Why You Will Go Broke Owning a McDonalds Franchise
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- Опубликовано: 26 сен 2024
- The golden arches of McDonald's can be seen across the globe in almost every small town, and big city alike. Owning a McDonald's franchise seems like a great investment, until you find out about all the secret costs that come with owning the most well-known fast-food franchise on the planet! What's McDonald's hiding? Find out in today's new video.
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The owner of the McDs I worked at bought his first store when he was only 38. Using an inheritance he bought 5 more stores and retired at age 50, selling all his stores and living very comfortably with his future secure.
"SMALL LOAN OF A MILLION DOLLARS " EASY WHEN YOU INHERIT OR MOMMY & DADDY PAY
@@veevendetta3448 spoken like a true loser. Just focus on how to get your money rather than criticize someone else's way of doing it.
Rather be retired in my 20s
In Israel you need something like 200k $ to make macdonalds store
@@veevendetta3448 see that totally different, when driving around I see low life's like you watching my car and clothes and lifstyle. Youre just a work ant nothing wrong with that!
My step father franchised a McDonalds for about a decade. He had worked for the company since the 80s, bought the store in 2005. In his case, they wanted to see at least a million in liquid assets from him (vs the min. $500,000 said in the video). He worked at least 16 hours a day 5-6 days a week. He worked so much, one night he began to tear up thinking my mother has finally done with him because he spent so much time at the store. I'd regularly see him working the register or running food outside when I'd visit. HQ constantly gave him nonsense. After less than a year, they demanded he tear down the building and do a complete rebuild. Paying the fee turned out to be cheaper, so that's what he did for 9ish years. He did well financially once the store was paid off, but that took around 7 years.
Yep it’s no easy going in like people think it’ll be
Who asked
@@adamtady9288 Cry away, Kid.
@@aimang.t.r.m1270 After you mate, look at your pfp it's chewsday innit
@@adamtady9288 Actually, Its Friday. Anyway does anyone still ask what your last name is?
I worked for a rich guy who owned 5 McDonalds stores. His first restaurant was his most successful and profitable. Our store did well but a disgruntled former employee broke into the store and trashed it. We also had several break-ins and burglaries. One assistant manager disappeared with a large bank deposit. Finally, the owner told the corporation that he wasn’t making the return that he expected for his investment. McDonalds took over all five stores and the former owner bought a couple Shell gas stations that were more profitable.
What happened to those stores?
The restaurant that I worked at has been torn down and rebuilt. I assume the other restaurants still exist but have new buildings.
Very realistic. A new problem every day
Gas stations barely make money, not a wise investment
IMO some of the managers at the stores could care less about their poor customer reviews. Too many chiefs and No Indians comes to mind. The peak in online ordering hinders their inept staff.
I had a history teacher in high school whose wife owned a McDonald's and my teacher wore this gigantic McDonald's ring. The size and style of the ring would've made you think that McDonald's had it's own football team and they won the Superbowl!
I was a district manager for 14 McDonald’s. I made 220 K after it was all said and done. I had years I made more than the owners. But they did have many 4+ mil profit years. I would say they had at least 3 stores that lost money. Most made 10% at best. A few did insane numbers.
You're lying
@@User_92020 you're lying
@@friedrichwilhelmviktoralbe349 you’re lying
@@lewis8634 I'm lying?
Who's lying?
The overhead and administrative costs are challenging for a franchisee to own only a single restaurant. Having several locations within the same metro area are when the profits roll in.
McDs does multi unit deals so yes, this makes sense
Gotta wonder if it's even a good deal if you can't make decent money owning a single restaurant. Seems like signing up for a losing game.
Yeah cause then you can control the prices in the town and make sure those drinks are 2.20 for the large instead of 1.00
The guy who owned McDs that I worked at made a lot of money at his first restaurant so he expanded to five restaurants. According to my manager, none of the other restaurants were as profitable as the first store. All of the restaurants were in good locations but there was something magical about the location of the first restaurant.
Nah, one good location can be a cash cow, I think. I have an McD in the area that brings about 30k profit a month for the owner. This is just what I know from hearsay, though.
Why Owning a McDonald's Restaraunt Will Leave Your Ice Cream Machine Broken
😅
That was my first thought- the ice cream machine!!!
Mcdonalds ice cream machine is realy a complicated machine . Ask someone who has operated nd cleaned that machine . It has 50 parts you need to pull out every night to clean this machine
Everyday bro. No matter which McDonald's I go to across Baltimore
I know I’ve seen/read something about the ice cream machine being a giant loss for McDonalds, part of it was the correct cleaning instructions. They made all the franchisees purchase them. It MAY have been a 10 minute video I only remember in scraps.
