LITTLE CAESARS: What Franchisees Make on a $5 Pizza

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• It's not the pizza they make money on. It's overpriced soda. And especially the breadsticks. I mean they take about 20 cents to make and they sell for $2,29 net. That's basically pure profit. Plus when any other pizza is a buck more and any extra topping is $1.75 then there you go. Maybe if Little Caesars only sold five dollar pizzas they wouldn't make it, but that isn't the case. If that were true then why would anyone ever invest in a Little Caesar's franchise.... DUH

• It is tough to own any franchise. Tom is right though that they make most of their money on other products like pop and other toppings. When they add other toppings onto their pizza, they also use less cheese and toppings, thus saving them money!

• Let's see,my store does about 14,000 a week around 12500in the winter months...take away roughly 3000 for labor another 3500 food and paper...and another let's say 1200 utilitys....rent around 2000$...so there is a profit....its a great company....great franchise to have.

• You make 14,000 a week selling 5$ pizza's? wow your a freaking master mind!!!!!! That would mean you sale 400 pizza's everyday.

• 400 a day seems possible. The one up the road from me is hopping all day and night. Every time I go in there I see at least 3-4 people walk out with 5 pizzas at a time.

• Lots of money to be made at Little Caesars!!!!

• Fresh dough, cheese !!!

• The franchise owner didn't mention the royalty and the advertising fees which can be roughly 10% of your gross sales. It is clear that these owners are struggling during the winter months,

• Any owners mind sharing their thoughts with me? i'm a potential owner wanting to talk numbers!

  RJ - that's assuming all customers are buying are $5 large pies, but factor in a couple of 20oz sodas or a 2 liter, maybe a cheesy bread, and sales per customer can easily double or triple quickly (eg: two 20 oz will run you $3, a 60% increase of the original $5 estimate)

  i think you need to educate your sales force to push the up sale (would you like a fresh and tasty cheesy bread with that? what would you like to drink?)

  Max - true, and skimming 10% (of the net i believe) for royalties and ad still leaves a decent profit

• NK, it all depends on where you are located. For instance, that above franchisee mentioned $ 2,000 for rent. I was looking a couple of months ago into a Papa Johns franchise and the locations that I could find were at least 2 to 3 times as much.
  If you open your store in a low-income neighborhood with a lot of people, you are more likely to succeed.
  Keep in mind that food franchises have a low return on investment. The initial investment can run as high 400,000 and the average profit can be less than 75,000 EBITDA. By the time you pay taxes, interest and so on, you might be left with less than $40,000.
  How long is it gonna take to recoup your initial investment, considering that you have to live on those $40,000?