I like to tell my friends that I lost the weight but not the appetite. And my appetite for pizza is never satiated. Thin crust, thick crust, it's all good to me.
Obviously, one of the biggest selling points of their pizzas is their price point. Five bucks is a steal at any rate, but they had to make some big compromises in quality to get them down to that point. Here's the thing though: as much as people want to attribute price point to Little Caesars' success, that's only one factor in their success. After all, I mentioned I would prefer a burger to their pizza, and I can eat cheaper at McDonald's than even Little Caesars' low price point. That probably leads you to the next factor: the quantity of food you get per the price point. Can I feed a family for less than five bucks at McDonalds? Probably not.
Well... not all of it. I honestly can't say Little Caesars is disgusting, but it is definitely not favorable. If I had to choose between Little Caesars and pretty much every burger place on the face of the earth, I would go for the burger, for sure. Clearly, I am not in Little Caesars' demographic.
Still, I have to hand it to the company. They have changed their business model and marketing plan in a way that has made them once again a key player in this over-saturated industry. Let's take a look at how this sub-par pizza maintains relevance in today's modern society.
Obviously, one of the biggest selling points of their pizzas is their price point. Five bucks is a steal at any rate, but they had to make some big compromises in quality to get them down to that point. Here's the thing though: as much as people want to attribute price point to Little Caesars' success, that's only one factor in their success. After all, I mentioned I would prefer a burger to their pizza, and I can eat cheaper at McDonald's than even Little Caesars' low price point. That probably leads you to the next factor: the quantity of food you get per the price point. Can I feed a family for less than five bucks at McDonalds? Probably not.
This is where the post gets interesting. I think the real key to their success is found in two lesser analyzed factors.
The first has to do with their partnership with Family Video. I'm currently reading through the book Mindless Eating (an excellent read, by the way), and one of the biggest findings of the book is that we all have the tendency to eat more while watching TV. When most people go to Family Video, they have the tendency to watch their movie as soon as they get home. Mindless Eating's studies have also shown that people have the tendency to choose the food option that requires the least amount of work. This rules out even the classic popcorn as it requires popping in a microwave. Which leads to Little Caesars' second, more diabolical success factor...
(Can I pause for a second to apologize for abusing the heck out of the word "tendency" in that last paragraph?)
Even more important than the Family Video connection is Little Caesars' "hot and readiness" factor. Excluding single-slice places like Sbarro, Little Caesars is the only chain that offers a pizza immediately available upon order. You might not think this is a big deal, but the implications are huge, especially in regards to decision fatigue. In a former post, I talked about how our brains are not wired to handle lots of decisions well, even decisions as little as whether or not you want cream in your coffee each morning.
This is where Little Caesars excels over other pizza chains. It might not sound like a big deal, but ordering a pizza at any other chain requires a bit of a commitment. Regardless of carryout or delivery, the time placed between order and receiving the pizza is at least five minutes. That five minute number is definitely on the low end. Those 5+ minutes give time for the consumer to think "Did I really want those toppings? Was pizza a good choice at all...?" This increases decision fatigue and often causes consumers to go for the more mindless option, like McDonalds and their super quick turnaround time.
I started writing this post on 3/23 and began reading Mindless Eating on 3/27. Interestingly and coincidentally, the research within that book is affirming all the thoughts shared here. (And now I feel smart. Yay!)
So, what are the implications of this post? Aside from being merely interesting to a person like me, I think a chain like Pizza Hut or Papa Johns should take note. If these pizza chains adopted a model of having specific one-topping pizzas on hand and ready to go immediately, I think they could definitely see an influx of new business. Of course, that's easier said than done, but I still think it's possible.
And if any pizza chain CEOs read this, you can thank me with free pizza for life.
The first has to do with their partnership with Family Video. I'm currently reading through the book Mindless Eating (an excellent read, by the way), and one of the biggest findings of the book is that we all have the tendency to eat more while watching TV. When most people go to Family Video, they have the tendency to watch their movie as soon as they get home. Mindless Eating's studies have also shown that people have the tendency to choose the food option that requires the least amount of work. This rules out even the classic popcorn as it requires popping in a microwave. Which leads to Little Caesars' second, more diabolical success factor...
(Can I pause for a second to apologize for abusing the heck out of the word "tendency" in that last paragraph?)
Even more important than the Family Video connection is Little Caesars' "hot and readiness" factor. Excluding single-slice places like Sbarro, Little Caesars is the only chain that offers a pizza immediately available upon order. You might not think this is a big deal, but the implications are huge, especially in regards to decision fatigue. In a former post, I talked about how our brains are not wired to handle lots of decisions well, even decisions as little as whether or not you want cream in your coffee each morning.
This is where Little Caesars excels over other pizza chains. It might not sound like a big deal, but ordering a pizza at any other chain requires a bit of a commitment. Regardless of carryout or delivery, the time placed between order and receiving the pizza is at least five minutes. That five minute number is definitely on the low end. Those 5+ minutes give time for the consumer to think "Did I really want those toppings? Was pizza a good choice at all...?" This increases decision fatigue and often causes consumers to go for the more mindless option, like McDonalds and their super quick turnaround time.
I started writing this post on 3/23 and began reading Mindless Eating on 3/27. Interestingly and coincidentally, the research within that book is affirming all the thoughts shared here. (And now I feel smart. Yay!)
So, what are the implications of this post? Aside from being merely interesting to a person like me, I think a chain like Pizza Hut or Papa Johns should take note. If these pizza chains adopted a model of having specific one-topping pizzas on hand and ready to go immediately, I think they could definitely see an influx of new business. Of course, that's easier said than done, but I still think it's possible.
And if any pizza chain CEOs read this, you can thank me with free pizza for life.
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