The Straw Hat Cooperative Corporation was formed in 1987 as the result of an attempted buyout by Pizza Hut. Now entirely owned by the individual store owners or “members”, Straw Hat has established a model for fair franchising in the restaurant industry. The sole purpose of the cooperative is to give each store an advantage and benefit from being part of the larger group. With low royalty cost (1-3/4%) and high value and services, Straw Hat operators have a very distinct advantage over the numerous competitors in the pizza restaurant segment.
Straw Hat has very effectively demonstrated that the cooperative format can be viable in the restaurant business.