Delivery isn’t on the menu for this pizza place. Little Caesars’ CEO told CNBC that its “Hot-N-Ready” model is working just fine. The company is one of the last big, national pizza chains not offering delivery. “Our customers know that it must be exceptionally fast to grab a pizza [at Little Caesars] versus waiting 35 [to] 45 minutes or an hour for delivery,” David Scrivano, CEO of Little Caesars pizza menu prices, told CNBC.
At the same time when many other restaurant chains are adding delivery – including fast-food giants including McDonald’s – Little Caesars’ business design relies heavily on ready-made pizzas, wings and crazy bread that customers can buy with virtually no wait time. Scrivano said its value proposition and convenience make it among the fastest-growing chains during the last decade.
A lot of Little Caesars’ locations are in economically challenged communities, Darren Tristano, chief insights officer at Technomic, told CNBC. These customers are more unlikely to fund delivery fees or tips, he explained.
“Cost-conscious consumers will stop in as part of their regular routine and definately will discover the Hot-N-Ready products within their definition of convenience,” Tristano said. “While everyone else is chasing delivery, Little Caesars is letting the client visit them.”
While the company currently has no wants to add an in-house delivery service, some customers may use third-party companies like Door Dash, GrubHub and Post Mates, among others, to buy Little Caesars pizza and have it delivered. However, Scrivano said, the organization doesn’t make the online profiles for these delivery sites.
“Not going to delivery does prevent Little Caesars from accessing a growing portion of the market,” Neil Saunders, managing director of GlobalData, told CNBC. “Having said that, the delivery industry is already crowded and competitive, so the company would have to strive to attain growth there, and might have to increase spending on advertising and marketing to accomplish this.”
Third-party services ease the financial burden of making an in-house delivery operation and will placate customers who desire a choice of delivery, Saunders said. “In my view, the business considers its brand [to be] strong and unique enough to drag people into collecting from its stores,” he explained.
While Little Caesars will not be developing its own delivery service, the chain is in the process of rolling out online and mobile ordering to the locations.
“Everybody uses online ordering and expects to go on a mobile app,” Scrivano said. Digital orders have increased by 45 percent since 2014, in accordance with the NPD Group, and now take into account nearly 1.7 billion in food service visits. Furthermore, mobile-order checks are usually around 20 to 30 percent more than a traditional in-store check. That’s because customers have more time and energy to consider their options, and restaurants are better able to offer upgrades and accessories to meals to ring up an increased sale.
Little Caesars’ discounted price point means a reduced average check, but its convenience and innovative limited-time offers keeNov 05p customers coming back. The chain has offered up bacon-wrapped pizza, bacon cheddar yvqnpl and pretzel pizza previously for around $5 each. Recently, Little Caesars delivery menu has launched the “ExtraMostBestest” pizza, which is actually a regular-size pie with mozzarella, muenster cheese and more than 50 slices of pepperoni, for $6. “I think our customers just like the variety, but come for the great value,” Scrivano said.