I worked for Mcds for 2 years as my first job at 16 while at college. My franchise owner owed most of the stores in my county (Hertfordshire). Most down to earth guy I’ve ever met. Would often come into my store and find him working the tills, or on the line. Bumped into him a few weeks ago, he sold up a few months ago (must be in late 40s, early 50s). Going by the Bentley he got into, I’m assuming his not living on to tight of a budget.
You where in college at 16? Nice
@@bryanhernandez2472 not everyone on the internet is american. OP said Hertfordshire which is in England, UK
College is different here than in america. American college is university for the british
I wasn’t being sarcastic I legit thought it was nice
Yeah this video was clearly created by someone who doesn't have any experience in being a McDonald's franchisee. I'm an owner and like you said, there are not many businesses that will make you as successful as being a McDonald's franchisee
I ran into a guy who used to own a Radio Shack. He said that he sold out just at the right time. He was working part time at Home Depot because he was bored.
Thanks for the advice buddy, I’ll have to remember this when I end up winning the lottery, the last I’ll buy is a Macdonalds restaurant, not that I’d buy one anyway but I’ll definitely know not to buy one now.
your welcome
@@brndn9423 nice one buddy, I honestly don’t know how I’m going to win the lottery cause I don’t even do it to be honest with you but you never know I might buy a ticket and win but I doubt it mate haha 😆 take care of yourself buddy wherever you are in the world from Stevie boy in Britain
lol
I only used to buy cappuccino from MD's, used to get the odd breakfast muffin but NEVER anything else because the quality both of primary ingredients & nutritional content is so bad I worry that Covid was around for decades before 2019 as only lack of smell & taste can explain why anyone eats that 💩
Cheap almost always means inferior & low grade/quality.
MD's business model is the LANDLORD first(PROPERTY/REAL ESTATE) & Licensing the brand(Franchise) secondary, the food etc is not important in the business model.
it would do better than any restaurant you would try to open
Most franchises just set their stores on fire and claim from insurance to do all those upgrades!😂 I’ve seen it many times.
You seen the owners putting their McDonalds on fire?
@@sim4776 not literally
Cap
I actually have seen this happen
This happened at another local restaurant. The old restaurant suspiciously caught on fire during the pandemic and was rebuilt. The food is pretty good but there are not many customers.
I'd rather own stock in McDonalds and collect the dividends. Not to mention that dividend has been raised consistantly for decades now. I'll enjoy the cashflow without the headaches lol
Good idea
Yeah that's the point of owning any stock haha. The only difference is you have less risk and thus less chance for profits.
Check any franchise and most owners own more than just one. And make millions a year. This video just seems like a cautionary tale for people thinking just buying one McDonald's franchise will make them super rich
The owner can also buy McDonald's stock with profits from the store. :) Eh, owning a franchise isn't for everyone but if you like being your own boss, it can be worth it.
Just trying to say it's like buying yourself a full time job but yes potentially very profitable
@@walnutinvesting689 There are enough people who would rather be their own boss, even if it means working a possibly more difficult job. That's pretty much why every small business owner would rather own a small business. If you don't think the same way then owning your own franchise would not be worth it.
That's why I strongly believe McDonald's is a money laundry front for killer clowns. How else do they stay up float? By Birdie the Early Bird? Hold up, that makes more sense.
ronald mc donald
@@funboy53809 pieyama god
Dude I see you everywhere.
@@funboy53809 every business do money laundry thats how they survive.
Hes not called the hamburglar for nothing.
Well a franchise might not be a good investment, but their stocks are definitely worth considering. Their stock has strong growth, and decent dividends too. Stocks are a lot less effort and maintenance and capital expense for entry than a franchise is.
True. It's one of the few I own that pay a dividend.
My first dream as a child is that I would be a grocery store. I was too young to understand the difference between the difference of owning something and being something. Obviously I could not be a store. I was just always hungry. My parents gave me plenty of food, but I was still always hungry and super thin. Don’t have that problem.
What are you even talking about?
You wanted to BE a grocery store, like the house in "Monster House"? Like people would walk into you to buy food and you would devour them?
@@DemePoole don’t worry it’s not that important
@@DemePoole I was talking about what I wanted to be when I grow up. I read it again and it’s confusing. I was always hungry so I wanted to be a grocery store. I was only about 2 or 3.
This was actually really enjoyable to read. Comments like this is what brings me to RUclips.
Sounds like you gotta be rich enough to not
even need a McDonald's to buy one.
