Shipley Do-Nuts’ Post

McDonald's USP: Hamburgers or Real Estate? The business of McDonald's isn't just about hamburgers, it's more about real estate. Yes, that's their unique selling proposition. Imagine this – McDonald's isn't just flipping burgers, it's playing Monopoly with some of the world's most expensive properties. When we see a McDonald's, we often think of taking a meal break. It grabs our attention, and we can't resist grabbing our favorite Happy Meal. But let's understand, it's a real game. They strategically acquire some of the most expensive real estate in the world. Fun fact - they are the 7th largest real estate owner globally. Impressive, right? Typically, fast-food chains operate on franchise models. Individuals who own the land contract obtain the franchise license and use the brand name and recipes in return for a fee. However, McDonald's follows a different strategy. They first buy the land and then find franchisees to operate the restaurants. They collect rent along with royalty fees from the franchisees. They have been following this strategy for years! Currently, McDonald's has expanded to over 40,000 locations worldwide. They are smart enough to invest their income in assets, which in return provide them with 3X returns. Surprisingly, the rental income from their properties has surpassed their actual income, making McDonald's one of the top 10 asset holders globally with a net value of over 40 billion dollars! The secret sauce isn't just in their special sauce, it's in their ability to turn burgers into real estate gold. P.S. Follow (Tushar Jejani) for more such stories! #linkedingrowth #linkedincreators #mcdonalds #realestate

Always helps to have very accomplished expertise at your side….

🎉 Exciting times lie ahead for Southern Steer Butcher Franchising Int'l! 🗺️ With #SiteZeusLocate, they're leveraging cutting-edge #LocationIntelligence to uncover prime markets and bring their mouthwatering cuts to meat lovers everywhere. 🥩 🔥 Learn more about how this emerging brand is using #tech to make data-driven decisions: https://siteze.us/44P6bMk And stay tuned as they embark on their expansion journey! 📍 🔍 #RealEstate #franchising #SmallBusiness

#snsinstutuion #snsdesignthinkers #snsdesignthinking McDONALD'S (FOOD'S) McDonald's Corporation is an American multinational fast food chain, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise agent and proceeded to purchase the chain from the McDonald brothers. McDonald's previous headquarters was based in Oak Brook, Illinois, but the company moved its global headquarters to Chicago in June 2018. McDonald's is also a real estate company through its ownership of around 70% of restaurant buildings and 45% of the underlying land (which it leases to its franchisees). McDonald's is the world's largest fast food restaurant chain, serving over 69 million customers daily in over 100 countries[16] in more than 40,000 outlets as of 2021. McDonald's is best known for its hamburgers, cheeseburgers and french fries, although their menu also includes other items like chicken, fish, fruit, and salads. Their best-selling licensed item are their french fries, followed by the Big Mac.[19] The McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's is the world's second-largest private employer with 1.7 million employees (behind Walmart with 2.3 million employees), the majority of whom work in the restaurant's franchises. As of 2022, McDonald's has the sixth-highest global brand valuation.

The credit-risk of your customers can change quickly. "A fast-food franchise used to seem like a license to print money. It was hard to not succeed when you had a national brand behind you handling advertising, marketing and menu development," but that all changed during the Pandemic. In the most recent example, a large Arby's Franchisee has joined the likes of Burger King & Subway as notable fast-food brands to file for Bankruptcy- citing higher food costs, rising labor rates and changing dining habits. The goal is to trim your waistline, not your profit margins. Don't let bad debt eat up your company's cash flow. Message me to discuss how Allianz can help.

