With the vast reach of over 30,000 restaurants spreading out in 119 countries, McDonald’s is currently seeing to the quick food needs of approximately 68 million customers every day. McDonald’s is the safest bet in terms of Business potential. The Golden Arches logo of McDonald’s is enough for people of all age groups to identify the brand.

Over the years, McDonald’s has innovated with its marketing strategies and potential by positioning itself as a pioneer in the combo meal trends and drive through. It was the first company to have started as a restaurant and then rechristened to a Hamburger stand.

The cost of running a business, especially a restaurant, can really eat into its profits. At the end of the day, McDonald’s only keeps around 16 percent of the revenue its company-owned stores make, but it keeps 82 percent of the revenue franchisees pay out to it. All that adds up to mega-bucks for the company,while franchise owners do make some coin, the business itself is who really wins.

5 Factors That Determine the Estimated Income of McDonald’s Franchises in UK

There’s no question about it — McDonald’s is the most successful restaurant in the history of the world. According to McDonald’s website, their fast food burger joints are located on every continent in the world except Antarctica, and the brand is constantly striving to evolve its menu. While opening a McDonald’s is not for those with light wallet, the payoff can be pretty good.

However, just like any other restaurant franchise in the world, there are few factors expected to influence the potential income of any McDonald franchise. These factors can vary based on the company and possible business agreements, here are few to consider when analyzing the exact amount a McDonald’s Franchise make in the United Kingdom.

  1. Location

Have it in mind that the exact location where the McDonald restaurant is set up is always very important to the income and profit of the restaurant. A restaurant in prime locations will get more customers as compared to one in local locations.

For you to set up a successful McDonald restaurant, you have to settle for a location approved and analyzed by the franchisor. After proper research, McDonald will only approve a location that suits its vision and shows the potential for success.

  1. Labour Costs

Also note that when employees abuse time or skip the clock, it directly or indirectly affects business income. That is why it is imperative for any good business owner to always make sure they are clocking in and out when they are supposed to so they won’t be overspending on payroll.

  1. Product Waste

Product waste in every business establishment is a tragedy. Consider the amount of burgers and teas that are discarded after each meal served in the restaurant. If it is excessive, it simply means that the portion sizes are too big. Although the franchisor tends to dictate the ration and size most times, you can reduce waste by using as much of each item as you can. Another way to avoid product waste is to manage inventory.

  1. Employee Theft

Many restaurants have high theft rates among their employees. Staff see an easy meal and take advantage of it. But according to the McDonald website, they have created an ideal system to track food costs and manage employee theft.

But it is very necessary as a franchise owner to keep adequate records of inventory and know exactly where the food is going. Additionally, if you offer staff a meal before or after their shift, consider keeping it to a set menu. This keeps them from eating those items on the menu that cost the business a lot to prepare.

  1. High Wait Times

Even though McDonald is credited as being a unique easy-to-access food restaurant, the time customers have to wait for a table or service at any franchise restaurant affects business income. While that may seem counter-intuitive because a busy shop is a profitable one, it pays to look at why you have high wait times.

Estimated Profit of McDonald’s Franchises in UK?

Owing to the factors mentioned above, an average a McDonald’s restaurant generates $2.5 million or £1.93 million in sales annually. The above mentioned figures, according to reports places McDonald’s as the second highest grossing chain in the UK by sales per unit. Therefore the market potential of profiting with McDonald’s Franchise is enormous.

Some McDonald’s franchise owners are naturally going to make more than others, but most franchise owners still pull in an estimated yearly profit of roughly £111,601. A profit of £111,601 after £1.93 million in sales isn’t even 6 percent, but after food cost, supplies, crew payroll, and about a dozen other costs handed down by corporate, that’s what franchisees are left with.

Conclusion

McDonald’s has run its business in the UK since 1974. They claim to have loved every minute of it, and the company currently operates around 1,300 restaurants across Britain and Ireland alone. In fact, 9 out of 10 restaurant managers and 1 in 5 franchisees started as restaurant crew members.

On top of this, more than 80% of their restaurants in the UK are owned and operated by local businessmen and women. While they source the majority of their ingredients from over 23,000 British and Irish farms, McDonald works to offer not only a quality product, but also quality customer service.

Ajaero Tony Martins