Mcdonalds profit. McDonald's franchise to open a fast food restaurant. Here are some testimonials from entrepreneurs

Iconic fast food restaurants need no introduction. Today they can be found in almost every Russian city. Although 20 years ago you could only find them in Moscow, and the line at McDonalds was comparable to the one in the mausoleum. A lot has changed since then. For example, in Russia, MacDonalds has turned into a store, while becoming the most.

Recently, the financial report of the Russian subsidiaries of the American McDonalds was published. it OOO "McDonald's" and CJSC "Moscow-McDonald's". The first company develops a regional network of restaurants, the second - a metropolitan one. They include 231 and 45 establishments respectively.

Revenue, profit, profitability

Them total revenue in 2010 exceeded 37 billion rubles. Of these, the share of the regional network accounted for 26.2 billion rubles, the share of Moscow - 10.9 billion rubles. And if the income of the regional network for the year grew by almost a quarter, then the revenues of Moscow restaurants fell by 10 percent.

net profit McDonalds in Russia received 4.46 billion rubles. Of these, LLC "McDonald's" brought 2.82 billion, and CJSC "Moscow-McDonald's" - 1.64 billion. At the same time, the regional network increased its profit by 42.4 percent compared to 2010, and the Moscow one - by almost 84 percent! As a result, in terms of revenue and net profit growth rates, the American fast food chain in Russia surpassed all other restaurants, including elite establishments of gourmet cuisine, where the rate of return is always an order of magnitude higher.

Curiously, contrary to forecasts, the sharp rise in food prices in Russia did not prevent the Americans from increasing their profits. Perhaps a paradox, but in the face of rising prices, they even managed to reduce the cost. Thus, according to the results of 2010, the cost of sales in Russia amounted to 13.3 billion rubles. In 2009, this figure was 14.2 billion rubles.

Got up and profitability Russian subsidiaries of McDonalds by net profit. If in 2009 it was 8.6 percent, then in 2010 it was 12 percent.

Why?

Margins above 10 percent are excellent for the chain, industry experts say. fast food. Usually establishments of this type earn less.

According to Sergey Rak, Development Director of the Stardog!s network, the success of McDonalds lies in its pricing policy. He emphasizes that this network regularly, but slightly, raises prices, thus outpacing food inflation. Thus, McDonalds can increase prices by 15 percent in a year, but consumers are unlikely to notice.

Former President of Rosinter Restaurants Sergey Beshev believes that McDonalds owes much of its resounding success to the crisis. In particular, if in 2009 the restaurant industry experienced an acute financial crisis, then in 2010 it was replaced by high food inflation and rising utility costs. As a result, gourmet restaurants and mid-price establishments suffered the most.

In general, market participants agree that it was the crisis that helped McDonalds outperform all other catering establishments in terms of revenue growth. Indeed, in a crisis, people need ordinary, delicious food at an affordable price, and not culinary delights, accompanied by live music and belly dancing. So it is possible that after overcoming the consequences of the crisis, such a rapid growth in McDonalds profits will stop.

And not a restaurant at all.

However, as it turned out, it is incorrect to compare indicators with restaurants. The fact is that in Russia this American fast food chain is not at all a catering establishment. This is a regular grocery store.

And it's not a joke. This decision was made Federal court of Arbitration Moscow federal district . The court found that McDonalds does not provide any services, but only sells products. So, it can be fully considered a store.

This trial was initiated OOO "McDonald's", which filed a lawsuit against the Moscow branch of the tax service. The latter were convinced that McDonalds, like any other restaurant, provides services, and therefore must pay VAT at the rate of 18 percent. At the same time, she fast food chain insisted on 10 percent VAT, which applies to grocery stores.

Participants in the public catering market positively assess this decision of the court. They hope that the tax authorities will take it into account and admit that VAT rate of 10 percent can be used not only by shops, but also by restaurants.

However, no one can guarantee that this will be the case. Indeed, otherwise, restaurants that pay VAT at a rate of 18 percent will have the right to demand the return of tax deductions paid in excess of the norm. And this is unlikely to be in the interests of filling the federal budget.

