4 ms·
Most people don't realize it, but McDonald's is not a burger-flipping restaurant chain; it is one of the world's best real estate portfolios. Franchisees flip t
by ecommerceguy 10y ago
Most people don't realize it, but McDonald's is not a burger-flipping restaurant chain; it is one of the world's best real estate portfolios. Franchisees flip the burgers. McDonald's simply owns the best commercial property all over the world. Think about it, every town and city in the Country and many of the world, who owns the best lot on highest traffic intersection? McDonald's.
- mac01021 10y agoI thought the franchisees owned the property too, and that the franchiser just licenses the IP and provides the foodstuff.
- DrScump 10y agoThere are corporate-owned restaurants, and there are franchises. Stores can be on leased or owned land. For example, something like 8 McDonald's in San Francisco have closed or are closing in the past few years, many because of lost leases, supposedly. One rumored to be threatened location is 3rd and Townsend, a great location just one block from AT&T Park and a neighborhood institution (it was there long before the ballpark).
- ecommerceguy 10y ago"We are in the real estate business, not the hamburger business." Ray Croc, Founder of McDonalds. "If a location is good enough to buy, we want to build on it right away and be in there before the competition. Pump some money and activity into a town, and they’ll remember you for it." Ray Croc, Founder of McDonalds
- maxerickson 10y agoMcDonald's is also doing product development and managing logistics. And thinking about the franchises around here, they are certainly in high traffic locations, but they aren't particularly in advantageous locations compared to their competitors.