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luutzu said:
I read "McDonalds: Behind the Arches" by something Lowe [?]. While Kroc was among the first to move in on the fast food industry back then, his success was the ingenious way he go about benefiting both the franchisee, the customer and ultimately himself.

There's the real estate business Skate pointed to. There's those thousands of innovation, fast service etc. that he/they introduced.

But a big lesson I took away from it, and one I still hear are not being followed from not just the listed franchiser [Retail Foods Group? The one owning OZ Dunkin Donuts, Gloria Coffee etc... nearing collapse]... and a small time franchiser who's a son of a dad's friend... which they brag on a lot not realising that that's not how you make long term profit.

Anyway... most franchisers back in Kroc's day doesn't care to do what he does. They just buy a state or major territory franchise and profit by selling regions off.

Or they bulk buy the products/supplies, on sell to the franchisee at a mark-up... and doesn't care if those franchisee of theirs survive or not as their model was profiting from supplying to the franchisee more than the profit sharing.

McDonalds profit by, one... getting the rent where the franchisee operates. That also help them control quality and operation, kicking out underperforming operators. IT also mean their people get to decide where it's best to operate a Macca. i.e. working class neighbourhood. And not over do the stores opening.

So that provide the cashflow they need.

Most important, they actually did not markup the supplies they sell to their franchisee. Letting them be profitable and that in turn make McDonald profitable and consistent.
Click to expand...
I must read the book. I enjoyed the movie.
To me it was the discovery of the McDonalds brothers original burger bar and the efficiencies they had set up.. with the convenience to the customer being rapid delivery.
I might be wrong but Kroc really discovered the real estate factor as a work around because he had problems dealing with one of the brothers? ...Ahh not sure ... I must watch it again
 
luutzu said:
I read "McDonalds: Behind the Arches" by something Lowe [?]. While Kroc was among the first to move in on the fast food industry back then, his success was the ingenious way he go about benefiting both the franchisee, the customer and ultimately himself.

There's the real estate business Skate pointed to. There's those thousands of innovation, fast service etc. that he/they introduced.

But a big lesson I took away from it, and one I still hear are not being followed from not just the listed franchiser [Retail Foods Group? The one owning OZ Dunkin Donuts, Gloria Coffee etc... nearing collapse]... and a small time franchiser who's a son of a dad's friend... which they brag on a lot not realising that that's not how you make long term profit.

Anyway... most franchisers back in Kroc's day doesn't care to do what he does. They just buy a state or major territory franchise and profit by selling regions off.

Or they bulk buy the products/supplies, on sell to the franchisee at a mark-up... and doesn't care if those franchisee of theirs survive or not as their model was profiting from supplying to the franchisee more than the profit sharing.

McDonalds profit by, one... getting the rent where the franchisee operates. That also help them control quality and operation, kicking out underperforming operators. IT also mean their people get to decide where it's best to operate a Macca. i.e. working class neighbourhood. And not over do the stores opening.

So that provide the cashflow they need.

Most important, they actually did not markup the supplies they sell to their franchisee. Letting them be profitable and that in turn make McDonald profitable and consistent.
Click to expand...

Yep, same book I read. Kroc bought the Store off the McDonald brothers.

I read another analysis mid 90s saying McDonalds was now a Real Estate business :D

They trimmed down their stores somewhere around 2000 I think.
 
Contracts.

That something is written on paper (or its electronic equivalent) either formally or informally does not mean it will necessarily occur.

In order that any business plan, contract, planned response to a scenario, etc, actually takes place physically requires that:

It is physically possible to do it in the intended time.

Finance is available from whatever source.

All necessary arrangements have been made.

Required approvals from any government or other authority have been obtained.

All relevant parties, including contractors and sub-contractors, actually intend and desire to implement it.

None of those can be assumed simply because something has been written. It certainly wouldn't be the first time that a response plan or other document was produced with no idea as to whether or not it could be implemented in practice and with no intention of doing so anyway.

That which actually exists is worth far more than that which is proposed. :2twocents
 
Darc Knight said:
Favorite drink Skate?
Click to expand...

@Darc Knight my favorite is Sco
Darc Knight said:
Favorite food Skate?
Click to expand...

@Darc Knight I really don't have a favorite food but in a previous post I made a reference to Scottish food, I enjoy Scottish Food (McDonalds - my wife of 44 yrs restricts that treat to once a year) I love Chinese.

I personally restrict my carbohydrates intake & I eat healthy - I was a vegetarian for the past 5 years (it was a life style choice) - I'm not a big meat eater - I tend to eat more protein.

One of the larger retail stores that's I've owned was a supplier of Fitness Equipment & to be successful in that industry you need to project the correct image.

Reformed vegetarian
As a reformed vegetarian I may be able to pass something on that you may not know.
1. Never wonder if a person is a vegetarian or not, you don't even have to ask - they will tell you.
2. Vegetarian have a deep appreciation of Butchers because they kill the animals that eat our food.

Skate.
 
Darc Knight said:
Favorite song Skate?
Click to expand...

