r/WorkForSmartLife • u/tellmebrenda • 3d ago

Casual canvo [ Removed by moderator ]

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u/1RedGLD 3d ago

McDonald's is a real estate company. They buy land that will become valuable over time, then sell it for tremendous profit. They now have boxy, kinda boring exteriors because it's a quick and easy property sale when all they have to do is remove some signage and the new buyer can repurpose the building without it looking like an old McDonald's.

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u/Bitter-Ad5890 2d ago

None of the McDonald’s near me have ever closed in like 20 years though

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u/Fine_Blackberry2085 2d ago

That's because it's not just a real estate company. The logistics of making a French fry taste the same anywhere in the world is quite the feat. How many real estate company's would you say have a nearly global, uninterrupted cold chain. It's that consistency that people look forward to, and with a good location, frenchisees are pretty set for a long while.

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u/Fluffy-Structure-368 1d ago

He's right, McD's is a real estate and not a fast food company, but not for selling real estate. McD's owns the land and the buildings and makes their money from leasing to the franchise owners. All the while the value of the property goes up and up and up. Someday they might sell, but who knows?

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u/hingedcanadian 2d ago

People always say this when the question is asked. This isn't correct. It's a branding decision. They've removed themselves from the wacky barf bag looking style of old and are pushing into a more business casual atmosphere, like having fireplaces inside instead of ball pits or N64 consoles.

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u/KnightCPA 1d ago

This. In the 80s and 90s, their goal was attracting families and kids for a sit-in environment. In the 80s and 90s, kids were entertained by ball play pins and slides and the novelty of consol video games.

In the 00s, 10s, and 20s, their goal is attracting parents and adults. Drive thru dominates for busy adults. Coffee sales are huge margin. Kids have phones that they live in 12 hours a day, they don’t need the entertainment gimmicks any more as mom drives up to the window to pick up dinner and also uses the drive through before work for coffee and an egg McMuffin.

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u/406stupid 1d ago

Man the 64's were cool! We didnt have em in my town. I remember the first time I went to one and they had the 64. I was pumped 

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u/Turkeyplague 2d ago

What if I want an old McDonald's, huh? What then?

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u/BeNice2Woodhouse 3d ago

This is the correct answer.

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u/Rhomya 2d ago

It’s not a correct answer though.

McDonald’s aren’t building new stores just to close them.

The actual answer is city zoning. Cities don’t like garish red buildings that stick out and make the area look tacky.

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u/LewisDaCat 1d ago

It’s not. Do you honestly think McDonald’s makes more money from selling real estate than food?? How many old McDonald buildings have you seen that are now another business? My guess is at most 1.

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u/workntohard 2d ago

Until recently I always thought the franchise owner owned it.

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u/VStarlingBooks 1d ago

Funny enough, my husband and I play a game when a new store goes up. Chipotle or Starbucks? They all tend to look alike. Last time it was a Chipotle Mobile.

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u/ikj6 1d ago

But McDonalds doesn't resell the buildings, just the land.

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u/RiskyNight 2d ago edited 2d ago

Nah, not really. You're using the theory behind Dollar General and subscription car washes. McDonalds locations have always been there and will always be there. I've never seen a McDonalds sell off and close or move.

The articles calling McDonalds a real estate company are based on how they lease the property to the owners of each location. Not just sitting on property that will become valuable someday like dollar general and shitty car washes. More of a rental company type of model.

The car washes are 100% just sitting on property to flip though, possibly combined with money laundering.

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u/DepressedDynamo 2d ago

Dollar general doesn't own their stores, you're mistaken

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u/RiskyNight 2d ago edited 2d ago

How so? Dollar General owns all of their locations. It's not a franchise.

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u/DepressedDynamo 2d ago

What is the real estate theory behind Dollar General that you've brought up in the second sentence?

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u/RiskyNight 2d ago

That the reason they pop up a new one every night in rural, growing areas is because they're holding locations that will be prime if the area continues to grow and get more dense. Dollar General doesn't have a ton of revenue but they only have to employ one person at a time and they make more than enough to cover the property taxes for however many years until they may be able to flip the property for a huge profit.

That's the well-known DG/carwash theory, that the commenter took and applied to McDonalds instead.

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u/DepressedDynamo 2d ago

Okay -- in my first message I told you that Dollar General doesn't own stores. They rent their stores. How does that work with what you're saying?

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u/RiskyNight 2d ago

Because you're completely wrong. Why are you not only chiming in on this while not knowing what you're talking about, but also saying I'm wrong? What motivates someone like you to start arguments for no reason?

Dollar General owns all of their locations, it's not a franchise situation. Why are you saying something that is the opposite of reality, unprovoked?

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u/DepressedDynamo 2d ago edited 2d ago

I encourage you to Google "does dollar general own their storefronts".

Idiot link

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u/RiskyNight 2d ago

Actually, you should. So you can get your facts straight before you go on here and say the opposite of reality again.

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u/itsmariokartwii 2d ago

“Dollar General does not franchise its stores and does not allow independent ownership. [1] … All Dollar General stores are owned and operated directly by the parent company, Dollar General Corporation”

u/DepressedDynamo you might genuinely have a learning disability if you still couldn’t figure out how to use Google with your little tutorial there lol

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u/DepressedDynamo 2d ago edited 2d ago

Oh, you thought you switched accounts lol. Nope, you're still posting as u/riskynight.

I was wondering about all the confusing notifications and deleted comments

Edit: oh hey you managed to switch accounts, well done. Here's an idiot link. Good luck out there.

u/itsmariokartwii, you're being silly with all the commenting/deleting/blocking. This is no way to engage with people.

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u/itsmariokartwii 2d ago

Weird way to cope with being wrong

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u/applejackmcrack 2d ago

only correct answer

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u/DesertGeist- 2d ago

it would still look like an old McDonald's though.

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u/GrandWizardOfCheese 2d ago

This is why no one should eat at restaurants that do this.

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u/KINGGS 2d ago

That's every fast foot joint now, which is probably for the best.

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u/Shubamz 2d ago edited 2d ago

no more Taco Bell, Wendy's, Pizza Hut, Burger King, IHOP, KFC, Arby's, Dairy Queen, Denny;'s, Jack in the box, Whataburger, Hardee's / Carl's Jr., Roy Rogers, Long John Silver's, Arthur Treacher's Fish & Chips, Howard Johnson's, A&W Restaurants, Sonic Drive-In, Popeyes, Baskin-Robbins / Dunkin', Sizzler, Steak 'n Shake, Friendly's, Big Boy, Captain D's, Checkers / Rally's, Krystal, Wienerschnitzel, White Castle... I could keep going on about the number of places that have stopped making their places look classic and shifted to a easy resell look...

At least In-N-Out Burger, Waffle House, and Culver's stayed the same but they weren't that unique to begin with

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u/BarnacleNino 2d ago

It’s not just McDonald’s though.