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- Americans consume
3 billion of them each year,
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00:00:05,918 --> 00:00:08,828
spending over $46 billion on it.
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It's the most popular
food on the planet.
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00:00:12,882 --> 00:00:14,232
Pizza.
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00:00:14,275 --> 00:00:18,015
- 350 slices a second are
consumed in this country.
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- You might like a different
kind of pizza than me
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00:00:20,194 --> 00:00:24,074
but I've never met a person
that doesn't love pizza.
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- But
in 1950s America
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00:00:26,156 --> 00:00:28,846
it's practically unheard of.
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00:00:28,898 --> 00:00:32,158
- Can you imagine the
United States without pizza?
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00:00:32,206 --> 00:00:34,336
- American
pizza as we know it
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00:00:34,382 --> 00:00:38,132
wasn't shaped in Italy,
New York City, or Chicago.
13
00:00:38,168 --> 00:00:39,868
- Screw what it's
supposed to be.
14
00:00:39,909 --> 00:00:41,129
It is what we say it is.
15
00:00:41,171 --> 00:00:43,091
- It was
created in the Midwest
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00:00:43,130 --> 00:00:45,390
by two sets of
entrepreneurial brothers.
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00:00:47,134 --> 00:00:48,744
- Without these two companies
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your lives might have
been devoid of pizza.
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00:00:54,445 --> 00:00:56,355
- Their
battle for supremacy
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00:00:56,404 --> 00:00:58,674
will introduce
pizza to the nation.
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00:00:58,710 --> 00:01:01,060
- You can walk into
a Pizza Hut anywhere
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00:01:02,540 --> 00:01:05,370
and it feels like every other
Pizza Hut you've ever been to.
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00:01:05,413 --> 00:01:08,113
- And revolutionize
how we eat at home.
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- Domino's, guaranteed
delivery in 30 minutes or less.
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- The definition
of the word pizza
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was created by
Domino's and Pizza Hut.
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- They'll
become bitter rivals.
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- We'll never stop
coming for you.
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- And one
family will be torn apart.
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- I don't know about this.
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- This-
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- This will be fun.
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- Is "Pizza Wars."
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- It's
the late 1950s.
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And in the wake of World War II
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the American economy is booming.
37
00:02:00,685 --> 00:02:04,165
More people can afford cars
and homes than ever before.
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00:02:04,211 --> 00:02:06,561
And a growing middle
class now spends more time
39
00:02:06,604 --> 00:02:09,134
on the road and less
time in the kitchen.
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00:02:10,086 --> 00:02:11,306
- America was expanding.
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00:02:11,348 --> 00:02:12,958
The building of the
suburbs was underway.
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The interstate highway system
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had created all of these roads.
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People were commuting the
first time in American history.
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00:02:20,879 --> 00:02:22,189
- Car culture was
going to give birth
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00:02:22,229 --> 00:02:24,009
to the desire and demand
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00:02:24,056 --> 00:02:26,486
for convenience
food and fast food.
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00:02:26,537 --> 00:02:29,577
As people are on the go,
you're going to have industries
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00:02:29,627 --> 00:02:31,057
that are looking
at this and saying,
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00:02:31,107 --> 00:02:33,407
"Can we produce foods that
people can eat on the go?"
51
00:02:33,457 --> 00:02:35,497
So this is going to
fuel new innovation.
52
00:02:35,546 --> 00:02:39,766
It's also going to fuel new
mores in tastes and demand.
53
00:02:39,811 --> 00:02:42,381
- A bold new
generation of entrepreneurs,
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00:02:42,423 --> 00:02:44,993
like Ray Kroc, rise up to feed
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a nation constantly on the move.
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- Well, congratulations,
gentlemen.
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The American people will never
forget the name McDonald's.
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- Creating
what will become
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00:02:53,260 --> 00:02:56,310
a nearly $650 billion industry.
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00:02:56,350 --> 00:02:57,390
- All right, keep
it moving, guys.
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00:02:57,438 --> 00:02:58,308
You're doing great.
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00:02:59,483 --> 00:03:00,833
- We all take fast
food for granted now.
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00:03:00,876 --> 00:03:02,086
It didn't exist.
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00:03:02,138 --> 00:03:04,658
A meal was at least
an hour of your time.
65
00:03:04,706 --> 00:03:06,266
And when McDonald's
rolled around,
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00:03:06,316 --> 00:03:08,056
oh my gosh, I can
get a hamburger
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00:03:08,100 --> 00:03:09,410
in a matter of moments?
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00:03:09,450 --> 00:03:11,710
Don't I have to sit at
the table, give my order,
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00:03:11,756 --> 00:03:13,976
wait for the waitress
or waiter to come back?
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00:03:14,019 --> 00:03:15,719
No, those days were gone.
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00:03:16,892 --> 00:03:19,332
- Igniting
a fast food gold rush.
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00:03:22,114 --> 00:03:26,734
By 1958, McDonald's has sold
its 100 millionth hamburger.
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00:03:27,642 --> 00:03:28,822
A growing Miami chain
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00:03:28,860 --> 00:03:31,780
has just changed its
name to Burger King.
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00:03:33,082 --> 00:03:35,302
Kentucky Fried Chicken
offers a complete family meal
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00:03:35,345 --> 00:03:38,515
of chicken, dinner rolls,
and gravy for $3.50.
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00:03:39,915 --> 00:03:43,435
And even a donut shop
called Dunkin' Donuts
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00:03:43,484 --> 00:03:44,924
is sweeping the northeast.
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00:03:47,705 --> 00:03:51,575
In Kansas, a pair of
college-aged brothers
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00:03:51,622 --> 00:03:53,322
believe they have what it takes
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00:03:53,363 --> 00:03:55,713
to cash in on the
fast food boom.
82
00:03:59,630 --> 00:04:01,760
But they're starting
at the bottom.
83
00:04:01,806 --> 00:04:03,806
- We'll have seating over here,
84
00:04:03,852 --> 00:04:06,292
build out a kitchen in the back.
85
00:04:06,333 --> 00:04:07,513
- The older brother,
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00:04:07,551 --> 00:04:10,211
Dan Carney is a
business school student
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00:04:10,250 --> 00:04:12,990
with no experience in
the restaurant industry.
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00:04:13,035 --> 00:04:14,905
- How exactly do you plan
on running all of this
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00:04:14,950 --> 00:04:16,390
with your workload at school?
90
00:04:17,387 --> 00:04:18,257
- I dropped out.
91
00:04:20,085 --> 00:04:21,255
- What?
92
00:04:21,304 --> 00:04:22,134
- Problem solved.
93
00:04:24,002 --> 00:04:27,402
- Dan Carney really
sought to create
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00:04:27,441 --> 00:04:29,971
a successful life for himself.
95
00:04:30,008 --> 00:04:33,398
He was extremely ambitious
and he wanted to be the man.
96
00:04:33,447 --> 00:04:35,137
He wanted to be an executive.
97
00:04:35,187 --> 00:04:36,797
So he struck out on his own.
98
00:04:36,841 --> 00:04:38,151
So what does he do?
99
00:04:38,190 --> 00:04:40,060
Dan Carney drops out of school.
100
00:04:40,105 --> 00:04:41,235
- Carney
has convinced
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00:04:41,281 --> 00:04:43,631
his younger brother
Frank to join him,
102
00:04:43,674 --> 00:04:46,334
and with a $600 loan
from their mother
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00:04:46,373 --> 00:04:49,113
they've rented a
rundown old bar.
104
00:04:49,158 --> 00:04:49,988
- It's perfect.
105
00:04:51,465 --> 00:04:52,465
- I know.
106
00:04:52,509 --> 00:04:53,949
- That was sarcasm.
107
00:04:55,164 --> 00:04:56,604
- I know.
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00:04:56,644 --> 00:04:58,784
Lighten up, this will be fun.
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00:05:00,604 --> 00:05:01,654
- Carney
wants to compete
110
00:05:01,692 --> 00:05:04,482
with industry titans
like McDonald's,
111
00:05:04,521 --> 00:05:06,611
but determined to
carve his own path.
112
00:05:08,264 --> 00:05:10,224
He's betting on an obscure dish
113
00:05:10,266 --> 00:05:12,306
he read about in
a local magazine.
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00:05:13,704 --> 00:05:16,974
Most Americans at the time
have never even heard of it.
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00:05:18,274 --> 00:05:21,364
It's an Italian peasant
food called pizza.
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00:05:21,408 --> 00:05:24,668
- Pizza has its origins
in Naples, Italy
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00:05:24,715 --> 00:05:28,325
sometime in the late
17th, early 18th century.
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00:05:28,371 --> 00:05:30,201
Old dough was being flattened
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00:05:30,242 --> 00:05:32,642
and topped and baked
in bread ovens.
120
00:05:32,680 --> 00:05:35,380
And that became known
as pizza napoletana.
121
00:05:35,422 --> 00:05:37,822
Those early pizzas were
really peasant food.
122
00:05:39,513 --> 00:05:41,433
- The first pizzeria
is opened in America
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00:05:41,471 --> 00:05:43,691
at the turn of the
century in 1905,
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00:05:43,734 --> 00:05:46,264
Lombardi's Pizza
down in Little Italy.
