McDonald’s Realized The Real Money Wasn’t Burgers…

How McDonald's realized that their real money-maker was real estate, not burgers, highlighting the importance of understanding the true.

What this video covers

How McDonald's realized that their real money-maker was real estate, not burgers, highlighting the importance of understanding the true market and business model.

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You're not in the burger business. You're in the real estate business. You don't build an empire off a 1.4% cut of a 15 cent hamburger. You build it by owning the land upon which that burger is cooked. What you ought to be doing is buying up plots of land, then turning around and leasing said plots to franchisees who as a condition of their deal should be permitted to [music] lease from you and you alone. This will provide you with two things. One, a steady upfront revenue stream. Money flows in before the [music] first stake is in the ground. Two, greater capital for expansion, which in turn fuels further land acquisition, which in turn fuels further expansion, and so on and so on. >> [music] >> Land. That's where the money is. And more than that, control.

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•By Alejandro Cremades