This isn't as disturbing as watching mac and me 😅
The idea is you invest that money in the first store, use cashflow from that to buy more stores, build your A team and then you start to see the returns however when you’re done with them and ready to retire sell them all
I don't understand it why would you want to buy a McDonald's if you made that much money already
@@willparker9870 a lot of rich people tend to think long term. A well placed and marketed Mc Donalds franchise will cover the losses sooner or later, so why not?
@@willparker9870 a mil ain’t nothing what
I remember when the Kiosks came out, worst part of the job for me. Manager made me try to convince customers to use it rather then let me bring them to the register, some people didn't like it and preferred talking to an actual human being rather then work the screen. But it wasn't too hard, at the end of the day it was enjoyable to help customers or take their orders manually.
That's how an other McDonald's was when customers come to my McDonald's iam using a kiosks we can take at counter to
As a customer, those kiosks are a godsend, IMO. Every single menu items available at the tips of your fingers and you can order exactly what you want and how you want it without having to worry about whether or not the person at the counter understood what you're asking for.
Really lol, I love the kiosks
I love the app!
@@IceBlueLugia Fax
I worked at McDonald's when I was 18 and we had this "mchappy" contest with like four other locations, people would vote for the happiest worker, and I won, lol! I know, big achievement there, but hey I had fun and won some cool prizes
That sounds exactly like the kind of thing a happy person would say
So you had more flare than the bare minimum, I guess.
Are you sure it wasn't the Xanax and lithium? I'm kidding.
Cap
I worked with her. She was always happy.
But in fairness that was because I showed her my enormous “happy meal” to keep her happy
With about 82% of all locations owned by franchisees and a relatively low closure rate (many locations being around for decades), it seems that at least most franchisees do not "go broke".
It's quite higher than 82%. It's now well over 90%. They only keep a few stores to experiment for changes. They make all their money at corporate from franchise fees.
Remember lots will go out of business due to high demands but McDonald’s most likely has implemented a smooth transitional period between owners/franchisees, to not affect the customer services.
82? that's low on my books, 1 in 5 locations are broke
They are always take loans from banks thats why owner never get broke
93% of McDonald's are franchises. It's a bad investment
As a franchisee myself, I approve of this message. If I were to describe my journey I've taken to becoming a franchisee with McDonald's in 3 words, "I'm lovin' it"
Found the McDonald's corporate shill in the comments.
@@JP-jd5vz It's probably sarcasm
@@salemcrow5078 maybe. Always hard to tell.
@@JP-jd5vz I'm an owner and there aren't many ways you can become this successful. My dad has been an owner for 30 years and now my brother and I are owners. It has made us extremely successful and I'm going to assume the creator of this video has 0 experience being a McDonald's franchisee.
👍🏽
Now that's a certified hood classic
Yeah
Yeah
Yeah
I broke the algorithm
@@AUSans101 no
What people don't realize is, McDonald's may be a fast food business, but McDonald's is a real estate business 1st! McDonald's owns the most prime real estate in the USA.
The owner of the McDonald’s I worked at owned every McDonald’s in our area across 2 cities. It was very obvious he wasn’t hurting for cash.
Our owner inherited his money so he was rich to begin with.
It’s not with Macdonald’s only just having a restaurant is hard . but sometimes I can admit you can get lucky like how my mom and aunt used to own restaurant and one time the literal president came to the place.
Which president 😊?
@@beautifullydiamond8273 Lincoln
@@beautifullydiamond8273 Garfield
@@beautifullydiamond8273 bill Clinton
@@beautifullydiamond8273 me
“How much do you make?”
“Roughly 150-160,000 a year.”
“Really? Where do you work?”
*”McDonalds.”*
*”W H A T ? !”*
Is that how much franchise owners make?
And they said "don't become a fast food worker"...
@@Prokerboss
No, dont. Become a fast food "owner" lol
I'm lovin it!
If your mc donald only makes 150 to 160k gross per yer that is bad it wont even cover to cost of starting it up
Hold up, how the f does a couple of average sized displays for a menu cost half a million ? you can literally build an entire cinema for that much money.
