What is McDonald’s Business Model?



McDonald’s. The fast food icon that everyone loves – or loves to hate. An iconic brand with an iconic story. Founded in the 1940s by 2 brothers, then later bought out by Ray Kroc, McDonald’s has a storied history of innovation, particularly when it comes to 1 thing: franchising. In this video, we go in-depth on the dual operating model McDonald’s employs. Which side of the business is variable cost-driven and which is fixed cost-driven? What operational role do the franchisees play as opposed to McDonald’s corporate?

We’re excited to apply the Strategy Simplified framework to the McDonald’s business model. What kind of business is the world’s second-largest employer in? Watch now to find out.

Questions we’ll answer in this video:
◈ What is McDonald’s history?
◈ What is McDonald’s business model?
◈ Is McDonald’s a fixed cost or variable cost business?
◈ How many employees does McDonald’s have?
◈ And much more

If you enjoyed this video, subscribe to the Strategy Simplified podcast for business model breakdowns like it. Click here: https://managementconsulted.com/podcast

Highlight Timestamps:
00:42- History of McDonald’s
02:23- McDonald’s business model
05:47- Revenues from franchise restaurants
7:25- What it costs for McDonald’s to setup a franchise restaurant

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