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.
Little Ceasar's sells enough of their lousy pizza to be the 3rd largest chain in the US. Pizza Hut, which is 2nd, is switching to offer "ready now" pizzas (just like LC has done for a while now).
Originally Posted by
FriendlyPilot
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.
Pivot? Why? Other businesses are copying them and not the other way around. Their mgt is doing ok.
And all airlines do NOT pay around the same for planes or fuel. SWA hedged fuel for years at a discount. DL has their own refinery. F9 has a sale-leaseback program for their aircraft. Mgt's job is to gain advantages where/when they can. Planning on paying less for labor is NEVER a viable long term strategy. SWA did it in the 70s but grew to the point where SWA pilots and FAs are the highest paid domestic.
It all boils down to management and how innovative (or not) they are.