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.
@@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.
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.
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.
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.
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.
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.
@@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
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.
Yeah, and the error messages can only be troubleshot by Taylor's in-house maintenance. There's a guy who explained the whole problem with Taylor on his RUclips channel, and the Federal Trade Commission is investigating whether Taylor has created an illegal monopoly with its exclusivity agreement with McDonald's.
@@troyevitt2437 Oh! The FTC you say? Well, that will DEFINITELY have a worldwide corporation shaking in their boots, hey? Maybe the FCC can look into the dozen robocalls I get everyday too?
@@harrycoyle4529You need to read up on what's actually happening. The Federal Trade Commission investigates violations of US Anti-Trust/Monopoly laws. Taylor makes the only ice-cream/milkshake machine a McDonald's franchisee may utilize, making the nature of the contract Taylor drew up with McDonald's illegal. A McD's franchise can't use any other company's dairy dessert maker than the Taylor machine and when it crashes, which is CONSTANTLY, there's nothing a McD's employee can do to fix the issue because Taylor has created a built-in dependency on Taylor's in-house maintenance technicians. Put the sarcasm aside and familiarize yourself with Anti-Trust Laws and how Taylor is violating McDonald's Fair Market rights.
@@troyevitt2437 I suggest you stay in your own lane and try to refrain from suggesting reading material to total strangers, okav? McD's prices have skyrocketed since the days of the 15 cent burger. They're tried to be too many things all at once. Owning a franchise sounds like one clusterf**k after another. Life's too short. For a really lucrative grift why not become a ''licensed insurance agent''? There's no intrusive, profit killing federal regulations impinging on running your ''business''. It's like Old Dodge City with the sheriff having skipped town with a dance hall girl. Whoop! Whoop!
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.
@@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
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.
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
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.
@@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.
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
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.
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.
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.
@@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 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 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.
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.
I work in restaurants. I'd NEVER fork over for a franchise. It's like having a partner that tells you how to run your business, takes 1/2 of your profits and lets everyone else work for it. The mistake of ANY other franchise owner or a bad management team at head-office can destroy you in a minute, even if you run your show the right way. It's for people that want a restaurant, but know NOTHING about them.
Well, to be fair though, owning a particular franchise will almost certainly mean there are plenty of customers already ready and willing to pay for the services provided there; whereas building your own business you would have to build and maintain your own reputation from scratch and may not see satisfactory initial/maintained sales.
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
@@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?
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
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"
@@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.
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.
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.
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.
The machines are exclusively supplied by Taylor and the error messages cannot be troubleshot by McD's employees, forcing every franchise to call Taylor's in-house maintenance personnel. The Federal Trade Commission has opened an antitrust investigation on Taylor for what might be an illegal racket.
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.
@@matthewjk9016 The burger making isn't a plus. The burger making is the terms of the lease. McDonald's owns real estate and franchisees lease the land. The leases require that they sell burgers in accordance with McDonald's standards.
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.
“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.
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
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.
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
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.
@@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.
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.
@@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.
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.
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.
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.
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
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.
@@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
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.
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.
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.
I remember working overnight and the computers said they made around 1000 dollars profit on a Friday night 10pm to 6am. As there is a lot more customers during the day i assume they probably make around 5000 dollars profit per day which is around 1.5 million per year which aligns to what google says an average mcdonalds makes per day. So i can see the cost be covered quickly if they manage thier money right. Also the machines are super quick and basically all automated now for mc cafe and drinks, which means a lot more customers coming through leading to more profit.
5:11 sometimes they are making the whole store more drive-thru focused than lobby focused (by extending the McCaffe to the 3rd window witch involves making the lobby smaller)
@@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.
I used to work graveyard at McDonald's and I learned in 2 months that the stores can run normally with two employees one to run the grill and the other one running window
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.
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)
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 was 18 when I worked at mcds (28 now ) don't know if it's all McDonald's or if they just stopped doing it but here in Texas if you worked for them for a year they had a contract with Cadillac to have you approved for most cars in the lot . Pretty sweet deal but I didn't stick around long enough lol
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.
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
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!
