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You seem amazed by their secret sauce, but fundamentally, are they that much better than their competition in terms of the product they offer? Is it 10x better

You seem amazed by their secret sauce, but fundamentally, are they that much better than their competition in terms of the product they offer? Is it 10x better in price, service, quality?

beagle3 9y ago
McDonald’s is by far more successful than other burger chains; Starbucks than coffee chains. WeWork is trying (and at this point seems to be succeeding) to be the equivalent for coworking spaces. Also note McDonald’s burgers are not very different than burger kings, and Starbucks is not better than any other chains. The secret sauce doesn’t have to be in the actual product.
- sgt101 9y ago
  McDonalds is a franchise; it doesn't acquire or run restaurants.
  - somecontext 9y ago
    In case anyone was curious, I have collected some context from McDonald's 10-K filing on March 1, 2017 available at http://corporate.mcdonalds.com/mcd/investors/financial-information/sec-filings.html http://corporate.mcdonalds.com/mcd/investors/financial-infor... : At year-end 2016, McDonald's had ~37k restaurants, of which ~15% were company-operated and 85% were franchised. (The filing expresses a long-term goal to be ~95% franchised.) Of the franchised restaurants, ~70% were "conventional franchisees". Under both the company-operated and conventionally franchised models, McDonald's "generally owns the land and building or secures long-term leases". I believe it is this real estate-focused setup that drives the comparison between WeWork and McDonald's in various comments.
    - rockostrich 9y ago
      Which is what the movie "The Founder" drives home near the end (besides that Ray Kroc screwed over the McDonald brothers). It's a real estate company that owns buildings that are occupied by fast food burger restaurants. How well those restaurants do doesn't really matter all that much because the value of the real estate is most likely going to increase over time. If the restaurant does well, it's just a bonus.

You seem amazed by their secret sauce, but fundamentally, are they that much better than their competition in terms of the product they offer? Is it 10x better in price, service, quality?

beagle3 9y ago

McDonald’s is by far more successful than other burger chains; Starbucks than coffee chains. WeWork is trying (and at this point seems to be succeeding) to be the equivalent for coworking spaces. Also note McDonald’s burgers are not very different than burger kings, and Starbucks is not better than any other chains. The secret sauce doesn’t have to be in the actual product.

sgt101 9y ago
McDonalds is a franchise; it doesn't acquire or run restaurants.
- somecontext 9y ago
  In case anyone was curious, I have collected some context from McDonald's 10-K filing on March 1, 2017 available at http://corporate.mcdonalds.com/mcd/investors/financial-information/sec-filings.html http://corporate.mcdonalds.com/mcd/investors/financial-infor... : At year-end 2016, McDonald's had ~37k restaurants, of which ~15% were company-operated and 85% were franchised. (The filing expresses a long-term goal to be ~95% franchised.) Of the franchised restaurants, ~70% were "conventional franchisees". Under both the company-operated and conventionally franchised models, McDonald's "generally owns the land and building or secures long-term leases". I believe it is this real estate-focused setup that drives the comparison between WeWork and McDonald's in various comments.
  - rockostrich 9y ago
    Which is what the movie "The Founder" drives home near the end (besides that Ray Kroc screwed over the McDonald brothers). It's a real estate company that owns buildings that are occupied by fast food burger restaurants. How well those restaurants do doesn't really matter all that much because the value of the real estate is most likely going to increase over time. If the restaurant does well, it's just a bonus.