Mcdonalds is not selling burgers!!!

 Mcdonalds is not selling burgers!!!

You might be surprised to know that selling burgers is not McDonalds main business.

McDonald's is a real estate company.

There are 39,198 McDonald's outlets globally which has a total value of 41 billion dollars making it the 7th largest real estate owner in the world.

How you can ask...

usually fast food restaurants operate on franchise model, people who own land contact the brand owners and obtain the franchise licience & use their brand name and recipes for a fee.

But Mcdoland's follows a different stratergy. it first buys a land and then finds people to operate there.

For 60 years McDonald's has been doing this and the results!!!

For so many years McDonald's has been collecting rent along with royalty fee from franchises.

Name of this genius stratergy is Sonneborn model.

McDonald's earns $11 Billion yearly & out of this 70% comes not from selling burgers but from the rent.

Now that's smart right?

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