Little Caesar’s pizza was founded by Michael and Marian Ilitch in 1959 in Garden City, Michigan and started franchising in 1962. Little Caesar’s original name was ‘Little Caesar’s Pizza Treat’. The famous advertising catch phrase ‘PIZZA! PIZZA!’ was started in 1979 which began because two of Little Caesar’s pizza’s costing the same as one pizza at the competitors. The two pizzas were originally packaged together in a single long package, but was changed to the traditional pizza box when the original package was found to inconvenient and bulky. Little Caesars also began a new hot-n-ready slogan, referring to their pre-baked pizzas ready for immediate take out with a low $5 price in most areas.
Little Caesars were known for being located in K-mart stores (K-mart also being founded in Garden City, Michigan coincidently). Little Caesars ran into financial trouble in the 90’s, made worse with the fact that K-mart also ran into financial troubles and was the location for many of the Little Caesars stores. K-mart has replaced many of the Little Caesars pizza stores with their own ‘K-cafe’ food brand shops. The company is trying to aggressively expand its 2000 locations which has dropped from about 5000 in the 90’s, especially in the Denver, Indianapolis, Minneapolis and Pittsburgh areas that that Little Caesars was forced to leave because of its financial troubles. Examples of this are the return of Little Caesars in a very saturated Pittsburgh location which has Pizza Hut, Domino’s, Papa John’s and other smaller mom and pop pizza shops competing. Little Caesars had two locations and one in a K-mart in this same neighborhood before its financial troubles. Little Caesars has also selected New Orleans as a main market to grow the franchise opportunity.
Little Caesars advertising is very recognized with its ‘PIZZA!PIZZA!’ slogan and the widely recognized Caesar character, something that the other chains lack, being recognized world wide. Little Caesars has international locations from the U.S. to Mexico to countries like Korea, Japan, Kuwait, Egypt and many more that recognize the Little Caesars slogan ‘PIZZA!PIZZA!’ except in Canada where it can’t be used because of a pizza chain with the name ‘Pizza Pizza’. Also, services like Little Caesar’s Love Kitchen, a mobile semi/pizza kitchen that provides food for the homeless and hungary, shows the companies involvement in community service.
FACTS AND FIGURES
Starting a Little Caesars has advantages on its side like being one of the worlds favorite foods, being involved in a $30 billion industry and the fact that family and friends usually get together to have pizza, making it common that multiple pizzas are usually ordered. 98% of Little Caesars franchisees agree that Little Caesars provides a proven system to follow that works and that Little Caesars is one of the best concepts in the pizza business industry. Little Caesars was voted ‘Best value for money’ of all quick serve restaurant chains. Another interesting fact is that many corporate employees of Little Caesars end up becoming franchisees after seeing the success that current franchise owners experience.
The cost to start a Little Caesars franchise is an average total of $380,000 with a cash investment of $50,000 from the franchisee. The franchisee is expected to have a net worth of at least $150,000. Royalties are an average of $20,000 with an initial franchise fee of $15,000-$20,000. A freestanding building or strip mall location is prefered and needs to be 1400 square feet. The average Little Caesars requires 1 full-time employee and about 15-30 part-time employees. The initial contract length is 10 years with a 10 year renewing contract length. There is a corporate staff of 300 that takes care of ads, promotion, inventory control and other corporate tasks. An initial 6 week training is also required for the franchisee. If you meet these criteria and want to proceed with a Little Caesar’s Franchise you can submit an application at their website under the franchise opportunities link.
To see other lucrative business opportunities that don't require the huge up-front capital and can be run online with automated systems visit http://www.AlternativesToFranchising.com
No comments:
Post a Comment