125
00:05:46,302 --> 00:05:47,702
But let's face it,
126
00:05:47,738 --> 00:05:50,308
it's not something that's
growing across the nation.
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00:05:50,350 --> 00:05:52,570
There may be small
pizzerias here and there
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00:05:52,613 --> 00:05:53,833
in different urban areas
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00:05:53,875 --> 00:05:55,875
where you have a Southern
Italian community,
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00:05:55,920 --> 00:05:58,270
but it hasn't hit the big time.
131
00:05:59,794 --> 00:06:02,274
- In the 1950s it's still
very much an Italian product
132
00:06:02,318 --> 00:06:04,668
that most Americans
didn't understand.
133
00:06:04,712 --> 00:06:07,672
So every article that
even mentions pizza
134
00:06:07,715 --> 00:06:10,845
has a description and
a short explanation.
135
00:06:10,892 --> 00:06:12,422
They're not assuming
anybody knows
136
00:06:12,459 --> 00:06:13,939
what the heck they're
talking about.
137
00:06:13,982 --> 00:06:16,812
- The funny thing is, pizza's
such an Italian culture
138
00:06:16,854 --> 00:06:18,424
and you would think
two Irish brothers,
139
00:06:18,465 --> 00:06:20,725
they'd come with fish and chips.
140
00:06:20,771 --> 00:06:24,041
I just think like when
opportunity is there,
141
00:06:24,079 --> 00:06:25,119
somebody else sees it
142
00:06:25,167 --> 00:06:27,337
and they're able
to capitalize on it.
143
00:06:28,300 --> 00:06:29,430
- The Carney brothers
144
00:06:29,476 --> 00:06:31,086
need to turn a profit
to pay their rent
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00:06:31,129 --> 00:06:33,869
so they're determined to
open in just two weeks,
146
00:06:35,003 --> 00:06:37,533
without any idea
how to make pizza.
147
00:06:44,447 --> 00:06:45,617
- Pizza is tough.
148
00:06:45,666 --> 00:06:47,276
And I think if they'd realized
149
00:06:47,319 --> 00:06:48,889
the odds of them
being successful
150
00:06:48,930 --> 00:06:50,020
they may not have taken them.
151
00:06:50,061 --> 00:06:53,021
Pizza is not just
like frozen patties.
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00:06:53,064 --> 00:06:56,024
Pizza is a living
growing organism.
153
00:06:56,067 --> 00:06:58,547
There's different
temperatures, humidities.
154
00:06:59,636 --> 00:07:01,986
Pizza is much harder
than it looks.
155
00:07:02,030 --> 00:07:04,210
- Desperate
to figure out a recipe,
156
00:07:04,249 --> 00:07:07,119
they bring in a part-time
chef, John Bender,
157
00:07:07,165 --> 00:07:08,595
to help them crack the code.
158
00:07:13,258 --> 00:07:14,298
- French bread?
159
00:07:15,609 --> 00:07:17,519
I thought pizza was
supposed to be Italian.
160
00:07:17,567 --> 00:07:19,957
- We're working
with what we got.
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00:07:20,004 --> 00:07:21,484
- The most important
element of a pizza
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00:07:21,528 --> 00:07:23,008
is without a doubt the crust.
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00:07:23,051 --> 00:07:25,361
And he had no idea
how to make a dough.
164
00:07:25,401 --> 00:07:29,321
So these resourceful guys
just made something up.
165
00:07:52,080 --> 00:07:53,780
- Mm, mm, it's thin.
166
00:07:55,213 --> 00:07:56,613
It needs more time to rise.
167
00:07:56,650 --> 00:07:58,170
- No, this is it.
168
00:07:59,304 --> 00:08:01,314
- What, no, it says
that it's supposed to be
169
00:08:01,350 --> 00:08:02,740
soft leavened bread, Dan.
170
00:08:02,786 --> 00:08:04,786
- Screw what it's
supposed to be.
171
00:08:04,832 --> 00:08:06,012
It is what we say it is.
172
00:08:07,617 --> 00:08:08,617
This is better.
173
00:08:08,662 --> 00:08:11,322
It's light, it's crispy.
174
00:08:13,580 --> 00:08:14,490
This is our recipe.
175
00:08:16,408 --> 00:08:18,448
- They just kind of threw
ingredients on top of it
176
00:08:18,498 --> 00:08:21,018
and baked it, and that
was the blueprint.
177
00:08:21,065 --> 00:08:22,145
It's totally wild that they
178
00:08:22,197 --> 00:08:24,977
just made something
up and it worked.
179
00:08:26,506 --> 00:08:28,676
- They discovered
for some reason
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00:08:28,725 --> 00:08:31,595
the taste of French bread
is not bad for a pizza.
181
00:08:31,641 --> 00:08:34,341
And of course, they
created that in Kansas.
182
00:08:34,383 --> 00:08:36,563
And so it makes sense
to create something
183
00:08:36,603 --> 00:08:38,043
that locals are gonna like.
184
00:08:38,082 --> 00:08:41,562
Why would you make an
authentic pizza like in Italy
185
00:08:41,608 --> 00:08:44,998
when you don't have Italians
living in your neighborhoods?
186
00:08:46,395 --> 00:08:47,525
- Write down what we did?
187
00:08:47,570 --> 00:08:48,530
- That's what I'm doing.
188
00:08:49,964 --> 00:08:51,364
- The Carney
brothers' pizzas appeal
189
00:08:51,400 --> 00:08:53,360
to the Midwestern palate,
190
00:08:53,402 --> 00:08:57,152
will someday spawn an
$8.5 billion empire
191
00:08:57,188 --> 00:08:59,668
and popularize pizza
from coast to coast.
192
00:09:01,758 --> 00:09:04,368
But for now, days
away from opening,
193
00:09:04,413 --> 00:09:08,073
they're risking everything
on this new unproven food,
194
00:09:08,112 --> 00:09:10,772
desperate that it'll
somehow catch on.
195
00:09:12,813 --> 00:09:16,163
800 miles from Wichita,
another college student
196
00:09:16,207 --> 00:09:18,597
is struggling to pay
his way through school.
197
00:09:18,645 --> 00:09:22,205
Orphaned at a young age and
with no other family support
198
00:09:22,257 --> 00:09:24,907
Tom Monaghan and his
younger brother, Jim,
199
00:09:24,955 --> 00:09:29,175
have taken out a $900 loan
to buy a local sandwich shop.
200
00:09:29,220 --> 00:09:34,100
- Tom was determined
to become an architect,
201
00:09:34,138 --> 00:09:36,968
to rise above his
station and overcome
202
00:09:37,011 --> 00:09:40,101
the sort of adverse
circumstances of his birth.
203
00:09:40,144 --> 00:09:41,894
While in architecture school
204
00:09:41,929 --> 00:09:44,369
he actually bought a
struggling restaurant
205
00:09:44,409 --> 00:09:47,199
to help pay for school.
206
00:09:47,238 --> 00:09:49,198
- The shop
is called DomiNick's
207
00:09:49,240 --> 00:09:51,290
after its founder,
Dominick DiVarti.
208
00:09:51,329 --> 00:09:52,589
- Let's throw a
little extra cheese on there
209
00:09:52,635 --> 00:09:53,895
to finish it off.
210
00:09:53,941 --> 00:09:55,291
- And the
menu features a variety
211
00:09:55,333 --> 00:09:57,813
of Italian sandwiches
and specialties,
212
00:09:57,858 --> 00:10:00,948
including five different
sizes of pizza,
213
00:10:00,991 --> 00:10:04,391
something the Monaghans
have no idea how to make.
214
00:10:04,429 --> 00:10:09,129
- Throw it in the oven
about 10, maybe 15 minutes.
215
00:10:09,173 --> 00:10:11,263
And you'll know when it's done.
216
00:10:11,306 --> 00:10:12,606
That's all there is to it.
217
00:10:14,744 --> 00:10:16,144
- Is that it?
218
00:10:16,180 --> 00:10:17,440
- That's it.
219
00:10:17,486 --> 00:10:18,616
Most people order sandwiches.
220
00:10:18,661 --> 00:10:20,621
Just follow the
ingredients on the menu.
221
00:10:24,188 --> 00:10:25,488
Your boys seem smart.
222
00:10:26,408 --> 00:10:28,238
You'll figure it out.
223
00:10:28,279 --> 00:10:29,319
She's all yours.
224
00:10:30,847 --> 00:10:32,197
- When you open a restaurant,
225
00:10:32,240 --> 00:10:33,940
there's so many challenges
coming at you every day.
226
00:10:33,981 --> 00:10:35,111
You have to make delicious food.
227
00:10:35,156 --> 00:10:37,286
You have to deal with
customers, staff.
228
00:10:37,332 --> 00:10:40,732
You just don't open a law firm
because you want it, right?
229
00:10:40,770 --> 00:10:42,990
Or you just don't open
a doctor's office.
230
00:10:43,033 --> 00:10:46,523
But people feel like, hey, I
can just open a restaurant.
231
00:10:47,603 --> 00:10:49,003
And I always say, good luck.
232
00:10:51,476 --> 00:10:53,476
- I don't know about this.