Sergey Semenov

Photos from sites grubgrade.com, herdaily.com, zebra.lt, listropolis.com

Revenue of McDonald`s company for the first time fell in 2017 and amounted to 66.27 billion rubles. at the end of the reporting period. Dynamics of the indicator over the past 5 years (in rubles): 2013 - 50.09 billion; 2014 - 52.91 billion; 2015 - 60.64 billion; 2016 - 66.81 billion; 2017 - 66.27 billion.

McDonald's net profit indicators in Russia during recent years changed as follows (in rubles): 2013 - 5.45 billion; 2014 - 3.13 billion; 2015 - 2.55 billion; 2016 - 4.4 billion; 2017 - 2.88 billion

The corporation's activities around the world are managed by franchising: more than 90% of restaurants operate on this principle.

In Russia, the rights to develop a trademark for franchising are held by:

LLC "Razvitie Rost" (subsidiary of PJSC "Rosinter").
Gid LLC (owner - A.N. Govor).
Regional Network of Catering Enterprises LLC (founder - Kairat Boranbaev).

Author's addition! Franchises are provided for opening restaurants not in specific cities, but in a certain territory in various constituent entities of the Russian Federation, therefore, the areas of operation of companies are divided according to a geographical principle.

Financial performance of McDonald's

Data on the financial results of McDonald`s Corporation in the world can be presented in dynamics by years:

The indicators show a downward trend in revenue. But at the same time, ongoing reforms, a change in strategy and an approach to minimizing costs allow maximizing the corporation's profit: for example, in 2017, the company's net profit increased by 11% compared to the previous year.

Performance indicators of McDonald's in Russia in dynamics for 5 years:

Data analysis shows that for the first time since the opening of a fast food restaurant in Russia, McDonald's income from restaurant activities in the country decreased in 2017. McDonald's earnings fell by almost 1% due to menu adjustments, increased competition (Burger King is the main competitor), and political sanctions. The corporation is currently undertaking various strategic activities to start making big money. So, for example, since 2018, Mark Karena has taken over as CEO.

How much does a McDonald's franchise cost in Russia? What is franchising and what are the benefits for both parties? Business plan for McDonald's franchise.

It's no secret that fast food restaurants are famous in almost every corner of the world.

True, opening a new network is not an idea for the faint of heart, as it is a big expense.

And the likelihood that the business will develop, or at least make a profit, is very small.

A completely different thing is buying a franchise of an already well-known brand of fast food.

McDonald's is the most famous fast food restaurant chain.

It will be quite profitable no matter in which country or in which city it is opened.

The most interesting thing is that, in fact, it doesn’t even matter how busy the area or the place where you put it.

But, How much does a McDonald's franchise cost?– is a completely different matter.

It is obvious that such an idea is very costly.

But it should also be taken into account that many competing restaurants have already opened in Russia under these conditions.

Therefore, we can hope for more favorable conditions from the owners of the worldwide network.

However, McDonald's remains the most popular.

And the cost of a franchise is considered one of the most expensive.

What exactly does "franchising" mean?

Before you start making plans, you should have a good understanding of what franchising is, what its terms are, and what it means to "buy a franchise."

In fact, a local entrepreneur who has sufficiently large assets wants to open a business, but uses a ready-made brand for this.

This is convenient because the brand is already promoted, and will definitely bring profit, and more.

Thanks to this, the entrepreneur does not spend money on promotion, and saves time that would be spent waiting for the popularity of the business to increase under normal circumstances.

Along the way, the question arises: what benefits does the franchisor (the owner of this company) receive?

So, the most direct!

Namely, the initial fee for using the franchise, as well as a monthly percentage of the profits.

As a result, it is not even clear who benefits the most.

How much does a McDonald's franchise cost?

The down payment itself will be approximately $45,000.

But, obviously, this does not mean that you can pay this money, and just calmly earn yourself from it.

After the opening of the restaurant, you will need to make monthly contributions (royalties), namely:

4% - leave the entire turnover, for the use of the finished model;
4.5% - from the monthly net profit, as a contribution to the budget for marketing activities.

There is also such a contribution as rent.

It ranges from 10% to 20%.

It applies only if McDonald's itself is the owner of the property of the restaurant opened by the entrepreneur, as well as the lessor of the premises for this institution.

A mandatory contribution (the amount of $ 10,000) will be the cost of learning on the network all the standards and nuances of the kitchen, promotion and, in general, features.

Since only after passing the training stage, the company presents a list of restaurants available for sale.

