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/ck/ - Food & Cooking


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15343423 No.15343423[DELETED]  [Reply] [Original]

>McDonalds is a real estate business lol!! they don't make money off their food
>McDonalds: charges $10 for a cheeseburger fries and soda

>> No.15343432

Who are you quoting?

>> No.15343434

>>15343423
literally no one has ever said that

>> No.15343447

>>15343434
someone on bon appetit did

>> No.15343454

>>15343432
>>15343434
Google McDonalds real estate. I also see the same sentiment on this board pretty often

>> No.15343456

>>15343447
>muh ecelebs
Fuck off

>> No.15343849

>>15343423
The only margin there is the soda. And It’s like a 1000% margin. McDonalds is an elaborate Coca Cola distribution network.

>> No.15343868

>>15343849
Nah. You'd literally make profit from that price buying food from the grocery store, nonetheless the supply chain discounts McD's has which I'd assume are the most favorable of any restaurant in the entire world.

>> No.15343885

>>15343868
Okay now pay your wagies, utilities, inspection fees, property taxes, payroll taxes, and insurance. NOW see how much you got mr. moneybags

>> No.15343897

>>15343885
>burger insurance

>> No.15343906

>>15343885
Just like literally any other restaurant? that also doesn't have the benefit of being the most popular ever

>> No.15343914

>McDonalds: charges $10 for a cheeseburger fries and soda
it's like $3

unless you typically buy the "american" size

>> No.15343925

>>15343897
Do Americans really?

>> No.15343931

>>15343914
>$3
Maybe in the phillipines

>> No.15343932

>>15343897
Employees and liability yeah. McDonalds got ass raped for burning a lady with hot coffee lmao.
>>15343906
Almost all restaurants make their margin on selling drinks. It’s like $.03 worth of product they sell for $1+. This is doubly true for places that sell booze.

>> No.15343952

>>15343932
Yes it's high margin item. That doesn't mean they're breaking even on $6 cheeseburgers

>> No.15343966

>>15343423
Do you not know how franchises work?

Basically a small minority of locations are owned by the mcdonalds corporation. These are often large locations or are situated in important locations where they don't want fuckups (centers of major cities, tourist hotspots, etc). At these locations, all profits go to the company. Effectively the only way they make money from these locations is through food / drink sales.

Most locations are run by people who do not directly work for the company (franchise holders). They pay mcdonalds for the right to use the logo, menu, training material etc. They get to keep the profits made from food sales.
A lot of franchise owners also rent the restaurant itself from McDonalds.
Mcdonalds builds locations and then sells the franchise rights. I think you can also apply to fund the construction of the building, and purchase the land yourself if you want to own a franchise, but don't want to pay them rent. McDonalds has to approve the locations / construction and everything though.

I think people say mcdonalds is in the land business because they do make a lot of money off of ground rent from franchise owners. Probably more than they make on food, given that there are significantly more franchised locations than corporate owned.

>> No.15343968

>>15343423
McDonalds Corporation is in the Real Estate biz. The franchisees are the ones making most of the margins on the food itself.

>> No.15343969

>>15343952
I mean you could look it up yourself it’s been studied by economists extensively. Idk why you think there’s crazy room for margin on $6 burgers and fries.

>> No.15343985

>>15343966
Op is business illiterate and doesn’t want to listen.

>> No.15344024

>>15343966
The misinfo and disingenuousness comes from articles, and subsequently people in this very thread, claiming things like the company with the best supply chain deals in the world has low to ZERO margins on their, not just equally priced to the market, but overpriced food.

>> No.15344083

>>15343969
Business Insider writers don't count as economists brah. They probably know as much as you or I

>> No.15344138

>>15344024
>>15344083
https://en.m.wikipedia.org/wiki/Big_Mac_Index