Once little Little Caesars now a family empire

Published: Sunday, Dec. 18, 2005 9:14 p.m. MST
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DETROIT — In the 46 years since Mike Ilitch opened Little Caesars Pizza Treat in a suburban strip mall, he and his family have turned that first restaurant into a national pizza chain, acquired two professional sports teams and built a massive entertainment complex in downtown Detroit. Last year, his companies took in more than $1 billion in revenue.

Now 76, Ilitch says he is counting on his children to keep the businesses in the family and build on his success.

"I've always told them — people in the family — I think they can make it much bigger and much better because we have a wonderful foundation," Ilitch told The Associated Press in a rare interview. "I think there's enough smarts going around and I think we've got a strong, strong nucleus."

The son of Macedonian immigrants, Mike Ilitch was born in Detroit and played baseball in the minor leagues. A knee injury dashed his hopes of reaching the majors, and he became a door-to-door salesman before he and his wife opened their restaurant in Garden City.

Little Caesars Enterprises Inc. grew into a leader in the pizza business, finding its niche in low-priced carryout. Ilitch didn't stop at pizza though. Today he and his wife own hockey's Detroit Red Wings, baseball's Detroit Tigers, a major theater and a casino, as well as food distribution and manufacturing businesses.

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Friends and associates often describe Mike Ilitch as an idea generator and salesman, and his wife, Marian, as the financial brains. That portrayal has some truth to it, said Christopher Ilitch, one of the couple's seven children and chief executive of Ilitch Holdings Inc.

"He definitely tends to be more the sales, marketing, idea guy," the younger Ilitch said. "He's not afraid to make the big decisions."

David Brandon, chief executive of competitor Domino's Pizza Inc., credited the Ilitches with being pioneers in carryout, one of the industry's three main platforms along with delivery and table service.

But as the family branched out, their pizza business has not kept pace, Brandon said earlier this year. Little Caesars has shrunk by more than 2,000 stores since the early 1990s and has gone from being the No. 3 chain to No. 4 — behind Pizza Hut, Domino's and Papa John's.

Christopher Ilitch said the company made a few missteps during a period of aggressive growth during the 1980s, including skimping on ingredients and letting decor get outdated at some locations. He said the company has since decided to remodel all its stores and has returned to its original 1959 recipe.

Mike Ilitch said Little Caesars — which, as a private company, rarely releases hard numbers about its operations — has about 2,500 stores. He said the chain is one area he hopes the next generation of Ilitches will target for growth, and estimates the market could sustain as many as 7,000 stores.

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