McDonalds has been in the business of Burgers and franchises for a very long time but there is one business that has been making the bulk of money for McDonalds and that’s real estate. Do you think selling burgers only could make you a king in the real estate industry? Well, it could make McDonalds the king of burger. McDonalds is doing the burger business but they are into real estate.
From the film Founders, it was clear that McDonalds is not into the burger business but rather the real estate business. A 1.4% cut on a $0.15 burger will not grow an empire but an empire is built by owning the real estate within the burger is cooked. I guess this was what changed the course of McDonald’s burger to real estate without losing quality in the production of their burger.
McDonalds create its favorites products from its burger to fries just to create a long queue from customers who love McDonalds but the main goal is to get investors, business owners and entrepreneur get interested in investing in the McDonalds business.
With investors willing to own be a part of the moving industry, McDonalds give them the right to sell the happy meal to customers only for a percentage of the sales but with another clause in the deal, the McDonalds Corporation build the franchise for the entrepreneur and decide where the building will be located. The Corporation builds the franchise in a location where they have customers who love their products. The franchisee will have to pay rent for selling on McDonald’s property, also they give McDonalds Corporation a percentage from the sales of McDonald’s products.
It is now a norm for quick service restaurants to go into franchising but McDonald’s have been leading the QSR industry with over 37,000 restaurants and serving about 70 Million people daily worldwide. The company is said to lead other QSR based on revenue and company value and this is thanks to its real estate model of business.
@eni-ola as per my knowledge the purchase the land and then set up the shop, i don't know if they have changed this policy which makes them richest in the real state business.
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Thanks for the contribution friend.
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@tipu curate
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Upvoted 👌 (Mana: 4/16 - need recharge?)
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