Witness of the film and television world

Chapter 133 McDonald's Expansion

California, Los Angeles, Beverly Hills.

A long time ago, Payton bought a property here under Elizabeth's suggestion as a place to stay in California.

Sitting on the sofa, Payton greeted Raymond Crocker, the head of McDonald's leisurely.

"Hey, Raymond!"

Standing in front of Peyton, Crocker bowed his head respectfully: "Boss."

Peyton nodded and asked, "How is the franchise store in California?"

"It's very hot. I have received thousands of applications, but a large part of them are not suitable. I am still choosing the right franchise partners."

Peyton nodded, he knew what it meant to be unsuitable for franchisees.

That's who can only invest money.

For these people, they don't need to.

Today, McDonald's has blossomed everywhere in the Federation, with a total of 430 direct stores and 824 franchise stores.

The annual receivables of last year directly reached 2.12 million US dollars, and it is still in the process of rapid expansion, and it is expected that there will be a substantial increase this year.

Their business model and brand value have been recognized. Next, they must be more secure.

In fact, Payton and Crocker have a set of strict standards for McDonald's franchisees.

In the words of Crocker: "I want people who are dedicated to their careers. If anyone just wants to earn money to support their families and live a comfortable life, whoever doesn't want to work at McDonald's."

After all, McDonald's aims to be the mega-chain.

Whether it is service or quality, they have developed a set of strict standards.

If it is required that the raw material of beef must be lean meat, the fat content shall not exceed 19%.After the beef is minced, it must be made into patties with a diameter of 98.5 mm, a thickness of 5.65 mm and a weight of 47.32 grams.

While ensuring the quality, the word "fast" must also be emphasized: a beef patty, a plate of French fries and a drink must be prepared within 50 seconds. If the potato chips cannot be sold within 10 minutes after frying, they must be thrown away.

Using a set of industrial assembly line models to create the first store and copy it from the beginning, this is their business model.

And the most important thing about this strict model is the people, the store managers who implement the standards and provide services!
Before Peyton bought McDonald's, Crocker also opened more than a dozen chain stores. Because of funding, the first partner was his middle-class friends.

These people have spare cash and can invest in the business.

But it didn't take long for Crocker to realize it was a poor choice.

At the beginning, these friends did a good job, but as time went on, it was difficult for these middle-class people who had a comfortable life to devote more energy to McDonald's.

They are often only responsible for throwing money, but they do not care about business. They should play golf and continue to play golf.

Therefore, during that period, the various systems of McDonald's branches were not implemented, causing confusion for a time, seriously affecting the service quality of McDonald's, and even affecting the brand.

Since then, Kroc has learned a lesson—you have to choose someone who needs the business as their franchise partner.

Someone who needs this career?
Undoubtedly, those who only have this job and have no way out are the best franchise partners and the most qualified franchisees.

Only they will treat this matter as their own career and devote all their energy to it.

This is a valuable experience, and basically laid the foundation for the franchise model.

Many successful franchise businesses today have similar needs.

For example, 711 convenience store, they need you to be their store manager for several years, be familiar with the business, and pass their assessment before you are eligible to invest with money.

It sounds unbelievable that I have so many requirements to invest in joining?

But this is reality!

Money is a good thing, everyone wants it.

However, the managers of some enterprises know that some money cannot be taken, and once taken, it will cause a huge blow to the development of the entire enterprise.

They don't lack this little money, and they don't need this kind of partner.

In this way, they can develop better.

With this kind of thinking in mind—if you invest some money, you want to be a rentier class forever?The development of the enterprise must be getting worse and worse. After all, people who really work can't make money, so who is willing to work?

Especially for this kind of simple franchise business, it is difficult for the store manager to convince himself to work hard if he does not get the best income.

The distribution ratio of this kind of enterprise is unhealthy.

Unless it is withdrawn after a shot, just to cut the leeks of the franchisees, otherwise, no chain brand is willing to do so.

Payton said: "The priority is to choose our franchisees from among the previous excellent store managers and employees. They are short of money, and we can give them loans as long as they are willing to work hard."

Peyton believes that these people have loans on their backs, and when they start working, they must use themselves to death.

After all, in their view, this is their own shop, and they are treating themselves as cattle and horses, so what if they are not human?

Crocker smiled: "Okay, boss, but we still need a group of local franchisees, so that we can quickly integrate into the local area."

