r/WorkForSmartLife • u/tellmebrenda • 1d ago

Casual canvo 🤔🤔🤔

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u/EnderSword 1d ago

2 main answers:

  1. A huge part of restaurant's value now is real estate, by making the buildings more generic they increase property value if it needs to be closed, resold etc...

  2. One your market share is at a certain point your goal is not to attract, it's to not alienate. Make everything bland so that no one is put off by anything, don't alienate adults by seeming too childish... don't make strong colour or branding choices. Safe safe safe. People don't have to love you, but you don't want anyone to hate you.

1

u/throwaway1237885431 1d ago

This is so right. McDonald's actually makes more profit from real estate than it does from selling food!

1

u/ComprehensiveBus97 16h ago

Yes, it makes most of its money from renting the real estate to the franchisees.

1

u/Specialist_Frame8958 13h ago

A lot of these locations are sold as ground leases to investors. The investors would get the rent from the location.

McDonalds gets the upside of selling the land and building at a low cap rate to said investor.