Salam,
I'm still puzzled why Mc Donald would invest and set up an outlet at Puncak Alam considering the location is a bit far from KL. Normally, you'll see McD available at major township where it is always full of customers.
What differentiate Mc Donalds against the rest of other fast food outlet?
What make them so robust that they have survives for more than 30 years, more than 100 countries, 34,000 outlet and employs 1.7 millions employees?
What makes them so successful in term of making customers keep coming back to buy their burgers?
Why they invest at Puncak Alam?
It is just a burger! What is so special about it? Pls note that as a health conscious person, most of fast food product are not good for your health but I'm more interested to analyse Mc Donald business model with respect to property investment.
I was doing research on the internet and found a very interesting discovery. McDonald is actual a Real Estate Property! This is how McDonald make their money. They have the best commercial property in the world and one of key success is selecting the right location, location, location.
In simplified terms, McDonald's makes money on real estate via 2 methods. First, it buys and sell properties. Often these are restaurant lots, but such is not necessarily alway the case. McDonald's will buy properties that it feels are, or will be, hot locations, and it of course sell properties that are under performing or otherwise not doing so well. Again, all of this seems normal.
Secondly, on top of the franchise fee ( normally 8%), which McDonald's charges its franchisees to use the 'McDonald's" name, it charges rent to the franchisees to use the corporately-owned properties.
My Analysis:
1. McDonald's survives because it has a very good internal system that every franchisees has to follow. Doing the same thing will get the same result!. If you eat fries at KL or Puncak Alam, I can bet you , no one will notice the differences. This is the key strength of McDonald's survival.
2. Good Location. This is maybe the number one reason or criteria for McDonald's to invest in a new place. Good location and accessibility will definitely create a good feeling and convenience to their customers. A strategy to operate 24 hours outlet will definitely targeted to night flyers and leaving the impression that McD's are always available when you're hungry...
It's just a burger!
3. A smart move by McDonald to replicate it's outlet so that every customer will experience the same situation regardless which outlet they go through. This will eventually leave a permanent good impression to their customer that McDonald's alway available, faster delivery and better option whenever I'm hungry in the middle of the night, I'll always get the same price, the same products and same taste. Although it may not be same at all!
4.Happy meal using toys as attraction to kids is another strategy used to attract more traffics. When you kids eats, wouldn't you start be eating too? Nice.
So, based on this, I'm seeing that the new Bandar Puncak Alam and Bandar Puncak Bestari will be the next hotspot in my list!
By the way, between KFC and McDonald's, which do you think has more outlet and trusted brand?
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