233
00:10:54,741 --> 00:10:57,481
- Here they are, these
two Irish brothers
234
00:10:57,526 --> 00:10:59,656
raised in an
orphanage who've never
235
00:10:59,702 --> 00:11:01,362
made pizza in
their lives before,
236
00:11:02,662 --> 00:11:04,322
owning a restaurant
that would become one
237
00:11:04,359 --> 00:11:07,409
of the most successful
on the planet Earth.
238
00:11:07,449 --> 00:11:10,839
- Eventually
bold innovations
239
00:11:10,887 --> 00:11:13,717
and a pivotal name change
will turn the company
240
00:11:13,760 --> 00:11:17,020
into a nearly $15
billion global empire.
241
00:11:18,199 --> 00:11:21,329
but only one brother will
reap the rewards.
242
00:11:27,208 --> 00:11:28,598
- By the late 1950s,
243
00:11:28,644 --> 00:11:31,344
the booming economy lifts
more people out of poverty
244
00:11:31,386 --> 00:11:33,686
and into the middle
class than ever before.
245
00:11:35,085 --> 00:11:37,515
- The 1950s remained the ideal
246
00:11:37,566 --> 00:11:39,306
of what family life should be,
247
00:11:39,350 --> 00:11:40,220
of what home life should be,
248
00:11:40,264 --> 00:11:41,794
of what civic life should be,
249
00:11:41,831 --> 00:11:44,181
and what the middle
class could be.
250
00:11:44,225 --> 00:11:45,705
This is a period
in American history
251
00:11:45,748 --> 00:11:47,488
where the middle
class is in essence
252
00:11:47,532 --> 00:11:49,322
larger than at any time.
253
00:11:49,360 --> 00:11:51,670
And also people can move into it
254
00:11:51,711 --> 00:11:54,411
with greater ease
than at any time.
255
00:11:54,452 --> 00:11:55,722
- In the Midwest,
256
00:11:55,758 --> 00:11:57,888
a surge in commercial
aircraft manufacturing
257
00:11:57,934 --> 00:12:01,244
propels Wichita to become
the largest city in Kansas.
258
00:12:02,765 --> 00:12:05,025
And Dan and Frank
Carney recognized
259
00:12:05,072 --> 00:12:07,032
the unprecedented opportunity
260
00:12:07,074 --> 00:12:09,084
to feed the growing
middle class.
261
00:12:10,425 --> 00:12:12,245
But their restaurant,
which will serve
262
00:12:12,296 --> 00:12:16,866
a virtually unheard-of product,
is set to open in two days.
263
00:12:16,910 --> 00:12:20,170
And among a long list
of growing concerns,
264
00:12:20,217 --> 00:12:21,777
they still don't have a name.
265
00:12:24,091 --> 00:12:24,791
- Pizza Spot?
266
00:12:25,919 --> 00:12:27,139
There's too many letters.
267
00:12:27,181 --> 00:12:29,621
- I know, but it's
gotta have pizza in it.
268
00:12:29,661 --> 00:12:31,931
- Okay, then that leaves
us with three letters.
269
00:12:31,968 --> 00:12:33,008
- On a tight budget,
270
00:12:33,056 --> 00:12:34,616
the Carney brothers plan to use
271
00:12:34,666 --> 00:12:36,926
a free sign from the
Coca-Cola Company.
272
00:12:38,148 --> 00:12:41,018
But it only has room
for eight letters.
273
00:12:41,064 --> 00:12:44,944
- Pizza Pit?
274
00:12:44,981 --> 00:12:46,291
Ah, keep going.
275
00:12:47,592 --> 00:12:48,462
- Pizza.
276
00:13:05,872 --> 00:13:07,132
Pizza Hut?
277
00:13:07,177 --> 00:13:07,957
- Pizza Hut.
278
00:13:10,790 --> 00:13:13,140
- I don't know, man,
really, Pizza Hut?
279
00:13:13,183 --> 00:13:13,883
Really?
280
00:13:13,923 --> 00:13:14,973
- You got a better idea?
281
00:13:17,361 --> 00:13:18,491
- No.
282
00:13:18,536 --> 00:13:19,886
- Pizza Hut.
283
00:13:19,929 --> 00:13:21,889
The place kinda
looks like a hut.
284
00:13:21,931 --> 00:13:22,931
- Long
before becoming
285
00:13:22,976 --> 00:13:25,106
the iconic red-roofed restaurant
286
00:13:25,152 --> 00:13:28,852
with over 18,000 locations
across the globe,
287
00:13:28,895 --> 00:13:33,455
on May 31st, 1958, the
original Pizza Hut opens.
288
00:13:35,031 --> 00:13:38,251
It's the start of a chain
that will redefine dining out
289
00:13:38,295 --> 00:13:40,465
for generations of Americans,
290
00:13:40,515 --> 00:13:43,335
and bring pizza as we
know it to the world.
291
00:13:46,173 --> 00:13:48,183
It's a gamble for
the Carney brothers.
292
00:13:49,437 --> 00:13:52,347
But lucky for them,
Midwesterners are captivated
293
00:13:52,396 --> 00:13:54,566
by this entirely
new type of food.
294
00:13:55,922 --> 00:13:59,492
And within four months locals
are flocking to Pizza Hut
295
00:13:59,534 --> 00:14:04,154
for a fast, filling, affordable
meal for the whole family.
296
00:14:04,191 --> 00:14:05,411
- I think if you
stop and you realize
297
00:14:05,453 --> 00:14:08,463
that the American pizza
started in Kansas,
298
00:14:08,499 --> 00:14:10,549
that alone would
give people pause.
299
00:14:10,588 --> 00:14:13,848
But I think that that also
explains the vast success.
300
00:14:15,376 --> 00:14:17,896
In Italy there's very little
cheese, very little sauce.
301
00:14:17,944 --> 00:14:19,824
It's not like we
have in America.
302
00:14:19,859 --> 00:14:20,949
Dan Carney took an approach
303
00:14:20,990 --> 00:14:24,040
to a decidedly Italian
traditional food
304
00:14:24,080 --> 00:14:25,340
that was very American,
305
00:14:25,386 --> 00:14:27,516
making the crust
more like a biscuit,
306
00:14:27,562 --> 00:14:29,302
having it be a
little more buttery
307
00:14:29,346 --> 00:14:31,566
a little more rich,
a little more fried.
308
00:14:31,609 --> 00:14:36,349
You could have a pizza that
was just yummy comfort food
309
00:14:36,397 --> 00:14:38,567
that happened to be called pizza
310
00:14:38,616 --> 00:14:40,526
even though it resembled
traditional pizza
311
00:14:40,575 --> 00:14:42,875
as much as I resemble Beyonce.
312
00:14:44,057 --> 00:14:44,747
- Hi, how are ya?
313
00:14:44,796 --> 00:14:46,666
Welcome to Pizza Hut.
314
00:14:46,711 --> 00:14:48,841
- Pizza Hut created a definition
315
00:14:48,888 --> 00:14:50,848
for this food for
most Americans.
316
00:14:50,890 --> 00:14:54,720
So I meet somebody from the
West Coast, or the Midwest,
317
00:14:54,763 --> 00:14:57,033
or the Southeast, they grew up
318
00:14:57,070 --> 00:14:59,070
with Pizza Hut as their pizza.
319
00:14:59,115 --> 00:15:01,675
Then all other pizza is
measured up against that.
320
00:15:01,726 --> 00:15:04,946
Whether or not that's an
authentic Italian version,
321
00:15:04,991 --> 00:15:06,991
it makes no difference
to the consumer,
322
00:15:07,036 --> 00:15:08,906
because that becomes
their definition.
323
00:15:10,300 --> 00:15:11,650
- As the
Carneys' dine-in restaurant
324
00:15:11,693 --> 00:15:13,783
is introducing the world
to their version of pizza,
325
00:15:17,742 --> 00:15:19,922
the Monaghans'
cramped sandwich joint
326
00:15:20,920 --> 00:15:23,100
is unexpectedly
exceeding its capacity.
327
00:15:28,797 --> 00:15:31,317
- It's interesting to see
these two brothers in business
328
00:15:31,365 --> 00:15:33,925
doing something that they
had zero idea how to do.
329
00:15:35,108 --> 00:15:36,588
They have this little
tiny restaurant.
330
00:15:36,631 --> 00:15:39,631
You can't fit more tables
into a 500 square foot space.
331
00:15:39,677 --> 00:15:42,767
And being a busy restaurant
is sometimes as bad
332
00:15:42,811 --> 00:15:45,641
as being a slow restaurant,
because the last thing
333
00:15:45,683 --> 00:15:48,643
Tom wanted to do was
turn away any business.
334
00:15:51,646 --> 00:15:52,906
- It's a zoo out there.
335
00:15:52,952 --> 00:15:54,002
We're backed up
halfway to Tuesday.
336
00:15:54,040 --> 00:15:55,220
People have nowhere to sit.
337
00:15:55,258 --> 00:15:57,388
- Tell them to take
their pizzas to go.
338
00:15:57,434 --> 00:15:58,784
That's why it's
called a to go box.
339
00:15:58,827 --> 00:16:00,127
- They're also complaining
about the wait.
340
00:16:00,176 --> 00:16:01,826
- Then tell them
to wait at home.
341
00:16:14,190 --> 00:16:15,320
- Rather than fight against
342
00:16:15,365 --> 00:16:17,495
the small footprint
of his restaurant,
343
00:16:17,541 --> 00:16:20,021
he thought maybe it
would be to an advantage.
