About the Video
How does McDonald’s really make their money? Keep watching to find out more about their genius business model
🟠 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗺𝗼𝗼𝗺𝗼𝗼 ➡️ https://j.moomoo.com/00JRcf
⬇️ Timestamps:
0:00 → Introduction
0:25 → The Origins of McDonald’s
2:28 → Their Real Estate Business Model
5:06 → Different Country, Different Burger
6:31 → Conclusion
When you hear the name “McDonald’s,” what immediately comes to mind? Golden arches? The savory scent of French fries? A McD burger?
It is, after all, one of the world’s largest and most recognizable fast food chains. However, behind the iconic ‘M’ and the Happy Meals, there exists a strategic business model that primarily revolves around real estate, rather than just food and beverage.
McDonald’s isn’t merely a bustling hive of flipping burgers and dishing out fries; it is a real estate empire, one of the largest in the world. The business model that Ray Kroc, the man who bought the company from the original McDonald brothers and transformed it into the juggernaut we know today, employed is rather ingenious. Instead of focusing solely on food and beverages, he realized that the real money wasn’t in the food sold, but in the land upon which each McDonald’s was built.
This revelation led to the foundation of the Franchise Realty Corporation, a move that allowed McDonald’s to not only sell franchises of their restaurants but also to buy and control the land upon which franchises were built. The company would then lease the land to the franchisee who, on top of paying for the right to use the McDonald’s brand and business model, would also pay rent to the parent company.
Not only that, McDonald’s has long been recognized for its “Think Global, Act Local” strategy, which is also often referred to as “glocalization”. This strategy has been instrumental in the company’s global success, allowing it to expand into numerous markets around the world, while still maintaining a strong local appeal. One prime example of McDonald’s successful use of the “Think Global, Act Local” strategy is the menu variations seen from one country to another.
So, the next time you bite into a McD burger, remember that you’re not just patronizing a global food and beverage brand, but a robust and resilient real estate giant cleverly disguised in the cheerful shades of the Golden Arches.
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Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
