Rebirth in America
Chapter 110 Investing in Fast Food
The McDonald brothers are very concerned about user needs and often survey the market and adjust the services of fast food restaurants. In 1948, they introduced the principle of "quick service system", which is where the name "fast food restaurant" comes from.
Unexpectedly, this change would actually attract more people to dine at their restaurant. Now, they have opened eight stores and are preparing to license others to open a ninth.
"Welcome to McDonald's fast food restaurant!" the two said in unison.
Under the warm greetings of the McDonald brothers, they sat on a clean and tidy table. Alex looked at the McDonald's restaurant in the 1950s, compared it with the McDonald's in his memory, and found many differences. This feeling is really wonderful, as if you are in a reality where reality and dreams are intertwined.
A beautiful song is playing in the restaurant, and it turns out to be Alex's "more-than-i-can-say"! After those three records were released, they quickly sold double platinum albums. In particular, the song "more-than-i-can-say" is most popular among young people. People usually choose this song as background music when they express their love.
Big McDonald handed over a menu and asked: "Alex, what would you like to eat?"
Taking the McDonald's menu, which looked familiar yet unfamiliar, Alex looked at it casually and ordered a burger and a drink. The McDonald brothers also asked the waiter to bring some fast food they wanted to eat, and the table was quickly filled.
Alex looked at them with a smile and said, "Two McDonald's brothers, I must have made my intentions very clear on the phone. What do you think?"
Big McDonald looked at Little McDonald, and the two of them exchanged opinions silently. Soon, McDonald's took out a poster, which was the poster for "The Sound of Music". He said with a smile: "I'd better let you sign it for me first!"
Little McDonald also took out a poster and said the same: "I want an autograph too, I want it too."
Alex was stunned, but he quickly signed the two brothers' names with a smile, and while writing, he asked them what message they wanted to write on it. After both posters were signed, he asked again: "What do you think?"
McDonald's carefully put away the poster and said: "Although we are old and a little tired, we don't want to go home and rest so soon, so it is impossible to sell the entire store to you. You can only buy shares, not Buy our store.”
After hearing this, Alex was a little surprised. He knew that in a few years, the McDonald brothers would sell the entire store to Ray Kroc. He thought that as long as he was willing to pay the price, the McDonald brothers would happily sell it to him.
Sure enough, no one is a fool! Ray Kroc worked hard for many years to get the McDonald's fast food restaurant.
"It seems that we need to change our strategy and let the other party taste some sweetness." Alex thought in his mind.
Just when Alex was about to speak, someone suddenly jumped on their table. The speed was so fast that even the bodyguard standing behind Alex almost didn't react.
"Hi! You're Alex Carpenter! I recognize you, yes, you're him."
As soon as the guy approached the table, he was immediately restrained by Alex's bodyguard. This is a young man in his twenties, with a slender body and a strong nose, and he looks somewhat handsome.
The guy who suddenly appeared interrupted the conversation, which also surprised the McDonald brothers.
"Oh haha, I didn't expect to meet your fans in such a small place." Old McDonald said.
"Maybe a movie fan or a book fan?" Little McDonald said.
In response to the McDonald brothers' teasing, Alex smiled and said, "I don't like being chased like this."
Alex glanced at the other person and waved his hand for the bodyguards to take the guy away. He didn't want anyone to disturb this business.
The young man shouted, "Hey! Don't pull me, don't pull me! I'll go by myself!"
"Alex, I'm your fan, please sign it for me."
"Alex! Alex!"
After the man was pulled out of the store, Alex expressed his final plan: "How about this? I will pay $500,000 to buy 80% of your shares. You will hold 20%, and the store will still be the same." It’s up to you to take care of it.”
500,000 US dollars and 20% of the shares, that is to say, the two brothers each have 250,000 US dollars and 10% of the shares. You can also let them manage the store, which sounds good.
After the McDonald brothers listened to Alex's words, they did not communicate through eyes this time, but came together to discuss in a low voice for a while. Finally, McDonald's replied: "1 million US dollars! If you are willing to pay 1 million US dollars, we will sell you 80% of the shares."
1,000,000! They really dare to ask for it! The few stores they have opened now cost only about US$30,000 each. One million US dollars is enough for them to open more than 30 such fast food restaurants.
