Little Caesars Franchise Owner Salary, Profit & Failure Rate 2024

Do you love the lip-smacking taste and the concept of Little Caesars and are thinking whether this could be a great investment for you? We have the answers that you are looking for!

In this guide on How Much Does A Little Caesars Franchise Owner Make, we have shared the investment breakdown, profit and revenue stats, details about the profit potential, and more. So make sure you read till the end!

How Much Does A Little Caesars Franchise Owner Make

About Little Caesars

Little Caesars is the third largest multinational pizza chain in the United States, and it was founded by couple, Mike Ilitch and Marian Ilitch in the year 1959, in Garden City, Michigan.

Owing to its delicious taste, the company became a hit, and two years later, it opened its first franchised store in Warren, Michigan.

Their decision to expand their business via franchising paved the way for Little Caesars to become what it is today.

As of 2024, there are 4,181 Little Caesars stores in the United States alone, and it also owns stores in 27+ countries and territories around the world.

If you want to be a part of Little Caesars and want to invest in its franchise, then keep reading to find out information regarding its investment, profit potential, revenue, etc.


How Much Does A Little Caesars Franchise Owner Make?

According to Statista, Little Caesars generated $4.23 billion in sales in 2021, an increase from the previous year’s figure of 3.95 billion U.S. dollars.

And the good news is that this number has been rising since 2008. And Little Caesars saw some growth in the year 2020 as well despite of the Pandemic.

What Is Little Caesars Franchise Owner Salary?

If we talk about the individual profit of Little Caesars’ franchise owners, then their average salary can range between $50,000 to $200,000 per year, with the average being $70,820.

You should note that this is just a ballpark number, and the profitability and sales of Little Caesars franchises may vary depending on their location, store operation, management, ongoing expenses, etc.

Interested In Little Caesars Franchise?

little-caesars-store
Meineke-Franchise


How Much Does Little Caesars Employee Earn?

The average salary of Little Caesars employees can vary based on their location, department, position, skills, etc.

However, as per ZipRecruiter, the minimum hourly pay of Little Caesars employees is $7.40 /hour, and the maximum hourly pay is $26.00 /hour, with the average pay being $14 /hour.

In yearly terms, the minimum pay of Little Caesars employees is $15,390 a year, and their maximum yearly pay is $54,084 a year, with the average being $29,225 a year.


Pros & Cons Of Little Caesars Franchise

Pros Of Little Caesars Franchise

  • Third Largest Pizza Chain in the world
  • Provide assistance and training
  • Multinational Brand
  • Offers Veteran discount
  • Offers third-party financing
  • Territory protection

Cons Of Little Caesars Franchise

  • High-Cost Investment
  • Charge various fees
  • Internal and external competition
  • Low-profit margin

Little Caesars Franchise Average Revenue & Profit

Little Caesars Franchise Average Revenue & Profit

As mentioned earlier, Little Caesars generated sales of $4.23 billion from their 4,181 stores in the United States, generating individual franchise revenue of $1,011,719 per year.

What is Little Caesars Profit Margin?

The profit margin for a Little Caesars franchise is 7%, which means that after deducting all the fees and expenses, the franchise owner can expect to make a profit of $70,820 per year.

Little Caesars is, although very popular, but due to its various franchise-related fees and low-profit margin, the net profit that you can make from it is not substantial.

This is how we calculated Little Caesars profit:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1011719.00
Rent11.63%(117612.33)
Insurance5.81%(58806.17)
Salaries23.25%(235224.67)
Franchise Royalty Fees5.81%(58806.17)
Utilities2.33%(23522.47)
Cost of Goods Sold (COGS)29.06%(294030.83)
Labor (Variable)15.11%(152896.03)
Total (Expenses)93.00%(940898.67)
Net Profit7.00%70820.33

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.

