Franchising and Little Caesars

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This slideshow covers the basics of Franchising and dives a little more deeply into the Little Caesars business model. Americas fastest growing pizza chain and the worlds largest carry-out pizza …

This slideshow covers the basics of Franchising and dives a little more deeply into the Little Caesars business model. Americas fastest growing pizza chain and the worlds largest carry-out pizza chain does not sell franchises. It awards franchises to candidates the fit within our system. Learn more by viewing this slideshow and visit littlecaesars.com to learn more.

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  • Welcome to the Little Caesar Franchise Opportunity Webinar. Today’s presentation will inform you about the basics of franchising and we’ll share our insights on what makes Little Caesars Franchising an amazing opportunity. This Webinar should take about 45 minutes. We will take questions from participants at the end of the presentation. Let me introduce you to the panel members.
  • Franchising is A Marketing and Distribution System Shown Over Time to Be Successful. Franchising Enables Brands to Capture a Larger Share of the Market Franchising is regulated in the US by the FTC. Each franchisor in the US must register a Franchise Disclosure Document (FDD) with the Federal Trade Commission. The International Franchise Association (IFA) is the largest franchise association in the world and is a non-governmental watchdog and advocate for franchising. The IFA is a great resource for people interested in becoming a franchisee of any brand. Little Caesars is a member in good standing IFA. Did you know that a franchisor does not “sell” a franchise to a franchisee. It is a license. A franchisee owns the business but does not own the franchise. That is an important distinction because the franchisor sets the standard of operation. A chain may not be a franchise but a franchise is usually a chain. A business with multiple locations owned by the same person or entity is not a franchise. This chart shows the relationship between the franchisor, franchisee and consumers. The franchisor and franchisee share common beliefs and goals such as increased market share and standards of operation.
  • The Strength From a Franchise Comes From: What Is Provided Proven Marketing Programs Tested Operating Systems Ongoing Support Services Development Opportunities Brand Strength Tested Systems Proven Programs Opportunities Training Purchasing Power Real Estate - Site Selection Reduced Risk Market Share
  • “ Franchising Is a Booming Business Concept That Allows Entrepreneurs to Be in Business for Themselves, but Not by Themselves – Providing a Potential Business Owner With a Chance to Align With a Recognized Brand and Proven Method of Doing Business.”
  • The following are questions you should ask yourself as you consider a franchise. Do you have an Entrepreneurial Spirit. Are you a self starter. Are you risk adverse Opportunity to Use Creative Talents Enjoyment for The Type of Work Work Environment Financial Requirements Return on Investment and other financial benefits Product Line – Would you be proud of the products being sold Hours of Operation
  • Convenience Stores - 7-11® Casual Dining - Applebee's® Upscale Dining - Chart House Institutional – Marriott Airports and Arenas Quick Serve Restaurants - QSR (Fast Food) Restaurant Sales 420 Billion Dollar Industry
  • Why is QSR a strong segment of the food industry Customer Frequency Cash Business - No Receivables Increase in Dual Income Households Means… More Disposable Income Less Time for Home Cooking for the Family 55% of Restaurant Sales Are QSR 260 Billion Dollar Segment
  • QSR is primarily made up of burgers, tacos, sandwich, chicken and pizza. They can be further broken out by day-part breakfast, lunch and dinner.
  • QSR Sales Opportunities by Day Part Impulse Purchases (no meal planning required – ready in seconds) Burgers Taco Sandwiches More than 70% of their sales are in by 4PM These purchases are Single servings and not typically shared. Smaller ticket items than dinner. Time is very important to the lunch customer because they are typically on a short break while at work.
  • The dinner customer is looking to feed the whole family which means a higher ticket. Pizza like chicken is shared from the same box with friend and family. Little Caesars Pizza is a good times meal made for the freshest ingredients. Because Little Caesars business model focuses on impulse sales with Hot N Ready we show sales strength in both lunch and dinner day-parts.
  • Little Caesars is the largest pizza carry-out chain in the world with restaurants on five continents Operated and privately owned by the Ilitch family since 1959 Our logo is one of our great assets. It is one of the most recognized characters in America.
  • 1962 Little Caesars opens its first franchise Location. 1974 Little Caesars is the first pizza chain to offer Buy 1 get 1 pizza free 1979 was the introduction of the revolutionary pizza! pizza! Concept “2 Great pizzas 1 low price” 1982 was when we introduced one of our most recognizable products, Crazy Bread In 2003 we launched the innovative HNR concept and implemented it on a daily basis throughout the U.S. 2007 marked our seventh consecutive year of significant sales increases outpacing industry growth In one of the largest U.S. quick serve restaurant research studies in 2007, Little Caesars was named for the first time the “best value for the money” of all quick serve restaurant chains.