If it had been anyone else, they might have walked away after hearing the price. This was a million dollars in the 1950s! With such a large amount of money, the McDonald brothers can enjoy it for the rest of their lives, so what else do they need to do?
"One million US dollars? Then you can't take 20% of the shares. I can only give you 5% of the shares. If you think it's less, then there's nothing I can do."
Before they could answer, Alex added: "But I have an additional condition, that is, when you no longer plan to continue, these 5% shares must be sold back to me at the share price at that time. . To be on the safe side, I think we should set a 10-year period. I think you might want to retire after working for another 10 years.”
The McDonald brothers looked at each other again. After a few seconds, McDonald Jr. nodded and said, "Okay, we agree to your conditions."
In the United States, as long as you have money, you can do anything quickly. Alex and the others quickly completed all the procedures and signed the contract on the same day. At this time, Alex told the McDonald brothers some of his ideas. Improved some fast food restaurant processes and restaurant layout facilities, etc.
Of course, there is still a clause prohibiting horizontal competition in the contract. This is to prevent the McDonald brothers from using the $1 million to open other fast food restaurants. Without this, Alex would never do this business even to death. He's not that stupid.
Alex said to the McDonald brothers: "**-and-Mac-McDonald's name is too long and difficult to remember. Let's rename the restaurant McDonalds."
The McDonald brothers didn't have any objections to the name. They also felt that the previous name was too long.
The most critical point is real estate. Anyone who understands knows that the most profitable thing for McDonald's is not selling hamburgers, but real estate. At his suggestion, McDonald's Company cooperated with a real estate company invested by Alex, which was called Chain Real Estate Company. It specializes in finding suitable locations to open stores and buying or leasing land and houses from landowners.
After the chain company obtains the land and store, it leases it to the chain store and earns the difference. In this way, as long as the tenant franchisees can survive, McDonald's can earn at least 40% of the profits on real estate. Not to mention, as prices rise year by year, the rent charged by McDonald's has also increased, and profits will become higher and higher.
In addition to this rent, the McDonald's chain franchise also requires franchisees to pay a franchise fee of US$7,500, which will be returned in two installments within 15 and 20 years. This gives McDonald's a large amount of cash flow, which allows McDonald's to change its original lease to purchase. In order to obtain more cash, it will also mortgage it to the bank. In other words, McDonald's used money from franchisees and banks to buy land and houses.
This strategy was originally formulated by Ray Kroc, the founder of the McDonald's kingdom, but now of course it has been directly used by Alex. Alex doesn't care how much money McDonald's restaurants can make, as long as the McDonald brothers can expand the chain. What can really make money is the chain real estate company in his hands.
After finishing this business, Alex felt comfortable all over. With the McDonald's fast food restaurant, he was no longer afraid of being short of cash. Just like Jack Ma who owns Taobao in later generations, cash is king. But if you want to see this effect, you have to wait for more than ten years. UU read www.uukanshu. net
After making some arrangements for McDonald's company, I planned to find a hotel to rest. When he walked out of the McDonald's restaurant and was about to get in the car, the guy who jumped in front of his table appeared again.
This time he failed to bypass the bodyguards and walk to Alex. He was stopped by two bodyguards. So he kept waving to Alex and shouting: "Alex! Alex! Please sign your name for me!"
Alex usually doesn't like signing autographs for groupies.
However, this guy was carrying a broken guitar and some snare drums around his waist, which looked interesting. So, he asked the bodyguards to let go and let the man who looked like a wandering singer come over.
The wandering singer swayed from side to side as he walked, adjusting his clothes as he walked.
When he walked up to Alex, he did not immediately ask for an autograph, but stretched out his hand and said, "Hello! Alex, my name is Jerry, Jerry Lee Lewis!"
"Jerry Lee Lewis?"
Alex looked at the other person's outstretched hand, thought for a moment and still didn't hold it. I have no interest in this guy and don't want to waste energy on him.
Alex looked at the street singer named Jerry, took out his signature pen and said, "Where do you want me to sign?"
Jerry touched his coat pocket, took out his backpack, and finally took off the guitar he was carrying, handed it over and said, "Please sign the guitar."
While Alex was signing autographs, Jerry took the opportunity to say, "Actually, I'm a singer!"
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