Since the opening of the first McDonald's store in Shenzhen on June 8th 1980, this world-class restaurant giant has opened 3,000 chain stores in China, all over the streets of China.

With its unique brand image, McDonald's is deeply integrated into people's lives, including the golden arch that can be seen from a distance, the shop decorations with red and yellow as the main colors, hamburgers, French fries, chicken nuggets and coke.

But if someone told you that McDonald's doesn't make money by selling hamburgers, French fries and coke, would you believe it?

Harry J. Sonneborn, the first president of McDonald's (1959- 1967), once said to investors on Wall Street: We are not a catering company, but a real estate company. We only attract franchisees' attention by selling hamburgers, so as to get their rent and make money.

Baidu asks McDonald's what makes money, and it can also see many other sources of income besides selling hamburgers.

In essence, McDonald's money-making model can be divided into two modes: direct selling and joining. Direct profit model, that is, McDonald's restaurant is self-operated, mainly through the sale of products to obtain income and profits; The mode of making money by joining, that is, McDonald's obtains income and profits by providing brand authorization, store operation management and store space lease, that is, making money from people who want to make money. To put it more bluntly, McDonald's money-making model has the following three aspects.

First, make money by selling hamburgers, French fries, drinks, toys and other physical products;

Second, make money by authorizing brand use rights and collecting store operation and management fees;

Third, earn money by renting out the premises operated by shops.

According to the data analysis of McDonald's financial report in 20 16, 50% of its profits in that year came from the contribution of real estate rental, 40% from brand authorization, and only 10% came from the products sold in restaurants.

0 1

Products make money mainly by main products and auxiliary products. The main products are hamburgers, French fries, drinks, fruit pies and so on. And the supporting products are toys, because toy McDonald's was once considered as the chain toy manufacturer with the largest number of stores in the world.

Behind the hot sale of every McDonald's product, it is because a lot of time and money have been invested in product research and development in the early stage. Basically, the research and development cycle of each product is more than 10 years, which is also a 50-year life cycle.

In today's 202 1, many people will get used to ordering spicy chicken pot or spicy chicken wings. The earliest listing time was 1998, and the roast chicken leg burger was launched in 2002. These are specially developed and produced by McDonald's for customers in China. Up to now, the longest is close to 25 years, and the shortest is close to 20 years. Other products, such as 1960 Maixiang Fish, 1967 Big Mac Burger, 1970 Apple Pie, 1972 Egg Perfect Score, 1979 Happy Paradise, are still selling well.

Product profit mainly depends on French fries, fruit pies, drinks and toys. Hamburg is basically a big drainage explosion, and it doesn't make much money. Coke, Sprite and bottled drinks bought in supermarkets are all made by Coca-Cola, and the products themselves are not very different, but the price of Coke 8 and 9 yuan in McDonald's cups is about three times that of bottled drinks, which is a very important source of profit.

In 20 12, Nutrition Nibbles, a research institution in the food research industry, gave a data showing that McDonald's sold 3 billion Happy Paradise packages that year, and the number of toys sold through this package was as high as/kloc-0.5 billion. McDonald's toys are mainly developed around the images of Uncle McDonald, Big Bird Sister, Milkshake Brother and Hamburg Thief. The products are designed by hand, toothbrush holder and pencil box.

In recent years, we began to cooperate with a large number of popular IP, such as Super Mario, Thomas's train, the secret life of pets, Minions, Angry Birds and HELLO KITTY. These toys not only attracted children to McDonald's for consumption, but also caused a lot of collection fever, so it is no exaggeration to say that McDonald's is an expert in product management.

02

Franchising makes money. When it comes to franchising, we have to talk about ray kroc, known as the father of McDonald's.

In the late 1930s, after the New Deal, a large number of expressway were built, and the convenient traffic conditions made the number of Americans eating by car increase rapidly, which directly gave birth to the rapid development of the fast catering industry in the service areas on both sides of expressway.

