hundreds of locations
27:29instead of domino's
27:31being at the top
27:31of the food chain
27:32now domino's
27:34is competing
27:35with little caesars
27:36for the number two spot
27:37so
27:38tom monahan
27:39realizes domino's
27:41is in trouble
27:41and he is
27:43scrambling
27:43to try to stay afloat
27:45and financially viable
27:46that's when monahan
27:47throws a hail mary
27:49sir
27:50he's here
27:51send him in
28:01tom monahan
28:03is going to make
28:04an offer
28:05that mike illich
28:07can't refuse
28:12in the early 1990s
28:14after suffering
28:15store closures
28:16slipping profits
28:18and mounting lawsuits
28:19the founder of domino's
28:21reaches out
28:22to his newest rival
28:23little caesars
28:24mike illich
28:26tom monahan
28:27he's struggling
28:28with domino's
28:29and desperate
28:29for a life raft
28:33what's your offer
28:34highest i'm willing to go
28:36is 85
28:38that's my best
28:39and final offer
28:40he comes up
28:41with a proposition
28:43for mike illich
28:44that he can't refuse
28:48done
28:5085 million
28:51he decides
28:52to sell
28:53illich
28:55the detroit tigers
28:57the very team
28:59for whose minor league
29:00franchise
29:00mike illich
29:01used to play
29:02mike illich
29:03loved baseball
29:04it coursed
29:05through his veins
29:06and so owning
29:07the detroit tigers
29:08would bring him
29:09back to his roots
29:10if you can't play
29:11for them
29:12why don't you
29:13own them
29:13tom monahan
29:15thinks this team
29:16has been a distraction
29:17he wants to focus
29:18on pizza
29:19and rebuilding domino's
29:23oh by the way
29:24domino's would be offering
29:25takeout as an option
29:26not just delivery
29:30when you have
29:31these two pizza guys
29:33with these big personalities
29:35i want you to hear it
29:36from me first
29:38there's no doubt
29:39that they're gonna
29:40eventually run up
29:41against one another
29:42within weeks
29:44domino's
29:45adds
29:45carryout
29:46counters
29:46to its
29:475,000 plus
29:48locations
29:49little caesar's
29:51punches back
29:51by launching
29:52a new
29:53delivery service
29:54and by
29:551994
29:55there's a new
29:57number two
29:58pizza chain
29:59little caesar's
30:03leaving tom monahan
30:05desperate
30:05for a new way
30:06to fight back
30:08everything in the pizza
30:09wars has been
30:10a direct response
30:11to a move
30:12by one of the
30:12competitors
30:13one adds takeout
30:15the other one
30:15adds takeout
30:16one adds delivery
30:17the other one
30:18adds delivery
30:19but tom monahan
30:21realizes
30:22the only way
30:22i'm gonna really
30:23get one over
30:23on little caesar's
30:24and on pizza hut
30:25is if i do
30:27something wholly
30:28original
30:28that they are not
30:30doing
30:32what are these
30:35chicken wings
30:36they're smothered
30:38in a hot
30:39and tangy sauce
30:45wings are
30:46a regional
30:47delicacy
30:48from upstate
30:49new york
30:50the idea
30:50of getting them
30:51in pizza places
30:52was not
30:53the norm
30:54in the mid 90s
30:55they were definitely
30:57not common
30:57in fact the wings
30:59were sort of
30:59the scraps
31:00of the chicken
31:00it's got a kick
31:09i think these
31:10would go great
31:10with pizza
31:13in 1994
31:14domino's launches
31:15a little known
31:16delicacy
31:17as a new
31:18side item
31:22buffalo wings
31:24at this time
31:26buffalo wild wings
31:27had only about
31:2715 locations
31:28in the midwest
31:29so believe it or
31:31not
31:31most people
31:32in america
31:33tasted their
31:34first ever
31:35buffalo wing
31:35courtesy of
31:37domino's
31:37and it becomes
31:39a nationwide
31:40taste sensation
31:41after adding wings
31:43to their menu
