Question: Can Little Caesar’s franchise owners really make money on a five-dollar pizza?
Answer: Not much.
SmartMoney.com surveyed franchisees from different franchise chains regarding the cost to them of some current and recent promotions. The Smart Money article points out that franchisees generally bear the brunt of a promotions’s cost, including the food, labor, rent and utilities, among other things.
Here’s the Little Caesars HOT-N-READY pizza promotion, which report a $.90 profit per $5 pizza:
Little Caesars
Promotion: HOT-N-READY Pizza – Get one 14-inch large cheese or pepperoni pizza for $5 at participating locations.
Pre-promotion price: $10.99 (one large one-topping pizza)
Promotion Price: $5
Bottom line for restaurant: Profit of roughly 90 cents a pizza
Introduced six years ago, Little Ceasars [sic]HOT-N-READY Pizza promotion offers 14-inch cheese and pepperoni pies for just $5. Even though some stores charge about 55 cents more than that, margins are still slim. The cost of a single pizza’s ingredients and packaging amounts to about $3.50, according to a franchise operator in Georgia. Tack on another 60 cents for rent, labor and utilities and franchisees earn roughly 90 cents a pie. Little Caesars’ spokeswoman Colleen Kmiecik says the company’s own calculation on per-item profitability differs from those provided to us by franchisees, but she declined to provide specific figures. She also says the company provides long-term profitability information to its franchisees to show how the promotion will boost their bottom line, but would not provide further details.
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Hi Pizza Girl would you mind telling me the process, and how much are you really making or if its worth it spending 100K on this?
All I have right now is a pot I pissed in and a window I threw the pot out of. When can I meet with someone to trade these two rare items for a $1.4MM cardboard pizza franchise? Rubber pepperoni and fake cheese on a crust of cardboard is the scrumptious get-rich-quick scheme this food con-a-sewer has been praying for: Dear God, make me a rich prick. That li'l fuck in the toga has answered my prayers ... obviously from Jesus' time based on the way he's dressed. Oh wait, he's the little shit that crucified Christ. Maybe they should call it Little Caiphas, Little Annas, or Little Pontius Pilate ... after all, the cardboard dago pie IS betraying real food. When I open my store, it'll cost ya 30 pieces of silver per pizza.
Stay away, Do not invest in this company.
I had a store on the east coast for 7 years. The only time I made a profit was in the first 9 months.
Then numbers start to level off and your expences start to increase, like the price of cheese. Which is controlled by the stock market and blue line. In the summer I sometimes paid 30 dollars more per case because of a water drought. Corporates answer is to build another store to offset your original store, LOL.
I had 25 people in my class, some people opened more than one store. THREE ARE ONLY OPEN TODAY IN 2019. The biggest hint was when my landlord would only give me a six year lease with an option to extend. He knew exactly what would happen. At 5 bucks you made 25 cents. Just enough to keep your doors open and to feed corporate and blue line every week. It is set up to fail. If you are lucky enough to survive it is because you are in the middle of no where paying 2000 a month for rent. Worst decision of my life. Remember folks the people at corporate do not care about you, they care about corporate because of profit sharing and kick backs. They could care less when a store closes because someone new is in a class getting ready to open up his or her new store. Some people would drop five grand per week in sales for no reason. Then they send someone to hand out flyers and give away free crazy bread. ITS TO LATE.
250k investment to make 500 a week, kinda stupid. Live and learn but don't make this mistake.
That son of a bitch should be rolling around in his grave. They destroy lives.
Interested in opening a LC franchise please let me know something