Little Caesars franchisee enjoys benefits of franchise system (2024)

Little Caesars franchisee Tara Charters has been running two stores in Canada for over a decade. She says the franchise system offers benefits that are hard to pass up.

Tara Charters didn't set out to become a Little Caesars franchisee. Her journey started as a stay-at-home mom after a career in Child Protective Services. She raised her children while her husband had a position that took them around the country.

They family settled in Moncton, New Brunswick, Canada just above Maine, and Charters found herself ready to return to the workforce but wanted flexibility.

She had tried Little Caesars on the other side of the city and found her family liked it. Neighbors said they wanted a Little Caesars on their side of the city "so we decided to go ahead and do it, and it's been a great experience ever since," Charters said.

Little Caesars franchisee enjoys benefits of franchise system (1)
Tara Charters, left, and her daughter, Lydia. Photo: Little Caesars

Why Little Caesars? Charters said she loved the Hot N Ready concept. It was a product she was already using. When people ask her about getting into business for themselves, Charters said she tells them to pick something they're passionate about and they understand the need and want for.

She applied online first and flew to a Little Caesars to do a one-day training in store. "I think that really sold us on it," Charters said.

Next came financial approvals and interviews, and Charters did six weeks of training in Ontario. "From there it was opening the doors and enjoying the ride," Charter said.

Of course there were challenges in the beginning, such as learning how to manage staff and food costs and getting labor under control. Those still must be managed continuously.

The market

She's now been running the Moncton store for 14 years and has a second store in St. John about an hour and a half from the Moncton store. Charters said she stayed in the business because she likes what she does. "Everybody loves pizza," she said. "I love that we're providing a product that people associate with events, with good times in their lives."

When Charters spoke to Pizza Marketplace, it was prom and graduation season. On the days of our call, she'd had 80 pizzas go out the door in the first 45 minutes of opening.

The location works well because the Moncton store is centrally located in her community. The pizzeria is in a strip mall where there's a meat and produce shop, a bakery and local hairdresser, so it's a one-stop shop without having to go to the big strip malls in town.

Charters said her franchises are active in their respective communities: "People knew the brand, and they were excited to hear we were coming to the neighborhood. Before we were even open, they had social media countdowns for us. Since we opened, they've been nothing but supportive. We had lineups the day we opened. … We can't say how much we love the community and how much the community gives back to us."

Charters said she thinks there are two different types of franchisees: the franchisee who takes all their money and focus on one large community service event, while she prefers to focus on grassroots community service. She'd rather do 20 smaller events than one large event.

Every Wednesday, Charters helps pack supplies for children's backpacks. As a store, they're involved in everything from a Shark Tank type event for the local high schools to helping the Girl Guides of Canada and the Boy Scouts.

"There's so many small initiatives that we do on a day-to-day basis," she added.

Advantages of the franchise

Charters said Little Caesars is a product people are familiar with and want. "Everybody has good associations with pizza, and I think in Canada we have a corporate office that is tremendously supportive," she said. "Little Caesars has been in Canada a long time. It's established. The networks are established. You're not going with a new franchisor who is just trying to figure out the kinks themselves as they go."

Buying into a franchise, a franchisee gets the support of the corporate marketing department and a franchise business consultant who "is invaluable," Charters added. "He's like my right arm."

When something goes wrong in the store, there's the availability of corporate assistance to walk the franchisee through fixing it.

Charters said Little Caesars has always been innovative and the brand's recent Pizza Portal changed the trajectory of pick-up. The heated pick-up boxes in the lobby of Little Caesars stores are a technology that has pushed the brand to the forward of the carryout game.

To future franchisees, Charters said she would suggest that they come in wanting to be part of a system and that when they do get into that system that they utilize and develop good relationships with their corporate team, with their franchise business consultant and, most importantly, with other franchisees. "Developing those relationships can make or break you, especially within the franchise community," she said.

Little Caesars franchisee enjoys benefits of franchise system (2024)

FAQs

What are the benefits of franchising to the franchisor and franchisee? ›

Franchising offers benefits for both parties. For franchisors, it's a way to expand their business with less capital and lower risk. They also gain from franchise fees and ongoing royalties. For franchisees, they get a proven business model, brand recognition, and support in operations and marketing.