Probably because its custom made, to fit the building
@@Residual_gaming Haha annnd? Thats ludicrous even with that small obscurity
@@Residual_gaming even still it should be like $15k or so at most, McDonalds franchisees are getting scammed lol. If I were a franchisee I’d just buy 2 giant monitors with a raspberry pi like someone else in the comments suggested
I work for a franchisee of 25 locations and I service these. You are correct, it’s like 15 grand max for an entire setup inside the restaurant. However there are maintenance contracts on a monthly basis but nowhere near 500k
@@IceBlueLugia i did That lol
Here is what my nearby McDonalds does wrong everyday even-though the owner spends a lot of money in the franchise:
1. The fountain soda is constantly low on some types of drinks or the drink comes out very watery
2. The cashier always mixes up the orders that go to the wrong person because they don't check the customer receipt
3. The kiosk where you order on a screen is always low on receipt paper needed to show the cashier when receiving order
4. It takes customers forever to receive an order from the ice cream machine. IF it's working.
5. A lot of times the cashiers forget to put in the bag a straw or a drink or napkins or a burger.
6. There are not dividers to keep the lines in order. So, people just get on front of others that were there first.
7. They are constantly mopping at the wrong times when it's crowded creating a big inconvenience for the customers.
8. You have to ask the cashier for stuff like BBQ sauce, ketchup or syrup when that should be included in the order
9. Sometimes the cashiers are so tired that when you tell them your order, they ask you several times to repeat the order.
10. The french fries worker is always late in putting the fries in the bag creating delays in handing the customer the order.
Most of these are the fault of the workers not being properly trained. That’s not really all on the franchise owner
Source: I’m a manager at a franchise owned McDonald’s.
Our McDonald's burnt to the ground, about 3 months ago and they just recently started clearing the rubble. They said they are going to rebuild. It was probably a faulty shake machine, lol! No, idk why it burnt
You seem kind of sus
Ice in the fryer forsure 😭🤦🏻♂️
grease fire probably
@@MP-oh9lt takes one to know one
I worked for McDonald's in the kitchen. It was only part time but I can't complain about my experience there. They gave a 50% discount that I could use anytime even if I wasn't working. They even have medical insurance and they give you a raise every 6 months. I would recommend anyone to work there. The owner of the one I worked in was excellent as well. It's not easy work but it's a good place to work and I would recommend anyone especially students to work there.
You sound like a manager
“It’s not easy work” 😂 Dude, being a lawyer is not an easy work, being a doctor isn’t an easy job. You were putting together a meat and a bread, what’s not easy about it? You are delusional, because you’ve never had a work with responsibility for someone else’s life.
There was a McDonald's documentary I watched saying McDonald's is not in the business of selling food but real estate, making burgers is just a plus.
Me who doesn’t own a McDonald’s: I am 4 parallel universes ahead of you
Sheesh season 4 fortnite was good… i miss it 😪
Here in SA, Mcdonalds does extremely well, my boss currently owns 7, working on the 8th, it costs about R10M which is about $650k per store with a turnover of about R2M per store which is about $130k
I was part owner of Popeye.. going in we thought we would be rolling in dough. After the first year we saw less profits and the franchise always got paid. I sold my share for the amount I invested. A decade later my former partner is deeper in debt and wish they would have walked away when I sold my share.
Chicken use to be cheap but now it’s expensive. I walked into KFC the other day and a three piece dinner was almost $11. I walked out. Politicians giving away “free” stuff causes inflation and squeezes everybody. Inflation is the “free stuff” tax that everybody must pay.
@@picklerix6162 how is it Costco can sell a $5 whole cooked and the two pack raw chicken is $30 🤔🤔🧐
TBH, many of the Popeye's I have patronized have the rudest, laziest and dumbest employees imaginable. Is it possible yours was one of these?
@@vanghost4life Apparently you are unfamiliar with the concept of "loss leader." Many businesses deliberately sell an item below cost because it is wildly popular and brings customers to the store again and again and again.
@@chuckschillingvideos wasn't mine I bailed after 2 months back in the the 1980 when they first started.
owning a McDonald restaurant is still a profitable business, you just don't make too much money, but still make money
I also heard every McDonald's franchise has no authorization to fix their own ice cream machines and if they do try to fix it themselves without an authorized technician, their warranty is automatically cancelled. The company that makes the makes the ice cream machines make most of their money from "repairing" the machines instead of selling them.
Bro they aren’t broke people don’t want to clean them
@@airsoftluke17 - There is some truth in what you say. I use to disassemble, clean, and sanitize the shake machine. Also, some assistant managers had very little mechanical knowledge and would assemble the shake machine incorrectly and it would freeze up. I had seen the shake machine freeze up countless times. The ice cream machine has other defects but cleaning is something that must be done or no ice cream.
This is mostly a us story in Europe and Asia its different
Fun fact when the ice cream machine breaks down the ice cream in it goes bad and most employees don’t know or care to clean the machine. Think about that before you buy some ice cream from McDonald’s
Video idea: how does subway stay in business... I have always wondered that. Not only was the one I worked at never busy, but it seems that none of them are. The overhead cost of operation seems higher than the profit margin. At least to me it does. I would really enjoy seeing how you guys at the infographic show break it down.