344
00:16:20,066 --> 00:16:23,676
Small rent, small space,
bring the food to the people.
345
00:16:25,158 --> 00:16:26,898
- Tom
Monaghan realizes
346
00:16:26,942 --> 00:16:29,472
that if he can bring
his customers food
347
00:16:29,510 --> 00:16:30,990
directly to their door,
348
00:16:31,033 --> 00:16:34,173
he can eliminate lines and
increase his customer base.
349
00:16:34,210 --> 00:16:37,340
- So he decides to use
the roads essentially
350
00:16:37,387 --> 00:16:40,037
as his restaurant
and offer delivery.
351
00:16:40,086 --> 00:16:41,646
And he really, really
pushed delivery
352
00:16:41,696 --> 00:16:44,176
to be the center point
of his business model.
353
00:16:44,220 --> 00:16:45,610
- Home
delivery is an idea
354
00:16:45,656 --> 00:16:48,306
that will redefine
the way Americans eat.
355
00:16:49,965 --> 00:16:53,485
But in the late 1950s, it's
an industry-wide afterthought
356
00:16:53,534 --> 00:16:56,454
limited to a handful
of Chinese restaurants
357
00:16:56,493 --> 00:16:58,543
in densely-populated cities.
358
00:16:58,582 --> 00:17:02,202
- Delivery is not that popular,
hasn't really taken off.
359
00:17:02,238 --> 00:17:05,848
Nobody's delivering to
your door with hot food.
360
00:17:05,894 --> 00:17:09,724
It is a change in
how Americans eat.
361
00:17:11,900 --> 00:17:14,510
- Tom turns
his own beat-up VW Bug
362
00:17:14,555 --> 00:17:17,075
into the company's
first delivery vehicle.
363
00:17:18,428 --> 00:17:20,738
- The idea of being able
to get that experience
364
00:17:20,778 --> 00:17:24,738
in your home, that is really
what they revolutionized.
365
00:17:25,609 --> 00:17:26,649
I mean, it wasn't something
366
00:17:26,697 --> 00:17:29,217
that most Americans
had access to.
367
00:17:30,614 --> 00:17:32,014
- But
Tom's risky decision
368
00:17:32,051 --> 00:17:33,751
to start a delivery service-
369
00:17:33,791 --> 00:17:35,751
- Okay, I'll see you then.
370
00:17:40,059 --> 00:17:41,539
- Opens a rift
between the brothers.
371
00:17:43,323 --> 00:17:46,503
- Jim Monaghan was sort of
the coin flip of Tom Monaghan.
372
00:17:46,543 --> 00:17:50,943
Where Tom was really focused,
Jim was kind of more aloof.
373
00:17:50,982 --> 00:17:54,032
And where Tom would make
a decision right away
374
00:17:54,073 --> 00:17:55,943
based on the logic
of the moment,
375
00:17:55,987 --> 00:17:58,507
Jim would've said, "Let's hold
off and think about it more."
376
00:17:58,555 --> 00:18:00,335
So that split decision making
377
00:18:00,383 --> 00:18:01,603
is a problem for a partnership.
378
00:18:03,343 --> 00:18:05,743
- Although the
strategy is an instant success,
379
00:18:05,780 --> 00:18:07,960
with sales doubling
in just a month,
380
00:18:09,436 --> 00:18:11,606
now it's an intense struggle
to keep up with demand.
381
00:18:11,655 --> 00:18:13,475
- Heads up, got a live one.
382
00:18:13,527 --> 00:18:15,397
- So now the capacity
of his restaurant
383
00:18:15,442 --> 00:18:17,442
was not limited by the
seats at the table.
384
00:18:17,487 --> 00:18:20,267
It was limited by how far
you can drive a delivery car.
385
00:18:21,448 --> 00:18:23,148
And that resulted
in huge success.
386
00:18:23,189 --> 00:18:26,109
But now getting calls means
you have to get the orders
387
00:18:26,148 --> 00:18:28,458
made, and out, and delivered.
388
00:18:33,938 --> 00:18:35,418
- DomiNick's.
389
00:18:35,462 --> 00:18:37,292
- They are probably
missing half a dozen calls
390
00:18:37,333 --> 00:18:38,553
whilst the next order
is sitting there
391
00:18:38,595 --> 00:18:39,985
getting cold on the counter.
392
00:18:52,305 --> 00:18:53,565
- These were supposed to
go out 40 minutes ago.
393
00:18:53,610 --> 00:18:55,180
Come on, get these out the door.
394
00:18:56,352 --> 00:18:58,142
- DomiNicks, what can
I get for you?
395
00:19:00,356 --> 00:19:02,176
Jim, better late than never.
396
00:19:02,228 --> 00:19:04,488
I need you to rush these
up to the north side.
397
00:19:06,014 --> 00:19:06,974
- Now I'm a delivery boy?
398
00:19:08,973 --> 00:19:10,113
- I don't have time to argue.
399
00:19:10,149 --> 00:19:11,669
Are you going to do it or not?
400
00:19:19,332 --> 00:19:20,512
- You're on delivery duty.
401
00:19:26,295 --> 00:19:28,775
- Tom wanted to
do things his way.
402
00:19:28,819 --> 00:19:31,339
And he was working very hard
403
00:19:31,387 --> 00:19:33,477
and he expected
his younger brother
404
00:19:33,520 --> 00:19:36,830
to work as hard and
be as dedicated.
405
00:19:36,871 --> 00:19:39,701
But being the older
brother, he also likely
406
00:19:39,743 --> 00:19:43,493
expected his younger brother
to follow what he was doing.
407
00:19:43,530 --> 00:19:48,710
And that may have grated
on Jim a little bit.
408
00:19:49,927 --> 00:19:52,057
- While tension boils
between the Monaghans,
409
00:19:55,019 --> 00:19:59,549
in Kansas Dan Carney is
preparing another big idea
410
00:19:59,589 --> 00:20:01,369
for his seven-month-old
business.
411
00:20:05,856 --> 00:20:06,896
- I think we're ready.
412
00:20:07,902 --> 00:20:09,902
- Yeah, for what?
413
00:20:11,949 --> 00:20:12,689
- To expand.
414
00:20:14,735 --> 00:20:17,905
This restaurant, it's
just a proof of concept.
415
00:20:20,262 --> 00:20:23,312
- What, you want to
open a second location?
416
00:20:23,352 --> 00:20:24,402
- I was thinking five.
417
00:20:26,094 --> 00:20:27,404
- We can't afford five.
418
00:20:28,792 --> 00:20:30,232
- We don't have to afford it.
419
00:20:32,796 --> 00:20:33,926
We're franchising.
420
00:20:38,976 --> 00:20:41,406
- How bold was it of Dan Carney
421
00:20:41,457 --> 00:20:43,367
to think that he
could just come along
422
00:20:43,416 --> 00:20:45,936
and franchise pizza when pizza
423
00:20:45,983 --> 00:20:47,773
wasn't an established food yet?
424
00:20:49,422 --> 00:20:51,082
- Dan
Carney isn't satisfied
425
00:20:51,119 --> 00:20:54,119
owning Wichita's most
popular pizza joint.
426
00:20:54,165 --> 00:20:57,725
He's determined to introduce
pizza across the nation
427
00:20:57,778 --> 00:21:01,608
and build the biggest
restaurant chain in the country.
428
00:21:22,629 --> 00:21:26,979
- It's 1958 and
the Carney brothers
429
00:21:27,024 --> 00:21:28,774
have opened a
successful restaurant
430
00:21:28,809 --> 00:21:30,899
in which introducing
locals to pizza.
431
00:21:33,248 --> 00:21:35,248
But their goal is to
dominate the market
432
00:21:36,338 --> 00:21:37,468
from coast to coast.
433
00:21:38,514 --> 00:21:39,784
- This is the businessman.
434
00:21:39,820 --> 00:21:41,340
This is the marketeer.
435
00:21:41,387 --> 00:21:43,907
This is the person
who essentially
436
00:21:43,954 --> 00:21:48,134
wants to get a product to
the public to mass produce
437
00:21:48,176 --> 00:21:50,396
and turn that into a fortune.
438
00:21:52,136 --> 00:21:54,876
- To do it, they're
gambling on franchising,
439
00:21:54,922 --> 00:21:56,792
a strategy that can
allow businesses
440
00:21:56,837 --> 00:21:58,747
to expand quickly at low cost
441
00:21:59,970 --> 00:22:01,150
and has been used
to sell everything
442
00:22:01,189 --> 00:22:04,319
from sewing machines to cars.
443
00:22:04,366 --> 00:22:08,626
- Franchising allows the
replication of the brand.
444
00:22:08,675 --> 00:22:10,805
I create a product or a service.
445
00:22:10,851 --> 00:22:14,641
And that system is then licensed
446
00:22:14,681 --> 00:22:16,941
to a third party, a franchisee.
447
00:22:16,987 --> 00:22:20,687
In exchange they charge a
continuing franchise fee.
448
00:22:20,730 --> 00:22:21,950
It may sound very common today,
449
00:22:21,992 --> 00:22:23,652
but it was radical at
that point in time.
450
00:22:23,690 --> 00:22:27,520
It wasn't something that
a lot of people knew.
