McDonald's franchise - good idea...?

McDonald's franchise - good idea...?

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Discussion

Wacky Racer

38,099 posts

246 months

Friday 5th February 2016
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I understand you have to commit to the business for a very long time.....15+ years??

Did do last time I looked.

Certainly not a career you want to jump into without a LOT of due diligence.

markcoznottz

7,155 posts

223 months

Saturday 6th February 2016
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Nickyboy said:
Burger King want minimum £1m start up with guarantee of opening 2 or 3 units within 5 years or something along those lines.
Bunch of dreamers, most are empty and badly run.

anonymous-user

53 months

Saturday 6th February 2016
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I think the bubble is starting to burst in the UK they aren't what they were. Schools have been teaching the values of healthy food and most people I know wouldn't go near one, opting instead for sandwiches from local bakers and at least the £ stays local. Having said that I believe they have 10 years or so before it becomes untenable.

markcoznottz

7,155 posts

223 months

Saturday 6th February 2016
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V6Pushfit said:
I think the bubble is starting to burst in the UK they aren't what they were. Schools have been teaching the values of healthy food and most people I know wouldn't go near one, opting instead for sandwiches from local bakers and at least the £ stays local. Having said that I believe they have 10 years or so before it becomes untenable.
Well the future is interesting no doubt. Franchisees in USA not happy because parent company constantly tinkering with menu etc, can't decide what it wants to be.

anonymous-user

53 months

Saturday 6th February 2016
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It's the epitome of junk food so it's clear their days are numbered, they aren't nearly as busy as they used to be and even city centre sites aren't full like they were 10 years ago, and it was once the place for children's parties/meeting people on business etc and drive thru queues were huge at times, but not for years
As a business retuning a % it will still stack up as there's always someone wanting their crap, but long term it's a has-been unless they change their business model on a number of levels.
People just don't want fatty burgers flown across the world, plastic cheese and cotton wool buns any more. My children and their friends (19-25 yo's) just think McD's is a rank joke now.



Edited by V6Pushfit on Saturday 6th February 08:43

C Lee Farquar

4,066 posts

215 months

Saturday 6th February 2016
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V6Pushfit said:
It's the epitome of junk food so it's clear their days are numbered, they aren't nearly as busy as they used to be and even city centre sites aren't full like they were 10 years ago, and it was once the place for children's parties/meeting people on business etc and drive thru queues were huge at times, but not for years
And yet UK turnover is rising. They are making significant moves to refine their model to suit current trends and whilst there have been mistakes the figures suggest they are succeeding rather than disappearing.


anonymous-user

53 months

Saturday 6th February 2016
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C Lee Farquar said:
And yet UK turnover is rising. They are making significant moves to refine their model to suit current trends and whilst there have been mistakes the figures suggest they are succeeding rather than disappearing.
Interesting.... Maybe it's linked to other social changes then?

98elise

26,376 posts

160 months

Saturday 6th February 2016
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BigBen said:
BoRED S2upid said:
anonymous said:
[redacted]
I heard £200k but that was 10 years ago or that may have been the cash required. Licence to print money though when did you ever see one go bust?
There was one on the Madingley Road into Cambridge that is not there now and it was fairly new. But that is the only one I can think of.
The one at Hempstead Valley shopping center (wigmore kent) shut down after a year or so.

technodup

7,576 posts

129 months

Saturday 6th February 2016
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456GT said:
What are the difficulties and main pitfalls of such a venture?
Pros: potential income, recognised brand, make money from day one
Cons: potential investment, lack of available & desirable sites, length of term, complete lack of control

McDonald's are here to stay, anyone who thinks they'll be gone in 10 years I'd be happy to take a bet with them. What they'll be offering in 2026 might be quite different though.

My main issue with any franchise is the lack of control. It's not your business, you're hiring it from someone else. So if they take their eye off the ball, either the parent company or another franchisee you could be affected. A fly on the wall documentary in a London McDonald's can affect takings in Scotland. Likewise a food scare, minimum wage scandal or anything else that puts people off eating there.

If John's Franchised Carpet Cleaning makes a mess of the Queen's carpet and it ends up in the Daily Mail the only time his franchisees will be picking up the phone will be to other journalists. Someone else's error, everyone takes the hit.

