Due to the success of Black Caesar (1973), AIP wanted a sequel. Unfortunately, Fred Williamson was filming That Man Bolt (1973) during the week from Monday to Friday, and director Larry Cohen was busy making It's Alive (1974), but they made this sequel concurrently by filming the majority of it on weekends.
Larry Cohen filmed some of the scenes with the same crew and equipment as It's Alive (1974), and due to Fred Williamson's other commitments he had to make most of the film with a stand-in, Williamson himself only really appearing in the close-ups. The close-ups were filmed in LA, where Williamson was based, and the rest of the film was shot on location in New York.
James Brown was originally slated to do the music after his work on Black Caesar (1973) was so well received, but Larry Cohen rejected the music Brown recorded. Subsequently, the music was done by Motown artist Edwin Starr and Brown's rejected music was used for the album, "The Payback".
The minute Black Caesar (1973) showed signs of being a box office hit, American International Pictures head Samuel Z. Arkoff contacted writer-director Larry Cohen and instructed him to get on with a sequel immediately.