451
00:22:27,563 --> 00:22:29,963
Very few of them understand it.
452
00:22:30,000 --> 00:22:31,920
- Pioneers
like Harland Sanders
453
00:22:31,959 --> 00:22:35,139
and Ray Kroc applied
franchising to food,
454
00:22:35,179 --> 00:22:37,569
eventually turning
Kentucky Fried Chicken
455
00:22:37,617 --> 00:22:41,007
and McDonald's into
global powerhouses.
456
00:22:41,055 --> 00:22:44,745
Now Dan Carney wants to use
their own strategy against them,
457
00:22:44,798 --> 00:22:47,278
but with pizza as
the new weapon.
458
00:22:47,322 --> 00:22:50,332
- Dan was thinking
about long-term growth
459
00:22:50,369 --> 00:22:53,419
and he wanted this
chain to get started.
460
00:22:53,459 --> 00:22:55,849
I think he extrapolated
into the future.
461
00:22:55,896 --> 00:22:57,846
He said, "Nobody's doing it now,
462
00:22:57,898 --> 00:23:00,508
"but if they can do
it for hamburgers,
463
00:23:00,553 --> 00:23:02,343
"why don't we do it for pizza?"
464
00:23:04,121 --> 00:23:05,951
- It's totally bonkers
that these guys
465
00:23:05,993 --> 00:23:08,043
who have no idea
how to make pizza,
466
00:23:08,082 --> 00:23:11,562
within about a year of them
opening their first restaurant
467
00:23:11,607 --> 00:23:12,907
they start franchising.
468
00:23:12,956 --> 00:23:16,306
I mean, I know people who
work on it for decades
469
00:23:16,351 --> 00:23:17,401
before they start thinking
470
00:23:17,439 --> 00:23:19,399
about how to
franchise that model.
471
00:23:19,441 --> 00:23:20,361
- Even though pizza
472
00:23:20,399 --> 00:23:22,309
is hardly known in the Midwest,
473
00:23:22,357 --> 00:23:24,747
the Carneys quickly
launch six new locations
474
00:23:24,794 --> 00:23:26,234
of the Pizza Hut brand.
475
00:23:26,274 --> 00:23:30,894
- They turned pizza into a
sit down dining experience
476
00:23:30,931 --> 00:23:33,241
that was affordable
and accessible
477
00:23:33,281 --> 00:23:34,851
to the middle American family.
478
00:23:34,891 --> 00:23:38,721
And I think that the genius
of that cannot be overlooked.
479
00:23:38,765 --> 00:23:40,375
- To
accelerate growth,
480
00:23:40,419 --> 00:23:45,509
the Carneys slash franchising
fees to an average of $4,500,
481
00:23:45,554 --> 00:23:47,434
half as much as McDonald's.
482
00:23:47,469 --> 00:23:49,039
- He may have
underpriced himself,
483
00:23:49,079 --> 00:23:52,209
but Dan decided that he
was going to go for growth.
484
00:23:52,256 --> 00:23:55,296
If you at least grow,
you've got cashflow.
485
00:23:55,346 --> 00:23:58,346
You can figure it out later
on as you go down the road.
486
00:23:58,393 --> 00:24:00,743
And that's what the
Carney brothers did.
487
00:24:01,178 --> 00:24:02,618
- One or two? Two?
488
00:24:02,658 --> 00:24:07,228
- By 1963, Pizza
Hut expands out of Kansas
489
00:24:07,271 --> 00:24:10,711
and east of the Mississippi,
growing to 42 locations.
490
00:24:11,885 --> 00:24:14,365
It's the largest pizza
chain in the country
491
00:24:14,409 --> 00:24:17,109
and has no close
competitor, for now.
492
00:24:21,938 --> 00:24:23,898
Meanwhile in Michigan,
Tom Monaghan's bold bet
493
00:24:23,940 --> 00:24:26,330
to take on delivery isn't
making his life
494
00:24:26,377 --> 00:24:27,467
any easier.
495
00:24:27,509 --> 00:24:28,769
- DomiNick's, what
can I get for you?
496
00:24:28,815 --> 00:24:30,025
- As
DomiNick's struggles
497
00:24:30,077 --> 00:24:31,767
to keep up with
its complex menu.
498
00:24:31,818 --> 00:24:33,078
- It had to have been insane.
499
00:24:33,123 --> 00:24:34,393
I mean, you've got
orders coming in
500
00:24:34,429 --> 00:24:35,779
for five different
sizes of pizza.
501
00:24:35,822 --> 00:24:38,782
And if you put the wrong
topping on the wrong size,
502
00:24:38,825 --> 00:24:41,345
then that's a scrap and
that's in the garbage.
503
00:24:41,392 --> 00:24:44,532
If the sandwich is made
wrong, it's lost money.
504
00:24:44,570 --> 00:24:46,050
-
There's only so long
505
00:24:46,093 --> 00:24:47,533
people are willing to wait
for their food,
506
00:24:47,573 --> 00:24:50,013
even at home.
507
00:24:51,664 --> 00:24:53,624
- DomiNick's, what
can I get for you?
508
00:24:54,536 --> 00:24:56,626
I'm sorry, it's on its way.
509
00:24:58,540 --> 00:25:00,500
I understand, okay.
510
00:25:02,457 --> 00:25:03,277
Unbelievable.
511
00:25:06,853 --> 00:25:09,123
That's the third canceled
order in the last hour.
512
00:25:19,605 --> 00:25:22,645
- The more items he had,
and the more options he had,
513
00:25:22,695 --> 00:25:24,605
and the more confusion he had,
514
00:25:24,653 --> 00:25:26,133
the more mistakes they made.
515
00:25:34,837 --> 00:25:35,877
- Everybody, listen up.
516
00:25:37,797 --> 00:25:39,227
We're only selling pizza
the rest of the night,
517
00:25:39,276 --> 00:25:42,316
two sizes only, 12 inch and 16.
518
00:25:42,366 --> 00:25:44,016
- That's less than
half our menu.
519
00:25:44,064 --> 00:25:45,674
The menu stays as is.
520
00:25:57,904 --> 00:25:59,564
- DomiNick's, what
can I get for you?
521
00:26:09,872 --> 00:26:11,092
I'm sorry, but
522
00:26:16,183 --> 00:26:18,273
sandwiches are off
the menu for tonight.
523
00:26:19,752 --> 00:26:21,932
Only 12 and 16 inch pies
for the rest of the night.
524
00:26:21,971 --> 00:26:25,711
Great, that's one 16
inch cheese pizza.
525
00:26:27,150 --> 00:26:30,020
That'll be $2 and we'll be
there in less than an hour.
526
00:26:42,252 --> 00:26:44,342
- Rather
than play second fiddle,
527
00:26:44,385 --> 00:26:47,905
Jim Monaghan walks out
of the partnership,
528
00:26:47,954 --> 00:26:50,264
returning to his
job as a mailman
529
00:26:50,304 --> 00:26:53,264
and turning control of
the business over to Tom.
530
00:26:53,307 --> 00:26:55,217
- Jim Monaghan decided to leave.
531
00:26:55,265 --> 00:26:58,875
Tom gave him the delivery
car, the Volkswagen Beetle,
532
00:26:58,921 --> 00:27:01,711
in exchange for his
half of the company.
533
00:27:01,750 --> 00:27:05,360
So, I hope that car
ran for a long time.
534
00:27:05,406 --> 00:27:08,056
- His brother sold his
stake in the company
535
00:27:08,104 --> 00:27:10,284
for their beat-up VW Beetle.
536
00:27:10,324 --> 00:27:13,764
In point of fact, had
he retained his stake,
537
00:27:13,806 --> 00:27:17,416
he would have made $800 million.
538
00:27:17,461 --> 00:27:19,771
Instead he got a VW Beetle.
539
00:27:19,812 --> 00:27:21,072
Bad trade, bad trade.
540
00:27:27,863 --> 00:27:29,873
- By 1968,
less than a decade
541
00:27:29,909 --> 00:27:32,219
after opening the
first Pizza Hut,
542
00:27:32,259 --> 00:27:34,649
the Carney brothers
have catapulted pizza
543
00:27:34,696 --> 00:27:36,306
into the national consciousness.
544
00:27:37,525 --> 00:27:39,785
It's even being sold in
the frozen food aisle.
545
00:27:41,007 --> 00:27:42,657
- That audience
for pizza's growing
546
00:27:42,704 --> 00:27:44,754
as more and more people try it.
547
00:27:44,793 --> 00:27:47,063
So it's not something that
alienates a lot of tastes
548
00:27:47,100 --> 00:27:48,970
but it's something
that kids like.
549
00:27:49,015 --> 00:27:50,925
So it can be eaten
by the whole family.
550
00:27:50,973 --> 00:27:52,583
It has a communalness to it.
551
00:27:52,627 --> 00:27:54,717
And I think that
fuels its growth.
552
00:27:54,760 --> 00:27:57,240
It creates a moment where
people can eat together
553
00:27:57,284 --> 00:28:00,644
and it gets really associated
with family moments.
554
00:28:02,202 --> 00:28:04,162
- At the
end of the 1960s,
555
00:28:04,204 --> 00:28:06,994
Pizza Hut now has 300 locations
556
00:28:07,033 --> 00:28:09,043
serving 1 million
customers every year.
