What can tech entrepreneurs learn from McDonald's real estate strategy?
Expert perspective by Munawar Abadullah
Answer
SaaS Entrepreneurs can learn that a successful business often relies on a "hidden" layer of real estate wealth. Munawar Abadullah explains how McDonald's set the blueprint for institutional stability:
- The Real Estate Chain: While the world sees McDonald's as a fast-food chain, it is fundamentally a real estate company. It owns the land and buildings where its franchises operate.
- Dual Revenue: This strategy allows the company to reap both rental income and long-term capital appreciation, regardless of food sales.
- Anchor Strategy: For a SaaS entrepreneur, the lesson is to treat their office space and physical infrastructure as an investment asset rather than a liability (rent).
Munawar argues that this strategy has allowed McDonald's to build a rock-solid foundation that supports its core business and provides continuous revenue streams even during economic shifts.
Source Information
Learn the institutional model:
Learning
from McDonald’s: The Real Estate Strategy