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Mcdonalds Mcdonald s Restaurant Video

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By every definition, this makes it a restaurant. But digging behind the numbers makes the case that McDonald's is more of a real estate company than a fast-food chain, according to the popular YouTube channel The Food Theorists.

To explain this concept, the video reviews McDonald's early history.

While Krock was successful in expanding McDonald's presence, Harry Sonneborn is credited with convincing the McDonald's team to switch their strategy. This conversation was featured in the film "The Founder.

Mcdonalds Mcdonald s Restaurant

Sonneborn argued that McDonald's shouldn't be in the burger business, and rather said it Mcdonalds Mcdonald s Restaurant to be in the real estate business. It's difficult to build an empire by taking a 1. Instead, the view was that McDonald's should own the land where each burger is cooked. The franchising model evolved to consist of a franchisee paying an upfront fee to McDonald's, but under one important condition: the franchisee must operate out of a building McDonald's owns on land it also owns — and pay rent. This is in addition to regular royalty payments. So there we have it. McDonald's generates more revenue from sitting back and collecting rent checks and royalty payments than it see more by selling food at its own corporate-owned locations.

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Mcdonalds Mcdonald s Restaurant

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