557
00:28:10,471 --> 00:28:12,651
And the Carneys' signature
red-roofed restaurants
558
00:28:12,691 --> 00:28:15,171
can be found from
coast to coast,
559
00:28:15,215 --> 00:28:18,955
making Pizza Hut America's
first national pizza chain.
560
00:28:20,873 --> 00:28:23,923
- The Carneys were very
much ahead of the curve.
561
00:28:23,963 --> 00:28:27,103
They did for pizza what
McDonald's did for hamburgers.
562
00:28:28,707 --> 00:28:30,707
- To keep up
with their rapid expansion,
563
00:28:30,752 --> 00:28:32,802
Frank Carney
introduces a new system
564
00:28:32,841 --> 00:28:36,501
of ingredient distribution,
a central commissary
565
00:28:36,540 --> 00:28:38,460
that freeze dries
each ingredient
566
00:28:38,499 --> 00:28:41,889
and distributes them out to
every Pizza Hut franchise,
567
00:28:41,937 --> 00:28:43,587
guaranteeing consistency.
568
00:28:45,898 --> 00:28:47,548
- They use that
fast food approach,
569
00:28:47,595 --> 00:28:52,245
having an offsite hub
where they can
570
00:28:52,295 --> 00:28:56,035
prepare these ingredients in
advance, precooked,
571
00:28:56,082 --> 00:28:58,822
and just need to
be reheated onsite.
572
00:28:58,867 --> 00:29:02,607
So a lot of the sort of
cooking and the deep labor
573
00:29:02,653 --> 00:29:05,053
that would come with
managing, running,
574
00:29:05,091 --> 00:29:09,231
and supplying a local
pizzeria is eliminated.
575
00:29:09,269 --> 00:29:11,399
- The Carney brothers'
success proves that pizza
576
00:29:11,445 --> 00:29:14,095
is the next franchise gold rush,
577
00:29:14,143 --> 00:29:18,633
breeding copycats and putting
a target on Pizza Hut's back.
578
00:29:23,500 --> 00:29:26,720
In Michigan, Tom Monaghan
is now solely in charge
579
00:29:26,765 --> 00:29:30,635
of DomiNick's, and his bold
move to only sell pizza
580
00:29:30,681 --> 00:29:32,991
has the business running
better than ever.
581
00:29:33,032 --> 00:29:36,732
- He understood that
you need a small menu
582
00:29:36,775 --> 00:29:39,645
that you can put out, many
with the same ingredients,
583
00:29:39,690 --> 00:29:42,040
at a fast pace, and
you streamline it.
584
00:29:42,084 --> 00:29:45,744
If you look at the way
the back of a kitchen runs
585
00:29:45,784 --> 00:29:48,314
and you look at the
automobile factory,
586
00:29:48,351 --> 00:29:51,751
they're both assembly
lines of a different kind.
587
00:29:53,269 --> 00:29:55,099
- Now
Tom sets his sights
588
00:29:55,141 --> 00:29:58,411
on spreading his delivery
pizza across the nation.
589
00:29:59,536 --> 00:30:00,836
- Tom Monaghan, I guess,
590
00:30:00,886 --> 00:30:03,016
was seeing what
Pizza Hut was doing.
591
00:30:03,062 --> 00:30:05,632
And Tom said, "Why not us?"
592
00:30:05,673 --> 00:30:08,813
- To do it, Monaghan
has an ingenious strategy.
593
00:30:08,850 --> 00:30:10,420
He'll target the one demographic
594
00:30:10,460 --> 00:30:13,250
that's responsible for
most of his profits.
595
00:30:13,289 --> 00:30:14,419
College students.
596
00:30:15,683 --> 00:30:18,253
Michigan has the most
colleges in the US
597
00:30:18,294 --> 00:30:20,994
and Tom is opening his
newest store at the doorstep
598
00:30:21,036 --> 00:30:25,516
of the most popular,
Michigan State University.
599
00:30:26,912 --> 00:30:29,962
With a dormitory population
of 20,000 at the time,
600
00:30:30,002 --> 00:30:31,662
it's the largest in the world.
601
00:30:31,699 --> 00:30:34,179
- The decision to expand
near college campuses
602
00:30:34,223 --> 00:30:35,273
was a stroke of genius,
603
00:30:35,311 --> 00:30:37,141
because in a
residential neighborhood
604
00:30:37,183 --> 00:30:39,013
you've got houses
all over the place,
605
00:30:39,054 --> 00:30:41,324
whereas a college dorm building
606
00:30:41,361 --> 00:30:43,841
has hundreds of
potential customers.
607
00:30:43,885 --> 00:30:47,495
So the more deliveries you
can make to a smaller area,
608
00:30:47,541 --> 00:30:49,021
the higher the profit margin.
609
00:30:55,810 --> 00:30:57,380
- Now a
restaurant chain,
610
00:30:57,420 --> 00:31:02,250
Tom unveils his next big
move, a new company logo
611
00:31:02,295 --> 00:31:05,775
with three dots representing
his first three stores
612
00:31:05,820 --> 00:31:09,040
and a new name that
will one day deliver
613
00:31:09,084 --> 00:31:14,224
1.5 million pizzas
every day, Domino's.
614
00:31:14,263 --> 00:31:16,963
- I think Domino's has
always been incredibly clever
615
00:31:17,005 --> 00:31:20,225
when it comes to how
they position themselves
616
00:31:20,269 --> 00:31:21,529
in the marketplace.
617
00:31:21,575 --> 00:31:24,095
They're nearly in every
single college town.
618
00:31:24,143 --> 00:31:28,633
Sadly, at my own
university in Atlanta, Georgia
619
00:31:28,669 --> 00:31:31,189
they affiliated themselves
directly with our meal plan.
620
00:31:31,237 --> 00:31:32,457
My folks had to put more money
621
00:31:32,499 --> 00:31:34,809
in my account halfway
through a semester.
622
00:31:34,849 --> 00:31:36,499
- As Monaghan
lays the foundation
623
00:31:36,546 --> 00:31:38,896
for his empire to flourish,
624
00:31:38,940 --> 00:31:41,160
his success doesn't
go unnoticed.
625
00:31:45,120 --> 00:31:47,470
- Little Caesar's, what
do we know about them?
626
00:31:47,514 --> 00:31:50,174
Funnily that they haven't
even hit the hundreds yet.
627
00:31:50,212 --> 00:31:52,562
Now I'll take a
look at Shakey's.
628
00:31:52,606 --> 00:31:55,166
Shakey's, California,
West Coast brand.
629
00:31:55,217 --> 00:31:56,997
They're not a threat to us.
630
00:31:58,786 --> 00:32:00,876
- Sir, you're going to
want to take a look at this.
631
00:32:02,572 --> 00:32:03,702
- See that right there?
632
00:32:03,747 --> 00:32:04,567
- Is that real?
633
00:32:04,618 --> 00:32:05,618
- Yeah.
634
00:32:08,187 --> 00:32:12,057
- It says Domino's,
another Michigan place.
635
00:32:12,104 --> 00:32:13,844
They're offering a
delivery service.
636
00:32:13,888 --> 00:32:15,368
How are we supposed
to beat that?
637
00:32:15,411 --> 00:32:18,071
- While Domino's Pizza
is relatively small,
638
00:32:18,110 --> 00:32:20,110
they're growing exponentially.
639
00:32:20,155 --> 00:32:23,935
In 1969 they're opening
nearly a store a week.
640
00:32:28,947 --> 00:32:30,597
- We're the McDonald's of pizza.
641
00:32:32,602 --> 00:32:34,042
They're not even Burger King.
642
00:32:37,303 --> 00:32:39,003
- For now,
Domino's' delivery model
643
00:32:39,044 --> 00:32:42,834
isn't a threat,
but left unchecked
644
00:32:42,873 --> 00:32:45,833
it will soon become Pizza
Hut's most bitter rival.
645
00:33:02,676 --> 00:33:03,936
- By 1970,
646
00:33:03,982 --> 00:33:07,722
Pizza Hut sales surge
past $31 million a year,
647
00:33:07,768 --> 00:33:10,988
the modern equivalent
of 250 million.
648
00:33:12,599 --> 00:33:14,859
But after years of
unbridled growth
649
00:33:14,905 --> 00:33:18,465
Frank and Dan Carney have
hit a major obstacle.
650
00:33:18,518 --> 00:33:20,168
Over 100 of their restaurants
651
00:33:20,215 --> 00:33:22,865
are teetering on the
brink of collapse.
652
00:33:22,913 --> 00:33:25,093
And the problem is clear.
653
00:33:25,133 --> 00:33:27,663
America's first
national pizza chain
654
00:33:27,701 --> 00:33:30,101
is failing on the East Coast.
655
00:33:30,138 --> 00:33:32,618
- The Northeast
has its own style.
656
00:33:32,662 --> 00:33:36,102
It was really where
Italians settled
657
00:33:36,144 --> 00:33:39,064
and Italians'
expectations for pizza
658
00:33:39,104 --> 00:33:42,114
were not going to be met
by pizza from the Midwest.
659
00:33:43,412 --> 00:33:45,202
- Nothing.
