How to open McDonald's in your city: opportunities and prospects. How to open a McDonald's restaurant

The cold morning of Wednesday January 31, 1990 was marked by an important event in the history of our country. On this day in Moscow on Pushkin Square opened the first McDonald's restaurant in the USSR. The uniqueness of this event is given by the fact that it was not only the first, but also the last. The following restaurants opened in a completely different country.

Even in our time, the opening of new restaurants in the regions of the country is becoming a significant event by local standards. But then it was a completely different time: empty store shelves, eternal shortages, the country was on the verge of change, and the opening of the first McDonald's in Moscow had the effect of an exploding bomb.

It was the largest restaurant in the world at that time, in the very center of Moscow, and its opening was doomed to success. 900 seats inside and outside, 3 large halls - all this was erected by Yugoslav builders on the site of the former Lira cafe.

Huge lines in which people were ready to stand for hours, just to touch a piece of Western culture. 30,000 visitors was served on the first day - a new world record!

On this day, McDonald's philosophy of quick service and short waiting times literally collapsed. Our man at that time saw everything in a completely different light. It was a kind of attraction unknown to the village.

With an average salary of 150 rubles, the prices did not frighten anyone. at that time it cost 3 rubles 75 kopecks, and a hamburger 1 ruble 50 kopecks. For comparison, at that time a monthly bus pass cost 3 rubles.

More historical photos

Queue outside the windows

Future location of the first McDonald's fast food restaurant in Moscow

How it all began

The expansion of McDonald's into the territory of the then Soviet Union came from the Canadian division of the company. The whole process was led George A. Cohon 13 years of negotiations and 50 million dollars of investment - this is the price of entering our market.

Two years before the opening of the first restaurant, namely in 1988, McDonald's Corporation received permission from the Communist Party of the Soviet Union to develop a business on the territory of the USSR. Initially, all profits were divided in half between the company and the government of the country. The company later bought all the rights.

Despite the fact that the Soviet people were used to paying for Western goods in foreign currency, only rubles were accepted at McDonald's, which cost practically nothing outside the country.

What is the secret of the company's success in Russia

In Russia, McDonald's has built a completely independent organization with its own potato farms, its own processing plants for hamburger buns, meat, apple pies and other food for restaurants.

As it turned out, potatoes grown in Russia did not fit McDonald's standards in size and had to start from scratch. Specialists and the necessary potato tubers for planting were brought.

At that time, the situation in the Land of the Soviets was such that it was not necessary to count on profit. And McDonald's management was well aware of this. Instead, the company worked for the future, and when the Russian economy began to develop, the costs more than paid off.

All this together has helped to achieve significant success, but in fact, the expansion is just beginning and in many regions there are no restaurants yet, which means that the opportunities for growth are simply huge.

Nowadays

As of today, the beginning of May 2014, Russia has 421 restaurants McDonald's. This is quite a bit. In the corporation's homeland in the United States, almost half of all restaurants operate, and there are already more than 34,000 of them. The largest number of restaurants is located, of course, in Moscow and St. Petersburg - 111 and 65, respectively.

The company plans to actively expand the market, primarily in those areas where there is a need, and it is also possible to easily establish a supply chain for semi-finished products.

Until recently, all functioning restaurants in Russia belonged to McDonald's Corporation, but now a decision has been made to start operating franchise restaurants. This decision was made due to the active pressure of competitors.

The opening of franchising enterprises will allow for even more vigorous development. The main direction is Siberia and the Far East.

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 has been losing ground lately. 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 amount. 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%;
• for the purchase of a ready-made 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 opening in a shopping center, the requirements for technical characteristics 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.

McDonald's is a chain of fast food restaurants that are now literally in every city. And if you do not have any branch yet or if you want to open an additional branch, then it is quite possible to do it on your own. We will learn further how to open a McDonald's in your city and what is needed for this.

What is required to open?

Every person who is familiar with the peculiarities of starting a business through franchising probably knows about all the advantages of such a business. The first and most important of these is that you become the owner of a restaurant whose name has already established itself in the relevant market and enjoys considerable popularity. To some extent, this aspect makes the job easier, but on the other hand, you are opening a business from scratch, so let's figure out what you need to open McDonald's:

1. Franchise. You need to know that McDonald's franchising is not possible in Russia - that's what the company's rules say. But Russian businessmen have two ways - buying a franchise or buying a ready-made restaurant. Since the second option is not only less profitable, but also practically inaccessible, in the future we will consider only the first case.
2. Enthusiasm and ambition. It is important for every novice entrepreneur to understand not only the basic documents, as a person making the main decisions, but also to understand the principles of work. This includes knowledge of how work is done at the checkout, how the process of manufacturing products takes place, how raw materials are purchased, etc.

