McDonald's used to be a catering company, but it never took catering as the ultimate profit point.

In fact, regarding the positioning of McDonald's, founder Ray klock said categorically: McDonald's doesn't make hamburgers, but its real business is real estate!

From making hamburgers to real estate? Ray kroc, can you blow your cowhide more realistically? Don't worry, let's analyze why the founder of McDonald's has such "shocking words"!

First, in any case, catering is McDonald's business and can never be wrong-denying this is like denying that Americans don't know Washington.

McDonald's entered the catering industry with high-quality standardized catering and management, and finally gained worldwide recognition, with a huge franchise.

Secondly, McDonald's has two different business models.

One is the direct store model, that is, these stores are operated by Mai Shu personally, and they gain benefits by earning the price difference of goods.

The other is the franchise mode, that is, franchisees pay in one hand and McDonald's pays in the other.

The "money" to be paid by franchisees is basically composed of the following parts:

First, the initial deposit.

Second, the authorization fee is usually 4.5% of the annual sales of franchise stores.

Third, the store rent. In other words, McDonald's must first choose a good store location and do a good job in the preliminary work. If anyone wants to join, they must honestly pay 10% rent to the second landlord, Uncle Mai.

Find two business models of McDonald's, and then compare the profits brought by each model, and the problem of what McDonald's is will be solved.

See McDonald's 20 17 financial report for the profit breakdown of McDonald's.

By the end of 20 17, among the nearly 40,000 restaurants in McDonald's, franchise stores accounted for 47%, direct stores accounted for 53%, and the number of direct stores exceeded franchise stores. However, after deducting the operating costs, the profit of direct stores is $2.2 billion, while the profit of franchise stores is as high as $5.5 billion (including the real estate profit of $3.8 billion)-that is to say, the income brought by franchise stores less than direct stores contributes nearly 70% of McDonald's operating profit! Real estate brings McDonald's 50% revenue profit.

So the conclusion comes: McDonald's is a real estate company with rent as its profit core!

Does anyone still say that McDonald's is a catering company rather than a real estate company?

Why did McDonald's switch from catering to real estate?

1940, McDonald's brothers founded McDonald's in the United States. 1948 introduced the concept of "fast food restaurant", which greatly saved the time of taking meals. This differentiated operation has suddenly attracted users who spend more than 30 minutes eating in restaurants. Since then, McDonald's expansion in Zhang Zhilu has never stopped.

In the course of management, McDonald's summed up a set of scientific and reasonable methods and procedures for making standardized fast food, as well as the secret of store location, and finally expanded by franchising McDonald's famous brands. After years of hard work, franchisees eager to be incorporated into the McDonald's system through franchising flock to us.

Wherever McDonald's went, it brought prosperity to the business circle and directly promoted the rise of real estate prices. McDonald's charges its partners the joining fee and rents out this bustling commercial land, making a lot of money.

Therefore, the success of McDonald's is a strategic success-it established the overall strategy of taking real estate as the future profit source 60 years ago. On this basis, by constantly improving the tactical level of catering and golden key to pry open the door of wealth, it will provide better services of standardized joining and management experience? And copy this experience to the whole world, McDonald's has a long history in the world.

Its basic business operation idea is: building a catering brand-expanding the effect by joining-choosing a site to build a business circle-appreciating the land premium-earning the rent difference, which is obviously the business operation mode adopted by Vanke and Evergrande.

Speaking of which, I suddenly remembered a conversation between Xingye and Anita Yuen in "Domestic Lingling Paint":

It looks like a razor? It's actually an air duct!

But in retrospect, everything is difficult at the beginning. The first step, that is, McDonald's set up a fast food brand, is very important, because only if this step is successful, many franchisees behind it will bring them a steady stream of income and eventually create a McDonald's empire with a market value of 100 billion US dollars.

In fact, there are many examples like McDonald's.

Tencent, for example, was originally a social networking company based on QQ. ? But now, the usage rate of QQ is greatly reduced, and Ma's Tencent empire is growing? In the just-released 20 18 Hurun Report, Ma once again became the richest Chinese in the world for the same reason as McDonald's: realizing the traffic behind social interaction is the only way to achieve Tencent's empire.

For another example, it is well known that Ali founded Taobao, an e-commerce platform, but after more than ten years of rapid development, Ma Yun said that e-commerce is just a ferry boat, and Ali has now become a platform that gives everyone the opportunity to become Amazon.

Enterprises should have "McDonald's thinking"

For those growing companies, the following story may have some enlightenment for us:

Many years ago, after hearing that there was a gold mine in a desert, many people ran to look for gold, but a man sold a spade for gold by the gold mine. Many years later, most gold diggers returned empty-handed, but the small farmer who sold the shovel to the gold digger became a multimillionaire.

Whether McDonald's, Tencent or Ali, or other enterprises, the best business model is the best one. This kind of "McDonald's thinking" that creates and drains people half a step faster is what all enterprises should learn.