660
00:33:45,240 --> 00:33:46,330
- People on the East Coast
661
00:33:46,372 --> 00:33:48,642
have an emotional
attachment to pizza.
662
00:33:48,678 --> 00:33:51,118
So now you're
treading on my pizza.
663
00:33:51,159 --> 00:33:52,859
You know, this is an insult.
664
00:33:52,900 --> 00:33:54,680
Pizza Hut was thin and crispy.
665
00:33:54,728 --> 00:33:56,688
You call this a pizza?
666
00:33:56,730 --> 00:33:58,730
This isn't recognizable to me.
667
00:34:04,999 --> 00:34:09,569
- McDonald's is
McDonald's, KFC is KFC.
668
00:34:09,612 --> 00:34:11,272
They don't change their formula
669
00:34:11,310 --> 00:34:13,880
just because someone
somewhere doesn't like it.
670
00:34:13,921 --> 00:34:16,621
- I am not suggesting
a major change, Dan.
671
00:34:16,663 --> 00:34:17,933
- No?
672
00:34:17,968 --> 00:34:20,008
You just want to
change the one recipe
673
00:34:20,058 --> 00:34:21,708
that's gotten us
to where we are.
674
00:34:22,973 --> 00:34:25,283
You want to serve thin
crust in some states
675
00:34:25,324 --> 00:34:26,724
and thick crust in others?
676
00:34:28,153 --> 00:34:30,023
It's not scalable.
677
00:34:31,286 --> 00:34:33,506
The whole point of
what we've built
678
00:34:33,549 --> 00:34:36,939
is that you can walk
into a Pizza Hut anywhere
679
00:34:36,987 --> 00:34:40,337
and it feels like every other
Pizza Hut you've ever been to.
680
00:34:46,214 --> 00:34:47,784
- Then we do both.
681
00:34:47,824 --> 00:34:52,094
We offer thin crust and we
offer thick crust, two options.
682
00:34:53,395 --> 00:34:54,565
But we can handle it.
683
00:34:54,614 --> 00:34:56,224
The restaurants,
they can handle it.
684
00:34:58,052 --> 00:34:59,272
We can do this.
685
00:35:18,812 --> 00:35:20,472
- 15 years
after developing
686
00:35:20,509 --> 00:35:22,339
their signature pizza crust,
687
00:35:22,381 --> 00:35:25,211
Dan and Frank Carney
are back in the kitchen,
688
00:35:25,253 --> 00:35:27,173
working on a recipe
that they believe
689
00:35:27,212 --> 00:35:29,212
will appeal to
customers more familiar
690
00:35:29,257 --> 00:35:31,477
with traditional Italian pizza.
691
00:35:31,520 --> 00:35:36,610
- Pizza Hut decided that the
way to get by on the East Coast
692
00:35:36,656 --> 00:35:40,436
was not to compete
with the beloved pizzas
693
00:35:40,486 --> 00:35:42,396
that people are used
to on the East Coast,
694
00:35:42,444 --> 00:35:45,144
but to come at it from
a different direction.
695
00:35:45,186 --> 00:35:46,616
So this is where they came up
696
00:35:46,666 --> 00:35:50,706
with a thicker-style pizza
that wouldn't be confused,
697
00:35:50,757 --> 00:35:52,407
you know, we're not
trying to copy your pizza.
698
00:35:52,454 --> 00:35:53,374
This is something different.
699
00:35:53,412 --> 00:35:54,112
We're Pizza Hut.
700
00:35:56,806 --> 00:36:00,156
- In 1973, Pizza Hut
701
00:36:00,201 --> 00:36:02,161
finally unveils its thick crust.
702
00:36:03,639 --> 00:36:06,599
- It's almost definitely
meant to be cut
703
00:36:06,642 --> 00:36:07,992
with a fork and a knife.
704
00:36:08,035 --> 00:36:09,855
The toppings would spill over.
705
00:36:11,299 --> 00:36:14,079
The crust was thicker
than most regular pizzas.
706
00:36:14,128 --> 00:36:16,698
The center of the
crust was more buttery,
707
00:36:16,739 --> 00:36:20,699
pillowy, doughy in terms of its
design and its construction.
708
00:36:20,743 --> 00:36:22,273
- Pizza
Hut's new thick crust
709
00:36:22,310 --> 00:36:24,700
will come to be
known as pan pizza
710
00:36:24,747 --> 00:36:28,097
and go on to outsell their
original thin crust recipe,
711
00:36:28,142 --> 00:36:31,232
securing its place
as an American icon.
712
00:36:31,276 --> 00:36:32,966
- When Pizza Hut came
with the pan pizza
713
00:36:33,016 --> 00:36:35,446
it was almost like a fantasy.
714
00:36:35,497 --> 00:36:38,937
You'd get a slice of pan
pizza from Pizza Hut.
715
00:36:38,979 --> 00:36:41,979
And they had the cheese
always just looking heavy,
716
00:36:42,025 --> 00:36:45,895
and you get a nice
thick pan pizza
717
00:36:45,942 --> 00:36:48,552
with the garlic
soaked into the crust.
718
00:36:48,597 --> 00:36:50,427
That's a bite you're
going to enjoy.
719
00:36:51,687 --> 00:36:52,947
- While
Pizza Hut's innovation
720
00:36:52,993 --> 00:36:54,863
allows their Northeast
restaurants to thrive,
721
00:36:56,301 --> 00:36:58,431
in Michigan Tom
Monaghan is about
722
00:36:58,477 --> 00:37:01,087
to transform home
delivery forever.
723
00:37:01,131 --> 00:37:02,261
- Good to go.
724
00:37:02,307 --> 00:37:04,047
- Domino's'
fast-paced growth
725
00:37:04,091 --> 00:37:06,011
has exposed a serious problem.
726
00:37:07,790 --> 00:37:10,010
Drivers are stacking
more and more pizzas
727
00:37:10,053 --> 00:37:11,533
for larger delivery runs
728
00:37:13,448 --> 00:37:15,798
and their boxes aren't
up to the challenge.
729
00:37:17,931 --> 00:37:20,461
- I want them
sturdy, reinforced.
730
00:37:20,499 --> 00:37:23,199
- Traditionally
pizza boxes were made
731
00:37:23,241 --> 00:37:25,461
out of much thinner cardboard
732
00:37:25,504 --> 00:37:28,554
and absolutely did
nothing to retain heat.
733
00:37:28,594 --> 00:37:29,864
There was no insulation.
734
00:37:29,899 --> 00:37:33,429
There was no means of
protecting the pizza.
735
00:37:33,468 --> 00:37:36,688
It was just a thin
white cardboard box.
736
00:37:36,732 --> 00:37:38,262
- No, that's right, stackable.
737
00:37:39,344 --> 00:37:40,614
No, not three high.
738
00:37:40,649 --> 00:37:42,739
I'm talking seven, eight.
739
00:37:44,174 --> 00:37:44,964
Okay.
740
00:37:53,096 --> 00:37:53,916
- Where do you want
these delivered?
741
00:37:53,967 --> 00:37:54,967
- Bring them in.
742
00:37:57,927 --> 00:38:00,627
- Tom came up with
the corrugated box
743
00:38:00,669 --> 00:38:03,499
which really revolutionized
the pizza industry.
744
00:38:11,071 --> 00:38:13,991
- It was a heavier gauge
corrugated cardboard
745
00:38:14,030 --> 00:38:17,080
which allowed for a little
more heat to be trapped.
746
00:38:17,120 --> 00:38:21,430
But being durable allowed
the pizzas to be stacked.
747
00:38:21,473 --> 00:38:22,783
- Good to go.
- All right.
748
00:38:22,822 --> 00:38:24,562
- Still protecting the pizza,
749
00:38:24,606 --> 00:38:26,386
but allowing the delivery person
750
00:38:26,434 --> 00:38:28,784
to carry multiple
pizzas at one time.
751
00:38:30,308 --> 00:38:32,828
I think it speaks to the
efficacy of all his ideas
752
00:38:32,875 --> 00:38:34,085
that they have
still been adopted
753
00:38:34,137 --> 00:38:35,747
into the modern pizza industry
754
00:38:35,791 --> 00:38:37,661
to this day in the 21st century.
755
00:38:37,706 --> 00:38:40,266
- By 1973,
just over a decade
756
00:38:40,318 --> 00:38:44,058
after buying DomiNick's,
Tom Monaghan now runs
757
00:38:44,104 --> 00:38:49,114
a small empire of 76 stores
reaching across 13 states.
758
00:38:50,240 --> 00:38:52,240
- Tom Monaghan's always
had a spark in him.
759
00:38:52,286 --> 00:38:53,936
He wanted to turn Domino's
760
00:38:53,983 --> 00:38:56,383
from being a wobbly
upstart company
761
00:38:56,421 --> 00:38:59,161
to being a serious player
in the pizza business.
762
00:38:59,206 --> 00:39:00,946
Tom wanted to challenge the big,
763
00:39:00,990 --> 00:39:03,650
gargantuan red roof Pizza Hut.
764
00:39:04,733 --> 00:39:06,613
- But
Domino's' meteoric rise
765
00:39:06,648 --> 00:39:08,958
comes at a huge cost.