My neighbor has 3 franchises in Cape Town. His wife does the books and he goes in once a week. He is always cycling, jogging, driving in his Porsche etc. He doesn't know what to do with all his money and time. Most people could only dream of the life that he lives.
What a lot of people don't realize is that the money is in the real estate. You buy one restaurant, save to buy another and then another. 15 years later you sell them for profit.
“69 million customers a day”
*nice.*
N🧊
If I ever open a franchise I want it to be a Chick-fil-A. They literally never fail. You could have two right next to each other and the line still wraps out to the street. It’d just print money.
I heard that one is only 10,000 to open and they take care of all the costs to start it up but it is extremely hard to get approved and there is a wait list. My brother was looking into it briefly
@@emacias1473 yeah. You also can’t just own one. There’s several interview processes and you have to work their in person every single day. Minus Sunday of course. Starting out you’re only allowed to own one till you prove you can run more and you can only run a maximum of three. If you open one it’s pretty much a lifetime commitment.
Dave Thomas ran previously failing Kentucky fried Chickens making them successful. He sold those to start his Wendy's Business.
Experience
You need to own about five of them to get the economies of scale necessary for good margin. And if you skimp on hiring good managers and leads, you are toast.
$13,000 for a coffee maker
$500K for digital menu boards
$130K for ordering menu panels
Man that’s some expensive obligated upgrades that come right out of the pocket of the franchise owner. No thanks.
If its in a great location I can see the profits
500k for digital menu board is the dumbest thing ever
There’s a man in my town who owns most of the franchises in town. He gives free food to the fire department once a year. He’s been doing this for 20 plus years. He’s not broke.
I personally have been with my current McDonald's franchise owners (between 2 stores within our franchise; my franchise owners have 4 stores) for nearly 13 YEARS as a crew person (will be 13 years this coming December).
With my being a McDonald's worker for as long as I have, my fiancé asked me (originally) to ask my franchise owners how much it would possibly cost us to one day buy our own franchise... I have now sent him a link to this video... I highly doubt (unless one of us wins the MegaBucks in Vegas or the state lottery) that we'll be buying our own franchise anytime soon... 😔😣
Don’t underestimate the power of a team. A team of just two can pool resources and save faster than one person. Buy a home with 3% down FHA to start in real estate. The appreciation seems to be 10-15% per year currently. 10k per 100k house per year.
3 years later 30k equity in simplified terms. Learn the lingo of real estate. Build assets year after year. No quick scheme’s.
Plan how many years to build specific funds. Meet easier goals first. Then make bigger steps.
Don’t let the 1m franchise cost discourage you and you fiancé. Your staying power at that job is an asset. Ignore that cover image . Look for encouraging videos.
Why are you crew after 13 years??? Doesn’t management pay much better?
@@williamrobinson6377 Maybe not as much as you think
Drop your expenses and invest. If it’s just you 2 move into a studio apt. If you both work and make minimum wage you’ll be able to save alot in a year. I did this when I was young and an actor. I moved in with my gf, and we both worked for a year keeping expenses low. We then were able to move to the most expensive city in the world to pursue our careers. You ca do the same to get your down payment. Half a million is a lot but when you are able to save nearly 10k a year your bank will offer you more credit. You will have the money to pay it off because of your savings. But also this is not the most “fun” way to live. It’s about what’s a priority to you.
It’s sad to see someone working hard for 13 years and not a lot of money to show for it. You might be not be able to afford a McDonald’s but you might be able to buy or start a local restaurant and build from there. If you have the skills and brains, go for it! I think you already got the experience and grit just lasting 13 years at McDonald’s so that’s a good start
This video actually gave me more confidence in McDonald's quality standards
McDonald's today reminds me of boutiques on 5th Avenue where a handbag cost $5000, but only 3 people walked in the whole day and no one bought anything 🤣 How're they paying that insane rent?! It's all a front for money laundry
wow i never thought id ever hear someone compare MCDONALDS to a store on 5th ave NYC. polar opposites.
Something tells me that anybody planning on or already owning a McDonald's wouldn't ever even come across a video like this...
Owning a McDonald’s sounds like you lose more money then you make
it sounds that way. But no one would own on if that were true.
