Sunday, February 26, 2012

Ray Kroc said, "McDonald's is not in the hamburger business but in the real estate business." How?

I'm not completely sure about this. I know some stores who build shopping strips and have their store as the anchor store but make their real money on the rentals of the other stores but McDonald's are usually stand alone stores. Does he mean that it is now about the burgers but how convenient it is to get the burgers?Ray Kroc said, "McDonald's is not in the hamburger business but in the real estate business." How?
All businesses are in the real estate business one way or another as they all have premises. With thousand of individual locations, Kroc recognized that, by definition, he was in the real estate business - buying land, building outlets, managing property through leases, maintaining the properties, etc.



Also, retail food outlets are critically dependent on location for traffic. One aspect of real estate is determining the demographics and traffic patterns of any given location so that the right location is selected for location a store.Ray Kroc said, "McDonald's is not in the hamburger business but in the real estate business." How?
LOCATION, LOCATION, LOCATION

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