Peyton nodded: "You can figure it out. You are the most experienced in finding and training store managers."

Crocker: "You're over the top."

Peyton smiled, which is not an exaggeration.

In this regard, Crocker has an extraordinary talent.

In the previous life, most of the McDonald's store managers who were in charge of expanding the territory were hamburger bachelors trained by Kroc's own hamburger school.

Crocker is best at cultivating store managers and putting them in the right positions. His greatest reward for excellent branch managers is to try his best to let them buy more dealerships.

Some managers own 4, 6 or even 8 restaurants and make a decent amount of money.

Even in McDonald's, many store managers have become millionaires.

"By the way, we must choose the locations of the franchise stores well. I don't want too many losses."

"Don't worry, boss, our model has been proven by the market, and we have rich experience in this."

Payton nodded: "It's better to rent for a long time at a low price or buy the store directly. In California, getting a loan is not too troublesome. You can directly contact the Central Bank of California. I have already communicated with them and they will solve the loan problem for you. .”

"Yes."

Not long after, Crocker walked out energetically.

With the help of the previous new welfare system, McDonald's has completely opened up the market in the Federation.

At this time, except for Alabama, in many areas, at the request of the local people, McDonald's has also become the main undertaker of the local nutritional relief meal plan, which even includes many Republican parties.

And people who have experienced McDonald's fast service in less than 30 seconds, and the three-excellent service "high quality, considerate service, and clean place" of various store managers have praised McDonald's.

The brand value of McDonald's has been greatly improved in a short period of time!

Riding on this shareholder wind, Payton's McDonald's also began to launch a franchise model across the federation, and began to expand aggressively.

……

Generally speaking, many franchise brands choose marketing brands to attract franchisees strongly.

Then through selling goods, joining, and two-line attack, vigorously harvest leeks!
But Payton's choice is not the case.

He opted for a typical real estate expansion model.

Before the government or the owner buys land at a low price, or leases the land for a long time, and then borrows from the bank to obtain capital investment, after the establishment of a store to drive the flow of people, the land price is raised, and then the store is rented together to earn the difference...

Buy land at a low price, mortgage it to the bank to recover funds, collect franchise fees, and lease it to franchisees to collect rent, continue to buy land as mortgage...

In this way, not only can earn distribution franchise fees, but also can earn rent and product profits.

Three lines of development!

And completed the capital turnover.

At the same time, McDonald's has also become a real estate giant from a simple fast food chain.

This expansion method is not original to Payton. In fact, this is a typical McDonald's development model!

The reason why McDonald's in later generations can stand out in the field of fast food.

The fundamental reason is that their track has never been in burgers and fries.

Many people even commented on him-this is a real estate giant wearing a fast food jacket.

After years of development, McDonald's has shops all over the world, such as the commercial street in Paris, the center of Manhattan... and a large number of places where every inch of land is expensive.

Even, the annual rental revenue can account for more than 50% of the profits.

This set of models will be widely used in the future, such as the famous Wanda model.

A few years ago, Peyton also operated in the same way when he opened franchise stores in the Japanese clothing market.

Not only has it quickly established its own channels, but it has actually owned real estate and shops in a large number of prosperous places where there will be a lot of money in the future.

For this, he can be said to have a lot of experience.

Of course, for this plan, the biggest problem is not to find the landlord, but to find the bank to provide funds to complete the turnover of funds.

When he was in Japan, thanks to his identity as a federal investor, technology investment and the popularity of the Snow Country brand, he had almost no problems in this regard.

Almost all banks are willing to cooperate with him.

In the Federation, at the beginning, loans were more troublesome.

To this end, Payton has hired two professional financial firms to connect with the bank, and use high interest to attract the bank.

Of course, with the promotion of the welfare relief plan, McDonald's has assumed the role of the promoter of relief plans in various places, and the entire brand value has taken a leap.

Now more and more banks are beginning to contact them actively to provide loans.

For these banks, they will frantically give money to high-quality companies, which is all performance.

For example, in the California area, because of the cooperation of the studio, the president of the California Central Bank contacted Payton early and was willing to provide all the loans.

Peyton has nothing to do with himself. Who is it not to cooperate with?
　Brothers, Calvin is dead, I have to adjust my status well, let's make up tomorrow.

　　
　
(End of this chapter)