31:43domino's total
31:44revenue increases
31:45roughly 300
31:46million dollars
31:48closing the gap
31:49on industry
31:51leader pizza hut
31:52who is starting
31:53to feel the heat
31:56do you have
31:57a typical order
31:59mushrooms
32:00and pepperoni
32:01but an ambitious
32:02new pizza hut
32:03employee
32:04named patty
32:05scheidmer
32:05is hoping to
32:06find the company's
32:08next big
32:09innovation
32:10she's a recent
32:11graduate with
32:12a degree in
32:12home economics
32:13she joins the
32:14pizza hut team
32:15as a food
32:15scientist
32:16even though she's
32:17a low level
32:18member of the
32:19team
32:19she has got
32:20grand ambitions
32:21for pizza hut
32:22and she decides
32:23for inspiration
32:24to run focus
32:25groups
32:26desperate to
32:27make a name
32:27for herself
32:28scheidmer
32:29has spent
32:29weeks
32:30searching for
32:31ways to
32:32reinvigorate
32:32pizza sales
32:33do you typically
32:34have leftovers
32:35no not really
32:39except for the
32:39pizza bones
32:41i'll feed them
32:42to my dog
32:44in one of these
32:45focus groups
32:46patty hears
32:46one of the
32:47attendees use
32:48the term
32:48pizza bones
32:49which are the
32:50crusts that you
32:51leave on the
32:51plate
32:52you don't eat
32:53the crust
32:56and suddenly
32:57patty realizes
32:58there's an
32:59opportunity here
33:00what if the
33:01crust was as
33:02delicious and
33:03as desirable
33:04as the pizza
33:05itself
33:06scheidmer doesn't
33:08know it
33:08but this innocent
33:09comment will lead
33:10to a billion dollar
33:12idea
33:12and reimagine
33:14how we eat pizza
33:20in the mid
33:221990s
33:23pizza huts
33:24patty scheidmer
33:25has discovered
33:26a possible key
33:27to unlocking
33:28pizza's
33:29full potential
33:30she realizes
33:31in focus groups
33:32that people
33:34are really
33:35leaving the
33:35crust behind
33:36one guy
33:37actually
33:37calls the
33:38crust
33:39pizza bones
33:40so how do you
33:41prevent people
33:42from leaving
33:42pizza bones
33:43on the plate
33:43well you make
33:44the crust
33:45taste better
33:45and the main
33:47thing people
33:47love about
33:47pizza
33:48is the
33:49melty cheese
33:53so of course
33:54a perfect way
33:55to make the
33:55crust taste
33:56better
33:56is by
33:57stuffing it
33:58with cheese
34:01sheidmer begins
34:02experimenting
34:03with a variety
34:04of cheeses
34:05at the time
34:06this was
34:07completely
34:07unprecedented
34:08this is like
34:09putting a side
34:10dish inside
34:11the pizza
34:13but it's not
34:14as simple
34:14as just
34:15putting cheese
34:15into the edge
34:16of a dough
34:18not all cheeses
34:19are the same
34:19they have
34:20different amounts
34:20of moisture
34:21and if it's
34:22too little
34:22moisture
34:23the cheese
34:23won't melt
34:24properly
34:24if it's
34:25too much
34:26moisture
34:29you'll have
34:30a buildup
34:31of steam
34:31that'll rip
34:32through the crust
34:33and then you get
34:33molten cheese
34:34pouring out
34:35the edge
34:41finally
34:42she tests
34:43a relatively
34:43new product
34:44called
34:45string cheese
34:47string cheese
34:48had become
34:49popular
34:49in the late
34:501980s
34:51and was
34:51available
34:52at most
34:52grocery stores
34:53in the country
34:53and its diameter
34:54is exactly
34:56the right size
34:58for pushing
34:59into a pizza crust
35:04the beauty
35:05of the string
35:05cheese product
35:06is that
35:06it's a mozzarella
35:07but unlike
35:09most mozzarella
35:10it's been stretched
35:11a little longer
35:12and so the casein
35:14proteins tend
35:14to have stronger
35:15bonds
35:22so as you
35:23pull apart
35:24the crust
35:24you get
35:26this
35:27perfectly