Interested In Little Caesars Franchise?

little-caesars-store
Meineke-Franchise

Little Caesars Estimated Initial Franchise Cost Breakdown

ExpensesDollar Amount
Additional funds for 3 months$17,000 to $47,000
Grand opening advertising $12,000 to $20,000 
Fixtures, equipment, and signage$186,000 to $392,000
Initial franchise fee$20,000 (can be reduced with discounts through programs)
Licenses and permits$1,000 to $20,000
Leasehold improvements$50,00 to $1,000,000
Rent$1,500 to $7,000
Training expenses$12,000 to $16,500
Start up inventory and supplies$63,000 – $154,000
Utility expenses$1,000 to $7,500
Estimate Total$360,000 to $1,686,000
Fee TypeAmount
Advertising fee7% of gross sales, as determined by the franchisor
Mobile transaction fees$0.30 per transaction
Caesar vision system annual support fee$2,210
Relocation fee$2,500
Royalty 6% of gross sales per week or $100 per week (whichever is greater)
Renewal fee$5,000
Security and technology fee$0.02 per transaction 
Transfer fee$0 to $5,000 per restaurant 

Little Caesars Franchise Failure Rate

To check the Little Caesars franchise failure rate let us see the number of Little Caesars outlets that opened and closed between 2019-2021 in the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20193,7003,653-47
20203,6533,627-26
20213,6273,601-26

For the Franchised outlets:

  • In 2019, the failure rate was (47)/3,700×100≈1.27%
  • In 2020, the failure rate was (26)/3,653×100≈0.71%
  • In 2021, the failure rate was (26)/3,627×100≈0.72%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019562561-1
2020561582+21
2021582580-2

For the Company-Owned outlets:

  • In 2019, the failure rate was (1)/562×100≈0.18%
  • In 2020, the growth rate was (21)/561×100≈3.74%
  • In 2021, the failure rate was (2)/582×100≈0.34%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20194,2624,214-48
20204,2144,209-5
20214,2094,181-28

For Total outlets:

  • In 2019, the failure rate was (48)/4,262×100≈1.13%
  • In 2020, the failure rate was (5)/4,214×100≈0.12%
  • In 2021, the failure rate was (28)/4,209×100≈0.67%

According to the above-mentioned data, we can see that the franchised outlets for Little Caesars declined from 2019 to 2021, showing a failure rate between 1.27% and 0.72%.

On the other hand, for company-owned outlets, the failure rate of Little Caesars was lying in the range between 0.18% and 0.34% for 2019 and 2021. The company grew in 2020, showing a growth rate of 3.74%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Little Caesars franchise has declined in the years 2019-2021, showing a total failure rate between 1.13% and 0.67%.

This means that either those outlets were not performing well or the franchisees were not renewing the franchise term after it had ended.


Little Caesars Franchise Payback Period

To find out the Little Caesars franchise payback period, let us do some calculations:

AVERAGE INVESTMENT$359,700
AVERAGE REVENUE PER OWNER$1,011,719
AVERAGE PROFIT PERCENTAGE7%
AVERAGE PROFIT PER YEAR$70,820
AVERAGE PAYBACK PERIOD5 years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 359,700/70,820 = 5 = 5 Years based on median

The average investment for the franchise is $359,700 to $1,686,000 and the average revenue per owner is $1,011,719.

With an average profit percentage of 7%, the average profit per year is $70,820.

This means that the average payback period for the Little Caesars franchise is approximately 5  years on the lower end, as the total investment of $359,700 would be recouped within this period.


Facts About Little Caesars

  • Little Caesars was started with humble beginnings. Mike and his wife put in all their savings of $10,000 to start this company.
  • The couple who started this pizza chain had seven kids, and they believed that every family should have the right to pizza night. This is the reason why their pizzas are so affordable.
  • Mike Ilitch, the co-founder, used to be a baseball player, playing for the Detroit Tigers farm team. However, an injury ended his baseball career and prompted him to start a new business that is Little Caesars, of course.
  • Mike and Marian own two sports teams, Detroit Red Wings and the Tigers, along with a casino, a theater, and other holdings.
  • Little Caesars’ iconic “Pizza! Pizza!” slogan is 35 years old, and the campaign began in 1979.
  • Back in the day, Little Caesars used to give free Crazy Bread to customers for saying, “Pizza! Pizza! 
  • Before the famous comedian Bill Murray became famous, he used to work at Little Caesars.
  • Little Caesars runs a food truck that feeds poor and hungry people for free.

What is Little Caesars’s Owner Net Worth?

