McDonalds franchises

[clould]

Hi all,

There is a sizeable town near me with around a 150k population and it doesn't have a McDonald's.

I think there could be a good opportunity here so have registered my interest with McDonald's and booked onto one of their online meetings in the next few weeks.

Anyone on here been through the process or know about the process who could give any useful advice?

 

[Paul Norman]

The McDonalds process is very clear, and very proven.

It does, of course, offer you zero flexibility. You will be running the business their way, and sticking exactly to their rules.

The good news is, of course, that it is successful. The only caveat is going to be:

1. Your ability to recruit and manage staff.
2. The exact demographics of those 150k people
3. The location of the store, and the planning process with your local council. Certainly locally there is some resistance to planning for fast food outlets. I suspect McD's have a fund for making that easier.
4. The upfront cost of a McDonald's franchise is high. Because it is a business model that tends to work.

Remember, it is a competitive process. You are going to have to convince them you are the right person to represent them.

 

[WaveJumper]

I know someone who has three its a big expense to get going but can be very profitable
https://www.mcdonalds.com/gb/en-gb/franchising/the-financials.html

 

[clould]

Thanks, I didn't realise it was that competitive to get the franchise.

The fact McDonald's have so much power over you is a little concerning but like you say it is a well trodden path and I'm hoping it will provide a decent return on investment.

 

[Energise Accounting]

The application and training is a long drawn out process aswell. No harm in having ago if that is what you want to do.

 

[Ditso]

I'm 62 but a guy I was at school with has two or three I believe. When I last spoke to him (about 20 years ago) he admitted he didn't have a penny to his name when he was offered his first one.

He went to his bank and they literally said "great how much do you need?" on the basis that at that time no McDonalds in the country had ever lost money. They were considered by the bank as a license to print money.

No idea what it's like these days and I guess it's getting more difficult to recruit and retain staff but if you're prepared to graft I'm sure it is still a great business.

 

[Mr D]

You have 150k population in the area. That does not equate to 150k potential customers.

Its how many are going to be in easy reach of the site. Town centre sites catch people out in the town or travelling through the town centre. They don't catch people several miles away.
My area has at least 4 branches within 1.5 miles of town centre (two of those is in the centre) and another 3 if looking at range of 3 miles. For a population only a bit bigger.
We did have another one but it shut down, not enough business to make it work. That has a catchment area of probably 25,000 though is part of the much bigger town.

 

[fisicx]

I recall reading a report that McD (and others) want locations with drive through as they are more profitable.

 

[Mr D]

I recall reading a report that McD (and others) want locations with drive through as they are more profitable.

Yes, gives a lot more flexibility.
Though of course requires some staffing.

 

[clould]

Interesting point on the drive thru. I'm convinced there will be plenty of customers and you have deliveries covering the surrounding housing estates.

 

[Mr D]

Interesting point on the drive thru. I'm convinced there will be plenty of customers and you have deliveries covering the surrounding housing estates.

If agreement reached on delivery yes.
Locally I cannot get some of the delivery services to deliver McDonald's, 3 and a half mile to the nearest participating restaurant. My local McDonald's is middle of my village. To get delivery a taxi driver will do it. Just eat cannot - as too far away from town centre restaurant.

So if can deal with the delivery businesses bthen great. But not all restaurants can or will deal with them.

 

[WaveJumper]

I am sure our OP will learn more when he attends his online meeting but I think he may find they pick the locations and its a 20 year sign up after successfully completing the training and they will expect you to live 45 mins away form your franchise.

":As a Franchisee, you buy into a fully-functioning space, equipped and ready to run as a McDonald’s restaurant. In return, you take on the responsibility for its maintenance, and keep it contemporary with regular refurbishments".
"As a Franchisee, you’ll use our systems, trademarks, menus, methods, support and marketing. You’ll be agreeing to operate your business according to our framework and requirements, ensuring uniformity and commitment to the McDonald’s brand".