I pretty much stopped going to McD's because they became more expensive than other, better fast food options. A big part of MD's appeal was that they were cheap! For example, you used to be able to get those mini breakfast burritos for 99 cents. I'm talking like maybe 10 years ago. Then it was 2 for $2, then 2 for $3, then 2 for $4 and now they cost $3 each after tax. Their basic combos are all over $10 now. I can get better food at Wendy's or In N Out for less.
this. its horrible food, especially after that 15 minute cool down. like why is the food immediately HORRIBLE. u ever eat it cold? its sooo bad. meanwhile real food isnt half bad cold.. and as u said, the prices for a QPw cheese meal is almost 15 bucks now with tax. how/?? u can go into a grocery store and buy real patties from the deli, buns, cheese slices, lettuce and a tomato with a 2L pop for under 10.
Another thing that's probably a headache for the owner is employees walking out because they can't take it in certain stores. Not all fast food restaurants has this problem, but some do.
I have to go cross town to get my large orders, the McD next door 9/13 times will short the order by one burger. I heard from other customers that they to are often shorted, or had Items not ordered added.
I recently saw a Video on Corona in the USA and was shocked to see a McDonalds doing brisk business in a strategic location in a Hospital....Public or Private I don't know. All the more shocking was the fact that a whole heap of the customers lining up were Health workers, some Doctors included. Perhaps they were ensuring that there will always be Hospital customers in a few years...but perhaps it will be them !!!!
The McDonalds in my town doesn't have Filet O Fish. Other items too. A more limited menu, and sometimes hours. Sometimes they'll put a notice on the drive through menu to say happy birthday to an employee at the window. Small towns are fantastic.
@@AT-di8kg yeah most fast food does, but McDonalds tastes especially bad and makes you feel bad after eating it. I think the cleanest fast food is Chipotle.
There’s a man in my town who owns most of the franchises in town. He gives free food to the fire department once a year. He’s been doing this for 20 plus years. He’s not broke.
500,000$ 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 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💯👍🏾
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?
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💯
Burger King worker here. I remember when the BK Broiler came out. it was a high end chicken sandwich that was broiled along with the burgers. It was really good. But man o man, corporate required not one but two new refrigeration units to house them. One to keep them frozen on sheets, the other to thaw them and keep them refrigerated on these special trays. Never understood why they needed to be thawed or get this special treatment when everything else did just fine in the big cooler or freezer.
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.
They had a speaker come into my middle school about 12 years ago. I don’t think he talked much about his personal finances but he did own multiple McDonald’s in the area surrounding the area. The main take away I got was that scaling really can help to make more profit.
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 got friends that own a couple McDonald's franchises. Crazy their parents were actually employees and managers before finally buying their own. Their mad successful and I see pictures of them flying everywhere and they just flexing on everyone lol.
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 recommend you build from scratch from my past experience I did it to a Whataburger. His restaurant was over 10 years of age and it was very costly because there was a lot of problems after it was retrofit, it still had problems. For future owners, the cost is worth it start from scratch round up and get a good attorney to get the contract made. Do not go away. Corporate construction crew go with your own. Independent you’re allowed in the contract.
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.
One thing on the 13,000 coffee machines...they ate into Starbucks business during the recession. That's a huge accomplishment by McDonald's and worth every penny of the 13k.
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.
This explains why my old mcdonalds removed the change room doors because they couldn't afford to repaint them for inspection, that and every other corner that can be cut definitely got cut.
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.
So basically, if you own one it's not fully worth it. The primary costs seem to be mainly equipment and construction. But it seems once you get that down, the profits after giving the company their cut go you you (after taxes of course). Depends on how motivated you are to see it through.
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💯😂
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..
![I.N "HALLUCINATION" | [Stray Kids : SKZ-PLAYER]](http://i.ytimg.com/vi/n5B5q1Hwt_U/mqdefault.jpg)
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.
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.
“Mcdonalds like their things standardized”
Take it from an employee, they require u to have an ice cream machine that is from the 80’s
Yeah, and the error messages can only be troubleshot by Taylor's in-house maintenance. There's a guy who explained the whole problem with Taylor on his RUclips channel, and the Federal Trade Commission is investigating whether Taylor has created an illegal monopoly with its exclusivity agreement with McDonald's.
