Operations
Little Caesars efficient POD Program attractive to franchisees
Little Caesars has launched a modular unit program that is eco-friendly and attractive to potential franchisees. The inaugural POD location in Keokuk, Iowa, opened last December.
February 19, 2024 by Mandy Wolf Detwiler — Editor, Networld Media Group
Little Caesars has launched its POD Program, which features cutting-edge modular units with recycled walls constructed off site and transported to its destination by truck. The pods are eco-friendly solutions that may qualify for a full tax-write off, making them affordable and attractive to franchise owners.
The inaugural POD location opened last December in Keokuk, Iowa. Each pod only requires two to three employees needed to efficiently operate the entire facility.
Pizza Marketplace talked to Bryan Ketelhut, national director of non-traditional and development services at Little Caesars, in an email interview to learn how the POD Program works, how it appeals to potential franchisees and what it means for the future of Little Caesars.
Q:How did the idea for the POD Program come about, and what were the key motivations behind introducing this innovative approach to opening new locations?
A:At Little Caesars we're always looking to provide our franchise owners with restaurant prototypes that are designed to maximize profitability no matter what part of the country they're in. The new PODs have a simple, efficient operating model that calls for an optimal number of employees and takeaway service as well as a smaller footprint, which help keep operating costs low and margins high.
Additionally, the QSR industry is evolving and more competitive than ever before. To continue to be top of mind with consumers and prospective franchisees, it's important that we invest in new restaurant designs and technology to advance current practices and streamline operations.
The new PODs are the perfect addition to the list of Little Caesars restaurant models, helping us further differentiate our concept from others in the QSR and pizza segments.
Q: Can you provide more details about the specific eco-friendly features of the modular units used in the POD Program, and how they contribute to sustainability?
A: The cutting-edge design features recycled walls that are manufactured off-site. Then, they are seamlessly transported to their destination on a semitruck. The strategy behind the build of the PODs minimizes on-site construction waste and energy consumption, contributing significantly to our sustainability efforts.
Q: In what ways does the modular design of the PODs contribute to the swift acceleration of operations, and how does it impact the timeline from the initial blueprint to the grand opening?
A: The off-site construction of Little Caesars PODS allows for a parallel process where our franchisees can initiate site work concurrently while construction of the POD is underway, effectively reducing the overall timeline. This streamlines the entire building process and allows for a more efficient use of time and resources. On average, we anticipate a 90-day construction timeline on all PODs from start to the grand opening date.
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| Photo: Little Caesars |
Q:Could you elaborate on the process of constructing the PODs off-site and transporting them to their destinations? How does this method enhance efficiency and reduce the environmental impact?
A: Little Caesars PODs are manufactured off-site and seamlessly transported via a semitruck to the concrete foundation on location.
Once at the location, the assembling is completed. The POD is lifted on a crane to the concrete platform, followed by installation of signage and equipment. This approach to building a POD minimizes the impact on the surrounding community and environment.
Q:What criteria make franchise owners eligible for the full tax write-off associated with the POD Program, and how is this expected to benefit them financially?
A:Franchise owners become eligible for the full tax write-off based on the POD being classified as a piece of equipment. However, we would like to emphasize that eligibility may vary, and individual circumstances should be considered. We also recommend franchise owners consult with their accountants to navigate the specific nuances of tax regulations and ensure that they maximize the financial advantages available through the POD Program.
Q:Can you share insights into the performance and reception of the inaugural POD location in Keokuk, Iowa, since its opening in December 2023?
A:Since opening our inaugural POD location in Keokuk, Iowa, at the end of December 2023, we've been incredibly pleased with the response from the community. The reception has been overwhelmingly positive, with customers expressing admiration for the unique POD style and the convenience offered by our drive-thru and walk-up options. We've seen fantastic signs of transactions, engagement and satisfaction, indicating a strong connection with the local community.
Q:How has the implementation of the POD Program affected the overall operational landscape of Little Caesars and the QSR industry as a whole?
A: While maintaining a fully traditional store setup, Little Caesar PODs feature a smaller footprint that deliver a great ordering and dining experience to guests without compromising on menu offerings or operational capabilities.
Our program's success thus far also highlights a paradigm shift in the QSR industry, showcasing how a more efficient and convenience-driven business model can lead to increased profitability and guest satisfaction.
Currently, we're actively pursuing ambitious operating partners to help propel development efforts in target markets nationwide, and we're confident that PODs will play an important role in fueling this expansion.
Q:With the claim that only two to three employees are needed to operate the entire facility, how does Little Caesars ensure that service quality is not compromised, and what measures are in place to maintain customer satisfaction?
A:Consumers demand speed, quality, and accessibility more than ever before. Little Caesars designed PODs with these fundamentals at the forefront of every decision to ensure the new restaurant model aligned with guest preferences.
We tailor the number of staff members we have working based on the time of day and spatial configuration of the POD. The more guests we anticipate coming through, the more staff we'll have on service to ensure we are delivering seamless processes from product creation to ordering, pickup, and more.
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.
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