How much would you say a McDonalds location makes a year?

[Tsoprano]

In NYC.

I mean one in a high-traffic area.

Obviously there are a ton of variables but what would your estimate be?

[chikenkiwi2]

2-3 million pal

[chikenkiwi2]

gross

[roasthawg]

The owner's probably making $80 grand a year profit off of one restaurant when it's all said and done...if he doesn't work there. If he manages it himself then maybe $120 or so. This is prime locations only I'm talking about.

[Matt Rain]

Several million in revenue, probably not much in the way of profits after taxes. The corporate office rakes in the big dough by renting the real estate to suckers/franchisees.

[chikenkiwi2]

making way more than 80k dude. lol. Some managers are making close to 80k. More like 2-300K.

[Boner_18]

I agree w/ roast right on. Maybe even less depending on the locations lease payments. The key Tony is to franchise the first of something in NY... I have several ideas but so far investigation has been unfruitful.

[JBC77]

Several million in revenue, probably not much in the way of profits after taxes. The corporate office rakes in the big dough by renting the real estate to suckers/franchisees.

Not only that but they provide the food as well from vendors they have deals with.

I would have to say anywhere from 1 to 5 milly on a high volume location. It's close to half a million to get franchised.

[Tsoprano]

The owner's probably making $80 grand a year profit off of one restaurant when it's all said and done...if he doesn't work there. If he manages it himself then maybe $120 or so. This is prime locations only I'm talking about.

No way it's 80 grand. It cost over 1 million to even buy rights to open a location.

I knew the owners of a couple mcdonalds downtown and they were LOADED.

80k is nothing. 24/7 these places have hundreds of people going in there.

[Matt Rain]

No way it's 80 grand. It cost over 1 million to even buy rights to open a location.

I knew the owners of a couple mcdonalds downtown and they were LOADED.

80k is nothing. 24/7 these places have hundreds of people going in there.

The owners must've been loaded before owning McD outlets. No way they're making big bucks by being slaves to the head office. Those rent payments in Manhattan must be astronomical.

[chikenkiwi2]

like i said...managers can make close to 80K. It's minimum 2-300K per franchise.

[curious]

Waffle House is a gold mine

If Waffle House will sell you a franchise, WH would be a gold mine in NYC. Nothing else like it. Open 24/7, good, cheap food FAST.

The key to success is to have plenty of staff on hand to get the people in and out fast and have someone who's only job is to keep the dining area clean and the tables cleaned off and greet the people.

A WH in a good area is pretty much packed round the clock.

There aren't any WHs in the northeast, not sure if they would sell you a franchise.

[tullamore]

If Waffle House will sell you a franchise, WH would be a gold mine in NYC. Nothing else like it. Open 24/7, good, cheap food FAST.

The key to success is to have plenty of staff on hand to get the people in and out fast and have someone who's only job is to keep the dining area clean and the tables cleaned off and greet the people.

A WH in a good area is pretty much packed round the clock.

There aren't any WHs in the northeast, not sure if they would sell you a franchise.

I ate at one in Pennsylvania.

[fiveteamer]

NYC, I dunno.

Do you mean South Bronx or Manhattan?

[Tsoprano]

The owners must've been loaded before owning McD outlets. No way they're making big bucks by being slaves to the head office. Those rent payments in Manhattan must be astronomical.

Not really, the family obtained it years ago when rents weren't a killer and the franchise fee was somewhat fair. Since then they've opened another one and spend maybe a day a year in the place.

[Tsoprano]

NYC, I dunno.

Do you mean South Bronx or Manhattan?

Manhattan.

And don't be fooled by the bronx, the locations in the bronx are CONSTANTLY PACKED (lines going to the door).

[Boner_18]

Not really, the family obtained it years ago when rents weren't a killer and the franchise fee was somewhat fair. Since then they've opened another one and spend maybe a day a year in the place.

Then just ask them how much they make. I would bet it is 80k or less. Contact MCD's they will send you a prospectus showing you what you can expect to make. Just b/c they cost a mil to buy doesn't mean they return a high %, much of the value is in the development of the franchise which is a capital asset which appreciates but is largely illiquid.

[Boner_18]

Manhattan.

And don't be fooled by the bronx, the locations in the bronx are CONSTANTLY PACKED (lines going to the door).

Def, the one here in Brooklyn is full of people at all hours. White Castle is the money franchise in the outer boroughs.

[Tsoprano]

Then just ask them how much they make. I would bet it is 80k or less. Contact MCD's they will send you a prospectus showing you what you can expect to make. Just b/c they cost a mil to buy doesn't mean they return a high %, much of the value is in the development of the franchise which is a capital asset which appreciates but is largely illiquid.

Come on Boner, you really think it is 80k or less a YEAR from owning a mcdonalds? The guy that owns a fukking pet store makes more than that. Teachers that have been around make that a year and your comparing that to owning a successful mcdonalds in one of the richest/busiest Cities in the World???

I will ask next time I see him.

[chikenkiwi2]

dude, you're on crack if you think they only make 80K ^^^

[chikenkiwi2]

I know people managing BKs that are making over 60K. nutz

[Tsoprano]

dude, you're on crack if you think they only make 80K ^^^

I think Boner is a solid guy, love seeing him post around here so no offense to him...but my reaction to that prediction is also:

+ one more and maybe even a last .

[mmike032]

I looked into franchise rights for Pizza Hut cause we dont have one within 20 miles. It was over a million.

[Tsoprano]

I looked into franchise rights for Pizza Hut cause we dont have one within 20 miles. It was over a million.

Correct.

And Pizza Hut has NOTHING on Mcdonalds with cash flow.

[chikenkiwi2]

it was over a million in the 90's to get into a mickey Ds

[tullamore]

The thing with a McDonalds, is I believe you have to buy all your products from one of the specific vendors that the corporate office tells you to use. You cant cut cost, by buying cheaper products elsewhere. This will cut into ones profit.

[RealSlimShady]

I would guess $500K to $2million for a high volume location.

[Lets_Get_Money]

I know Chicken and Rice Stands that Make close to 2-3 G's a day

[CashMoney]

Millions per year easily. I know of a manager at McDonald's that makes over $80K a year.

[JBC77]

I think you can do a Subway for $250 to $500K. Wonder what the margins are on the subs.

[pavyracer]

1 order per min for 12 hrs avg for $5 per order:

12x60x365x5 = $1,314,000

[Iwinyourmoney]

Just an FYI, the same owner owns 2 of the McDonalds here in Peoria and he took home (all said and done, taxes, franch fees, taxes, just clear in his pocket) $287,000. One of them is the busiest in town, and the other one is probably the 4th busiest out of the 7 we have. Peoria has like 300,000 people.

[pavyracer]

That's about right. 10% profit of 287,000 is 143,500 per restaurant which means his gross sales are $1,435,000 per restaurant.