766
00:39:08,998 --> 00:39:10,648
Monaghan is offering investors
767
00:39:10,696 --> 00:39:12,516
sweetheart franchising deals,
768
00:39:12,567 --> 00:39:16,877
even supplying each new store
with a fleet of delivery cars,
769
00:39:16,919 --> 00:39:18,879
eating up all of
Domino's' profits
770
00:39:18,921 --> 00:39:20,711
and forcing him into debt.
771
00:39:20,749 --> 00:39:22,399
The Domino's business
was doing well
772
00:39:22,447 --> 00:39:25,227
but Tom wasn't living
large or anything.
773
00:39:25,275 --> 00:39:28,755
He was living in a
trailer with his wife,
774
00:39:28,801 --> 00:39:31,331
and in order to keep
growing franchises
775
00:39:31,369 --> 00:39:36,369
borrowed $400,000 using his
tiny trailer as collateral.
776
00:39:36,939 --> 00:39:39,509
And he knew that if he defaulted
on that loan, he was out.
777
00:39:41,770 --> 00:39:44,380
- Domino's is in
serious financial trouble.
778
00:39:46,253 --> 00:39:48,693
And his rival, the most
powerful pizza chain
779
00:39:48,734 --> 00:39:51,744
in the world, sees an opening.
780
00:40:03,575 --> 00:40:04,265
- Can I get you anything?
781
00:40:04,314 --> 00:40:06,534
Water, slice of pizza?
782
00:40:08,101 --> 00:40:10,581
- No, we're fine, but thank you.
783
00:40:10,625 --> 00:40:12,795
- In
the fall of 1973,
784
00:40:12,845 --> 00:40:15,715
Domino's' financial
trouble brings Tom Monaghan
785
00:40:15,761 --> 00:40:19,551
face to face with his biggest
rivals, the Carney brothers.
786
00:40:19,591 --> 00:40:20,641
- What's this?
787
00:40:22,158 --> 00:40:26,418
- That's an offer for a
controlling stake in Domino's.
788
00:40:40,873 --> 00:40:41,873
- It's not for sale.
789
00:40:46,139 --> 00:40:47,789
- We know you're hurting.
790
00:40:47,836 --> 00:40:49,446
You could walk away a rich man.
791
00:40:53,712 --> 00:40:58,192
- I appreciate the offer,
I do, but I'm sorry.
792
00:40:59,718 --> 00:41:00,548
Can't do it.
793
00:41:02,547 --> 00:41:03,977
- You sure?
794
00:41:04,026 --> 00:41:06,806
There's nothing that we
can do to change your mind?
795
00:41:06,855 --> 00:41:11,075
- Honestly, no.
796
00:41:12,208 --> 00:41:14,338
It's my baby.
797
00:41:14,384 --> 00:41:15,824
- Betting on yourself, hm.
798
00:41:18,388 --> 00:41:19,168
I'd do the same.
799
00:41:21,304 --> 00:41:24,094
But just so you know,
800
00:41:25,221 --> 00:41:27,701
we'll never stop
coming for you.
801
00:41:31,532 --> 00:41:32,842
Good luck to you.
802
00:41:35,536 --> 00:41:37,186
- Hey, best of luck.
803
00:41:44,893 --> 00:41:47,203
- The reason he
said no is because
804
00:41:47,243 --> 00:41:50,033
he wanted to see
this thing through
805
00:41:50,072 --> 00:41:53,902
and he'd gone through a lot of
work, and he was still young.
806
00:41:53,946 --> 00:41:55,506
He wasn't even 40.
807
00:41:55,556 --> 00:41:57,556
So he still had
some energy in him.
808
00:41:57,602 --> 00:41:59,822
He had lots of
courage and he said,
809
00:41:59,865 --> 00:42:01,865
"We're going to fight
this thing out."
810
00:42:03,172 --> 00:42:04,742
- By the mid 1970s
811
00:42:04,783 --> 00:42:08,403
Domino's is sliding deeper
and deeper into debt.
812
00:42:08,438 --> 00:42:11,878
Tom Monaghan's missed his
chance to cash out and get rich.
813
00:42:11,920 --> 00:42:14,270
And without a sudden
reversal of fortune
814
00:42:14,314 --> 00:42:15,884
Domino's will continue to fall
815
00:42:15,924 --> 00:42:17,974
further and further
behind Pizza Hut.
816
00:42:19,449 --> 00:42:22,709
- People in the food
industry are dreamers.
817
00:42:22,757 --> 00:42:25,717
I mean, I think that's the one
trait that we have in common.
818
00:42:25,760 --> 00:42:27,020
We're dreamers.
819
00:42:27,066 --> 00:42:30,416
The idea of being able
to create your own party
820
00:42:30,460 --> 00:42:34,030
and have people from
all over the community,
821
00:42:34,073 --> 00:42:37,033
all over the city,
possibly the country
822
00:42:37,076 --> 00:42:39,296
come to the party you create.
823
00:42:39,339 --> 00:42:40,909
I think that drives people.
824
00:42:44,126 --> 00:42:45,386
- Oh, one more
order just came in.
825
00:42:45,432 --> 00:42:46,962
- No, sorry, my
shift's about to end.
826
00:42:46,999 --> 00:42:48,439
- It's just one
delivery, real quick.
827
00:42:48,478 --> 00:42:50,998
- I got somewhere to
be in half an hour.
828
00:42:51,046 --> 00:42:53,306
- I guarantee you, you
can make it there and back
829
00:42:53,353 --> 00:42:55,273
in less than 30 minutes.
830
00:43:11,153 --> 00:43:14,773
- Then in
1975, a turning point.
831
00:43:16,289 --> 00:43:19,209
Monaghan devises an
unprecedented assurance
832
00:43:19,248 --> 00:43:19,808
to customers.
833
00:43:22,164 --> 00:43:24,654
- Domino's, guaranteed
delivery on 30 minutes or less.
834
00:43:24,689 --> 00:43:27,079
- He promises
delivery within half an hour.
835
00:43:27,126 --> 00:43:28,606
- You got it.
836
00:43:28,649 --> 00:43:30,829
- Or
the pizza is free.
837
00:43:30,869 --> 00:43:32,479
- That was unheard of.
838
00:43:32,522 --> 00:43:35,352
To say 30 minutes or it's free,
839
00:43:35,395 --> 00:43:38,955
that you knew without
question or pause
840
00:43:39,007 --> 00:43:40,837
when you would
get your pizza by.
841
00:43:40,879 --> 00:43:43,619
Okay, I'm going to get my
pizza in 30 minutes guaranteed.
842
00:43:43,664 --> 00:43:45,974
And if not, I have a
free pizza coming to me.
843
00:43:46,014 --> 00:43:48,154
That was like a win-win
for the customer.
844
00:43:50,410 --> 00:43:53,110
- Domino's, guaranteed
delivery in 30 minutes or less.
845
00:43:53,152 --> 00:43:54,762
- The 30
minutes or less pledge
846
00:43:54,806 --> 00:43:58,366
is franchise wide and
it's a huge success.
847
00:43:58,418 --> 00:44:00,158
- Domino's
Pizza guaranteed.
848
00:44:01,726 --> 00:44:03,376
- Changing
the trajectory
849
00:44:03,423 --> 00:44:04,643
of the entire company.
850
00:44:05,991 --> 00:44:08,471
- The reason Domino's, I
think, was so successful
851
00:44:08,515 --> 00:44:12,345
is because they made
great delivered pizza.
852
00:44:12,388 --> 00:44:15,648
What they brought to the
table was bringing you a pizza
853
00:44:15,696 --> 00:44:19,696
that was 20 minutes younger
than the competition.
854
00:44:19,744 --> 00:44:24,054
And Tom Monaghan just
attacked the efficiency.
855
00:44:24,096 --> 00:44:27,226
And Domino's, they
still do that today.
856
00:44:28,230 --> 00:44:29,710
- Domino's'
delivery guarantee
857
00:44:29,754 --> 00:44:30,974
helped propel them to become
858
00:44:31,016 --> 00:44:33,846
the best-selling pizza
chain in the world,
859
00:44:33,888 --> 00:44:37,538
with sales skyrocketing
to over $7 billion.
860
00:44:38,850 --> 00:44:42,590
While Pizza Hut is close behind
with 5.5 billion in sales,
861
00:44:42,636 --> 00:44:44,806
it boasts more
stores than Domino's
862
00:44:44,856 --> 00:44:49,206
with 19,000 worldwide
to Domino's' 17,000.
863
00:44:49,251 --> 00:44:52,861
The pizza wars still continue
in their fierce rivalry today.
864
00:44:52,907 --> 00:44:57,257
- Even though
Domino's and Pizza Hut
865
00:44:57,303 --> 00:44:59,873
are not authentic Italian foods,
866
00:44:59,914 --> 00:45:02,614
they have done more
for the spread of pizza
867
00:45:02,656 --> 00:45:05,526
and the awareness of
pizza in the United States
868
00:45:05,572 --> 00:45:07,712
than all the authentic
pizzerias combined.
869
00:45:09,402 --> 00:45:12,322
- Tom Monaghan and
the Carney brothers,
870
00:45:12,361 --> 00:45:14,761
they're both really
playing off of a tradition,
871
00:45:14,799 --> 00:45:17,319
but simultaneously
making it their own.
872
00:45:19,673 --> 00:45:22,073
And that's the American dream.
63342
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