History of Mcdonald s What is the real business?

Mcdonald's is a fast food chain that, with the passage of years, it has proven to be a success and have held this trajectory over time. Mcdonald's is more than a restaurant-burgers are rich and addictive, but it is a machine of investments that your business model has a focus on real estate.

And is that this company has a portfolio quite varied and is a great advantage for them. This has to do with having a little bit of everything for if something does not turn out as expected and be able to recover the money with something else. In other words, there are other components that allow the progress of your investments. What components are we talking about?:

Mcdonald's has real estate; this type of business generates cash day-to-day. It is an action that is also sold in the bag, you appreciate every day. Better said, the company has three of the four components mentioned above.

How to generate money at Mcdonald's?

A part of the success of this company emerges from the restaurants; however, there are other ways that they manage their business: by self operator or franchise.

This company has restaurants that develop themselves and restaurants that are rented out by means of franchising. In terms of franchises, Mcdonald's gives you the license to other investors and is made to pass through this to do business with, in order to do marketing.

Then, the aim of Mcdonald's is to get a radius from 95 to 5: 95% of restaurants, franchises and own only 5% of the restaurants run by themselves.

Mcdonald's and the real estate

If we realize, the core business of Mcdonald's is not to make burgers, but this in real estate.

The money that they earn thanks to the produce of the restaurants rented by franchise is, basically, the way in which Mcdonald's produced your money. This company rent a property and the land for businesses who want the franchise to use it by paying a monthly payment of rent. In this way, cancel an amount of profits to the company.

Then, the business of Mcdonald's is based in the purchase of the property, invest in it, decorate it, and leave it ready to rent it out to people who wish to buy the restaurant or invest in it as a franchise.

There is a report consulted which shows that the number of restaurants that handles the company is 2 770; however, 35 085 are franchises. In other words, 37, 855, 2 770 are managed by the restaurant itself, which represents 7% of the total.

On the other hand, this report details that Mcdonald's only maintains the 16% of the 10 billion dollars must pay all operating expenses. Then, of 11 billion dollars, Mcdonald's maintains the 82% of the total. It is worth mentioning that, in both types of business, the Tax Code cobra tax.

It is not what you earn but what you keep with you:

Mcdonald's believes that the ownership of real property adjacent to the transformation by franchisees helps to achieve higher performance of restaurants that are among the best in the industry.

This company not only makes real estate, at the same time invests in a business that can be seen as the business of the burgers, but Mcdonald's is more than a restaurant that sells hamburgers.

Franchisees are the work of reinvest the capital into your business in the long term to push for the implementation of some initiatives.

This business is usually to invest, along franchisees, so that there is an improve in the restaurants or operating systems. This is essential because so you are looking to increase the value of the property. These investments are planned to compensate for the preferences of consumers, improve performance local trade and increase the brand value by remodeling to trendy restaurants, more attractive and generate more income.

The thought of Mcdonald's

In the first place, Mcdonald's is a franchisor and think that the franchise is indispensable to provide food with exquisite tastes, experience to the clients at the local level and to motivate the profitability.

A franchise gives you the opportunity to a person to be their own boss and be in control with respect to the matters that have to do with the job, marketing, and pricing decisions. In like manner, gives a benefit to the strength of Mcdonald's and the operating system.

The reason why Mcdonald's not only focuses on rent franchises is because they prefer to operate their restaurants in a direct manner, and thus form their ability to work as franchisors credible.

What I looking to do is called market research, is evaluating the market directly. Mcdonald's has restaurants own, hire your staff as well, it gives them an idea of the operation of the restaurants in the market.

This company is known for its fast food, more known for its burgers, fries and drinks. However, have begun to include in your letter options menus healthier such as salads. Due to this, it is that Mcdonald's has been over in the market, despite so many changes as they take into consideration the movement of health care which is very important.