The Surprising Way Fast Food Restaurants Make Money

one of the most surprising ways that fast food companies make money has nothing to do with food most fast food restaurants are licensed franchises that fall under a much larger Corporation these corporations make a lot of money from Real Estate by leasing out franchises to smaller companies or individual owners who then turn over a percentage of their profits one former CFO of McDonald's said the company is not technically in the food business we are in the real estate business McDonald's owns about 45 percent of the land and 70 percent of the buildings that are home to its franchises in 2014 roughly a third of their 27.4 billion dollars in revenues came from their franchised restaurants after all those fees have to be paid no matter how business is going

Channel: Mashed

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Id: DbJYGvUyyeQ

Length: 0min 42sec (42 seconds)

Published: Mon Jul 31 2023