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Little Caesars Stopping Deliveries ????

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wa_dave

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I was talking to the editor of PMQ Australia the other day and discussions led to delivery. He mentioned that in Western Australia where we are both based that the shortage of delivery drivers has reach a very high level and many stores are unable to get drivers.

This led on to him mentioning that Litle Caesars in the US have stopped doing deliveries, citing the trouble getting staff and the costs involved. He said they have gone back to the basics of selling from the store only.

Can anyone cnfirm this ?

Dave
 
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That is very possible, The Little Caesars in Washington State shutdown all 38 stores, in one day. Apparently they built the stores to close together, and when they made the move to expand into the delivery market, their areas weren’t big enough to support it and they loss tons of money, enough that they had to close 38 stores, and and reposition them.

The biggest problem with LC is they are in the lower half of the marketplace, and they really don’t make enough money per pie to support delivery. The average two pie order from LC probably grosses about $14.00, if a delivery driver avgs 4 deliveries per hour that is $56 in gross rev which at current labor rates, fuel expense, and insurance expense probably cast the average store about $15/hr. which pretty much wipes out any profit.
 
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to the best of my knowledge, LC doesn’t deliver anywhere anymore, as there biz model is based on a volume pick-up $5 pie called “Hot & Ready”…this is an interesting article here on PMQ about their concept & performance…
 
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tommieknowspizza:
The biggest problem with LC is they are in the lower half of the marketplace, and they really don’t make enough money per pie to support delivery. The average two pie order from LC probably grosses about $14.00, if a delivery driver avgs 4 deliveries per hour that is $56 in gross rev which at current labor rates, fuel expense, and insurance expense probably cast the average store about $15/hr. which pretty much wipes out any profit.
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Domino’s and PH here in Western Australia advertise home delivery for 2 large pizzas (12") for $9.95 each delivered (min 2 pizzas).

On basis of 4 deliveries an hour that makes revenue $79.60. Labour and delivery rate would be $22/hr (on peak time) plus workers compensation costs, 9% superannuation if they are 18+ and earn $420 per month, plus all the other variables. They probably max deliveries with 3 or 4 drops to make money?? I don’t know how they do it on quiet nights.

I don’t see how they can make money from their sales as I would believe delivery is their biggest part of their sales as the front of stores are very small (pick up shop front only) and usually situated out of the way locations with cheaper rent (but everywhere is dear to rent nowdays) leading to limited pick up sales.

Maybe they get through with the volume they do, but if not this is propably why PH are now franchising their stores here and have sold off or closed a lot of their eastern states stores and 90% of Eagle Boy’s (similar outlet but franchised) stores are for sale.

Dave
 
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It sounds like LC doesn’t have a clue. They need to regroup with all there franchisee, and re-establish there game plan. I don’t know hot they can make any money on $5. pizzas when the CME cheese price is $2.15 a pound.

Its kinda like Burger King. I had a friend that owned 13 stores in Washington State. He told me when they the 9 cent whopper special he lost 30 cents on every whopper that they sold. Its kinda hard to make a profit when your giving away food.
 
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w/o beating a dead horse…the LC model works 4 them…pizza is not great, but, in theory, you never have 2 wait…walk in, plop down the $5 and away ya go…

no delivery expense…10K-15K weekly revenue…gross $3+/pie…the model has merits…

Pizza Patron in TX is doing a similar thing…

Volume covers all sins…
 
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LC hasnt delivered in the US for a long time…

It is give and take, if you make money without deliveries and a smaller staff, how is that different than making 6 bucks a pizza but delivering and doing lower volume?

I actually think based on efficiencies, I would prefer a simple, condensed operations, no delivery, simple product and decent profit…

Go into a Caesars, they can pump out volume and only have 5 employees working, or less.

I wonder if Cici’s to Go will have similar success?
 
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Patriot’s,

I’ll bet you your your pizza with a . . . . . . fork, too, don’t you? You should consider relocating to Australia with the other unusual types.

(LC model has merits . . . you should turn in your peel in disgrace)
 
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I fold my slices in half & put my drawers on 1 leg @ a time

I don’t imagine your store is up to $40K yet, so maybe the LC model does have it merits

Tho I don’t care for the LC product, it does fill a niche…as I’ve said countless time b4, volume covers all sins…

I only ate 1 time @ a CiCi’s b4 I worked there a while ago…can’t say it was great, but it satisfied my son…

When I took a job @ one of the busiest in the system, I had to admire this particular store…we’ do $8-9K on a Friday…it was murder, but the guy made $$$

I just hope I’m making the right decision in the new store…
 
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Patriot'sPizza:
I fold my slices in half & put my drawers on 1 leg @ a time

I don’t imagine your store is up to $40K yet, so maybe the LC model does have it merits
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Depends on your time frame 😛 I make at least $40K each and every year. HECK! We do at least that every quarter!
 
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NicksPizza:
Patriot’s,

I’ll bet you your your pizza with a . . . . . . fork, too, don’t you? You should consider relocating to Australia with the other unusual types.

(LC model has merits . . . you should turn in your peel in disgrace)
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Not so much unusual, but sophisticated 8)

We eat ours with a knife and fork :lol:

Dave
 
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wa dave:
Not so much unusual, but sophisticated 8)

We eat ours with a knife and fork :lol:

Dave
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And I’ll bet the fork is in your left hand and the knife in your right. The proper way!
 
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Daddio:
wa dave:
Not so much unusual, but sophisticated 8)

We eat ours with a knife and fork :lol:

Dave
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And I’ll bet the fork is in your left hand and the knife in your right. The proper way!
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Daddio

Right on there.

We Aussies and you Canuks know all about class, ediquite and what hand to hold the fork in, and the right way around to boot. :lol:

And we don’t tuck napkins in the top of our shirts either. We lay them across our laps, and we sip our tea from tea cups with our little pinky finger pointing outwards.

I guess the only thing we ALL have in common is that we f@rt the same. 😛

Dave
 
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and the tines of the fork are turned down…(grandfather was from London, Ontario…family all worked for Heinz)

Nick, all you need 2 do is have every man, woman & child in town buy 1 pizza/month & you can drop the price to $4
 
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as for LC pizza, I think it is fairly good for the $/time element.
I understand they blend jack cheese with mozzerella, maybe that helps make it hold longer ?
Otis
 
Patriot'sPizza:
and the tines of the fork are turned down…(grandfather was from London, Ontario…family all worked for Heinz)

Nick, all you need 2 do is have every man, woman & child in town buy 1 pizza/month & you can drop the price to $4
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We’d have to get the squirrels to buy pizza as well 😃

2500 people just won’t prop up that game . . . which is why they ain’t here poppin’ out their inferior (to mine) product in my turf. And why I am expanding my direct mail radius to about 12 miles :o
 
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