It is possible that at the initial stages it will be necessary to manage almost all the affairs of the enterprise.

1. Experience. Another important subtlety - in this case, it is necessary to have the experience of a businessman, as well as his successful projects. It is undesirable to start such an enterprise if you have not been engaged in entrepreneurial activity before.
2. Large start-up capital. Remember that you will need to pay not only for the purchase of a franchise as such, but also for rent or purchase of premises, necessary equipment, special repairs and many other financial investments. The restaurant business belongs to the category of complex and required large investments.
3. Documentation. A number of preliminary documents that you will need to draw up and prepare yourself - from a business plan to information about the rented premises, etc.
4. Premises and staff. This point is another brick for the foundation of your business. You will need a fairly spacious room, and the staff should be at least 20 people.

Required documents

For those who are interested in how to open a McDonald's in their city, you definitely need to know what documents are required for this.

The package of documents includes only the most necessary, among them:

1. The most important is permission to open a business. Experienced businessmen have come across this repeatedly. This includes the TIN and a document on the registration of your name as an individual entrepreneur. Both documents, as a rule, are made in the tax office of your city.
2. The second most important mandatory documents relate to the premises selected for work. You will need work permits from the following services: fire and sanitary and epidemiological.
3. In addition, you will need documents from the Housing Office.

Only after you collect these documents, you can proceed to the next step and you can start looking for a suitable place to open and purchase equipment.

The work plan on how to open a McDonald's franchise necessarily includes the selection of premises and the purchase of equipment. An important feature here is that the acquisition rules and the requirements for the premises and its equipment are prescribed in the company's rules. Here are the main ones:

• The area of ​​the acquired or rented premises should be from 2000 to 3500 sq.m.
• The location of the premises is the front part of buildings, the intersection of densely populated streets, streams.
• If we are talking about a restaurant in a shopping center, then preference is given to premises located on the corner.
• The premises must be located in the central parts of the city, close to the metro, in crowded areas or in shopping centers. That is, in areas where a significant number of people often accumulate.

In addition, there are technical requirements. Among them: the consumption of water, gas and sewerage within 18 cubic meters per day, electricity - 210 kW.

The list of equipment includes:

• grilling machines;
• special toasters;
• special equipment for cooking eggs;
• fryers, freezers, coffee machines and more.

In McDonald's networks, these machines are most often the same or made by special companies that McDonald's works directly with. The company provides a complete list of the necessary equipment on its own.

In some cases, in particular in America, every entrepreneur who opens his own restaurant pays for the equipment at once.

Among the companies-suppliers of equipment are the following:

• Garland. Grilling machine. Allows you to cook a large number of dishes in a short time.
• round up. Conveyor toaster for making breakfast buns.
• Henny Penny. One of the fryer manufacturers that works with McDonald's. Allows you to produce a large amount of product with low oil consumption - an economical and very profitable option.
• Taylor. It is this machine that produces airy and very tasty ice cream from “Poppy” – it is convenient to use and very economical.
• Franke. One of the most delicious 100% Arabica coffees is the work of this machine. Natural, tasty drinks in it are prepared very quickly.

Sample business plan

The main information for someone who wants to know how to open a McDonald's in their city is the initial capital or the initial contribution to the business. Without it, you cannot start working and even start a business. It should also be borne in mind that the amount of start-up capital cannot be 100% composed of credit money.

So, how much does it cost to open a McDonald's franchise:

• Franchise cost. The annual tax for using the franchise is $45,000.
• Physical opening of the restaurant. It is estimated at approximately $1.4-1.8 million. At the same time, the company allows businessmen to take 60% of this amount in installments, the maximum duration of which is 7 years. 40% should be non-credit money.

But knowing how much it costs to open a McDonald's franchise is not enough. A novice entrepreneur definitely needs knowledge about the statistics of business development in his region in order to calculate his benefit, profit and payback.

Professionals argue that with proper business management, it is possible to recoup the opened McDonald's despite a serious initial capital in just a year of intensive work.

McDonald's is one of the most successful businesses in the world. Only 15% of restaurants belong to the company - the rest contribute to its development through franchising.

What is McDonald's (video)?