The founders of Little Caesars are one of the richest residents in the U.S. The couple amassed a net worth of $4.2 billion and was even ranked #123 richest Americans by Forbes magazine.

((https://moneyinc.com/little-caesars/))


What Is Little Caesars Best Known For?

What Is Little Caesars Best Known For

Little Caesars is the third-largest pizza chain that sells lip-smacking, affordable pizzas and their distinguishing factor is their Calzone-like Crust.

Unlike other pizza chains that offer thin crust or cheese-stuffed bases, they offer pizza bases made of folded leavened dough and filled with a unique blend of muenster and mozzarella cheese, ensuring that you get that cheesy taste in each bite.

The company is also famous for its advertising catchphrase “Pizza! Pizza!” which refers to two pizzas being offered at the price of one.

The company also introduced a new concept of shaker boards in 1997 to advertise their large pepperoni pizza called “Hot-N-Ready Pizza,” which they sold for only $5, and it has been popular on their menu ever since then.

Apart from this, some other items that Little Caesars is best known for include:

  • ExtraMostBestest Pizza. 
  • Crazy Bread. 
  • Italian Cheese Bread. 
  • Hot-N-Ready Cheese Pizza. 
  • ExtraMostbestest Thin Crust Pizza. 
  • Pepperoni Deep! Deep! Dish Pizza. 
  • 3 Meat Treat Pizza, and more

Is Little Caesars Franchise Profitable?

In a word, Yes. The Little Caesars franchise is profitable, and its owner can expect to make an average of $50,000 to $200,000 per year.

However, only the top percent make as much as $200,000 per year profit, and a majority of stores make only $70,820 a year because of the low-profit margin.

The profitability of the Little Caesars franchise varies depending on the store’s location, the owner’s skills, and the staff’s efficiency, among many other factors.

So if this number seems sufficient to you, then you can consider investing in this franchise.


Little Caesars Franchise Earning Potential

As per to IBISWorld, The market size of Pizza restuarant industry by its revenue is $65.0bn in 2023 and since 2008 there has been a growth of only 3%.

And if we talk about the sales of Little Caesars then it generated $4.23 billion in sales in 2021, an increase from the previous year’s figure of 3.95 billion U.S. dollars.

Another thing to take note of is that Little Caesars has a very low profit margin of 7% on average because of its low-cost pizza’s and various kinds of franchisor fees.

The sales figure, demand of the pizza industry and the profit margin of Little Caesars bring us to the conclusion that the earning potential of Little Caesars is not very high.


Wrap Up

After looking into the Little Caesars franchise details, here’s what we conclude:

There is no doubt that Little Caesars is extremely popular and so cheap that there is a very low chance that its demand will go down in the future.

But because of this exact reason, along with plenty of fees that they charge, the profit margin of Little Caesars is limited.

Along with this, their initial investment cost is a bit higher than the pizza industry average, and they also require you to fulfill some hefty eligibility criteria.

Investing in this franchise is totally up to you. You will definitely make a profit from this franchise, but it is limited.


Frequently Asked Questions

Does Little Caesars offer Veterans discount?

Yes, Little Caesars offers Veterans discount as well as First Responders discount. The benefits include:

  • Franchise fee discount
  • Financing assistance
  • Equipment and supply discount
  • Advertising and publicity support, etc.

How much does it cost to start Little Caesars franchise?

In order to start the Little Caesars franchise here’s how much you need:

  • Estimated total investment: Starting at $379,000
  • Liquid asset requirement: $150,000
  • Net worth requirement: $350,000

Does Little Caesars offer international franchising?

Yes, Little Caesars offers both national and international franchising opportunities. In fact, there are a lot of outlets in countries like Asia, the Middle east, Canada, etc.

Who owns Little Caesars?

Little Caesars is owned by IIitch Holdings, which also owns the Detroit Tigers.

Who founded Little Caesars?

Little Caeser was founded by Mike and Marian Ilitch in 1959. They opened their first restaurant in Detroit.

How many locations does Little Caesars has?

There are 4,192 Little Caesars locations in the United States. The state with the most number of Little Caesars restaurants is California. It has around 541 locations.

Where is Little Caesars headquartered?

The headquarters of Little Caesars is located in Detroit, Michigan.

Leave a Comment