Little Caesars signs multi-unit deals in 7 states

Dive Brief:

Little Caesars has signed development agreements to open over 30 stores across seven markets: San Diego, California; Memphis, Tennessee; Tampa, Florida; Raleigh, North Carolina; the Twin Cities in Minnesota; San Antonio, Texas; and Eugene, Oregon, the brand announced Wednesday. Little Caesars did not specify precisely when these deals had been signed.
In addition to signing multi-unit franchise deals, Little Caesars is looking to use offsite construction to speed up development through a prototype it’s calling PODs.
Little Caesars said the deals were part of a strategy of signing multi-unit deals with operators in specific target markets. According to the press release, the brand is still offering multi-unit deals throughout “the Northeast, Pacific Northwest, Kansas City, New Orleans, and North and South Carolina.”

Dive Insight:

The pizza chain’s most recent franchise disclosure document shows its U.S. system shrank in 2021 and 2022, shedding a total of 42 units, of which 32 were franchised. The chain returned to net unit growth in 2023, when it opened 44 stores, and now projects it will open 92 franchised stores in 2024.

Little Caesars mentioned three franchisees in the press release. Leo Gonzalez, an existing franchisee operating restaurants in Los Angeles and Santa Barbara, signed up to build nine units in the San Diego area over four years, extending the brand’s reach across Southern California. New franchisees Jocelyn Monperousse and Lissette Isabel are developing five stores in the Tampa region.

Patrick Cunningham, VP of U.S. development at Little Caesars, said the deals validated the company’s strategy, and that it represented considerable momentum for the brand. Little Caesars itself operates 575 stores in the U.S., while its franchisees have 3,642 for a total of 4,217 stores, according to its FDD.

Since 2021, the chain has sought to speed up development, adapting its carryout-focused business model to third-party delivery, while diversifying its store portfolio with drive-thrus and nontraditional units. Last year, Little Caesars began offering delivery with Flytrex’s autonomous drones, which operate in several localities in Texas and North Carolina. Little Caesars has also looked to menu innovation to bolster its competitiveness in the snacking category with its portable Crazy Puffs, which it introduced last month.