  • Little Caesars has carved a unique niche focusing on Value, and convenience Great Tasting products. Other features that makes Little Caesars a great opportunity are: Universal Appeal – Pizza is one of the world’s favorite foods, and Little Caesars represents high quality products with great taste!  Our quick, convenient, and friendly service are appreciated by our customers, and we remain a value leader in the industry. Providing Opportunities to Be the Boss  - Entrepreneurs thrive in the Little Caesars franchise system because our support services focus on franchise success. There are tremendous opportunities for franchisees looking for more financial independence, and the chance to make decisions directly impacting the business' bottom line and their future.  From equipment and site selection assistance to outstanding marketing materials, your corporate family is here to help you succeed! Value  – Little Caesars Pizza is consistantly recognized among the value leaders in the foodservice industry.  We pride ourselves on our winning concept and products that uniquely meet customers' needs and create a strong value proposition for franchisees.  Quality Products - Little Caesars Pizza uses only the finest ingredients in its products. Our dough is made fresh each day, our sauce is made from vine-ripened tomatoes with a secret blend of unique spices, and our cheese is shredded fresh - NEVER frozen!  Affordability - Our many satisfied customers enjoy the affordability of Little Caesars Pizza products.  Our franchisees also recognize that the investment for a Little Caesars franchise is reasonable.  Industry Innovation - We continue to improve our brand strength and our operating system through innovation.  Our Quality and Development team is among the best in the industry, providing fresh new product ideas with a keen focus on product integrity. In 1979, Little Caesars coined the phrase "Pizza!Pizza!®" and changed the industry forever. Today, Little Caesars offers HOT-N-READY™ pizza that provides customers the convenience they crave by getting a great tasting pizza that's hot out of the oven and ready when they are! Little Caesars was the first pizza restaurant to serve pizza in minutes at lunch, to have a drive-through/carryout window, and to open in a stadium, among other firsts. National Brand Recognition - Our Little Caesar character is loved around the world.  His whimsical personality evokes thoughts of family fun and good times with friends. His signature phrase "Pizza! Pizza!®" is repeated whenever he appears, and customers love having their picture taken with the beloved icon.    Training and Support - We provide a comprehensive training program to our franchisees.  We also provide you with store opening support as well as continuing support and assistance thereafter.     Accomplishment! - Little Caesars Pizza franchisees often comment that they've enjoyed life experiences they never thought possible, thanks to their growth as a Little Caesars business owner.  Our franchisees are excited about the benefits of being in business for themselves, but not by themselves.  You can too!  Live the dream with Little Caesars Pizza!
  • Little Caesars is an industry leader Recognized as the world’s largest carry-out pizza chain, Little Caesars’ year-over-year sales increases again led to significant franchisee growth and entry into new markets. This growth, coupled with fresh, quality products, outstanding value for customers and strong national brand recognition, positions Little Caesars for continued and accelerated growth in 2008 and beyond.
  • Our authentic signature 1959 recipe with sauce made with vine ripened tomatoes We use fresh, never frozen cheese and high quality toppings Our dough is made fresh daily in our stores
  • According to a recent survey conducted by Intellitrends, a leading international market research firm, 99 percent of Little Caesars franchisees surveyed agree that Little Caesars has a proven system that works. In addition, 98 percent of Little Caesars franchisees agree that Little Caesars is one of the hottest concepts in the pizza business. Other findings from the Intellitends study reinforce the confidence franchisees have in the brand, including: 98 percent of franchisees agree that Little Caesars has a strong brand, and 99 percent of franchisees agree that Little Caesars provides a high quality product with great value
  • In 2007, Little Caesars built new stores in eight countries and 36 states. Little Caesars plans to continue the growth by opening hundreds of stores worldwide in 2008. Numerous business investors are seeing value in Little Caesars, including individuals experienced with other brands, people transitioning to a second career and investment companies.
  • In one of the largest U.S. quick serve restaurant research studies in 2007, Little Caesars was named for the first time the “best value for the money” of all quick serve restaurant chains. Sandelman & Associates’ Quick-Track® research study tracks key consumer behavioral and attitudinal measures for all major fast-food chains. Surveys were conducted among more than 84,000 quick service restaurant customers in 70 major markets across the U.S. Little Caesars was also named highest rated pizza chain for “Convenience of Locations” and “Speed of Service.”