@@jeremiahnoar7504 yeah you make a lot but there is so much trouble to go through it makes me wonder who would want to own one
@@hom3r330 Yeah, those type of people are definitely wild. The father of my Sister's friend owns 14 in our city. She says the dude doesn't come in to the office everyday but He does visit a store every day just to make sure the customers are happy. Both he and his daughter are high energy crazy people though. But you have to be that way and super industrious in order to put up with everything.
@@jeremiahnoar7504 yeah
@@hom3r330 maybe like everything else takes time
The last line," Dreams are for the lucky" is the most relatable thing about this whole video.
Back in the day (1990s), my dream was to own a video rental store franchise. Looking back, I'm glad I decided against pursuing that dream.
Well... technology changes. Food doesn't. Only if they start making food with pills is when places like McDonald's won't work
I know a guy who owns 6 of them. Costed him $2 million each store to get up running. He only closed one down that he let his son run into the ground (his sons 50 and hasn't had a license since he was 17 due to drugs and alcohol, to give perspective lol)
Nearest McDonald's to me is literally a block away. The guy running it is a scumbag. Everyone can't stand him. His wife gets a bit more respect by my neighbors. But not too much. He renovated the entire place during the pandemic. Closed for numerous months. It's good to see how much Corporate forced him to shell out for all the upgrades mentioned in this video. Along with all the money he lost by being closed for nearly a full year. Couldn't happen to a more deserving person.
I worked for a guy that him and his wife owned 5 McDonald's stores and 2 half McDonald's stores in 2 separate Walmarts. This man and his wife both made about 1 million after taxes a year... This was about 5 years ago back when we only got paid about 9-10 dollars an hour working at said McDonald's. Now this guy only only owns 4 stores and maybe 1 of the half stores? He's still rich...
I always avoid McDonalds unless there's ABSOLUTELY nothing else to eat.
@@trollrat2828 it tastes nasty and it's full of chemicals.
We needed to know that why?
Everything has chemicals in it lols.
@@AT-di8kg yeah most fast food does, but McDonalds tastes especially bad and makes you feel bad after eating it. I think the cleanest fast food is Chipotle.
McDonald's are the best, u missing out mate 🤣🤣
$13,k for a coffee maker seems expensive for average person, but McDonald's can make that in one weekend about 2 or 3 days
I feel like the founder has already taught me most of what this video has mentioned.
I just watched that movie (Founder). What happened to the McDonald brothers was heartbreaking. Very enlightening.
Another thing that's probably a headache for the owner is employees walking out because they can't take it in certain stores. Not all fast food restaurants has this problem, but some do.
No, the family who owns the three McDonalda near my house are still rich af. But they're very nice people donate often, I wasn't expecting that at first TBH.
I worked for a Colorado beverage company around 2010. Their inventory system was awful. The handhelds would never update or load orders. Then they decided to switch to an app that ran on Android and Ipods. Then we had Ipods that were $600 cheaper and actually worked! You're telling me that McDonnald's menu screens were 500,000 bucks? What?
*mcdonalds* first started off with *ham,cheese burgers/fries and cokes* and orders were *filled imediatley* now it takes *5-15 minutes*
That's why I hate it. My local fast food restaurant in the Netherlands has better quality food for a better price. No dry hamburgers for me
Better off owning McDonalds stock and living off the dividends.
We live in a tri-state area (PA, OH, WV) and I find it somewhat unsettling when every McDonalds has a broken ice cream/shake machine. Rural or urban, regardless of state, always during the same time period (all machines broken starting on X day and lasting X week/s). What's really going on? Is this due to a recall? Can you guys get to the bottom of it?
I think this "icecream machine broken" thing is an US only thing. I've never been told in the last 15 years that the icecream machine is broken in my home city (EU), by neither of the 4 or 5 mcdonalds we have
They aren't broken
They just tell you that to avoid cleaning the machine. It costs alot of money to service the ice cream machine. The FBI literally looked into this
Some other channel has a deep dive video into just the ice cream machines if you wanna look it up. Long story short, mcdonalds forces all franchises to use the same machine, which is program to immediately shut down at any minor issue. An engineer has to enter a code to turn it back in, which costs thousands the franchise owner must pay. The company that does all the fixing pays McDonalds a percentage of the profits from the machine being fixed. Also the same machine is used in every other fast food chain, but theirs ar reprogrammed to operate properly and be easily fixed. Only us mcdonalds suffer this racket
The machines are very complex. There are compressors and motors and TONS of sensors. I repaired them for years as the owner of a refrigeration company. The main culprit is heat, these machines are tucked into areas where the “condenser” can’t get cool air flowing and it destroys the freezer compressor. At that point I would charge the company around $3,000-$5,000 to replace the compressor. No owner wants to spend $3,000-$5,000 on anything so their options are to let it set broken or con some poor HVAC owner into repairing and never pay the bill, both of which happen frequently. I hope this makes sense. The best option for these machines would be for them to have remote condensers like the walk-in freezer or fridges have, they don’t though.
