Franchise Focus: Franchising a family affair at Little Caesars

Little Caesars is no lightweight brand when it comes to succeeding at franchising. Find out the keys to the brand’s success in this interview with Craig Sherwood, vice president of U.S. development.

Little Caesars, a pizza brand founded in 1959, is no newbie when it comes to franchising.

The Detroit-based brand launched its franchise strategy in 1962 and now has thousands of locations nationwide. It’s the third-largest pizza chain in the world based on a number of net stores in 2020.

It all began when Mike and Marian Ilitch opened their first Little Caesars in Garden City, Michigan. Just three years later the first franchise opened in Warren, Michigan. Then came the franchise store in Detroit in 1967 and by 1969 the brand was celebrating its 50th location.

Today, Little Caesars is the third-largest pizza chain in the world, with stores in each of the 50 U.S. states and 27 countries and territories.

The traditional franchise location is somewhere between 1,400 and 1,600 square feet but also offers non-traditional franchise models from 470 to 1,399 square feet for environments such as convenience stores, airports, university campuses, and military bases.

PizzaMarketplace reached out via an email interview to Craig Sherwood, vice president of U.S. development at Little Caesars, to get insight on the brand’s successful franchise strategy as well as a peek at what’s to come for the brand.

Sherwood has been with Little Caesars since 2020, and has over 20 years in the restaurant industry, including leadership positions with Yum! Brands, Sonic Drive In, and Corner Bakery Café. Prior to Little Caesars, Sherwood was the chief development officer for Gold’s Gym International.

1 | Q. What makes Little Caesars’ franchise opportunity so unique and compelling to potential franchisees?

A. Little Caesars has a strong value proposition for both experienced and new franchisees. One of our key selling points is that we’ve been named “Best Value in America” for 14 years in a row. Value is our superpower. Other key attributes include:

  • Strong brand identity.
  • Small, flexible store concept.
  • Operating within the large and bustling pizza category.
  • Ease of operations and scalability.
  • Innovative menu items and technology.
  • Family-owned.
  • Incentives for veterans and first responders.
  • Room to grow.

2 | Q. How has the year of COVID-19 impacted franchise opportunities/plans for expansion?

A. The pandemic had a negative impact on the restaurant industry as a whole, but the pizza category fared better than others. In a COVID-dominated world, and even as many areas emerge from the pandemic, consumers prefer to carry out over dining in, as well as no-contact ordering options, order customization and delivery. Pizza has always been a top choice for carryout and delivery because it travels well and makes a night in super easy. It’s also affordable, and value is especially important during a time when the job market is uncertain and people are on a tighter budget.

Because Little Caesars has continued to find innovative ways to reach consumers, we are able to grow significantly in both in the United States and internationally. We have always been a great business opportunity for investors around the world, but now more than ever our business model is resonating with potential franchisees. In fact, new interest surged in 2020. Our no-contact ordering options, including delivery and the revolutionary Pizza Portal pickup, the first heated, self-service mobile order pick-up station in the quick-service restaurant industry, as well as our affordability make Little Caesars a very compelling franchise opportunity.

Most recently we announced plans to expand in the Denver area with the addition of at least 15 units by the close of 2024. We’re also seeking multi-unit franchisees in Charlotte, NC, New Orleans, LA, the Pacific Northwest, New York City and Tampa, FL.

3 | Q. What should a potential franchisee know about Little Caesars in terms of its culture and philosophy?

A. At Little Caesars, we strive to be heroes to our customers by making their lives easier. With this purpose in mind, three words sum up our philosophy: value, quality, and convenience. It starts with affordability — most people can find $5 in their pockets, which explains the pricing of our famous Hot-N-Ready pizza. But what makes us truly a great value is our quality. We use a blend of 100% mozzarella and muenster cheeses and make our dough fresh in-house daily. And then comes convenience. People don’t have time to sit around and wait for a pizza — a notion that led to our Hot-N-Ready® model, and most recently our Reserve-N-Ready strategy, which includes our Pizza Portal® pickup and delivery service.