35:28viscous
35:28cheese pull
35:29which is
35:30so visual
35:31and it goes
35:31right along
35:32with that idea
35:33of having
35:33an experience
35:34with the food
35:35and not just
35:35making it be
35:36something that
35:37fills your belly
35:39on march
35:4026th
35:411995
35:41pizza hut's
35:43stuffed crust
35:44pizza hits
35:45their roughly
35:468,000 locations
35:48nationwide
35:49people loved
35:50stuffed crust
35:51pizza
35:51when it came out
35:52it was something
35:53that hadn't been
35:53seen in pizza
35:54before
35:55the crust
35:56was always
35:56just a glorified
35:58handle
35:58the moment
36:00you make
36:00the crust
36:01edible
36:01pizza becomes
36:02a very different
36:03type of food
36:04it means that
36:06you can
36:06eat the crust
36:07first
36:07you can
36:08dip it
36:09in a sauce
36:09and the idea
36:10of taking
36:12a often
36:13discarded
36:14better the pizza
36:15and making it
36:15arguably one of
36:17the most desirable
36:18parts of it
36:18this was
36:19revolutionary
36:20within months
36:21the new product
36:22accounts for nearly
36:2330%
36:24of all
36:25pizza hut
36:26sales
36:26and in its
36:28first year alone
36:28stuffed crust
36:30pizza
36:30becomes a
36:311 billion
36:32dollar product
36:37but not everyone
36:38is thrilled with
36:39pizza hut's
36:39most recent success
36:41notably
36:42their former
36:43president
36:43frank carney
36:44looking at what
36:46was happening
36:46with his
36:47baby
36:47pizza hut
36:48frank carney
36:49was not too
36:49pleased
36:50at their decision
36:51to go toward
36:51mass appeal
36:52in the face
36:53of this
36:54mom and pop
36:54restaurant
36:55that he started
36:55since leaving
36:56his company
36:57over a decade
36:58ago
36:58carney has
36:59struggled
36:59to find his
37:00next big project
37:01after he sells
37:04off his pizza
37:04company
37:05to pepsi
37:06he goes into
37:07venture capital
37:08and loses his
37:09shirt
37:09so he decides
37:11he's possibly
37:12not a real good
37:12investment guy
37:13but he knows
37:15his pizza
37:15he still had energy
37:17and new ideas
37:18and new concepts
37:19that he wanted
37:19to put into pizza
37:20and it's around
37:21this time
37:21that he discovers
37:22a young pizza chain
37:24coming out of indiana
37:25that had been
37:26growing in popularity
37:27carney doesn't know
37:29it but his disdain
37:30for his former
37:31company will spur
37:32his unexpected
37:33return to the
37:34pizza industry
37:35and it won't be
37:36with pizza hut
37:45in the mid-1990s
37:48the co-founder
37:48of pizza hut
37:49is feeling stuck
37:51since leaving
37:52pizza hut
37:52in 1980
37:53frank carney
37:54used his finances
37:55to become
37:56venture capitalists
37:57but it didn't work
37:58out so well
37:59for him
37:59but he couldn't
38:00go back to pizza hut
38:01they had moved
38:02on without him
38:11that is good
38:15so instead
38:16of starting
38:16a new brand
38:17in the way
38:18that he did
38:18in the late 1950s
38:20he decides
38:20to latch on
38:21to another
38:22chain pizza company
38:23that had been
38:24growing in popularity
38:28that is really good
38:29and i speak of course
38:31of papa john's
38:34papa john's is a small
38:36pizza chain that was
38:37founded in indiana
38:38in 1984
38:38there are only a few
38:40hundred stores
38:41more of a regional
38:42local company
38:44not a national player
38:45and so compared to
38:46the big three
38:47there's not a lot
38:48going on there
38:50papa john's
38:52but frank carney
38:53thinks that papa john's
38:54can go bigger
38:55he thinks that they
38:56have what it takes
38:57to be a contender
38:58in the national
38:59pizza industry
38:59so carney
39:00takes one last