Hats off to a person who made this animated video
Many thanks!
I started in 1985 at the generous rate of £1.33 per hour (I was under 18, those 18 and over were on about £1.60 if remember correctly). A Big Mac was 70p then I think.
I reside in NY and former Gov Cuomo made it law that fast food chains pay $15.00 ph that was short lived. 2021 Inflation kicked in. sorta like that New England patriot Loss to the Buffalo Bills yesterday evening 47-17 Patriots defense at its worse. This country is at its worse. In this day and age, it's designed for a criminal or a person that's got super good credit. Instead of this country moving forward it's moving backwards. Can't blame it all on Covid either💯👍🏾
Mcdonald's is the 90th economy in the world. Most of it's corporate money comes from real estate.That's why they do so well in recessions
I remember 10 years ago when it actually tasted good, at least where i live now the quality went down
Naw its across the board. I work there now and its not good. Just decent.
It doesnt even taste like food. Its gross.
Tiny, pricey, dry, tastes like card board.
I think it’s us who grow and change to not appreciate that type of food as much (as we should), I don’t think it’s necessarily quality.
@@nmw654 its definitely changed since when I was a kid in the 80s.
My father owns Hucks stores (gas station) I couldn’t tell you how many exactly or what his position is called. But he earned it all. He worked at one of the stores near us became manager, soon after became a district manager, then regional manager. After he became a regional manager he got close with the founders sons. Now he owns multiple of the stores and is still working hard. He gets payed almost 200k a year and makes sure that I have everything I need and I’m grateful for everything.
Operating Margin % is what matters.
After all day to day expenses are paid, your O.M. is what’s left.
Net $3 million end of year sales with a 10% O.M. and 0 debt means the franchisees company made 300k. The owner pulls their wages from this 300k.
But this cash flow is reduced by loan payments, equipment purchases, renovations...
The O.M. and yearly sales is key to budget for a return on investment with these
I don't know if this applies to all stores, but you have to work your way through to a management position first. It was the way it happened in the store I worked for.
There are loads of McDonald's restaurants in newzealand
Not sure why he said only 500k, because they rejected my uncle 20 yrs ago when he had about that much to proved to them and they still turned him down. Told him to come back when he had "Atleast double the amount" he can proved, and this is 20 yrs ago in the early 2000s.
There’s a family in my town who thought they could afford to open a McDonald’s but the place might as well be called McDowell’s That particular McDonald’s is known for being horrible I’m surprised they’re still in business💯
$500k for 3 LCD screens??!
I recently saw a Video on Corona in the USA and was shocked to see a McDonalds doing brisk business in a strategic location in a Hospital....Public or Private I don't know.
All the more shocking was the fact that a whole heap of the customers lining up were Health workers, some Doctors included.
Perhaps they were ensuring that there will always be Hospital customers in a few years...but perhaps it will be them !!!!
4:00 McDonalds: “We have to make sure that your appliances work well.”
Also McDonalds: Broken ice cream machines
McDonald's is not in the restaurant business, they are in the real estate business.
I take my hat off to people that are hard working taking a franchise and doing well. And hopefully the corporate side looks after the ones that do well, or understand when things don't go to plan but it's out of their control. Unfortunately I don't think that would be the case, but people who earn their buck and retire early like that deserve it all. So kudos to any business owners or franchise owners making a difference. We appreciate ya!
Owning McDonald’s will not make you broke. In Total, McDonald’s estimates the average total startup investment ranges from $1,013,000 to $2,185,000 with franchises netting an estimated annual profit of roughly $150,000
The McDonalds in my town doesn't have Filet O Fish. Other items too. A more limited menu, and sometimes hours. Sometimes they'll put a notice on the drive through menu to say happy birthday to an employee at the window. Small towns are fantastic.
Macdonalds got rich not just by selling burgers but also by property rent & selling dreams (the feeling of owning a macdonalds ) 🤣
Also royalties.
Imagine watching this 2 months after purchasing a McDonald's Franchise
Over here in ireland, i know a guy who owns 3 Mcdonald's franchises and he's making BANK
I work at a bank and McDonalds, dunkin, Starbucks bring a few thousands a week. Gas stations bring in the most money out of all of them
*The philosophy of the rich and the poor is that: the rich invest their money and spend what is left. The poor spend their money and invest what is left.*
How many millionaires do you know who have become wealthy by investing in saving account? I rest my case.