  • Little Caesars offers a variety of great tasting products. In addition to Hot N Ready Original Round and Deep Dish pizza we have Crazy Bread, Chicken Wings and Italian Cheese bread. Other optional products include Salads, Ribs, and sandwiches. A simple focused message
  • Our Identity is Prominent on the front of the Building Bright and Illuminating Easy Access for Customers Large Windows for Great Visibility into the Store
  • The Pizza Pride Production System is a State of the Art System of Operations to Enable High Quality Products and Quick Customer Service
  • The estimated initial investment required per franchise location ranges from approximately $185,050 to $519,000 for a standard Little Caesars carry-out location. Stores in the higher end of the range are typically free-standing buildings, not strip center locations. Of course, costs vary based on a variety of factors. Please see Item 7 of our Franchise Disclosure Document for additional information, including our assumptions.
  • The Little Caesar franchise agreement term is 10 years with a renewable 10 year option. The franchise fee for the first location is $20,000 and $15,000 for each subsequent store. The royalty rate is 6% of gross sales.
  • The Little Caesars Love Kitchen, a pizza kitchen on wheels that travels the nation providing hot pizza meals to the homeless, disaster survivors and rescue workers, made a difference for more than 15,000 people in 60 locations. Since its inception in 1985 the Little Caesars Love Kitchen has provided meals to more than two million people. The Little Caesars Veterans Program continues to provide business ownership opportunities to military veterans. Currently 30 veterans have become Little Caesars franchisees under the program. It offers honorably discharged, service-disabled veterans who qualify as Little Caesars franchisees a benefit of up to $68,000. Honorably discharged, non-service-disabled veterans who qualify as Little Caesars franchisees are eligible for a benefit of $10,000.
  • To maintain its continued growth, Little Caesars supports franchisees with strong processes and a proven system that includes: ongoing training and support, architectural services to help with store design and construction, preferred lenders to assist with financing, the ongoing research and development of new products, and effective marketing programs and support.
  • Convenient One Stop Shopping: Food Packaging Uniforms Equipment Nationwide service Confidential and Exclusive Service – Keeping your business your business Efficient Pricing Volume Purchase Power Franchise Participation
  • Local Store Marketing and Broadcast Co-operatives have driven sales for 7 Straight Years Little Caesars humorous and whimsical approach to Marketing our brand is memorable and impactful. Let’s take a look at an example.
  • Multiple Day-Part Sales Opportunities – Lunch and dinner Modest Start-up Cost Innovative Marketing Higher Check Averages Max 10 Day Inventory Turnover North Americas Favorite Food Unique Business Model and a Niche all our own
  • The next step is to complete the application for consideration of a franchise. You may contact a Franchise License Advisor If you need an application or have any questions. Feel free to visit our website 24/7.

Transcript

  • 1.
    • Slideshow Content
    • What is Franchising
    • Hospitality Industry
    • About Little Caesars
    • Next Steps
  • 2. What is Franchising?
    • A Business Strategy
    • A License to Use the Brand and Operating System
  • 3. Franchise Vs. Independent Business
    • Brand Strength
    • Tested Systems
    • Proven Marketing
    • Ongoing Support
    • Opportunities
    • Training
    • Purchasing Power
    • Real Estate - Site Selection
    • Reduced Risk
    • Market Share
  • 4. Why A Franchise?
    • Booming Business Concept
    • Business Ownership Opportunity
    • Proven Method
  • 5. Factors to Consider When Selecting a Franchise
    • Entrepreneurial Spirit
    • Work Environment
    • Return on Investment
    • Product Line
    • Hours of Operation
  • 6. The Food Industry
    • Convenience Stores
    • Casual Dining
    • Upscale Dining
    • Institutional
    • Quick Serve Restaurants - QSR
  • 7. Why QSR
    • Customer Frequency
    • Cash Business
    • Increase in Dual Income Households
    • 55% of Restaurant Sales Are QSR
    • 260 Billion Dollar Segment
  • 8.
      • Chicken
      • Pizza
    What Makes Up QSR
      • Burgers
      • Tacos
      • Sandwich
  • 9.  
  • 10. QSR Sales Opportunities by Day Part - Lunch
    • 70 to 80% of Sales in by 4:00 P.M
    • Impulse Purchases
      • Burgers
      • Taco
      • Sandwiches
  • 11. QSR Sales Opportunities by Day Part - Dinner
    • 70 to 80% of Sales After 4:00 P.M
      • Home Meal Replacement
      • Pizza
      • Chicken
    • 49% of All QSR Sales Made After 4:00
    • Higher Ticket Averages at Dinner
  • 12. About Little Caesars
    • Largest Pizza Carry-out Chain in the World
    • Owned By the Ilitch Family
    • Strong Brand Recognition
  • 13. Little Caesars Milestones Little Caesars was founded in 1959 by Michael & Marian Ilitch in Garden City, Michigan.