Favourite song
"Don't eat the yellow snow" Frank Zappa

Forgive me the lyrics are from memory
I dreamed I was an Eskimo
frozen wind began to blow
under my boots and around my toes
the frost that bit the ground below
it was a hundred degrees below zero

Don't be a naughty Eskimo
save your money, don't go to the show

and the northern lights commenced to glow
and she said, with a tear in her eye
watch out where the huskies go, and don't you eat that yellow snow

Poet
Frank Zappa would have made a great poet - died young & experienced a painful passing. (Frank Zappa is a acquired taste)

Well worth a listen
If I could have two favourite songs the other would be:
Arlo Guthrie - Alice's Restaurant (the song goes for about 20 minutes)

Skate.
 
Darc Knight said:
Favorite Book Skate?
Click to expand...

@Darc Knight like most I reader my fair share of books but if I could recommend one book for you it would be:

The Richest Man in Babylon
The Richest Man in Babylon by George Samuel Clason.

Copyright
The book is so old it's out of copyright - it was compulsory reading for Financial Uni Courses back in the 'good old days' of the USA.

The book gives advice through a collection of parables set in ancient Babylon. I have given away quite a few copies to staff & friends over the years & I always received a thank you, some needed it explained.

First principle
If you understand the principle of paying yourself first it will set you up for financial freedom.

Financial freedom
Financial freedom allows you to live your life on your terms

Parables
The parables that you will learn are simple lessons in financial wisdom.

Skate.
 
Skate said:
@Darc Knight like most I reader my fair share of books but if I could recommend one book for you it would be:

The Richest Man in Babylon
The Richest Man in Babylon by George Samuel Clason.

Copyright
The book is so old it's out of copyright - it was compulsory reading for Financial Uni Courses back in the 'good old days' of the USA.

The book gives advice through a collection of parables set in ancient Babylon. I have given away quite a few copies to staff & friends over the years & I always received a thank you, some needed it explained.

First principle
If you understand the principle of paying yourself first it will set you up for financial freedom.

Financial freedom
Financial freedom allows you to live your life on your terms

Parables
The parables that you will learn are simple lessons in financial wisdom.

Skate.
Click to expand...

Yes, a good little Book Skate. A book of principles.
 
Skate said:
@Darc Knight I've wasted a book suggestion, may I recommend another please.

Fooled by Randomness
Fooled by Randomness by Nassim Nicholas Taleb

This book explains why some people are successful where others aren't so lucky.

Skate
Click to expand...

Yes I remember you recommended that in another thread. I searched online and found a summary of it. Certainly seemed a well researched and worthwhile read.
 
Darc Knight said:
Yep, same book I read. Kroc bought the Store off the McDonald brothers.

I read another analysis mid 90s saying McDonalds was now a Real Estate business :D

They trimmed down their stores somewhere around 2000 I think.
Click to expand...

Yea, it's a fascinating business. Would make a good case study I reckon.

I think I got its annual reports from 1986. Before that the database the uni account I got didn't subcribed for... guess who'll be doing a financial study of Maccas soon? :D
 
jbocker said:
I must read the book. I enjoyed the movie.
To me it was the discovery of the McDonalds brothers original burger bar and the efficiencies they had set up.. with the convenience to the customer being rapid delivery.
I might be wrong but Kroc really discovered the real estate factor as a work around because he had problems dealing with one of the brothers? ...Ahh not sure ... I must watch it again
Click to expand...

From the movie it was Kroc's second in command that figured McDonalds was more a real estate business than a simple fast food. But from Kroc's autobiography, I think he had a falling out with the guy some years later... and his explanation was that he wanted McDonalds to be more of a food business whereas the other guy wanted it to be predominantly real estate.

So the guy quit, sold all his shares... and without saying, missed a fortune or ten as Maccas takes over the world.

But beyond that, I don't remember much detail. I should re-read Lowe's book again actually.

Also from the book, some contractor outside the industry figured out a way to quickly bag them chips but didn't patent it. I think he also discovered and manufactured how to dispense the sauce, but again failed to patent.

If it was patented, he could license the two thing to the fast growing fast food industry and retire very happy.
 
Hi, I recently turned 18 and have invested in some shares in ANZ. I wanted to also experiment with day-trading using about $1000 and was wondering if anyone could recommended any companies to do this in that have fluctuation or any techniques for this? Thanks
 
luutzu said:
Yea, it's a fascinating business. Would make a good case study I reckon.

I think I got its annual reports from 1986. Before that the database the uni account I got didn't subcribed for... guess who'll be doing a financial study of Maccas soon? :D
Click to expand...

You at or going to University Luu?

Doing something in Accounting or Finance or something?
 
Great thread Skate, well done :)

Skate said:
@tech/a & @captain black were the two drivers of my trading success.
Click to expand...

For me this is what a forum is all about. I answered a few questions Skate had on the Amibroker FAQ thread a couple of years ago and we've been in touch via email since then and I've enjoyed watching his progress to becoming a successful trader.

It's always the hope that someone you help out comes back and not only helps others out but teaches you as well in the process. :)

I'm sure anyone reading Skate's words of wisdom in this thread knows the knowledge I've imparted has been returned threefold.
 

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