I must read the book. I enjoyed the movie.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.
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.
Favorite drink Skate?
Favorite food Skate?
Favorite drink Skate?
Favorite song Skate?
Favorite Book Skate?
@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.
Yes, a good little Book Skate. A book of principles.
@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
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
They trimmed down their stores somewhere around 2000 I think.
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
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?
@tech/a & @captain black were the two drivers of my trading success.
You at or going to University Luu?
Doing something in Accounting or Finance or something?
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