  • 14.
    • 1962 – First Franchise
    • 1975 – Buy 1 get 1 pizza free
    • 1979 – Pizza! Pizza!
    • 1982 – Offers Crazy Bread ®
    • 2003 – HOT-N-READY®
    • 2011 – Named “Best Value in America” Five consecutive years
    Little Caesars Milestones
  • 15. Great Franchising Recipe
    • Universal Appeal
    • Be Your own Boss
    • Value
    • Quality Products Growth & Opportunities
    • Affordability
    • Industry Innovation
    • National Brand Recognition
    • Ongoing Support
  • 16. Industry Leader
    • Innovation
    • Quality
    • Value
    • Convenience
  • 17. Our Commitment to Quality
    • Our Authentic Signature 1959 Recipe
    • Fresh, Never Frozen Cheese and High Quality Toppings
    • Dough Made Fresh in our Stores
    • Value Leader
  • 18.  
  • 19.
    • “ My Experience with Little Caesars has afforded me opportunities I might not otherwise have had. I’m able to provide employment and advancement opportunities to my employees, I’m involved in the community, and I’ve been able to grow my business. I love what I’m doing.”
    Vicki Dunn Marshall Little Caesars franchisee in Kentucky, Ohio and West Virginia
  • 20.
    • “ As financial consultants we were experienced in analyzing balance sheets. Every way we looked at the Little Caesars business model we found the same result; a business opportunity that motivated us to make a career change.”
    Jared Beal and Mark Payne Little Caesars franchisees in Sacramento and Boston
  • 21. What are others saying?
    • “ Little Caesars leads top 4 pizza chains in sales and store openings.”
    • Detroit Free Press
    • “ Little Caesars topped with Success: It grew faster than any other U.S. pizza chain in 2007.”
    • The Detroit News
    • “ Little Caesars named one of QSR’s Best of 2007.”
    • QSR
  • 22.  
  • 23. Sample of Products
  • 24. The Restaurant
    • Prominent Identity
    • Bright and Illuminating
    • Easy Access for Customers
    • Great Visibility
  • 25. Pizza Pride Production System
      • Consistency
      • Efficiency
      • Flexibility
      • Training
      • Results
      • Easy
  • 26. Little Caesars Franchising Essentials
  • 27. Financial Requirements
    • A Minimum of $50,000 in Unencumbered Cash, or Cash Equivalent
    • A Clear Credit History
    • A Minimum Net Worth of $150,000
    • Total Investment Ranges From Approximately $193,050 to $619,000
    • per Location
  • 28. Franchise Agreement
    • 10 Years and Have a Renewable Term of 10 Years
    • Specific Locations Only
    • Fees:
      • $20,000 for First Location
      • $15,000 for Additional Locations
  • 29. Giving Back
    • Little Caesars Love Kitchen
    • Little Caesars Veterans Program
  • 30. World Class Franchisee Support
    • Ongoing Training
    • Real Estate & Architecture
    • Preferred Lenders
    • Ongoing Research
    • Marketing Programs
  • 31. Supportive Supply Distribution System
    • Blue Line Foodservice Distribution
      • Convenient One Stop Shopping
      • Nationwide Service
      • Confidential and Exclusive Service
      • Efficient Pricing
  • 32. Innovative Marketing
    • Media Support
    • Award Winning Advertising Creative
    • Local and National Broadcast Cooperatives
    • Outstanding National Print Support
  • 33. Little Caesars The Logical Choice
    • Multiple Day-Part Sales
    • Modest Start-up Cost
    • Innovative Marketing
    • Higher Check Averages
    • Max 10 Day Inventory Turnover
    • North Americas Favorite Food
    • Unique Business Model and a Niche all our own
    • 7 Straight Years of Sale Growth
  • 34.
    • “ I’ve been lending to Little Caesars franchisees, as well as franchisees with other brands for 17 years, and the Little Caesars opportunity is the best I’ve seen. After observing this as a lender to Little Caesars franchisees, I became a Little Caesars franchisee myself in 2006.”
    Gary Vetter President of Crossroads Financial and Little Caesars franchisee in Illinois
  • 35. Next Steps
    • Contact a Little Caesars Franchise License Advisor:
      • Central Region: Ed Ader
        • 313.983.6327 or ed.ader@LCEcorp.com
      • West Region: David Jones
        • 313.983.6514 or david.jones@LCEcorp.com
      • Northeast Region Bob Wenson
        • 313.983.6260 or robert.wenson@LCEcorp.com
      • Southeast Region George Resconich
        • 313.983.6586 or george.resconich@LCEcorp.com
    www.LittleCaesars.com