🚀 Did you know that by 2030, revenue from US fast food and #QSR restaurants is expected to reach $454 billion? 🌐 However, understanding the complexities of scaling a fast-growing multi-location business can be quite a challenge. In today's edition of #MondayNews we've boiled down a list of key takeaways from some of the fastest-growing brands that can guide your growth strategy: 1️⃣ Master Franchise Agreements: Marco's Pizza (Marco's Franchising, LLC) one of the fastest-growing #pizza franchises, demonstrates the power of robust partnerships and the potential of international markets. Consider exploring avenues for master franchise agreements that can catapult your brand across borders. ➡ https://lnkd.in/ebu64hsG 2️⃣ Maintaining Legacy while Growing: The story of Handel's Homemade Ice Cream proves that scaling doesn't mean losing your brand's core values. Preserve what makes your brand unique, even in the face of rapid expansion. ➡ https://lnkd.in/gvgUvKZB 3️⃣ Focusing on Menu Innovation and Customer Experience:  This is How McAlister's Deli reached $1 billion in revenue. When scaling, never lose sight of product quality and #CustomerSatisfaction. ➡ https://lnkd.in/ggGa55kC 4️⃣ Future-Proofing with Technology: McDonald's strategy focuses on technology for future-proofing its business. Invest in tech that improves operations and meets evolving customer expectations. ➡ https://lnkd.in/gRpx5Y-h 5️⃣ Consistency is Key: Whether it's a 'mom-and-pop' or a global chain, consistency in your product and experience ensures brand loyalty as you scale. ➡https://lnkd.in/gVqbKwPS Remember, scaling your franchise or restaurant locations is a journey - but with the right approach, your growth can be as limitless as your ambition. #BusinessGrowth #FranchiseSuccess #RestaurantManagement #FoodServiceIndustry #CX

Dreaming of owning your own restaurant or café? 💭 Franchising could be your pathway to success! 👀 Dive into our latest article as we explore the world of franchising in the restaurant industry. Discover the ins and outs, pros and cons, and essential tips for opening a franchise restaurant. Be inspired by successful businesses that are already winning the franchising game! 🚀 Check out the full article here ⬇️ English article: https://hubs.li/Q02yNJNJ0 German article: https://hubs.li/Q02yNFdn0

Can You Finally Open a Panda Express Franchise? (Cost + Analysis) Fast-casual restaurants are sprouting up all over the United States and they’re expected to continue growing at a rate of 10.6% until 2032 in spite of challenges to the industry as a whole. These types of restaurants are known to serve high-quality food in a casual setting. Many also deem them to be healthier compared to fast-food. Whatever the case, fast-casual restaurants are on the rise and one of the top players is Panda Express. https://lnkd.in/gHJaRHAX

It is with a heavy heart that I observe the ongoing plight of Rubio's Coastal Grill, a revered fixture in our fast-casual dining landscape. The company has navigated tough waters for years. With a second bankruptcy filing within four years, Rubio's is a crystal-clear illustration of the immense challenges restaurant brands (and especially franchises) are currently facing. The persistent rise in operational costs, especially within states such as California, where a $20 fast-food wage is implemented, combined with the downward trend of in-store traffic, is causing a strain beyond sustainability. The decision to shutter a third of restaurants has only magnified the problem, not alleviated it. Yes, bankruptcy can be a strategic move, as with Rubio's Chapter 11 filing, utilizing it as a springboard to seek a buyer amongst the tumultuous waves. Yet, the listing of assets valued between $10 million and $50 million against liabilities ranging from $100 million to $500 million clearly indicates the stormy seas Rubio's is navigating. This is not just about Rubio’s. For me, as a franchise attorney, this paints an alarming picture of the ever-increasing number of restaurant franchise bankruptcies. The year 2024, I predict, will be a watershed moment - a year where adaptation is not an option but a necessity for survival. Rising interest rates, shifts in consumer behaviors, and an increasingly anti-business environment are challenging the resilience of many brands in the franchising sector. The landscape is transforming, and the franchise brands that will sustain or even flourish are those prepared to pivot. Can they counter the rising tide of operational costs? Can they find innovative ways to entice consumers back through their doors? Will they be agile enough to navigate the legal and business labyrinth that is becoming ever more complex? Alas, Rubio's is not an isolated case, but a stark reminder of the profound challenges that lay ahead for franchised food service brands. It's a call to arms for strategic realignment, innovative thinking, and a relentless commitment to growth and adaptation. Will your favorite restaurant brand rise to the occasion or fold under the pressure? This, I believe, is the defining question of the year 2024 for franchised restaurant brands, and indeed for us all, who treasure the rich tapestry of dining options we have grown accustomed to. #restaurants #franchise #franchising

🔺MYTH: The perception headlines like this fuels is a belief that it costs millions to get into a franchise. 🟢 FACT: Most franchises run between 75k to 285k all in to get into the business. Visit YourFirstFranchise.com today to explore your options and take the first step towards franchise ownership. #yourfirstfranchise https://lnkd.in/gCAUHy8j