McDonald's Real Estate Business

McDonald's is the world largest fast-food chain company in the world. It is the most visited restaurant in the world where we can get a meal at an affordable price. It was founded in 1948 as a restaurant and was operated by Richard and Maurice McDonald, in San Bernardino, California, United States. Today McDonald's serves in more than 115 countries and has more than 37000 outlets in the world. It has sold over 100 billion burgers worldwide.

 

• What is the History of McDonald's?
• What is the strategy used by McDonald's?
• How does McDonald's actually make money?
• Is McDonald's a real estate company?
• What are some facts about  McDonald's?

History

McDonald's world fastest food chain company started its first restaurant in the year 1948 by two brothers Richard and Maurice McDonald. They bought the appliances for their restaurant from the salesman, Ray Kroc. Their business started growing and become popular in the city. People were happy with the service provided by them. Later in 1954, Ray Kroc visited the brothers to see how a small restaurant could sell so many shakes and was surprised by the service provided by the brothers. They were working so effectively and preparing a huge quantity of food in a short period of time due to which customers we're also attracted. Ray found huge success in this business and decided to work with them. In 1955 he ended up convincing the McDonald's brothers to allow him to join their company as a franchise agent to expand their business and he opened the first franchise in Des Plaines, Illinois and in that year only he launched McDonald's Corporation and eventually buying out McDonald's brother in 1961. The company started worldwide and became famous for its effectiveness. The company provided quality food products at an affordable price. The company also became popular due to the clown named Ronald McDonald.

Strategy

Ray Kroc knew that he was not going to reach the public just by selling burgers as many people were selling it, he planned a business format which would help him to attract the people. His burger was not his product but the business format was. The main aim was to satisfy his customers so he decided to give the best service at an affordable price. He worked on speed he decided that his customer must not wait long for their orders. He provided quality products at an affordable price in a short period of time. He ensured that all his restaurants are cleaned. He never compromised on quality, service and cleanliness. Ray believed that if their employees are happy then only they can make their customers happy. So the company provided free food to all the employees. He started marketing towards children as they are an influencer in the family and parents are decisions maker. To attract children they started 'Happy Meal' in which children get toys with the meal. They preferred quality over quantity so they kept only a limited product which can be delivered quickly. They hire local people as their employees as this would help them to deal with local people. All these strategies made McDonald's world largest fast-food chain.

McDonald's net worth is estimated at up to $163 billion.

How does McDonald's actually make money?

Burgers and Fries are only one part of the business model. Most of the money McDonald's made by their real estate business and not by selling Burgers.

McDonald's Real Estate Business

McDonald's is a Real Estate Company that sells Burgers. They sell you burgers to grow their Real Estate empire. McDonald's create their favourite products and sell them to attract people. Seeing long lines at McDonald's, businessman and investors get excited to invest to earn a profit. To start the company Investors and Businessperson has to pay thousands of money to McDonald's Corporation as a franchise fee and in return, they will make the restaurant, allow them to sell their products. And Investors have to pay some percentage of there sales. Now McDonald's is earning money from three ways, firstly as a franchise fee. The investors have to pay a certain percentage of their sales to them. And they also have to pay rent as they are using their real estate. In these ways, McDonald's earn a large number of profits. 

Some Facts

1. McDonald's has sold over 4 trillion French Fries.
2. In 1948 you could order a hamburger just at 15 cents.
3. McDonald's originally operated as a BBQ joint in California.
4. Ronald McDonald first appeared in 1963.
5. A McDonald's "Big Mac" only has 540 calories.
6. McDonald's buys 1  billion pounds of Beef per year.

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