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To Pizza Hut, the threat by Domino's is very real.
Pizza Hut started to respond to the Domino's threat by quickly launching delivery-only units, mainly in the metropolitan areas. The company-ran delivery-only service has not been profitable, possibly due to the high cost in deploying the Customer Service Center (CSC) and acquiring vehicles for delivery. On the other hand, the delivery service launched by Pizza Hut's franchisees has been mostly successful and profitable. The markets selected by franchisees for delivery service had solid performance in traditional restaurant format. The cost of CSC and vehicles has also been saved through alternative solutions...
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