Buying a McDonald's Franchise

Since such a large and reputable company cannot afford to sell the rights to discover to everyone, there are certain conditions that are important to comply with.

There are certain requirements for an entrepreneur who wants to buy a franchise, such as:

general business experience;
managerial skills of work at the enterprise;
experience in the field of catering;
good credit history;
sufficient funds for opening;
a ready-made business plan for this enterprise;
interview in the company.

If the applicant fits all the criteria, he goes through a training period that lasts 9 months.

Business conditions and requirements for the company

Firstly, a McDonald's franchise is not only income, but also an obligation to participate in all events held by this restaurant chain, and there are many of them.

Also, all staff, employees and supervisors, must maintain network standards.

There is such a form of verification of compliance with standards as secret shopping.

It consists in the fact that a mystery shopper comes to the restaurant to place an order.

After that, he evaluates the service, starting with the mood with which he is served, and ending with whether everything was offered to the client and whether they told about all the promotions.

Specifically, you will need to take part in the following social projects of the company:

environmental Protection;
support for sporting events;
organization of various youth competitions, etc.

There are also a number of requirements for the premises under McDonald's:

should be located in the most lively place, for example, near the metro, on the main street of the city, in a place where entertainment events are held, etc.;
the area of the whole restaurant should be at least 2-3.5 thousand square meters, depending on the format;
if this is a point in a shopping and entertainment center, the institution should be located either in the facade of the mall, or in some corner room.

Technical requirements for the premises:

water supply, gas supply, electricity supply - 210 kilowatts;
as well as sewerage - 18 cubic meters per day.

The duration of the franchise agreement is 20 years.

How to register such a business and what is needed for this?

The owner registers the restaurant as an individual business.

In order to do this, you need to collect a number of documents, such as:

the original document confirming the identity of the owner (passport), as well as the identification code, and their copies;
receipt of payment of the fee;
application to issue individual, how ;
application for the choice of a simplified taxation system.

Nothing complicated in the design will not be even for a beginner.

And especially if you already have experience in this field.

McDonald's Franchise: Financial Calculations

The opening of McDonald's will take from 950,000 to 1.8 million dollars.

Since there are certain requirements for products, for example, that only all branded semi-finished products can be used.

And this is plus the cost for transportation (about 25%).

Also, the management of the network has a special attitude towards employees.

You will have to spend a lot of time training the people you hire.

And they must have all the necessary certificates.

Most importantly, the average salary per employee of such a well-known company should be at least 30,000 rubles (the average among all positions).

Capital cost of starting a franchise

Monthly expenses since opening McDonald's

Profits from opening McDonald's

It is impossible to calculate the exact profit, as in any other business, and the network management does not advertise this information.

But, unlike a completely new brand on the market, here you can calculate the approximate profit and payback period as close as possible.

On average, one restaurant in a crowded place can generate income in one year, in this amount:

Possible Risks of Opening a McDonald's Franchise

This list includes the following items:

people's biased attitude towards fast food;
in a severe economic crisis, such a business loses about 30% of its customers;
the high cost of such a business;
long term training for the manager and staff.

But, not a single minus plays a huge role, given the payback and benefits of such a business.

Since this is a global network, operating at a loss is unlikely, since we are talking about a ready-made, win-win model.

The video presents real story how McDonald's became the most popular fast food place:

Conclusion on whether it is profitable to buy a McDonald's franchise?

Obviously, the profit from such a business will be 100%.

But that's just it, How much does a McDonald's franchise cost? gives food for thought.

After all, you will also have to shell out a lot of money not only for the purchase, but also for training, as well as the costs of the discovery itself.

It can also scare the moment that companies with a worldwide reputation.

Therefore, it has serious requirements, and they carefully monitor all their affiliates, as the owners of the network are worried about their image.

Regardless of whether such a business is suitable for an entrepreneur, it is important that he himself approaches the role of the owner of a restaurant of such a well-known chain.

Representatives of McDonald's select partners according to many criteria.

After that, they conduct an interview and, based on the information received, they give an answer.

Benefits and profitability in this case are 100%.

But the most important thing is to be ready to take part in the activities of the company, and always follow the standards: both preparation and service.

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Do you want to open a McDonald's franchise, but don't know how much it will cost and what results you can expect? Then you definitely need to familiarize yourself with the conditions of the program, the existing requirements and possible income.