39:01shot at investing
39:03and opens his own
39:04papa john's franchise
39:06which proves
39:07to be a hit
39:08by 1997
39:09he owns over 60
39:11and tells everyone
39:12about it
39:13in his own
39:14unique way
39:15frank decides to
39:16announce to the world
39:17that he's working
39:18with papa john's
39:19by producing a commercial
39:21in which he declares
39:23to the board of pizza hut
39:24that he's changing teams
39:25sorry guys
39:28i found a better pizza
39:31it was an incredibly
39:33audacious move
39:34you have one of the
39:35founders of pizza hut
39:37switching to a rival
39:39company
39:39and not just any rival
39:41company
39:41not the second place
39:42or third place
39:43but like a young
39:44upstart company
39:45this is a big deal
39:47it's a massive shake-up
39:49it's a mic drop moment
39:50pizza hut
39:51needless to say
39:52is not pleased
39:53by these ads
39:54so they filed a lawsuit
39:55against papa john's
39:56papa john's loves this
39:58this is the best press
39:59they could ever get
40:00especially when the court
40:02rules in favor
40:03of papa john's
40:05it really backfired
40:06on pizza hut
40:07because this is the thing
40:08that puts papa john's
40:09on the map
40:10and sky rackets them
40:11into the number four
40:13biggest pizza chain
40:14in the united states
40:15no longer
40:16is there just a big three
40:17now it's a big four
40:22and frank carney
40:23ends up with 133
40:26franchises
40:27for papa john's
40:29and becomes a major
40:31player in the company
40:32frank carney's impact
40:34on the world of pizza
40:35in this country
40:36is undeniable
40:37he's co-founder
40:38of the largest pizza
40:39chain in the world
40:40pizza hut
40:41and he's also the guy
40:42who helped make
40:43papa john's
40:44the number four
40:45pizza chain
40:46that's incredible
40:49but carney's success
40:51would not have been
40:51possible
40:52without the rivals
40:53that pushed him
40:54to new heights
40:55like tom monaghan
40:57who retires in 1998
40:59after selling all
41:00but a small stake
41:01of dominoes
41:02for a whopping
41:031.1 billion dollars
41:07tom monaghan
41:08is all about innovation
41:10and his fingerprint
41:11on the pizza industry
41:12will be felt forever
41:13and mike and marian
41:16illich who transformed
41:17little caesar's
41:18into the world's
41:19biggest carry-out
41:20pizza chain
41:21with over 5,000
41:23locations
41:23across the globe
41:25mike illich
41:26is a man
41:27who rose from
41:29nothing
41:29who took
41:30a small investment
41:31with his wife
41:32and turned it into
41:33a billion dollar
41:35business
41:35and now
41:36he's become
41:37one of the big
41:38pizza kings
41:39today
41:40the big four
41:42pizza chains
41:43remain the same
41:44with gross annual
41:45revenue
41:45placing papa john's
41:47in fourth
41:47little caesar's
41:48in third
41:49only now
41:50pizza hut
41:51is number two
41:52just behind domino's
41:54at number one
41:55on the surface
41:56these companies
41:57were competing
41:57with each other
41:58but what they were
41:59actually doing
42:00was they
42:01legitimized
42:02the idea
42:03of pizza
42:04to
42:05mainstream america
42:06the chains
42:07still control
42:08about half
42:09of the pizza
42:09business in america
42:10so as much
42:11as i am
42:11a mom-and-pop
42:12pizza guy
42:13i love
42:14that the chain
42:14pizzerias exist
42:15there is this
42:17beautiful sort of
42:18pizza pie
42:19circle of life
42:20where all
42:22of the pizza
42:22communities
42:23are working
42:24together
42:24even though
42:25they are competing
42:26and the spoils
42:28of the pizza war
42:29they come to us
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