Pizza Hut and IPHFHA: The Early Years

Developing the Business Format – 1958-1963

Dan and Frank Carney and John Bender opened the doors of the first Pizza Hut restaurant on May 31, 1958. In less than a year, they opened five more Pizza Hut restaurants in Wichita.

In 1959, they began franchising. The concept of franchising had always intrigued Dan Carney. During his time in business school, he had written a thesis on the subject after studying the way Kentucky Fried Chicken and McDonald's used franchising to grow.

The International Pizza Hut Franchise Holders Association (IPHFHA) was formed on November 15, 1967, and the organization's Constitution and Bylaws were approved on the 11th of the following month.

• Unique in the industry, IPHFHA was a self-supporting Association of franchisees designed "to solidify the national image of Pizza Hut and to further product loyalty" through advertising and marketing programs for both Company and franchised units.
• The Association Board of Directors represented both franchisees (six members) and franchisor (one member) and its role was "to devise the most appropriate use of the funds available for national advertising."
• Pizza Hut, Inc. participated in the organization as an active member until 1975 when the IPHFHA membership was reorganized and limited to franchisees only.
• Concurrent with the reorganization of IPHFHA, the Advertising Committee was formed to determine and control the amount, kind and quality of national advertising and sales promotions.

The Legacy of Pizza Hut
The legacy of Pizza Hut began in 1958, when two college students from Wichita, Kansas, Frank and Dan Carney, were approached by a family friend with the idea of opening a pizza parlor. Although the concept was relatively new to many Americans at that time, the brothers quickly saw the potential of this new enterprise.

After borrowing $600 from their mother, they purchased some second-hand equipment and rented a small building on a busy intersection in their hometown. The result of their entrepreneurial efforts was the first Pizza Hut restaurant, and the foundation for what would become the largest and most successful pizza restaurant in the world.