Works both ways obviously but I'm not sure I'd be taking the chance.

madmover

1,725 posts

183 months

Sunday 7th February 2016
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There's a few franchisee's on here. I know one pretty well - I'm sure they'll be along to give some advice. But to echo some of the above, it will require a large amount of capital and if you have other business interests, it may pose a large issue.

anonymous-user

53 months

Sunday 7th February 2016
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technodup said:
A fly on the wall documentary in a London McDonald's can affect takings in Scotland. Likewise a food scare, minimum wage scandal or anything else that puts people off eating there.
....a good example here, also reported in the papers yesterday :

http://isitunhealthy.com/is-eating-a-mcdonalds-sal...

Salads with more calories that burgers. Why on earth can't they get it right and actually do healthy food?

markcoznottz

7,155 posts

223 months

Sunday 7th February 2016
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madmover said:
There's a few franchisee's on here. I know one pretty well - I'm sure they'll be along to give some advice. But to echo some of the above, it will require a large amount of capital and if you have other business interests, it may pose a large issue.
Would be good to get some franchisees insights. There is so much competition nowadays, I went in a Taco Bell last week, service was a bit slow but made a nice change. Must have been easy in the early 90's, the only real competition was Burger King.

technodup

7,576 posts

129 months

Sunday 7th February 2016
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V6Pushfit said:
Salads with more calories that burgers. Why on earth can't they get it right and actually do healthy food?
Because on the whole it doesn't taste as nice and is (seen as) more expensive. Otherwise we wouldn't be a nation of fat bds.

If you're hungry, on the move, looking for a 'treat' or somewhere to take the kids to a salad is never going to cut it. We should accept fast food for what it is and stop trying to make it something it's not. It's up to parents and schools to push the healthy eating message, not burger chains.


anonymous-user

53 months

Sunday 7th February 2016
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technodup said:
ecause on the whole it doesn't taste as nice and is (seen as) more expensive. Otherwise we wouldn't be a nation of fat bds.

If you're hungry, on the move, looking for a 'treat' or somewhere to take the kids to a salad is never going to cut it. We should accept fast food for what it is and stop trying to make it something it's not. It's up to parents and schools to push the healthy eating message, not burger chains.
Many people don't have the nouse to realise fast food is bad food, or think they are bullet proof to the diseases that will result. Yes it is up to prat ends and schools but fast food companies aren't blameless - they are the ones peddling the crap!

Grandad Gaz

5,090 posts

245 months

Sunday 7th February 2016
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technodup said:
McDonald's are here to stay, anyone who thinks they'll be gone in 10 years I'd be happy to take a bet with them. What they'll be offering in 2026 might be quite different though.
I'm half tempted to take you up on that smile

If they want to survive they will need to change the way people think of their food completely. The tide is just turning against them and if they don't take drastic action very soon, they'll be left high and dry.

In their favour, they have the money to do it.




technodup

7,576 posts

129 months

Sunday 7th February 2016
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Grandad Gaz said:
I'm half tempted to take you up on that smile

If they want to survive they will need to change the way people think of their food completely. The tide is just turning against them
I agree in the sense that Nando's and the like are taking what used to be theirs. But I don't think we're turning against them because it's not healthy enough, more that people will spend a few quid extra in a 'proper' restaurant.

Although what proper restaurants site themselves in shopping centres..?

13m

26,271 posts

221 months

Sunday 7th February 2016
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Yacht Broker said:
mcd's have done really well through their 24hr opening, breakfasts and good quality coffee (you will not believe how much investment they have put into their coffee to try and pull the rug from beneath starbucks, costa & co).
It's worked. McDonalds coffee I've had recently has been far nicer than that from the coffee shops.

olivebrown

137 posts

109 months

Sunday 7th February 2016
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Domino's is probably the best franchise after McD, but good luck getting one.

Junior Bianno

1,400 posts

192 months

Sunday 7th February 2016
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McDonalds franchising is pretty much pie in the sky. I was at BFA breakfast a couple of years ago and the McD's UK Director of franchising was speaking. He said in the previous year they had 50,000 applications for a franchise, and granted.....2!

SirBlade

544 posts

191 months

Sunday 7th February 2016
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With fast food franchisees seeing a 9% decrease last year, now is not the time to get into that game.

Fast food consumers are fast twigging it that is is seriously unhealthy.

The McDonalds salad is a desperate attempt at countering that.

For McDonalds the damage to their reputation is terminal, the pink slime, the ammonia, as highlighted by Jamie, the jig is up for McDs.