Little Caesars Franchise - See Cost, Fees & Profitability
Miami, Florida - ( NewMediaWire ) - January 04, 2021 - Consumer-Guardian.org announces the release of the report “Little Caesars Franchise.” Take an in-depth look at this franchise opportunity and how Little Caesars compares to other franchise competitors.
History of Little Caesars Franchise
The very first Little Caesars opened up in Garden City, Michigan back in 1959 thanks to Mike Ilitch and his wife Marian. The franchise was originally named Little Caesars Pizza Treat. However, it wasn’t until 1962 that the company began putting out franchise opportunities as one of the first pizza franchisor companies.
The brand began expanding business opportunities into Canada by 1969. By 1987, there were Little Caesars franchise locations in each of the 50 United States. It wasn’t until 2005 that the company launched its Hot N Ready business model, selling a large pizza for only five dollars.
The company was named best value and enjoyed major success during that time. That particular pizza is still a permanent menu item and has helped the franchise grow into one of the nation’s top pizza chains.
To open a Little Caesars franchise, investors must have $100,000 liquid capital and a $250,000 net worth. For Little Caesars carryout locations, the range of investment needed can be anywhere from $330,000 to $1.3 million.
To reserve a territory for future franchise development up to four Little Caesars restaurants, the total investment sits at an average of $23,000 for every additional franchise unit.
Franchisees must pay a 6% royalty as an ongoing franchise fee each week. The 6% is calculated based on the gross sales of each week. Franchisees must also contribute 7% of gross sales for national advertising, which goes toward the franchisor advertising fund.
Entrepreneurs have a variety of options when opening a Little Caesars Pizza, including a large, freestanding store outside of strip mall locations, a classic express store, a cashier express, and a self-serve express store.
Little Caesars Franchise System Size
There are currently over 6,000 Little Caesars locations around the world. Around 90% of those locations are franchises while the other 105 are under corporate ownership. 80% of the store locations sit in the U.S. Overall, the pizza chain generates next to $4.4 billion in sales each year.
Little Caesars is the largest exclusively carryout pizza chain on Earth. It is pretty clear that the business is moving in the right direction. As of today, the business is a household name and an international brand. From the opening of the very first store back in 1959 in Detroit to the opening of the very first franchise in 1962, its hot n ready pizza has come a long way.
The Little Caesars fan base continues to grow today thanks to the brand equity that was built over the past 50 years. Many refer to this pizza chain as the one with the “Best Value in America.” It has proved itself to satisfy its customers’ cravings while keeping costs low.
Now, the Little Caesars franchise is searching for franchisees to bring hot n ready pizza to a variety of communities around the nation. Beyond traditional franchise venues, the company also offers non-traditional franchise opportunities as well, including those on college campuses, convenience stores, military bases, and more.
Little Caesars works very closely with its franchise owners to develop new locations and create custom build-out plans.
Little Caesars Franchise Formats
The business model for Little Caesars franchises is quite unique, as there are many different types of franchises that one can open up through Little Caesars Enterprises Inc.
Opening a Little Caesars can take anywhere from 4 to 12 months from the initial application process. The length of the process depends on a number of factors, including required permits, locations, and franchise format.
While Little Caesars is best known for its walk-in-style restaurant locations, there are a few other non-traditional options that franchisees can take advantage of.
Classic Express Format
- Size of Restaurants - 800 + square feet
- Full Menu
- Full Staff
- Separate Entrance
Self-Serve Express Format
- Size of Restaurants - 475 square feet
- Limited menu options with optional breakfast (self-serve only)
- 1 to 2 employees
Self-Serve Express Format
- Size of Restaurants - 675 square feet
- Limited menu with products sold via separate registers
Little Caesars has a highly dedicated and experienced development team to help support its franchisees during the implementation process. The company offers its franchisees unmatched support to help their franchises excel.
Little Caesars equips franchisees with all of the necessary tools to latch onto the proven brand system. These tools include training, restaurant design, store construction, preferred lenders, product development, sustained research, effective marketing promotions, and much more.
Blue Line Foodservice Distribution, the sister company of Little Caesars, is of huge benefit to franchisees. This company allows franchisees to maximize buying power while minimizing the impact of increased franchise owner costs.
Little Caesars is one of the few major franchises that prides itself on giving back to communities around its locations. Little Caesar Enterprises came up with an idea known as the Love Kitchen back in 1985.
This portable pizza kitchen travels to various cities across both the U.S. and Canada, delivering hot pizza to those in need. Over three million people throughout the United States and Canada have been served by the Love Kitchen.
Franchisees work with Little Caesars to provide both the staff and the food to allow two trucks to serve every day and at least twice per day.
The Little Caesars Veterans Program is a prime example of strong tradition within the Little Caesars business model. This program provides honorably discharged veterans with incentives to become Little Caesars franchisees when transitioning to the life of a civilian or seeking a change in careers.
Little Caesars Similar Franchises
Wingstop is hands down one of the best franchises to own and was founded back in 1994 and is currently headquartered in Richardson, Texas. It did not start franchising until 1997. As of now, there are more than 480 restaurants open.
This aviation-themed chain takes pride in being wing experts, selling more than nine different chicken wing flavors. Troy Aikman, the former football superstar, is the national spokesperson for the wing-based quick-service restaurant.
The initial startup costs for setting up a Wingstop franchise is between $260,000 and $616,000.
Jimmy John’s is a food franchise known for fast delivery and fresh ingredients, not to mention their irreverent sense of humor. John Liautaud started his gourmet restaurant at 19, giving out sandwiches for free to drum up new business. As of today, there are over a thousand Jimmy John’s shops around the U.S.
As for the estimated annual sales for Jimmy John’s, the numbers hover around $1.2 million per shop with an average of $280,000 in net profits.
Bottom Line - Building on Success
While Little Caesars may not be the top choice for franchisees looking to enter into the world of pizza restaurants, Little Caesars Enterprises Inc is certainly one of the top choices. Little Caesar Enterprises Inc provides its franchisees with a proven system to work from, as well as the ongoing training program, design and construction service, financing from preferred lenders, development for new products, and much more.
As of today, Little Caesars is among those franchises with the highest-rated chain value. The stellar business model has helped the franchise grow into one of the most popular pizza chains on the current market. For prospective franchisees, the initial investment may just provide the best value for the money.