World’s largest fast food chain makes money not by selling food but by this:

World’s largest fast food chain makes money not by selling food but by this:

Efficiency.

McDonald’s was built in the 50s & 60s when ‘mass production’ & ‘efficiency’ were the buzzwords.

Their superpower is delivering burgers as quickly as possible.

But the food they sell is so fake that:

↳ You could take a screenshot of this post
↳ Get it printed via Blinkit
↳ Crumble the printout
↳ Eat it
↳ & it’ll still be more nutritious than a McDonald’s burger

So:

→ They are the largest fast food company in the world
→ They don’t have a great culinary experience
→ Their food (& coke) is not real

So, what do they sell?

They sell the fact that the food is fast.

McDonald’s has over 36,000 locations worldwide.

Smartly, only 15% of these are company-owned – the rest are franchises.

In 2023, McDonald’s reported annual revenue of $25.49 billion, out of which:

→ $8.53 billion from franchised locations
→ $16.9 billion from company-operated restaurants

But here’s the kicker:

🍔 Revenue Discrepancy: They keep 82% of franchise-generated revenue vs only 16% of company-operated restaurant revenue

🍔 Real Estate Ownership: They own about 45% of the land & 70% of the buildings at their locations

🍔 Long Term Vision: During the 2008 recession, they capitalized on the declining property market, buying more land & buildings!

Remember, the next time you go to a McDonald’s, you’re not at a fast food place.

You’re at a place that sells efficiency (packaged in great real estate) and

They’re loving it… Padum Pum Pum Pum 🍟