Comment on McDonald's Closes Amid Global IT OutageparentComments−mort962yYou call it the "core business", but is it? Isn't McDonald's core business real estate?https://www.wallstreetsurvivor.com/mcdonalds-beyond-the-burg...−joezydeco2yThey still need to make sure the restaurants on top of them are generating money. Otherwise they'd just build self-storage units on each one.−mrguyorama2yNot really. All they have to ensure is that enough people hope to succeed at franchising that they keep pulling in money.Quiznos literally sucked their franchise owners dry, but it took a while.Subway has been extracting wealth from their franchise owners since the very inception of the "$5 footlong" and they're still around.−Kinrany2yThey don't _have_ to but they'll make more money and their share of additional income will be close to 100%.−Kinrany2yMassive IT failures like this are even worse for attracting franchisees though. People won't stop buying burgers today out of fear that they'll have to buy burgers elsewhere tomorrow.
Comments
You call it the "core business", but is it? Isn't McDonald's core business real estate?
https://www.wallstreetsurvivor.com/mcdonalds-beyond-the-burg...
They still need to make sure the restaurants on top of them are generating money. Otherwise they'd just build self-storage units on each one.
Not really. All they have to ensure is that enough people hope to succeed at franchising that they keep pulling in money.
Quiznos literally sucked their franchise owners dry, but it took a while.
Subway has been extracting wealth from their franchise owners since the very inception of the "$5 footlong" and they're still around.
They don't _have_ to but they'll make more money and their share of additional income will be close to 100%.
Massive IT failures like this are even worse for attracting franchisees though. People won't stop buying burgers today out of fear that they'll have to buy burgers elsewhere tomorrow.