Category of One Strategy

A strategy for creating unique market positions by changing how products are distributed or their physical format, allowing companies to dominate new categories they create.

Hunt Brothers Pizza Case Study

• Created a new pizza business model by changing distribution and footprint
  • 50-100 square foot locations inside gas stations and convenience stores
  • 9,000+ locations across the US
  • Generates ~$500M+ annual revenue
  • 50% gross margins from ingredient sales

Key Innovation Points

• Changed traditional restaurant model
  • Minimal footprint (50-100 sq ft vs full restaurant)
  • Lower revenue per location ($10k/month vs typical pizza restaurant)
  • Can survive in locations other restaurants can't
  • Mutually beneficial relationship with gas stations

Business Model

• Equipment costs only $10
• No franchise fees or royalties
• Revenue solely from ingredient sales to locations
• Owners must purchase ingredients from Hunt Brothers
• Distribution through regional centers and daily delivery trucks

Target Markets

• Rural and underserved areas
  • Places with limited restaurant options
  • Gas stations and convenience stores
  • Military bases
  • Areas that can't support full restaurants

Similar Category of One Examples

• 5 Hour Energy
  • Changed energy drink distribution by:
    • Creating shot-size format vs full drinks
    • Placing product at register vs refrigerator
    • Becoming only energy shot at checkout counter

Strategy Framework

• Change form factor or distribution to:
  • Create new category
  • Avoid direct competition
  • Access different retail spaces
  • Serve underserved markets
• Focus on mutual benefits with distribution partners
• Build specialized supply chain for new format