Little Caesars Wins Franchise Update's Franchise Innovation Award for Most Innovative Building Design

Little Caesars Pizza was recently named one of the winners of Franchise Update's annual Franchise Innovation Awards in the category of Most Innovative Building Design, Remodel, or Prototype. The restaurant brand launched POD Modular Units in December 2023, a new contemporary restaurant design that features a cutting-edge modular unit that’s manufactured off-site and sent to a location within a market.

Like many other restaurant brands, Little Caesars has faced the post-pandemic challenge of increased costs of goods, real estate, and construction. Real estate has also become competitive and in short supply. Little Caesars felt it was important to provide its franchise owners with business model options that meet the unique demands and needs of consumers across a variety of markets.

In response to the rising cost of real estate, Little Caesars introduced PODs, which align with today’s customer demand for speed, quality, and convenience while keeping operating costs low and margins high. The units are built off-site and transported via a semitruck to the concrete foundation on location.

Due to the way it is manufactured, PODs building costs are lower and have a quicker construction timeline than most traditional restaurants, averaging 90 days from start to opening date. In addition to the speed-to-market, Little Caesars PODs are a solution to regions in the U.S. that are limited on space and real estate. While most freestanding units average about 1,400 to 1,600 square feet, PODs are a little more than 1,000 square feet once the glass enclosure and storage spaces are added.

“Since launching the POD prototype less than a year ago, we’ve seen great success with the expansion of this unique restaurant design and have plans to continue to grow with these units across the nation,” said Basil Kazepis, VP real estate & construction. “Little Caesars significant non-traditional expansion efforts continue to set us apart from competition and aid in identifying innovative solutions for the ever-evolving marketplace. PODs allow franchisees to leverage this build type to enhance our speed to market without sacrificing the convenience and quality that Little Caesars upholds at traditional locations. Additionally, this unique design enhances the guest experience by incorporating technology and additional pick-up options, encouraging more prospective franchisees to consider PODs rather than traditional restaurant designs.”

The modular units are constructed in partnership with Las Vegas-based Kitchen Podular, then transported to their final destination. Once it arrives at the location, it is ready to assemble. Hooked on a crane, the POD is lifted onto the concrete platform to ensure precise installation.

The POD features a drive-thru window for easy ordering, as well as an indoor walk up window open year-round with access to Little Caesars Pizza Portal. These units can be developed and delivered nationwide with ease in around three months from start to finish, giving the franchise owner the opportunity to start operating and making sales quicker than with a traditional location. The construction of PODs may qualify as a tax write-off, providing an additional financial incentive to operators.

Little Caesars debuted its first POD location in December 2023 with multi-unit franchise owner Dave Riney in Keokuk, Iowa. Since the opening in Keokuk, Riney and his team have received positive reviews from guests expressing their admiration for the unique design of PODs and the convenience offered by the drive-thru and walk-up options. Transactions, engagement and satisfaction from guests have been strong.

With the opening of the first POD, Little Caesars has received significant interest from the franchise community. Both existing Little Caesars franchise owners and prospective franchisees have reached out to learn more about this new modular unit. The company anticipates more PODs to come into development in the coming years as franchisees visit the Keokuk location and understand the key differentiators that set PODs apart from traditional restaurant designs.