McDonald's is one of the most famous and sought-after representatives in the catering market. The network was organized back in 1940. Then about the "fast food" few people heard. This is why almost everyone associates fast food with McDonald's establishments.

Such popularity of the brand is explained not only by excellent taste characteristics, but also by fast service, affordable cost. Families with different levels of income can afford to eat at McDonald's.

With the advent of the company, a new era in catering began. And even today, interest in the brand is very high. By the number of outlets and customers, McDonald's can rightly be called the most common.

In more than 100 countries, McDonald's branded establishments are open. There are about 30,000 of them in total. About 15% of them are owned by the company itself. The rest are managed by franchisors.

Interestingly, McDonald's, working with its franchisees, not only acts as a franchisor mentor, but is also a real estate investor. We are talking about the construction and arrangement of buildings where catering points open.

Benefits of Buying a McDonald's Franchise

It is through franchising that McDonald's has become the leading catering chain in the world. According to experts, the offer of this organization is included in the top 200 franchises. Moreover, such interaction with its partners has been conducted since 1955. Although the McDonald's franchise came to Russia not so long ago.

Interestingly, the fast food industry in the field of franchising recent times gives up positions. But this does not apply to McDonald's at all. On the contrary, the strategy used perfectly fit into the domestic business, even despite the consequences of the last economic crisis. The number of franchised outlets is constantly growing, increasing the amount of total operating profit.

It is impossible not to talk about the benefits of using such a franchise. The undoubted advantages include the following factors:

Brand customer focus. When people think of fast food, they always think of McDonald's. Therefore, if they want a quick and inexpensive meal, they often go here.
High and stable demand for products. Potential franchisees do not have to advertise their establishment or products. People will come to him.
Having a well thought out strategy. Moreover, the tactics used have been successfully operating for more than 7 decades.
Excellent financial performance. Due to the fast service and affordable prices, the number of visitors every day is very high. As a result, the turnover turns out to be large, bringing the owner of the establishment a constantly high profit. This, in turn, allows you to quickly recoup your investment.
Comprehensive support from the franchisor. A potential partner not only undergoes training, but also receives a ready-made business model, assistance in finding suppliers.

It should be noted that the opening of McDonald's will be appropriate in many places. For example, it can be a crowded square, an airport, a train station, or even an amusement park, a shopping center.

Franchise Terms

Before figuring out how to open a McDonald's franchise, a potential partner should carefully study the terms of the offer. It is also important to meet the requirements of the franchisor. So, this company takes the search for its partners very seriously. Therefore, you should not hope for a quick and easy design.

Let's start with the fact that it has become possible to acquire a McDonald's franchise in Russia relatively recently. Prior to this, the company opened outlets itself. However, high competition with other catering enterprises forced to reconsider this issue. The chain's main rivals are BurqerKinq, KFC and Wendy's. After assessing the level of competition, franchise enterprises began to appear in the Russian Federation in order not to lose their customers who would also like to visit McDonald's.

Any entrepreneur who wants to become a franchisee is interested in the financial side of the issue. After all, someone is looking for an opportunity to start a business with a small initial investment, and someone wants to invest their own capital in a really profitable business.

It is impossible to call a McDonald's franchise affordable in terms of cost. So, when buying the right to open a restaurant from scratch, you will have to pay $45,000. And you can become the owner of a ready-made catering point by depositing funds in the amount of 500,000 - 1,200,000 dollars.

The franchisor himself sets the amount of required capital at around 1 to 1.8 million dollars. This is quite a large amount. Therefore, a newcomer who does not have capital will not be able to buy a McDonald's franchise.

The signed agreement will be valid for 20 years. After that, the franchisee can either end the cooperation or carry out an extension. Given that investments can pay off in 12 - 18 months, then this is a good opportunity to increase your capital. The amount of monthly profit - from 100,000 dollars.

For various monthly royalties, the restaurant owner will have to give the franchisor about 12 - 13%. Given the high profitability, this is the optimal contribution.

Of the advantages of the franchise, it can be noted that it involves the assistance of the brand owner. Partners receive:

In fact, a person will receive a ready-made business model and all the tools for its implementation. He will only need to track the dynamics, be able to respond to market changes.

Can I buy a franchise in installments?

