How McDonald’s Really Makes Their Money (It’s Not What You Think)

Dan Lok Show

Dan Lok

Business, Careers, Entrepreneurship, Management

4.9 • 824 Ratings

🗓️ 29 July 2020

⏱️ 6 minutes

🔗️ Recording | iTunes | RSS

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Summary

Have you ever wondered how McDonald’s was able to build such a huge empire? Well, it’s not because of their burgers. Listen to this episode to find out how McDonald’s really makes their money. You’ll be surprised because it’s not what you think.

Transcript

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0:00.0	The story is, one time Ray Crock was speaking to a group of university students, asks the students, you know, what business do you think I'm in?
0:21.9	All the students are saying, oh, Ray, of course,
0:23.6	we know you sell hamburgers and fries,
0:24.9	you're in a hamburger business.
0:26.3	And Ray said, no, I'm not a hamburger business,
0:28.4	I'm in real estate business.
0:31.3	That's partially true, that's what most people know.
0:34.0	I'm gonna give you something more advanced.
0:35.6	You want something more advanced?
0:36.6	Oh yeah.
0:37.6	That's what people think of.
0:40.1	It has evolved a lot.
0:41.5	First of all, McDonald owns some of the big,
0:44.3	most expensive real estate in the world.
0:46.8	They have a lot of different locations.
0:48.8	The only reason they offer fries and burgers and all that. They are really in three businesses.
0:57.0	One, they are what I call in the business in a box business.
1:01.0	Some people call that franchise business.
1:03.0	I call that business in a box business.
1:05.0	Okay, so people buy McDonald franchise,
1:07.0	they're buying business in a box.
1:08.0	It's turnkey.
	...

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