Hunt Brothers Gas Station Strategy
Share
Hunt Brothers Pizza created a simplified pizza franchise model targeting gas stations and convenience stores in rural/underserved areas, generating over $500M in annual revenue through 9,000 locations.
Key Points:
-
Unique Business Model:
- Only requires 50-100 square feet of space
- No franchise fees, contracts, or royalties
- Only requirement is buying ingredients from Hunt Brothers
- Equipment costs just $10 to acquire
-
Distribution Strategy:
- 16 regional distribution centers
- 100 trucks delivering pizzas daily from each center
- Targets areas with limited food options (often 10+ miles to nearest restaurant)
- Focuses on rural locations, gas stations, military bases
-
Revenue Model:
- Average location generates $10K/month in revenue
- 50% gross margin on ingredients
- $5K/month profit per location from ingredients
- 9,000 locations = $45M/month ($500M+ annual revenue)
-
Product Strategy:
- Quick 5-minute pizza preparation
- Sell by "hunk" (quarter pizza)
- Pricing: $2.89 per hunk or 2 hunks for $5.49
- Developed strong brand loyalty in target markets
-
Competitive Advantage:
- Created new category by targeting locations too small for traditional pizzerias
- Mutually beneficial relationship with gas stations/convenience stores
- Drives additional foot traffic and drink/snack sales for stores
- Became "4th horseman" of gas station revenue alongside oil, beer, and cigarettes
03:24 - 09:56
Full video: 58:31SP
Shaan Puri
Host of MFM
Shaan Puri is the Chairman and Co-Founder of The Milk Road. He previously worked at Twitch as a Senior Director of Product, Mobile Gaming, and Emerging Markets. He also attended Duke University.