News

After dominating Thailand, The Pizza Company eyes Middle East, China

May 28, 2003

BANGKOK, Thailand -- In less than two years, William Heinecke's The Pizza Company grabbed more than half of Thailand's pizza market from Pizza Hut.

Now, according to an Associated Press report, Heinecke is gunning for Pizza Hut once again, this time in the Middle East, where American businesses appear to be struggling.

Heinecke, 53, an American-born Thai citizen, who runs The Minor Group, owner multiple fast-food and hotel operations in Southeast Asia, was Thailand's only Pizza Hut franchisee until a 1999 contract dispute ended in his separation from the pizza giant. The settlement allowed him, however, to retain more than 100 prime locations he'd established for Pizza Hut.

In March of 2001, Heinecke, with the help of 4,000 of his former Pizza Hut employees, launched The Pizza Company from those sites, and took aim at his former brand.

According to the report, within six months The Pizza Company's market share soared from zero to 70 percent. Now, according to financial analysts, it controls about 60 percent of the Thai market, compared to Pizza Hut's 40 percent share. There are no other significant players in the market, according to the report.

Sattatip Peersub, an analyst for Kim Eng Securities, said The Pizza Company succeeded because of its in-depth knowledge of the local market, including the Thai palette.

"Since people are now more discerning about pizza, they consider taste more than the brand," she told the AP. "Minor Group has developed a better taste for Thais than Pizza Hut."

Heinecke now wants to open outlets Kuwait in the next few months, followed by further expansion in the Middle East, China and other Asian countries. He believes American companies doing business in the Middle East are suffering from a boycott of American companies over U.S. military action in Iraq, and he senses an opportunity.

Throughout its short life, The Pizza Company has steered clear of an American-style pizza image and flavor profile, keeping its decor Italian themed and its pizza menu spicy. One such selection is a Tom Yam Kung Pizza, based on Thailand's popular fiery shrimp soup.

Heinecke also plans a move into China, where he opened Pizza Hut's first outlet in the early 1990s.