In terms of culture, family is where it’s at. Little Caesars was founded by Mike and Marian Ilitch in 1959 as a single, family-owned restaurant. More than 60 years later, we remain family-owned, and that characteristic is part of our DNA. We treat everyone like family, including our franchisees, corporate colleagues, and customers.

4 | Q. What makes for a successful franchisee, i.e. skills/abilities/passion and what does Little Caesars look for in a franchisee?

A. There’s no question that being a successful franchisee requires hard work and dedication. We look for candidates who: value entrepreneurship; care about their daily operations; have a passion for the restaurant industry, and support their communities.

5 | Q. Can you share some common hurdles/challenges that face a franchise and how Little Caesars helps them hurdle those challenges?

A. Being a business owner can be hard — you need to create a compelling business model, market effectively, optimize operations and manage finances wisely. Franchising offers entrepreneurs the benefit of being a part of one reliable system that incorporates all those needs. Little Caesars goes even further — we’re a family business, and we treat our franchisees like family. We offer franchisees a strong network of corporate support and direct access to leaders with expertise in all areas of the business, including finance, marketing, and operations, among others. And we provide a proven business model that has been finetuned over 60 years.

6 | Q. What are the plans or strategy for continued growth and franchise success in the next two years?

A. Our plan for growth over the next two years is to develop our existing DMAs even further and enter the remaining markets where we have still have white space. We will achieve this by:

  • Supporting existing franchisees’ growth plans and inspiring them to expand their footprint.
  • Recruiting new franchisees with a focus on multi-unit entrepreneurs as well as veterans and first responders.
  • Expand non-traditional growth opportunities such as colleges, entertainment venues and military bases.
  • Offering new and innovative store concepts.
  • Providing incentives for new and existing franchisees. Little Caesars, a pizza brand founded in 1959, is no newbie when it comes to franchising.

To acquire the pizza franchise Little Caesars, please CONTACT US at info@vffranchiseconsulting.com.

PIZZA MARKET PLACE (Judy Mottl)

Frequently Asked Questions (FAQS) About Pizza Franchises

Pizza is a very good business. Consider these 3 advantages to owning a pizza business: 1. Consumer demand: 13% of Americans over age 2 eat pizza on any given day. It’s popular all over. It is most popular in the Northeast and Midwest, according to PMQ Magazine. 3 We eat 3 billion pies per year. 2. Profitability: Ingredient costs are relatively low compared to the price charged, ensuring profitability. 3. Growing industry: The pizza industry is $47 billion a year, and franchises constitute $36.4 billion of that, according to research firm IBISWorld.  It is forecast to continue growing over the next five years. Pizza has become a food staple — whether deep dish, thin crust, unusual toppings or more. Among food franchises it is one of the most popular categories. You get the benefits of the franchise system and branding, together with sound business fundamentals and help choosing locations.
Accordion Sample DesThe amount you make with franchise pizza depends on the type of pizza business you operate. For example, the average Dominoes owner might expect to make between $107,000 to $116,000 per year, according to Glassdoor. However, a Papa John’s franchise owner might make about $142,000 before taxes, says Franchise.com. First, of course, you need to subtract out costs related to food, labor, marketing, supplies, royalty fees and real estate associated with these franchises.cription
Yes, a pizza franchise can be profitable. For example, the top 75 percent of Marco’s Pizza restaurants made between $543,093 and $1,736,679 in net royalty sales in 2019. The average store spent about 31 percent on food and supplies and 25 percent on labor. The exact amount each store makes depends on the size, market, and expenses.
Opening a pizza franchise can cost anywhere from $25,000 to over $1 million, depending on locations of your franchise business and other factors. Most fall somewhere between $200,000 and $600,000. Those that just offer a mobile component or pickup and delivery service tend to be cheaper. Large, dine-in restaurant locations with extensive menus fall on the more expensive end of the spectrum. 

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