He stopped laughing and quickly said, "Actually, I don't make hamburgers. My real business is real estate. "
0 1 From selling barbecue to selling hamburgers
In 1930s, when the world economic crisis broke out, the United States fell into the Great Depression. At that time, the prohibition of alcohol in the United States had been implemented for 10 years, and the restaurants where people ate were greatly affected, and basically no one was in charge. On the contrary, fast food restaurants have reduced the service process and won the workers who rush about the transportation industry with the characteristics of low price, fast delivery and high efficiency. Drive-in restaurants are booming in Southern California.
1937, two brothers, Maurice McDonald and Richard McDonald, founded a drive-in restaurant named Dick and Mac McDonald in San Bernardino, California, specializing in barbecue.
1948, McDonald's brothers found that the hamburger in the barbecue shop was the most popular with customers and accounted for the highest sales, so they set their sights on this kind of hamburger with low price and fast dining, and immediately launched the signature product-15 cent high-quality hamburger.
The barbecue restaurant was officially transformed into a hamburger restaurant.
Real estate agent behind Hamburg
1954, ray kroc signed an agreement with McDonald's brothers to join McDonald's and was responsible for granting McDonald's franchise in the United States.
1955, McDonald's company was established.
1956, McDonald's real estate company was established.
Ray kroc mortgaged his house and car to the property owner, who leased the land to McDonald's, and McDonald's borrowed money from the bank with the land lease contract as collateral. After establishing a restaurant with a bank loan, he obtained a bank loan with the restaurant as collateral to pay the land lease fee. Rent out restaurants and collect rent to repay bank loans.
The core logic is: the franchisee pays the rent, repays the bank loan (used for restaurant construction) and the land lease fee. As the land (lease contract) and real estate (restaurant) have been mortgaged, the cash flow risk is extremely high.
However, it turns out that this makes McDonald's control over franchisees very favorable, including the unified management of supply chain, marketing and operation, which lays a solid foundation for McDonald's profit model of collecting rent with the increase of land price in the future.
From 65438 to 0978, the retail real estate prices in the United States continued to rise. This has prompted the location model of catering to gradually form a two-level differentiation phenomenon: most of the shops located in the bustling business district are small-scale shops, mainly promoting special products, and larger restaurants are forced to move to non-central areas of the city.
The crazy rise in land prices proves that McDonald's proud real estate model is very beneficial for McDonald's to borrow heavily to enter the real estate market when interest rates are low.
From 1968 to 1972, McDonald's stores began to expand wildly: during this period, McDonald's bought/leased the land of more than 400 stores in/kloc-0 for a long time.
In the 1990s, McDonald's owned 69% local restaurants in the United States, while only 35% overseas.
From 20 16 to 20 17, McDonald's rented stores accounted for 40% and 33% of the total number of stores, and the rental income brought by real estate was $66,543.8 billion and $6.5 billion, accounting for 25% and 29% of the total revenue respectively.
Compared with professional real estate investors and developers, the success of McDonald's real estate lies in:
The former is trying to copy a number of commercial real estate projects with the same style, but only relying on real estate to form its own strong brand, no matter in which country, it is a minority, not much, not much.
The latter has formed a quite strong brand in commercial operation. McDonald's has been selling hamburgers and has not launched a real estate brand, but the combination of its traditional corporate brand and real estate is making its profits achieve the effect of flowing water.
03 Enter China.
Just as its real estate operation mode is greatly influenced by famous western commercial enterprises, sometimes McDonald's will take a longer view. For example, crossing the ocean and entering China.
1990 10 McDonald's restaurant, located in the bustling East Gate of Shenzhen, is the first McDonald's restaurant in Chinese mainland.
1April, 1992, Beijing Wangfujing McDonald's restaurant opened, becoming the largest McDonald's restaurant in the world. This store is located in a prime location at the junction of Single Street and Chang 'an Avenue in northern JD.COM. Later, after the transformation of Wangfujing, McDonald's made a fortune by compensation for land demolition. This shows that McDonald's investment in real estate is sharp.
While making fast food, McDonald's has never stopped making real estate. It has formed a set of its own fast food production procedures, store layout rules and store location secrets.
