![]() The chain has offered up bacon-wrapped pizza, bacon cheddar bites and pretzel pizza in the past for about $5 each. Little Caesars' lower price point means a lower average check, but its convenience and innovative limited-time offers keep customers coming back. That's because customers have more time to consider their options, and restaurants are better able to offer upgrades and add-ons to meals to ring up a higher sale. In addition, mobile-order checks tend to be as much as 20 to 30 percent higher than a traditional in-store check. "Everybody uses online ordering and expects to go on a mobile app," Scrivano said.ĭigital orders have increased by 45 percent since 2014, according to The NPD Group, and now account for nearly 1.7 billion in food service visits. 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 its locations. "In my view, the company considers its brand strong and unique enough to pull people into collecting from its stores," he said. Third-party services ease the financial burden of creating an in-house delivery operation and will placate customers who want the option of delivery, Saunders said. "That said, the delivery market is already crowded and competitive, so the company would have to work hard to attain growth there, and may have to increase spending on advertising and marketing to do so." "Not going into delivery does prevent Little Caesars from accessing a growing part of the market," Neil Saunders, managing director of GlobalData, told CNBC. ![]() However, Scrivano said, the company doesn't create the online profiles for these delivery sites. ![]() While the company currently has no plans to add an in-house delivery service, some customers can use third-party companies like Door Dash, GrubHub and Post Mates, among others, to purchase Little Caesars pizza and have it delivered. "While everyone else is chasing delivery, Little Caesars is letting the customer come to them." "Cost-conscious consumers will stop in as part of their regular routine and will find the Hot-N-Ready products within their definition of convenience," Tristano said. These customers are less likely to pay for delivery fees or tips, he said. Many of Little Caesars' locations are in economically challenged communities, Darren Tristano, chief insights officer at Technomic, told CNBC. Scrivano said its value proposition and convenience have made it one of the fastest-growing chains over the last decade. states and 24 countries."Our customers know that it is exceptionally fast to pick up a pizza versus waiting 35 45 minutes or an hour for delivery," David Scrivano, CEO of Little Caesars, told CNBC.Īt a time when many other restaurant chains are adding delivery - including fast-food giants such as McDonald's - Little Caesars' business model relies heavily on ready-made pizzas, wings and crazy bread that customers can purchase with little to no wait time. Detroit, Michigan-based Little Caesars has stores in all 50 U.S. While it was possible in some areas to get Little Caesars pizza delivered via other platforms, those arrangements were through franchisee relationships and will end under the terms of the contract with DoorDash, the delivery service said.īoth companies are privately owned. The chain's full menu will be available for delivery and prices will be the same as they are for take out.ĭoorDash will cover about 90% of Little Caesars' U.S. Unlike some other chains, Little Caesars will not require minimum purchases to get deals or apply discounts only to carry-out orders, David Scrivano, Little Caesars' chief executive officer, said in a statement. The deal comes as pizza restaurants, long a mainstay of food delivery, are under pressure from other kinds of restaurants large and small using delivery platforms, including DoorDash, Grubhub Inc, Uber Technologies Inc's Uber Eats and Postmates Inc.ĭomino's Pizza Inc, the world's biggest pizza chain with its own fleet of delivery drivers, reported sales that fell short of expectations for the last four quarters, hurt by the growing competition.Īnd delivery services themselves are facing possible upheaval as they fight each other for territory and customers. ![]() The orders will then go out to DoorDash's driver fleet for fulfillment through a service called DoorDash Drive.
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