The Reason Little Caesars Pizza Is So Cheap

Say what you want to about the quality ranking of Little Caesars, it's pretty hard to knock them for their prices. Their $5 Hot-N-Ready deal has made them the go-to pizzeria of choice for those looking for convenience and low prices. A customer can literally walk in and walk out with a hot pizza in less time than it takes to get through the drive-thru at many fast food restaurants. 

So how is it that Little Caesars is able to sell its pizza for such a low cost? The obvious answer would be that they're using the cheapest ingredients possible. While this isn't entirely untrue, there's more that factors into these cheap pizzas. 

Cheap ingredients make for a cheap pizza

According to pizza expert and world record pizza box collector (yep, that's a title) Scott Wiener, the reason for the incredibly low cost is that in today's competitive pizza market, chains either have to commit to cost and convenience or quality (via Doctor Oz). The number one way to save money on pizza is by taking shortcuts with the cheese, which makes up 40 percent of a pizza's cost. Pre-shredded, low water content cheese helps to keep costs low because it can be stored for much longer.

The tomato sauce might come from a bag, but surprisingly enough, an employee on Reddit did say that Little Caesars makes their dough each day. Brand Eating also confirmed this with a trip to the company's test kitchen to watch the dough being made with flour, water, sugar, salt, yeast, and soybean oil. 

They make the customer come to them

The pizza chain also doesn't have the added overhead cost of an eat-in dining area and they only offer delivery through DoorDash (via CNBC). "While everyone else is chasing delivery, Little Caesars is letting the customer come to them," Darren Tristano of the food industry insights company Technomic said.

When it really comes down to it, pizza is simply cheap to make. Another Little Caesars employee on Reddit said that it only cost the company $2.00 to make a cheese pizza that could then be sold for $5. By getting the customer to come into the store for a cheap pizza, Little Caesars can then upsell them things like Crazy Bread, soda, and wings.