McDonalds Monopoly Business

McDonalds Monopoly business will look at how McDonalds play their real estates business in real world. As what Ray Croc said: “My business is not hamburgers. My business is real estate.”

How to play the monopoly game in real world using real money, like what McDonalds and other big corporations and successful investors are doing?

McDonalds Monopoly Business Intro

If you mentioned McDonalds, it is seldom not known to the other party, unless the other party had been disconnected from the real world for quite a long time (such as being adopted by aliens for R&D purpose in space…).

We had covered a little bit history of the McDonalds Corporation, and for those who don’t know what is a Monopoly game:

“Monopoly is a board game published by Parker Brothers, a subsidiary of Hasbro. The game is named after the economic concept of monopoly, the domination of a market by a single entity. Monopoly is the most commercially-successful board game in United States history, with 485 million players worldwide.”

While the McDonald’s Monopoly game is a sweepstakes advertising promotion of McDonald’s and Hasbro that mimics the game of Monopoly (which has been offered in the United States, Canada, Germany, United Kingdom, France, Portugal, the Netherlands, Australia and Singapore since 1987).

So, what has the McDonalds Monopoly business gotta do with this? Even though we had mentioned above and in the article McDonalds Corporation, we still would like to stress again that:

“My business is not hamburgers. My business is real estate.”

Let’s look at the illustration in the next section.

McDonalds Monopoly Business Explained

Let’s assume you run a fast food business:

* The first year rental is $1 million. Your fast food business made a good profit of $3 million in the first year and improving year after year for the next 3 years.

* After 3 years, your rental being revised. Your landlord knows you are making money, so he decided to increase the rental fees of the property to, say $2 million.

* Being in a nice location, and additional $1 million in rental still left you with more than $2 million profit, you are sure to continue renting the same area.

* If you can sell a fast food business that is making $2 million profit a year for $10 million, I would consider you a Super Sales. Assume that the best offer is $5 million.

* But, looking at the landlord point of view, if your property could bring you $2 million in rental every year, and has a market value of $40 million - $ 50 million, your profitability is much more than selling a fast food business.

* So, McDonalds may be selling burger in the first place, but the major pot of gold is in real estates.

The moral of the story? Buy a commercial property, open a successful F&B (food & beverage) business where your property is, package and sell the property and the F&B business together using a franchise system!

McDonalds Monopoly business could have been copied and run by quite a number of successful players around the world, if you could observe clearly with your mind.

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