Ray kroc, the founder of McDonald's, was invited to give a speech at the MBA class of Texas State University in Austin. After an exciting speech, the students asked Lei if he would like to have a beer in their usual place, and Lei accepted the invitation happily. Ray laughed. "I expected you to say that." He stopped laughing and said quickly, "Ladies and gentlemen, actually I don't do hamburger business. My real business is real estate. " Keith said that it took Ray a long time to explain what he said. In Lei's long-term business plan, the basic business will be to sell McDonald's branches to partners. He has always attached great importance to the geographical location of each branch because he knows that real estate and location will be the most important factors for the success of each branch. At the same time, when Ray carries out his plan, the people who buy the branch will also buy the land of the branch from McDonald's Group. Today, McDonald's is the largest real estate agent in the world, and its real estate even exceeds that of the Catholic Church. Today, McDonald's has some of the most valuable street corners and intersections in the United States and other parts of the world. Compared with professional real estate investors and developers, the success of McDonald's real estate lies in: the former is trying to copy a number of commercial real estate projects with the same style, but its own commercial operation is not strong, at least it has not formed a brand, while the latter has formed a quite strong brand in commercial operation, and his analysis of business is trustworthy; The former only sells real estate projects, while the latter sells professional business analysis level. The brand of McDonald's is still fast food "McDonald's", but there is no real estate brand. If you want to manage real estate successfully on a global scale, it is impossible to rely solely on real estate itself. We must rely on the advantages of traditional famous brands. Most notably, McDonald's is not alone, and their real estate operation mode is largely owned by famous western commercial enterprises. The combination of traditional enterprise brand and real estate may be a long stream of real estate profits. Today, it is crossing the ocean and marching into China. After decades, McDonald's real estate kingdom has expanded to the whole world. However, the mysterious real estate agent behind the slogan of "I like" fast food culture has not been concerned by many people. When China's "McDonald's generation" grew up to be the people with the most desire and ability to consume in the world, China real estate also experienced several storms and explosive growth. The real estate business of McDonald's has gradually attracted people's attention. McDonald's, the top real estate operator, is a world-famous fast food enterprise, but McDonald's headquarters basically does not operate fast food business now, and it is the business of small bosses who are incorporated into the McDonald's system through franchising. What McDonald's headquarters is doing more is to find out which part of a city will be the most crowded place in the future. After the demonstration is completed, we will buy our favorite land, build a fast food restaurant, then find a franchise partner, rent the fast food restaurant to them, and charge them the franchise fee and the rent of this commercial land. Looking back at McDonald's first branch in China, it is a prime location at the junction of Dongdan Street and Chang 'an Street. In the late 1980s, when McDonald's moved in, people didn't even know that this land was a golden doll. Later, when Wangfujing was rebuilt, McDonald's made a fortune just because of the land compensation for demolition. At that moment, people realized that McDonald's investment in real estate was sharp. Today's McDonald's doesn't just sell fast food. When it summed up a set of scientific and reasonable procedures for making fast food, the rules of store layout, the secret of store location, and finally expanded through franchising with well-known brands of McDonald's, McDonald's has become a real estate enterprise to a great extent. McDonald's, which has tens of thousands of prime locations in more than 0/00 countries around the world, is really an excellent real estate operator! In fact, McDonald's is far more than just a non-real estate enterprise that seeks gold in the real estate field. Cai Yuxiang, director of the business planning department of Zhongyuan Real Estate Investment Consulting Company, revealed that many brand retail enterprises are actually big landlords of commercial housing. Because these enterprises are a brand and want more commercial houses, they rent houses at very low prices. Because it is a brand, it has a very professional analysis of the commercial prospects of the lot, and there will be many small tenants following the rented place, so the shop can be divided into many blocks and rented to small owners at a relatively high price. This rent difference is an important source of income for these enterprises. These world retail giants have extremely harsh conditions when renting stores, and the rent is surprisingly low. He made an analogy to illustrate the low rent: If someone wants to rent this store for 100 yuan, Wal-Mart may be able to do it as long as it is in 5 yuan-a huge difference of 20 times! It is precisely because of Wal-Mart's harsh conditions that a famous developer in Beijing refused to cooperate with Wal-Mart. However, Cai Yuxiang feels that the gap is not that big. The normal gap should be something that others (such as Dazhong Electric) may need 100 yuan to fix. Wal-Mart can handle it as long as it is in 80 yuan, which is about 20% lower than others. Of course, if Wal-Mart rents a storefront of 50,000 square meters, and the other one rents only 100 square meters, and the location is good, the gap may be so big. Shi Ming, deputy general manager of Dazhong Electric, agreed with this analysis. It can also be seen from Cai Yuxiang's analysis that these retail enterprises only rely on the rent difference, and after the cost is greatly reduced, the profit rate is greatly improved and the income is very considerable. Therefore, these retail enterprises not only make profits within their own business scope, but also operate real estate in their own way, quietly earning huge profits! The principle of prime location People who often eat McDonald's will have the impression that almost every McDonald's shop is doing well. In addition to brand factors, McDonald's business is booming, as well as store location. History, president of McDonald's East China, put it this way: McDonald's is the first, second and third place. Here, Shi did not attribute the prosperity of McDonald's to the brand, but believed that location was the first factor. The location of McDonald's is an extremely important matter. Usually, it takes three to six months for a store to open. The inspection question is extremely detailed, even involving whether the store location conforms to the urban planning and development, whether there will be municipal relocation and peripheral relocation, and whether it will enter the red line of urban planning. Enter the red line and don't touch it. The aging business circle has no meaning. Pure houses are meaningless in principle.