@@troyevitt2437 Oh! The FTC you say? Well, that will DEFINITELY have a worldwide corporation shaking in their boots, hey? Maybe the FCC can look into the dozen robocalls I get everyday too?
And it has to be broken.
@@harrycoyle4529You need to read up on what's actually happening. The Federal Trade Commission investigates violations of US Anti-Trust/Monopoly laws. Taylor makes the only ice-cream/milkshake machine a McDonald's franchisee may utilize, making the nature of the contract Taylor drew up with McDonald's illegal.
A McD's franchise can't use any other company's dairy dessert maker than the Taylor machine and when it crashes, which is CONSTANTLY, there's nothing a McD's employee can do to fix the issue because Taylor has created a built-in dependency on Taylor's in-house maintenance technicians.
Put the sarcasm aside and familiarize yourself with Anti-Trust Laws and how Taylor is violating McDonald's Fair Market rights.
@@troyevitt2437 I suggest you stay in your own lane and try to refrain from suggesting reading material to total strangers, okav? McD's prices have skyrocketed since the days of the 15 cent burger. They're tried to be too many things all at once. Owning a franchise sounds like one clusterf**k after another. Life's too short. For a really lucrative grift why not become a ''licensed insurance agent''? There's no intrusive, profit killing federal regulations impinging on running your ''business''. It's like Old Dodge City with the sheriff having skipped town with a dance hall girl. Whoop! Whoop!
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
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.
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.
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
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.
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 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 work in restaurants. I'd NEVER fork over for a franchise. It's like having a partner that tells you how to run your business, takes 1/2 of your profits and lets everyone else work for it.
The mistake of ANY other franchise owner or a bad management team at head-office can destroy you in a minute, even if you run your show the right way.
It's for people that want a restaurant, but know NOTHING about them.
Sounds like it's easier to just buy McDonalds stock lol (not financial advice)
Well, to be fair though, owning a particular franchise will almost certainly mean there are plenty of customers already ready and willing to pay for the services provided there; whereas building your own business you would have to build and maintain your own reputation from scratch and may not see satisfactory initial/maintained sales.
jesus…..my guy just ignored the sheer amount of benefits there are
@@CallyWasHereOfficial I wont go into something with that many risks no matter how many benefits their are
@@jacquelineebanks4050 try learning a subject called risk calculations
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 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
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.
👍🏽
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.
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.
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.
“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
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
Nah, The real reason why I'd be broke owning a McDonalds restaurant is because i have to fix the ice cream machines.
Dagnabbit! You beat me to it! I was about to write the same thing! Great minds think alike huh?
@@ahuddleston6512 ye, sry lol
I’m dumb and thought you meant you from Kansas 😂
yeah sad ice cream machines
The machines are exclusively supplied by Taylor and the error messages cannot be troubleshot by McD's employees, forcing every franchise to call Taylor's in-house maintenance personnel. The Federal Trade Commission has opened an antitrust investigation on Taylor for what might be an illegal racket.
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.
Now that's a certified hood classic
Yeah
Yeah
Yeah
I broke the algorithm
@@AmazingEmerald no
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.
@@matthewjk9016 The burger making isn't a plus. The burger making is the terms of the lease. McDonald's owns real estate and franchisees lease the land. The leases require that they sell burgers in accordance with McDonald's standards.
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.
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
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.
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
owning a McDonald restaurant is still a profitable business, you just don't make too much money, but still make money
"serving a shocking 69 million customers a day"
that sure is a *great* number!
Especially if they're just rounding it down to 69 million from 69,420,666.
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
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 😪
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.
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.
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.
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
Dave Thomas ran previously failing Kentucky fried Chickens making them successful. He sold those to start his Wendy's Business.
Experience
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
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.
This video actually gave me more confidence in McDonald's quality standards
$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
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.
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.
I remember working overnight and the computers said they made around 1000 dollars profit on a Friday night 10pm to 6am. As there is a lot more customers during the day i assume they probably make around 5000 dollars profit per day which is around 1.5 million per year which aligns to what google says an average mcdonalds makes per day. So i can see the cost be covered quickly if they manage thier money right. Also the machines are super quick and basically all automated now for mc cafe and drinks, which means a lot more customers coming through leading to more profit.
