Originally Posted by
FriendlyPilot
Little Ceasar's is the lowest quality pizza out there. Its the cheapest one because its the worst one. Sure they are profitable, but most people would rather pay a little more for Domino's or Pizza Hut (which are #1 and #2 chains in the US) or go to a local pizza place that makes higher quality pizzas.
If Little Ceasar's tried to pivot into a higher quality product they would have a hard time because they have built their brand on the cheap price low quality pizza. It would be hard to overcome the consumer's hesitation to "give them a try" when they already know what they would get from Dominos or Pizza Hut.
Airlines all pay around the same for planes, gates, fuel, landing fees. So the only real costs they can pass on are the labor costs. So without lower labor costs, you don't have a "low cost" model.
Wrong. ULCC's pack more seats on the plane and offer less amenities. That's the difference.