INTRODUCTION Pizza Hut began operation as a single pizza shop run by two brothers, Dan and Frank Carney, in Wichita, Kansas on June 15, 1958. The chain grew to 43 restaurants in 1963 and 296 in 1968. Pizza Hut went public in 1969 and was acquired by PepsiCo, Inc. in 1977. By 1981 Pizza Hut had become the largest pizza restaurant chain in the world both in sales and number of restaurants. At that time there were 5,025 domestic units and annual sales of almost $2 billion. Before 1984 Pizza Hut saw no real competition from Domino's in the overall pizza market. COMPETITION: NEED FOR HOME DELIVERY The challenge of Domino's changed in 1985 when they opened 954 new outlets bringing their total to 2,