Opening a restaurant under the McDonald's brand will cost a large sum. Small entrepreneurs who have absolutely no capital will not be able to buy a franchise. After all, for the right to open your own restaurant you will have to pay 45,000 dollars. But you still have to find money for decorating, buying equipment. And this is an additional $1,500,000 for a large city.

In Russia, few can afford to invest in a franchise project. That is why it was decided to provide domestic potential partners with installments:

for the purchase of a new restaurant - 40%;
to purchase finished outlet - 25%.

It is important that the funds paid are not borrowed. That is, it will be impossible to take a loan from a bank and use it for a down payment for a restaurant. The rest of the funds can be returned within 7 years. If the partner decides to take a loan, then he will have to apply for it at the bank, since the franchisor himself does not provide such services to his franchisees.

The financial solvency of an entrepreneur is not the only requirement put forward by McDonald's. The person must also satisfy the following conditions:

business experience;
desire to develop quickly;
the ability to work with a business plan, draw it up and use it in life;
experience in administrative work in a restaurant enterprise;
willingness to learn;
have a positive credit history;
ability to work with staff.

Effective work with your employees is the key to success and team cohesion. Therefore, an entrepreneur must be able to find a common language with different people.

Technical requirements

Not every place will be able to open a restaurant. There are requirements for its location:

high level of permeability;
location in the city center or near main roads, near the subway, in shopping centers.

At the same time, from 2,000 to 3,000 m 2 will be required for the premises. They should be located at the front of the building with access to the main streets. The premises themselves must have the following technical characteristics:

availability of water and sewerage;
the presence of gas;
electric power - not less than 210 kW.

When opened in mall requirements to technical specifications may change.

How much will the franchisor need to pay?

A McDonald's franchise involves not only a down payment, but also other deductions in favor of the company. Moreover, they apply for the entire duration of the contract. These are the following fees:

service fee - 4% of sales;
rental payments (if the building belongs to McDonald's, not a franchisee) - 10 - 15% of sales;
advertising fees - 4.5% of net profit.

Additionally, you will have to pay $10,000 for the practical part of the training. This will allow the entrepreneur to understand all the intricacies of the business, including the rules and secrets of cooking, increasing the effectiveness of advertising.

Conclusion

The McDonald's franchise is a great opportunity to get a ready-made business model. But you will have to pay a lot for it. Therefore, not every person can count on being included in the list of franchisees.

The franchise involves opening your own fast food restaurant. This is a fixed idea for many businessmen. This is a good solution for people who have their own capital and are ready to invest it today in order to receive significant profits in the future.

When buying this franchise, you need to understand that the new business will take up 100% of your time, since constant control by the owner is absolutely necessary to ensure maximum profitability.

McDonald's is very serious about choosing a franchisee and therefore has created practical training courses that last quite a long time - nine months. In fact, the future restaurant point is ripening inside you during the entire learning process.

The courses also have a financial component.

The future franchisee needs to make a mandatory deposit of $10,000, which is returned after the end of the course.

During your studies, be prepared to support yourself or have enough Money or a well-paid job with a free schedule.

After completing the training, you will be ready to open own business. The opening of the restaurant will cost $650,000. 25% of the amount will need to be contributed by own funds, and the remaining 75% can be borrowed.

The franchise fee is $60,000. This amount is paid in rubles as a one-time payment.

A prerequisite is customer service and cooking that meets the highest quality standards. Also trained staff. Your establishment must adequately represent McDonald's and be consistent with its brand in everything.

Current monthly payments will be as follows:

for the right to use the brand in the amount of 10-15% of the profit;
for the right to use the McDonald's system 5% of the profit;
contribution to advertising costs in the amount of 4.5% of profits.

Company policy provides support sports events. Therefore, choose a sports team right away and be ready to sponsor it.

For a better understanding of the business, it is worth visiting the "days open doors”, which are periodically held at various points of the network and get to know both the management of the company and the already working franchisees. This will allow you to avoid typical mistakes at the initial stage of independent activity.

The annual profit from the restaurant is 190,000 - 400,000 dollars. And this is after the mandatory payments on the loan. If you managed to do without a loan, then the profit will be much greater.

You can send a request for the purchase of a franchise by e-mail [email protected] In addition, you can talk in detail with the management and find out all the details of cooperation at the Open Doors Day. Registration for participation is conducted on the official website of the company www.mcdonalds.ru