How much does a Little Caesars franchise make per year? ›

As of Aug 10, 2024, the average annual pay for a Little Caesars Franchise in California is $66,198 a year.

Who owns Little Caesars now? ›

The company is owned by Ilitch Holdings, and headquartered in Detroit, Michigan. Little Caesar Enterprises Inc.

How many Little Caesars locations are there? ›

How many Little Caesars restaurants are there in the United States? As of June, 2024, there are 4035 Little Caesars restaurants in the United States. These restaurants are located in 52 states and territories and 2273 cities. The state with the most Little Caesars locations is California, with 578 restaurants.

What is a major benefit of franchising? ›

A major benefit of franchising is the advertising and promotional resources available to franchisees. Because a franchisor is a large corporation with a marketing department and an already established and popular brand, purchasing a franchise gives businesses access to those materials.

Who benefits from franchisee? ›

Known as franchisees, these individuals buy the right to sell the franchisor's goods or services under the existing business model and trademark. This concept benefits both the franchisor and franchisee for different reasons.

How is Little Caesars doing financially? ›

Well-known American pizza chain, Little Caesars, generated sales of approximately 4.23 billion U.S. dollars in the United States in 2021. The company's sales were forecast to decrease to 3.52 billion in 2022.

Is Little Caesars successful? ›

Americans Love

Headquartered in Detroit, Michigan, Little Caesars was founded in 1959 as a single, family-owned restaurant. Since then it has become the third largest pizza chain in the world* with restaurants in more than 27 countries and territories worldwide, including in each of the 50 U.S. states.

Who is the richest pizza owner? ›

Marian Ilitch and her husband, Mike, who died in 2017, cofounded Little Caesars Pizza in 1959. Mrs. I, as she's known, owns the pizza chain, which hauls in more than $5 billion in annual systemwide sales.

What is the slogan of Little Caesars? ›

This decrease was likely due, at least in part, to the chain's decision to end its partnership with the ad agency that helped boost for the "Pizza! Pizza!" slogan in 1998. Little Caesars hired a new agency, which ended up drastically reducing advertising expenses, compared to previous years.

How much are the owners of Little Caesars worth? ›

89-year-old Marian Ilitch has a net worth $4.6 billion, according to the Bloomberg Billionaire's Index, while her stake in Little Caesars is worth $2.5 billion. Ilitch also owns a baseball team, the Detroit Tigers, and an ice hockey team, the Detroit Red Wings, thought to be worth a combined $2.3 billion.

What country owns Little Caesars? ›

Little Caesars is a privately held company, owned by Mike Ilitch and Marian Ilitch. The company was founded in 1959 by Mike Ilitch and his wife Marian Ilitch, and is headquartered in Detroit, Michigan, USA. Little Caesars is the third-largest pizza chain in the United States, with over 5,400 locations worldwide.

What makes Little Caesars unique? ›

Unlike other pizza concepts, Little Caesars® Pizza's simple business model is designed to be easy to execute and is built on three simple, yet effective pillars: Quality, Convenience and Value.

Does Little Caesars give out leftover pizza? ›

So we have anything left over, we'll give it out. We don't usually throw it away. I called you guys and you guys said, like, at the end of the night, if there's leftovers, you give it out. Like, yeah, we have it.

What are the benefits of franchising to a franchisor quizlet? ›

The franchisor benefits from the fact that the franchisee is likely to be very motivated to succeed and the success of the franchisee's business means more sales, which means higher royalties for the franchisor.

How does a franchise work between the franchisor and franchisee? ›

A franchisee bears the financial risk for their franchised business and pays money to the franchisor. In exchange for this money, the franchisor allows the franchisee to use the franchisor's brand or system to sell products or services for a limited time.

Why franchising works for the franchisor? ›

Franchising allows previously untrained people to own and operate a tried and proven business, and provides companies a profitable means of expanding. The benefits to both parties and to the economy as a whole are significant.

Why is the franchisor relationship important to the franchisee? ›

The franchisor is responsible for providing support and guidance, while the franchisee provides time, money, and labor toward achieving specific goals. This is why fostering a good relationship between both parties is crucial to ensuring alignment on their shared goals for the business.

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