Little Caesars Franchise vs. Penn Station Subs Franchise: Which is Best?

If you’re considering investing in a franchise business opportunity, it’s essential to research and compare different options. Two popular fast-food franchises are Penn Station East Coast Subs and Little Caesars Pizza. While both franchises have their unique selling points, they differ significantly in many ways. Let’s dive in and compare the popular pizza franchise to a well-established sandwich franchise.

Comparing Costs: Penn Station East Coast Subs vs. Little Caesars Franchise

How much does a sandwich franchise cost compared to a pizza franchise? We can start with understanding franchise fees. Typically, franchisees pay fees to have the ability to use the franchisor’s business system, trademark and products. In return, the franchisor provides training, marketing materials, site selection assistance, operational support, store design, construction and more.

Franchisors of different brands may set up their fee structure differently. A franchisor’s franchise disclosure document (“FDD”) can help you better understand the potential earnings, fees, and cost. In this scenario, you’re interested in a Penn Station East Coast Subs franchise or a Little Caesars Pizza franchise, so let’s compare the two side-by-side when it comes to some standard costs based on their latest FDDs.

*See Penn Station’s 2023 FDD issued March 31, 2023 for a full explanation of all fees and costs.

**According to the Little Caesars March 2023 FDD, the initial franchise fee may be reduced for existing franchisees in certain circumstances. See their FDD for a full scope of fees and costs

Recession Support

Many new and existing franchisees may be concerned about how well the business may perform -during economic extremes — such as a pandemic or recession. Surviving economic downturns can be one of the biggest struggles an owner may face. It’s important to do your own research to determine if an investment is  “recession-resistant”. While no business or investment can claim to be 100% recession-proof, looking at how a brand has historically performed in previous economic hard times might be an indicator of the resilience of that brand.

Penn Station East Coast Subs has a track record of weathering tough times while supporting franchisees. During the COVID-19 pandemic, Penn Station East Coast Subs was able to continue adding store count. The National Restaurant Association, as reported in the Washington Post in June 2022, estimated 90,000 U.S. restaurants permanently closed during the height of the pandemic.

Penn Station East Coast Subs opened four new locations in 2021, as reported in Forbes in January 2022.. The quality menu items offered at a fair price can allow families to eat out during an economic downturn..

Little Caesars franchises have a value-oriented menu and run frequent promotions. Their signature “Hot-N-Ready” affords customers a meal at a low price point (although they raised the $5 price in 2022).

According to an article on VettedBiz.com published on March 8, 2023, Little Caesars has more than 4,000 stores. However, the same report shows that approximately 52 Little Caesars franchise locations closed between 2020 and 2021. The article argues Little Caesars’ total franchises have been dropping, on average, approximately 35 units a year.

Menu Comparison

It’s what customers come for: the food. The menus of Penn Station East Coast Subs and Little Caesars Pizza are vastly different, yet both provide an opportunity for consumers to customize their meal. Penn Station East Coast Subs specializes in mouth-watering grilled subs, wraps, cold sandwiches, salads, fresh-cut fries, and fresh-squeezed lemonade, while Little Caesars franchises specialize in pizza, wings, and sides.

The level of customization and variety in the two menus are similar. Penn Station allows customers to customize their subs, choosing from a variety of bread, meats, cheeses, vegetables, and sauces.  Little Caesars’  menu  has assorted pizza toppings for various customization options.

Join Penn Station East Coast Subs

For four decades, Penn Station East Coast Subs has been strategically growing, and we will continue to grow with our rapid expansion plan. Now is a great time to join us. We have franchise development territories available throughout the Midwest, the East, and the South from North Carolina to Mississippi.

To get started with Penn Station, prospective franchisees need a net worth of at least $500,000 and a minimum liquidity of $300,000. Each franchise group must select and/or recruit a qualified managing owner candidate, sometimes referred to as an operating partner, that will be responsible for day-to-day restaurant operations. The managing owner also attends the required four-week training in Cincinnati.

To get started or for more information on owning a Penn Station East Coast Subs franchise, contact us today.

The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We only offer franchises in jurisdictions where we are registered or are exempt from registration. Penn Station, Inc. 1226 US Highway 50, Milford, OH 45150. Penn-Station.com