ShowBiz Pizza restaurants entertained guests through a large selection of arcade games, coin-operated rides, and animatronic stage shows.

[1] The concept was an immediate success, and Bushnell purchased the Pizza Time restaurant from Atari for $500,000 in 1978, stepping down as chairman and forming Pizza Time Theatre Inc.[2][3] As Bushnell marketed the franchise, hoping to expand into new markets, the concept attracted high-profile clients such as Robert L. Brock, known for his extensive portfolio of Holiday Inn hotels.

In 1979, Brock signed a multi-million-dollar franchising agreement with Pizza Time Theatre Inc., planning to open as many as 280 Chuck E. Cheese's locations across 16 states.

Shortly thereafter, Brock noticed that companies such as Creative Engineering, Inc. (CEI) were designing more advanced animatronics, and he became concerned that competitors would emerge with better technology.

[10] Based on customer research, Frank instituted a number of changes to appeal to younger children and parents.

Specific measures included increased lighting, a redesigned food menu, table service, self-serve fountain drinks, a revamped ride selection, and distinct toddler areas, but relations between ShowBiz and Creative Engineering began to deteriorate.

Despite the refusal, CEI's creative control was jeopardized, as ShowBiz had the ability to program the characters and replicate their voices, allowing them to make changes to the skits.