McDonald’s doesn’t actually make their money from selling fast food
By Callum Gunn
It sounds a bit odd. But McDonald’s doesn’t actually make money from selling fast food, even though they are a fast food restaurant.
McDonald’s might be the biggest fast food chain in the world. Selling something ridiculous like 70 hamburgers every second. But what makes the Golden Arches so much money isn’t their fast food.
Well, it is, and it isn’t.
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What generates McDonald’s the vast amount of their money every year is their restaurants, a.k.a the building. In a way, they act as a realtor rather than a fast food chain. Especially when you look at where the money comes from.
This is how it works. Most McDonald’s restaurants are franchised out. Out of all of the tens of thousands of McDonald’s restaurant, only a handful of them are actually owned by McDonald’s themselves.
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And those franchise owners pay head office a fee, percentage of the sales, etc. The franchise owner is the one responsible for the running costs of the restaurant, all except the building. Which is technically leased out by McDonald’s head office. So franchise owners pay McDonald’s rent.
So while we technically put all of our money into buying burgers, fries, milkshakes and more. That money goes to the franchise owner, and then, in turn, they pay their dues to head office. The biggest part being the rent of the building. Therefore, in a way, the bulk of the fast food giants money made is by providing property to the franchisees.
Therefore, we can say that the golden arches are actually a realtor, dealing specifically in fast food restaurants.
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What do you think of this? Have you ever viewed McDonald’s in this way? Drop a comment below sharing your thoughts with everyone.