20 17 1, CITIC, CITIC Capital Holdings, Carlyle Investment Group and McDonald's under CITIC Group jointly announced that they have reached a strategic cooperation and established a new company, which will become the main franchisees of McDonald's in Chinese mainland and Hongkong in the next 20 years. After the transaction, more than 65,438+0,750 McDonald's restaurants in Chinese mainland and Hongkong were franchised.
20 17 10 according to the national enterprise credit information publicity system, McDonald's (China) co., ltd. has officially changed its name to golden arch (China) co., ltd. (PS: temporarily called McDonald's).
Franchise mode enables McDonald's to use the capital leverage of franchisees to expand rapidly.
Its main business is to buy land or lease it for a long time, and then buy shops in the business district in advance and rent them to franchisees in a McDonald's branch, while earning the benefits of real estate appreciation.
At present, McDonald's is spread all over six continents 120 countries, with about 30,000+branches.
When McDonald's expanded to the whole world, it has become the largest real estate agent in the world, with some of the most valuable street corners and intersections in the United States and other parts of the world.
04 real estate profit model
The source of McDonald's profits in real estate is simply to buy and sell popular stores or charge high rents for franchise stores.
Because franchisees generally don't have enough funds to pay the high land cost and construction cost (about 30,000-50,000 dollars, which changes with time), they usually can't get loans.
McDonald's Company is responsible for finding a suitable store address on behalf of franchisees, renting or buying land and houses for a long time, and then renting the stores to franchisees to obtain the price difference. This is the main source of income for McDonald's company. In essence, McDonald's real estate company buys real estate with the money of each franchise store, and then rents it out to the franchise store that pays for it.
This real estate management strategy is actually to transfer the rights of the first creditor to McDonald's real estate company, making it eligible for bank loans. This not only solved the financial difficulties for franchisees to open stores, but also increased the income of McDonald's company. At the same time, by controlling real estate, it is more conducive to McDonald's strengthening the management of franchisees.
According to the data, by the mid-1980s, 60% of McDonald's restaurants were owned by McDonald's headquarters, and the other 40% were rented by the headquarters to local real estate owners. As a result, real estate income has become the main income of McDonald's. 1/3 of McDonald's income comes from direct stores, and the rest comes from franchise stores, among which real estate income accounts for 90% of this income.
The genius of this model lies in the acquisition of real estate at a long-term fixed rate and the transfer of variable costs to franchisees. When the sales price inevitably increases, the franchise fee also increases, but the fixed cost of the company remains relatively stable. This model has built McDonald's into a company with strong cash flow and continues to this day.
05 principle of prime location
How much does commercial real estate earn?
A few years ago, KFC entered the 360 Square of Zhengzhou International Trade Center and won the store space at that time at the price of 1.5 million. Later, Lu took a fancy to that place and offered 300 million yuan, but KFC still did not waver. In just a few years, this land price has increased 20 times.
In fact, McDonald's is far from being the only non-real estate enterprise seeking gold in the real estate field.
Cai Yuxiang, director of the business planning department of Zhongyuan Real Estate Investment Consulting Company, said: Many brand retail enterprises are big landlords of commercial housing, and the demand for commercial housing is very large, so they can usually rent houses at lower prices. They also have their own set of very professional analysis models for the commercial prospects of lots. Because of their strong brand effect, after they live in a place, many small tenants will naturally flock to them. They will divide the store into many blocks and rent it to small owners at a higher price. This rent difference is an important source of income for these enterprises.
Harry Sonneborn, chief financial officer of McDonald's, once said: "In essence, we are not really in the food industry, we are in the real estate industry ... The only reason why we sell hamburgers with 15 cents is because it is the best product to bring cash flow, and finding tenants by hamburgers can pay our rent."
History, president of McDonald's East China, put it this way: "The reason why McDonald's is hot is first, second and third."
The location of McDonald's is an extremely important matter within the company. Usually, it takes three to six months for a store to open, and the problem is extremely detailed, even involving whether the store site conforms to urban planning and development, whether there will be municipal relocation and surrounding relocation, and whether it will enter the red line of urban planning. If you enter the red line, you will never touch it, and you will never set up a point in the aging business circle. In principle, pure housing will not make any sense.
Mcdonald's real estate business: because of the strong brand effect and the choice of professional lots, it brings strong customer flow, and there are rivers and lakes where there are people, which can be transformed into endless profits.
Lot, the impact on commercial housing is reflected here. Bad investment houses in lots are hooligans, especially commercial houses.