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Little Caesars Coming To Town- any ideas?

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pizza_dolphin

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Little Caesars is opening in a town where they shut down 2 units 8 years ago. They’re going to be pretty far away from me. I know they will do $5 premade pies. Does anyone have experience with what they will do for advertising and how to combat them? Thanks
 
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Make a 8, 10, or 12" pizza and price it aganst there 14" $5 pizza.
I have an 8" cheese pizza for 3.39, it’s only 1/3 the size but I think customers perceive the higher quality for cheaper price more than the size.
BTW, I do not have a LC here, just 2 Subways within 2 miles.

I think people do not mine less quanity when the quality is there.

Actually, LC does a pretty good job. I would learn as much about that pizza as possible, just in case…I understand their cheese is a blend of mozzerella and jack…maybe it holds better cause they hold their pizza for that “hot n ready” sale.
remeber, they take a lot of money to the bank, ie, lots of their stores are profitable, try to lose as few of your customers to them as possible, offer something in that price range and give your customers a chance with you, if you want some of that business…if you are very high end, that may be different
Otis

…do not do anything for 3 weeks after they open to access there effect on your business…remember, these are just opinions, not tested
 
Don’t focus on them or try to compete in the area where they specialize. They are who they are and they do what they do better than you will.

Concentrate on your own product and marketing message. Provide your customers a great product at a fair price with good local service.

Be prepared for a dip for the tryout period and be sure that when your customers come back to you (you will not know who went a tried them) they find that local company with great product and service there waiting for them.

I would not try to compete with the noise a national generates when they open. Wait for the lull to enter the marketing competition and keep you message on what makes you different NOT on the price.
 
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pizza dolphin,

Wow, I can’t believe there is actual movement in the Little Caesars chain. It’s truly hard to believe they’re actually opening a new store. Here’s my take:

They will attract the “bottom feeders” who look only for the cheapest price in pizza. Chances are, if you offer any kind of product even remotely associated with the word “good”, the number of customers you’ll lose due to their opening should be minimal. Personally, I think the Domino’s and the Papa John’s of the world might be more affected from a Little Caesars opening than you.

However… just in case, make sure the marketing in your store stays consistent. You don’t want to give them any excuse to take more customers than they should. Effective marketing should combat any Little Caesars intrusion every time.

Exception to the rule: You offer cheap, low-quality pizza for pick up and delivery.

-J_r0kk
 
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j_r0kk:
Wow, I can’t believe there is actual movement in the Little Caesars chain. It’s truly hard to believe they’re actually opening a new store.
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They closed all the corporate stores about 7-9 years ago. They went to an all-franchise model. Of course they’re opening new stores. They just have to find someone who wants a franchise.
 
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Like J_rokk said they attract bottom feeders. And unless you are a bottom Feeder also. You have really nothing to worry about. There are four potential markets for pizza
Under $6 per pizza, Frozen, Deli Take N’ Bake, Little Ceasars
$6 to $12, Domino’s Pizza, Papa Johns, Pizza Hut Etc.
$12 to $18, California Pizza Kitchen, Sbarro, Zpizza etc.
and over $18. Tommy’s Pizza & Pasta (me)
If your in the lower price point marketplace you are experiencing market intrusion, but if you are on the high-side I wouldn’t even consider Little Caesars as competition.
 
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My favorite idea was posted on here a while back-

Out on your readerboard:

“$5 pizza has $5 flavor”
 
When we opened last year we had one in our delivery area. Another one opened three months ago.

The only thing we did was menu mailers a week and a half before they opened and then doorhung the day before they opened. Thankfully we didn’t notice any real dip in sales when they opened.

When the 2nd LC opened both stores went to a 5.55 pizza instead of $5. This was great news to me. Another good thing that happened around the same time was that PJ’s(2 in my area) started charging delivery fees($1.50). We currently charge $1.
 
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stirring the LC financial pot…

even if we use a Grande blend (8 oz on a 14" pie) @ $3/lb and 16 oz of dough for $.30 and another $.30 for sauce we run a 42% FC and a gross of $2.90 X 200 pies a day, we’d have nearly 210K to pay our yearly rent etc.

if ya could indeed sustain a 200 pies day…
 
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Otis Gunn:
…I understand their cheese is a blend of mozzerella and jack…
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Back when I worked at LC’s it was a blend of Moz and Muenster. Just thought that I would throw that out there; not that it is pertinent with the discussion.
 
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Patriot'sPizza:
stirring the LC financial pot…

even if we use a Grande blend (8 oz on a 14" pie) @ $3/lb and 16 oz of dough for $.30 and another $.30 for sauce we run a 42% FC and a gross of $2.90 X 200 pies a day, we’d have nearly 210K to pay our yearly rent etc.

if ya could indeed sustain a 200 pies day…
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True…but they of course arent using that blend, so add a few more bucks to the bottom line.

200 pie days, sounds on the low side…

😉
 
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actually, if ya do the math, w/o any add on sales, they prob need 2 do 275 pies/day to reach 500K…we all could be so lucky
 
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pizza dolphin:
Little Caesars is opening in a town where they shut down 2 units 8 years ago. They’re going to be pretty far away from me. I know they will do $5 premade pies. Does anyone have experience with what they will do for advertising and how to combat them? Thanks
Click to expand...
I’ve only tried Little Caesar’s twice - the only reason I tried it a 2nd time is cuz I couldn’t believe it could possibly be so bad as what I tried the 1st time … I was wrong. Advertise quality, getting in a price war with them will only put you in the poorhouse. Most of your customers will try it, the only ones you will lose will be the ones for whom price is the overriding factor in the decision making process. These are low profit customers of yours anyway.

Meeting their prices will only make potential new customers equate your pizza with theirs - if they’re looking for quality, they likely will just pass you by.
 
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If you market “price”, you are telling customers that “price” is the reason to buy from you.

You are not going to win the “price” thing and stay in business.

Market what makes you different; the reason people should buy from you. Stay on message. Make sure your product and service is where you need it to be. Charge what you have to. Offer incentives that make sense.
 
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bobatty:
Otis Gunn:
…I understand their cheese is a blend of mozzerella and jack…
Click to expand...
Back when I worked at LC’s it was a blend of Moz and Muenster. Just thought that I would throw that out there; not that it is pertinent with the discussion.
Click to expand...
my roma rep said they are using an imitation cheese now since the price is gone up
 
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What is Pizza Patron? Never heard of them.

If they are another chain that is another story. If they have the same advantages for that business model that is one thing. My comments were directed at independant stores competing with low price nationals.
 
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Back when I worked at LC’s it was a blend of Moz and Muenster. Just thought that I would throw that out there; not that it is pertinent with the discussion.

you are right, I said jack cheese by mistake…
there cheese blend is pretty good
does the muenster help it hold better in the “ready to go” concept ?

I have never used muenster on a pizza,
Otis
 
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