The following video will allow you to get to know the founder of McDonald's, learn about his ideas and the history of the company.

Opening a McDonald's in your city is considered very tempting for businessmen. Watching the incessant flow of visitors at any time of the day, you will inevitably think about acquiring a franchise. If you have experience and sufficient funds, then it is highly desirable to find out the opinion of the company to open another restaurant in your city.

In this material:

How to open a McDonald's in your city, how much does a franchise cost and what are the conditions for acquiring it - such questions are asked by both novice entrepreneurs and experienced businessmen who seek to implement in their city a successful business model of a fast food chain that is so popular all over the world.

Features and basic conditions of the McDonald's franchise

McDonald's was founded in 1940 and became the founder of the fast food industry. Today, the network's enterprises have over 31,000 catering establishments in 119 countries. The company opens some restaurants on its own, but most McDonald's establishments operate on a franchise basis. So, in the USA there are more than 80% of them, in Europe - more than 50%.

Today, the business empire owns only about 15% of the establishments, the remaining 85% are run by its franchise partners. She began developing her franchise network in 1955.

It was franchising that allowed the company to become the world leader in the catering industry. McDonald's has repeatedly won prizes in the ranking of the most profitable and popular franchises in the world.

The first McDonald's appeared in Russia in 1990 on Pushkinskaya Square. Since its opening, the restaurant has been very popular and has had huge queues. Today it is considered the most popular in the world among all network establishments. McDonald's is consistently very popular with Russians, and Russia accounts for a significant portion of the company's revenue.

Now McDonald's has opened its doors in 85 Russian cities, and its network includes more than 314 enterprises. Initially, when opening restaurants in Russia, the company focused only on its own resources. But recently, entrepreneurs have the opportunity to purchase a McDonald's franchise. The main reason that forced the company to start implementing a franchise business model is the active growth of competing chains (such as Burger King and KFC) and the desire to maintain its place in the market.

Before you open McDonald's in your city, you need to familiarize yourself with the terms of the franchise. It is worth noting that not every entrepreneur, especially a beginner, can afford to purchase a restaurant franchise. Only experienced businessmen with a solid start-up capital can buy it.

Quite stringent requirements are imposed on a potential partner: he must have sufficient experience in entrepreneurial activity (and successful) and business planning, be able to manage finances, have an ideal credit history and high learning ability.

The franchise price largely depends on the city chosen for opening. So, for a small city with no more than 500 thousand people, it will cost about 1.2 million dollars.

The partner is allowed to both purchase an existing McDonald's restaurant and open a new one. In the first case, you need to spend from 0.5 to 1.2 million dollars, depending on the city and location of the establishment. Starting a restaurant from scratch requires a minimum investment of $45,000 for the right to operate under the restaurant's brand name. About $1.5 million more will be required for its arrangement (repair and finishing works, equipment installation, room design, etc.)

Important note: to open a restaurant, you need to have your own savings in the amount of at least 40% of the cost of a working establishment and 25% if you open it from scratch.

It is forbidden to make an advance payment in the amount of at least 300 thousand dollars for borrowed funds. Only the potential partner's own assets are considered: this can be real estate, securities, a share in an existing business, etc. For the remaining amount of capital investments for opening, you can get a loan from a bank.

The franchise is concluded for a period of 20 years with the possibility of extension. With such high investments, the company promises a quick payback: up to 1 year.

Partners receive not only a successful business model, but also marketing support, local training and field trainings are provided for them.

Features of the McDonald's Franchise

The franchise provides not only large initial investments, but also monthly deductions (or royalties). This:

• remuneration for using the business model — 4% of turnover;
• contribution to the marketing budget - it is 4.5% of the profit;
• rent - from 10 to 15% of total sales (if McDonald's is the owner of the property and the landlord).

Also, the partner is required to pay the so-called training deposit of 10 thousand dollars. This is a tuition fee in the McDonald's network, which allows you to delve into all the nuances of doing business: both marketing moves and the secrets of the kitchen.

Only after training, McDonald's provides the partner with an up-to-date list of restaurants for sale.

The franchisee undertakes to participate in all charitable events held by the network.

Separate requirements apply to the location of the restaurant. It should be one of the central streets, near the metro, places of trade and entertainment. The area of ​​the premises should be 2000-3500 sq m. It should be the front part of the building or a point in the mall. In the latter case, corner rooms are preferred.

Among the technical requirements: power supply - 210 kW; water and gas supply, sewerage - 18 cubic meters per day.

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