Pizza Hut in Brazil

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CASE: Pizza Hut in Brazil Our story began with one small restaurant and two young brothers - Dan and Frank Carney. In 1958 they were struck by inspiration, and opened the first Pizza Hut in Wichita, Kansas, USA. Borrowing $600 from their mother, they purchased some second-hand equipment. When they were setting up, they only had room for 25 seats - and the restaurant sign only had space for nine letters. They wanted 'Pizza' in the name, which left space for just 3 more letters. Because the building looked like a hut, Pizza Hut was born. On opening night, they gave pizza away to encourage community interest. Summary: Pizza Hut, one of the most popular food chains, opened their 10000th shops in the Brazilian market in 1994. Pizza Hut’s parent company is PepsiCo. PepsiCo was trying to penetrate in Brazilian market in various ways. However, the path was not as easy as assumed. Pizza Hut faced decline in the Brazilian market. Experts said that there were two probable reasons for this. One is Pizza Hut’s less successful introduction of new products and the second is the low price strategy of the competitors. However, Pizza Hut had a high hope to make Brazil as their second or third major market because Brazil had many location specific advantages like urbanization, size, population, Gross National Product etc. Brazil endured erratic political situations since 1964. After a long military dictatorship, a stable political reformation was done by the year 1997. Economically, Brazil has a mixed history as well. It has a very good economic potential. It has access to several natural resources and well knit infrastructures. However, inflation affected the economy very badly. Pizza Hut entered in Brazil in 1988, during the period of high inflation. It followed the practice of corporate franchise. Later, Pizza Hut bought some of the franchises. But still different

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