5:11 sometimes they are making the whole store more drive-thru focused than lobby focused (by extending the McCaffe to the 3rd window witch involves making the lobby smaller)
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
I used to work graveyard at McDonald's and I learned in 2 months that the stores can run normally with two employees one to run the grill and the other one running window
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.
Something tells me that anybody planning on or already owning a McDonald's wouldn't ever even come across a video like this...
The last line," Dreams are for the lucky" is the most relatable thing about this whole video.
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)
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...
“69 million customers a day”
*nice.*
N🧊
I was 18 when I worked at mcds (28 now ) don't know if it's all McDonald's or if they just stopped doing it but here in Texas if you worked for them for a year they had a contract with Cadillac to have you approved for most cars in the lot . Pretty sweet deal but I didn't stick around long enough lol
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.
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.
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!
I pretty much stopped going to McD's because they became more expensive than other, better fast food options. A big part of MD's appeal was that they were cheap! For example, you used to be able to get those mini breakfast burritos for 99 cents. I'm talking like maybe 10 years ago. Then it was 2 for $2, then 2 for $3, then 2 for $4 and now they cost $3 each after tax. Their basic combos are all over $10 now. I can get better food at Wendy's or In N Out for less.
Not only that, in n out is actually closer to me than McDonald’s, and I can get a double double for 5.35!
this. its horrible food, especially after that 15 minute cool down. like why is the food immediately HORRIBLE. u ever eat it cold? its sooo bad. meanwhile real food isnt half bad cold.. and as u said, the prices for a QPw cheese meal is almost 15 bucks now with tax. how/?? u can go into a grocery store and buy real patties from the deli, buns, cheese slices, lettuce and a tomato with a 2L pop for under 10.
Sounds like the actual problem is, you're poor and can't afford to buy food to eat, and want to blame it on McDonald's
@@My_Lacrimosa Huh?
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.
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 have to go cross town to get my large orders, the McD next door 9/13 times will short the order by one burger. I heard from other customers that they to are often shorted, or had Items not ordered added.
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 !!!!
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.
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 🤣🤣
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.
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
4:00 McDonalds: “We have to make sure that your appliances work well.”
Also McDonalds: Broken ice cream machines
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.
*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
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💯👍🏾
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?
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💯
Burger King worker here. I remember when the BK Broiler came out. it was a high end chicken sandwich that was broiled along with the burgers. It was really good. But man o man, corporate required not one but two new refrigeration units to house them. One to keep them frozen on sheets, the other to thaw them and keep them refrigerated on these special trays. Never understood why they needed to be thawed or get this special treatment when everything else did just fine in the big cooler or freezer.
$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
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
They had a speaker come into my middle school about 12 years ago. I don’t think he talked much about his personal finances but he did own multiple McDonald’s in the area surrounding the area. The main take away I got was that scaling really can help to make more profit.
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 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.
I got friends that own a couple McDonald's franchises. Crazy their parents were actually employees and managers before finally buying their own. Their mad successful and I see pictures of them flying everywhere and they just flexing on everyone lol.
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 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.
Over here in ireland, i know a guy who owns 3 Mcdonald's franchises and he's making BANK
I recommend you build from scratch from my past experience I did it to a Whataburger. His restaurant was over 10 years of age and it was very costly because there was a lot of problems after it was retrofit, it still had problems. For future owners, the cost is worth it start from scratch round up and get a good attorney to get the contract made. Do not go away. Corporate construction crew go with your own. Independent you’re allowed in the contract.
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!😷👮
One thing on the 13,000 coffee machines...they ate into Starbucks business during the recession. That's a huge accomplishment by McDonald's and worth every penny of the 13k.
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?
This explains why my old mcdonalds removed the change room doors because they couldn't afford to repaint them for inspection, that and every other corner that can be cut definitely got cut.
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?
4:26 why are they pawing at the air like cats lol
McDonald's is not in the restaurant business, they are in the real estate business.
So basically, if you own one it's not fully worth it. The primary costs seem to be mainly equipment and construction. But it seems once you get that down, the profits after giving the company their cut go you you (after taxes of course). Depends on how motivated you are to see it through.
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
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..
I'm willing to bet this was written by the girl from the fast food infographics challenge!
Subway franchise requiert less money on the front but their royalties are way higher than other companies. Could be an interresting video