The fast food industry is highly competitive with national chains supporting their franchisees with television advertising and promotional activities against which local chains cannot compete. However, there may be a market niche, drive-through pizza, which has not yet been fully exploited. Pizza has certainly increased in popularity in recent years, and the concept of drive-through pizza combines the popularity of pizza with the convenience and economy of drive-through operations. A small local operation, which is well capitalized and which has individuals involved who understand fast food marketing, may well be able to create a niche for itself in this market.
Fast food has become a way of life for many Americans, with many of today's meals eaten at fast food establishments, or taken from these establishments back to people's homes. This trend has resulted in opportunities for companies such as McDonald's, who have capitalized on the trend toward fast food and have put their outlets not only in standalone locations, but also inside nontraditional fast food areas, including gas stations and supermarkets. PepsiCo is a strong participant in fast food: it operates Taco Bell (Mexican food); KFC (chicken products); and Pizza Hut, among others. Pizza Hut offers traditional dine-in facilities, and many of these outlets also deliver. However, pizza delivery can take more than 30 minutes, and does not meet the need for immediate meals (such as consumers trying to run errands on their lunch hours, or those picking up dinner on their way home). Some Pizza Hut locations are combined with KFC locations; in these situations, pizza can be ordered at the drive-through. Selection in these situations is limited to one or two choices, and to either small or medium pizzas. In other words, the pizzas are not made to order.
Since this is a new company which is proposing to enter the drive-through pizza business, the primary strength is in ...