Little Caesars on track to double US franchise agreements this year

Dive Brief:

Little Caesars signed several multi-unit U.S. franchising deals in 2021 and is expected to double its rate of new store commitments this year, according to a press release emailed to Restaurant Dive. Three deals were signed with multi-unit operators in Q1 2022, and these operators plan to open at least 24 new Little Caesars.
The pizza chain is growing its footprint by pursuing partnerships with larger operators, military veterans and first responders, Craig Sherwood, Little Caesars vice president of franchise development, said in a statement.
This growth follows a record sales year for the chain in 2021, Forbes reports. Little Caesars is targeting domestic and international markets, including the Northeast, the Southwest, parts of Texas, the U.K., Latin America, Russia and Canada, per the publication.

Dive Insight:

Little Caesars’ strong 2021 performance was echoed across much of the pizza category, as the sector’s emphasis on off-premise sales helped chains weather COVID-19 dining restrictions. Sales began to slow at some chains however, notably Pizza Hut and Domino’s, in the early months of 2022 as driver shortages pinched operations.

Little Caesars may have an advantage in the category thanks to a strong value proposition from its signature $5.55 Hot-N-Ready Pizza, particularly as the inflationary environment continues to squeeze consumers. Inflationary pressure pushed Little Caesars to raise the price of its signature deal from $5.

The company may also be able to better manage current supply chain disruptions because it owns its own foodservice distribution company, Blue Line Foodservice Distribution.

Little Caesars’ emphasis on franchising with multi-unit operators could better position the chain because of these franchisees’ deep restaurant experience. One of the groups that signed a multi-unit deal with the chain in 2021, for example, recently earned the Franchisee of the Year award from the International Franchise Association. New franchisees include operators who run Dunkin’, Popeyes and Checkers, according to the release.

Little Caesars still has a lot of catching up to do if it wants its store network to match rival footprints. The chain finished 2021 with 4,181 units, compared to Pizza Hut, with 6,548 units, and Domino’s, with 6,560 units.

The pizza chain has added executives to facilitate its growth, both domestically and internationally, including a new director of international development focused on the Asia Pacific and Middle East regions and a new director of international development focused on Europe. Little Caesars also hired a vice president of international development earlier this year, and brought on Dunkin’ alum Jeremy Vitaro as chief development officer in late 2021.