Investing for today is priceless because tomorrow isn’t promised, trading Bitcoins,gold,silver and crypto secure a better tomorrow
Interesting,most people don’t understand the market moves and tend to be mislead infact like this and always depend on money in the bank very bad idea.
I understand the fact that tomorrow isn’t promised to anyone,but investing today is a hard thing to do because I have no idea of how and where to invest in?
When money realizes that it’s in good hands,it wants to stay and multiply in those arms,if you really want to make points out of the money you’ve got,you have to take it out of your savings account
Subway franchise requiert less money on the front but their royalties are way higher than other companies. Could be an interresting video
500,000$ for menu displays? Guess I know what my new business is going to be. I will just buy a couple of monitors and a raspberry pi and sell those to MacDonald's for "only" 250,000$. Win-win.
I know! Exactly what I was thinking. Goes to show you how vendors can charge top dollar for something that costs less than 10K
One thing you’re off is when you apply for the franchise they will do a credit check regardless of credit you be required to make a down payment of 1 million for a security deposit
I'm willing to bet this was written by the girl from the fast food infographics challenge!
I’m not sure I agree with everything you have stated, as a MCD employee I’ve heard if you want to own your own franchise there are certain conditions you must meet, such as you need 25-30 years of experience as an employee, a recommendation from a current franchisee, and stable finances. I heard it used to be you were required to be married and in a stable relationship as well, but that was dropped. The fact is it’s unlikely you will go broke owning a McDonalds as they print money, but yes there is considerable investment that goes into the short term and long term success and maintenance of a store.
A few years ago I went out of state to visit friends and went to a McDonald’s where I got a large Crown and Coke The girl at the drive through was drinking on the job and accidentally gave me her drink I got a drink that would’ve cost atleast $50 in a bar for only $3💯😂
yea right😂50$ drink hahahahahahahaha
I knew a pastor that worked at a McDonald's for almost 20 years, he said after 15 years they would keep promising him is own store.. sadly he passed away from cancer.. all those years and lies for nothing they just wanted to keep getting his hopes up even as he was dying. Even after 8 years I still can't bring myself to go to what should of been his McDonald's.
Doing the math in my head with the numbers given you need to be open four years before you make any profit. Hard sell when you'll need to invested +3 mil to start. Almost seems like just living off the interest of 3 mil (ruffly $400 a day) would be a better choice.
Ha which bank would you give $400 a day for 3 mil
400 dollars a day with 3 million dollars implies a (ruffly) 20% interest rate… no such thing.
3,000,000*.03...
90,000/365...
250? A day?
If they paid their workers well and fixed the safety standards they would be a lot more profitable.
Take that up with the franchise owners and state legislatures.
As a former corporate regional director I’m glad I’m out. It’s fun to work for a brand like that until you’re the main point of contact for 30 something franchisees. The basic job is fairly simple, report on their operations and profitability. It’s the individual relationships that are completely insane and out of this world at times.
mc hjs?
I worked at a McDonald’s for like three years and the owners of our store was a family from Korea, who own all the stores in Montana.
I heard the crazy stories about the ice cream machine. Gotta say I'm in the land of Oz and that has never happened to me. Maybe I'm just lucky or maybe the machines are made differently for the Aussie market. 🤷
Same. . . I never really go to Macca's much nowadays, but whilst I was living in a share house in Armadale (many, MANY stories associated with that house lol) Macca's runs were a regular occurance, always used to have pancakes with a soft serve slapped on top for hangovers, never encountered a broken machine. . .
Maybe corporate scams are not so easily brushed off there, I always had respected Austrlian people, I AM kind of suprised that you took the covid authoritarian measures so calmly, I kind of expected not riots but at least more serious protests.
@@cesaravegah3787 Could be worse, could live in the Democratic Peoples Republic of Arden...... sorry New Zealand!😷👮
Mcdonalds:🙅♂️
Jollibee:👍
McDonald's Corporation is actually a real estate company, not a burger business.
As an owner of 3 medium size stand alone Mc’Ds restaurants, we average $300k-400k profit free and clear per restaurant after all taxes and royalties. My goal was $1m per year total profits with the 3 restaurants and everything above that is gravy, or in this case, BigMac special sauce.. aside from dealing with occasional corporate red tape they run themselves with experienced general management..
McDonald's Big Mac meals leaves you feeling hungry after eating it lolz
How are you not full?
Nicocado avacado?
@@SlyFireVR right lol
McDonald's "food" makes me too sick to feel like eating anything.
cause its fake food for robots.