According to reports, McDonald's revenue in 2023 is as high as 254$900 million, net profit of 84$6.9 billion, both revenue and profit are growing year-on-year, in addition, there are plans to add 1,000 new stores in China!
This has to be curious, in the first half of 23, 320,000 physical stores were forced to close, and even many celebrity restaurants have joined the store closure boom, such as Chen He's Xianhezhuang, Zheng Kai's Huo Fengxiang, and Du Haitao's spicy dou spicy. 2023 can be said to be a cold winter that brick-and-mortar store owners don't want to face! So how did McDonald's manage reverse growth? This is all thanks to his four-tier profit model.
The first layer is to earn the difference in the price of the product. That is, we usually consume hamburgers, cola, fried chicken and other products at McDonald's, but almost all of these profit points are given to franchisees to safeguard the interests of franchisees. Therefore, this part of the profit point is not much for McDonald's, accounting for only 1% of the total revenue.
The second layer, ** chain income. McDonald's has more than 30,000 stores worldwide. How to do it, do centralized procurement and training of store needs, designate chicken seedlings, feed, chicken sheds, etc., empower upstream merchants, and greatly reduce the cost of raw materials. At this time, you will definitely ask, why is the merchant willing? It's very simple, the quantity is large and the order quantity is stable, such as the "chicken king" Liu Xuejing, as a ** merchant of KFC and McDonald's, the annual revenue of selling chickens is as high as 50 billion! So, it's all a sweet treat.
The third tier, franchise and system service revenue. Franchisees only need to pay a franchise fee of 8 million (30,000 stores are 240 billion!). ), you can be the shopkeeper and wait for the money to be collected. For example, store site selection, clerk training, management, decoration, etc. are all arranged by the headquarters, and even the store staff recruitment headquarters is also responsible. This is also the future outlet of Ali Research Institute - S2B2C model, S is the empowerment platform McDonald's, B is the franchisee of the empowered, and C is the thousands of you and me who enter the store to consume. This component accounts for 30% of the total revenue.
Fourth, diversified income. McDonald's is no longer a simple catering company, he is also a real estate company! In life, it is not difficult for us to find that McDonald's is a gathering place, and McDonald's has an agreement with Wal-Mart, where is McDonald's, where is Wal-Mart. Suppose your business district used to be 5,000 square meters, and these two can be directly doubled, so in order to attract McDonald's to settle in, the real estate will give a very low rent, just like the rent of 6,000, and McDonald's only needs 3,000. This part accounts for 50% of the earnings.
McDonald's four-tier profit model is also the killer feature of many bosses who make a lot of money, such as Michelle Bingcheng and Zhengxin Chicken Chop, which share the immediate benefits to franchisees to earn the service fees, system fees and value-added fees behind the products. However, many small and medium-sized enterprises still rely on selling products to make the difference. Thinking remains the same, you can only face being eliminated by the market, no matter what industry you are in, this set of models is applicable. If you want to have a deeper understanding, then I highly recommend you to read this book by Mr. Wang Chong's "High Profit is Planned + Ten Times Profitable Business".
There are business cases applicable to all walks of life, teaching us how to integrate resources, start a business with new assets, how to quickly drain fission, how to formulate marketing plans, how to defeat malicious competitors, how to sell nothing without making any money, and making money that others can't see.