When ray kroc was selling milkshake mixers to these restaurants in the service areas on both sides of expressway, he was hit by McDonald's Brothers ordering eight automatic milkshake machines at one time, because most restaurants ordered 1 at that time, and the number of ordering eight machines at once surprised ray kroc. After entering McDonald's, the chef learned about the product high-speed service system (production line for hamburgers) developed by McDonald's brothers themselves, and understood why the demand was so large, and at the same time he was keenly aware that it would be a very great cause.

In the movie "The Great Entrepreneur", the McDonald brothers called their employees to an amusement park. According to their pre-planned production process, let each employee only focus on one job, such as someone is responsible for barbecue, someone is responsible for adding side dishes, and someone is responsible for baking bread, thus forming a fast production line and greatly improving production efficiency. The fast production line of McDonald's Brothers is named the high-speed service system of McDonald's restaurant.

1954, ray kroc decided to cooperate with McDonald's brothers to become their restaurant franchise agent, and in 1955, he opened his first McDonald's restaurant in Des Plath, Illinois, USA, and served as a model store for other franchisees.

With ray kroc's QSCV management rules for McDonald's, he opened more than 200 chain stores in just five years.

In addition to the QSCV franchise operation manual, ray kroc also put forward the famous "three-legged stool theory". He believes that the development and expansion of franchise business can not be separated from the joint efforts of McDonald's employees, franchisees and raw material suppliers, that is, with the support of franchisees and suppliers, McDonald's is expected to form a joint force to promote the development and progress of each of its restaurants. So you can often hear McDonald's say to franchisees: This is your fight, but you are not alone.

It is because of ray kroc's franchise concept that more businessmen want to join this McDonald's business. Millions of brand authorization franchise fees (about 2 million for a single McDonald's store and 8 million for direct transfer of McDonald's operation for a period of time) and 6% of McDonald's franchise restaurant income every year are used as operation management fees (if the annual turnover of McDonald's restaurant you run is 20 million, then you need to pay 65,438 to McDonald's headquarters).

03

Ray kroc opened a McDonald's franchise store on 1954. Although it attracted many franchisees in a short time, the company developed well and smoothly, but the conditions of the agreement signed with McDonald's brothers at that time were harsh, which made most of the profits of ray kroc's franchise store go to McDonald's brothers, and the company's development funds were not plentiful.

It was also at this time that ray kroc thought of a solution to the financial problem and set up a real estate company, which was responsible for finding a suitable address for McDonald's stores, locking it in the form of long-term lease, and then subletting the stores to franchisees to obtain the price difference. As a result, the income has become the service that contributes the most to McDonald's profits. In the early days, McDonald's operated in this way, more for the purpose of using long-term lease contracts and restaurant equipment as collateral for business expansion, obtaining funds from banks, and repaying bank loans and land lease fees with rents, brand licensing fees and operation and management fees given by franchisees.

However, in the actual operation process, McDonald's found that it is also very beneficial to control franchisees by leasing business premises (disobedience will cut off water and electricity), which ensures that ray kroc's highly consistent requirements for all McDonald's restaurants in marketing, raw material supply, restaurant operation and other places that need to be standardized are finally implemented.

With the development of time, the original long-term rental stores have also become the main source of profits. On the one hand, direct stores don't have to bear the rising rent pressure, on the other hand, franchisees can charge the rising rent. From 20 16 to 20 17, the number of stores that McDonald's subletted to franchisees reached12,262, accounting for 40% of all stores at that time, and the rental income was as high as 6.5 billion US dollars.

So it makes sense to say that McDonald's is a real estate management company.

04

Products, everything comes from products. No matter how many profit models McDonald's has, what is the profit contribution rate of each model? The success of McDonald's still owes to its products. Its hamburgers, French fries, fruit pies, vanilla ice cream and Happy Paradise packages have brought popularity, attracted franchisees and laid a solid foundation for other money-making opportunities.

Attract consumers with products and brands, create popularity, and then attract the attention of franchisees to invest. McDonald's continues to develop products with the money earned through products and franchisees, continues to polish the brand image, continues to make money by selling products, and continues to make money by franchisees. This is a virtuous circle of money-making model. Don't be too single about what McDonald's makes money, because this is a systematic mode of making money, and no one can make money.