Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

McDonald's Real Estate: How They Really Make Their Money (2015)

blog.wallstreetsurvivor.com

Post reply on HN
Print view View original

41–50 of 273 posts

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#41

Post by lightbyte »

67726e wrote: post #37
lightbyte wrote: post #34

Earlier quoted context omitted.

You personally might not be able to, but there is a lot of research that shows children can't always understand that they are watching an advertisement, and what that entails. That's why the US has lots of regulations regarding advertising to children.

> That's why the US has lots of regulations regarding advertising to children. We have regulation on advertisements to children? That's a little surprising.

This one is more on the data collection side of advertising, but I'd say it's still relevant: https://en.wikipedia.org/wiki/Children%27s_Online_Privacy_Pr...

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#42

Post by vuln »

Kind of OT but the company I work for has more locations than McDonalds, and Walmart. Not combined but separate. Which baffles me. When I first started here I never knew what went into a retail store, from architecture, construction, store layout, buying, merchandising, it's insane... We call our headquarters the 'Store Support Center' because our mission is to support all 16,000 if our stores nationwide and a few in Canada.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#44

Post by Reason077 »

McDonald's business model of renting premises to their franchisees sounds similar to the way many pubs are operated in the UK.

Breweries (and "PubCo's") typically own the premises, which is leased to a tenant (publican) who is required to purchase the brewery's products.

https://en.wikipedia.org/wiki/Tied_house

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#45

Post by giarc »

samsonradu wrote: post #32
kjhughes wrote: post #5

Watch The Founder , http://www.imdb.com/title/tt4276820/ for an entertaining and educational dramatization of the McDonald's story, including the franchising and real estate leasing aspects.

Really glad you brought this up. It was indeed an interesting movie but I didn't really have the time to compare it with the facts. How much of what we saw was actually accurate?

I happened to have read the book a month or two before watching the movie. They were very different. In Ray's biography, he passes himself off as a "My word is as good as a contract" and "When I say I'll do this, I'll stick to it." The movie interpretation has him much more ruthless.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#46

Post by icantdrive55 »

JohnJamesRambo wrote: post #24
elevensies wrote: post #4

What impresses me most about McDonald's is the highly effective and efficient incentive structure. You have the franchise owner who is very committed financially and can make a high income, plus lots of low cost labor following a very precise process. And they seem to be able to replicate it at almost any scale. What impresses me least about McDonald's is their ruthless child-targeted advertising. EDIT: in sort of a…

What is wrong with advertising to children? They don't have any money, the parents can always say no or the kids can learn quickly how to determine if they should do what ads tell them to do. They will greatly need that skill in modern America. Teach them early haha.

You tell anyone they can't have anything, they want it more.

Citations:

1. This kid, I knew in kindergarten, wanted a G.I. Joe. Mom against all wars, and tired of seeing guys comming home with limbs blown off, only to be homeless, and have certain people shun them. That kid would buy GI Joes, and hide them in the neighbors hedge. That kid couldn't stop talking about Joe. (That kid tried to touch my Joe, and it happened once. The next time, I swatted his hand. Never told my shrink that one?)

2. I need my weed. It cures my condition. It make me more creative. I just want weed. I don't care if it's placebo.

3. The girl who said no. "You're just not my type." Years later she comes a knocking. Hell no, but I would have done anything for you in the ninties. And looking back--why? She was just an average person, but partied? I thought about her so much over the years. A bunch of lost years? Crazy?

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#47

Post by giarc »

HenryBemis wrote: post #2

I remember watching a documentary a few years back where Ronald was talking to some uni grads telling them that in reality he's one of the largest real estate owners globally since the trend is to OWN the space they occupy and not just rent. Well, if one thinks of how many of these burger joints.. And yes the burgers also make some good money ;)

I assume you mean Ray.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#48

Post by lukateake »

vuln wrote: post #42

Kind of OT but the company I work for has more locations than McDonalds, and Walmart. Not combined but separate. Which baffles me. When I first started here I never knew what went into a retail store, from architecture, construction, store layout, buying, merchandising, it's insane... We call our headquarters the 'Store Support Center' because our mission is to support all 16,000 if our stores nationwide and a few in…

Starbucks?

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#49

Post by Diamons »

pitt1980 wrote: post #26
elevensies wrote: post #4

What impresses me most about McDonald's is the highly effective and efficient incentive structure. You have the franchise owner who is very committed financially and can make a high income, plus lots of low cost labor following a very precise process. And they seem to be able to replicate it at almost any scale. What impresses me least about McDonald's is their ruthless child-targeted advertising. EDIT: in sort of a…

you might enjoy: https://www.goodreads.com/author_blog_posts/2484147-lessons-... from Ed Weissman (who's #6 in overall karma on HN)

Enjoyed the read overall but one line stuck out: "- I take one bite out of my cold Big Mac and eat one cold fries and throw it all out."

You have to be a special kind of asshole to throw away meat and food instead of just saying the food is cold.

Re: McDonald's Real Estate: How They Really Make Their Money (2015)

#50

Post by oh_sigh »

dboreham wrote: post #9

"Retail-as-Real-Estate" plays don't always work. e.g. Sears, KMart.

Sure, but McD is more distributed. Sears and KMarts are generally at malls or strip malls, so any change which negatively affects those things will affect Sears/KMart.
Post reply on HN