How to open a McDonald's franchise in Russia: the path to the fast food industry. How to open a McDonald's in your city

The McDonald's food service brand positions itself as a fast food business for all family members of any income with standardized food that does not require utensils and branded quality of service.

McDonald's was founded in 1940, pioneering the era of fast food and setting a new direction for catering. Today it is the most developed network of fast food enterprises, which founded a fundamentally new fast food industry, transforming the way people eat, and at the same time a number of branches of agriculture and industry.

At the moment, the network has more than 31,000 fast food establishments in 119 countries around the world. The corporation makes a profit not only as an investor in real estate for its establishment, but also as a restaurant operator and franchisor. The empire owns no more than 15% of all restaurants of the famous catering chain, and the remaining 85% are managed by joint franchise partners.

Company No. 1 in the franchise list

Franchising as one of the important factors made McDonald's the No. 1 company in the world. In the list of the two hundred best franchises, the Times Maqazine McDonald's franchise ranks first. The date of formation of the franchise network of the American fast food symbol is considered to be 1955. The franchisee is a joint stock company with 885 employees. In the USA, more than 80% of the chain's restaurants operate under the McDonald's franchise, in Europe - about 50%. The company's strategy is aimed at opening its establishments wherever customers need them.

In Russia, the first McDonald's restaurant appeared in 1990 in Moscow on

Pushkin Square. The first time after the opening of the queue at the new catering establishment were kilometer-long. Within 20 years, there were 245 fast food restaurants in Russia with the recognizable letter "M" on the sign, but even today the McDonald's restaurant on Pushkinskaya is the most popular network establishment in the world in terms of attendance. The percentage of Russian clients compared to other countries is quite high. According to the latest data, in Russia there are 314 enterprises of the famous network in 85 cities, and new ones are constantly opening.

In recent years, in most countries, the fast food segment has been decreasing, but not for McDonald's: when competitors lose ground, the McDonald's empire increases its share. This fact is especially noticeable in the example of Russia - for all the crisis, and the corporation is constantly prospering and expanding its sphere of influence.

Franchise "McDonald's": basic conditions

Franchising has been the main model for the development of large catering corporations for many years. As for McDonald's in Russia, the situation differs significantly from other countries, and for 20 years the company has been opening its restaurants without this type of partnership with local businesses. The time-tested international experience in the development of the McDonald’s network proves its advantages, and the system of selection, support and standardization in the franchisee network can rightly be called the best in the world.

Brief information for those who are planning to buy a McDonald's franchise:

initial capital - $ 950 thousand - $ 1.8 million;
royalties (monthly payments) – 12.5%+;
the duration of the franchise agreement is 20 years with the possibility of renewal;
the cost of the McDonald's franchise is $45,000;
payback period — 1 year;
training - field trainings for 1 week every three months;
local training - 12 - 24 months;
support: news, appointments, toll free, internet, opening information, security, rating system, advertising (television, outdoor, regional), marketing support.

Despite the imperfection of the legislation, which does not allow to legally fix all the conditions that the network dictates to partners, it has recently become possible to buy a McDonald's franchise in Russia. Its price is quite high, depending on many factors, for example, the city where the restaurant is planned to be opened, and is in the range of 500 thousand - 1.2 million dollars.

The reason for the opening of sales for the right to use the brand and the ready-made business model of the company was the active growth of competitors in the Russian fast food market, in particular, the successfully developing companies Burqer Kinq, KFC and Wendy's. From now on, entrepreneurs with solid assets can submit their proposals for cooperation to the company. The details and conditions of the McDonald's franchise, in particular, its acquisition in a particular region, for example, St. Petersburg, can be found on the official website from the company manager, we will consider the general provisions.

Features of the McDonald's partnership in Russia

It is hardly realistic for a modest restaurateur from a provincial town to discover a gold mine under two golden arches on a signboard. Significant funds are needed not only to purchase a franchise, but also to equip the premises, purchase equipment and products, and train staff. For example, in Moscow and St. Petersburg, a solid company, Razvitie ROST, which opens fast food restaurants at railway and airport terminals, has become a partner of McDonald's.

Financial expenses

The cost of a franchise for an operating restaurant is in the range of $ 500,000 - $ 1,200,000, depending on the location of the outlet. The amount to open from scratch is $45,000. Opening costs depend on the size of the restaurant, its location, the decor of the premises and the prices of equipment. This item of expenditure is within $1,500,000.

In addition to the cost of a McDonald's franchise, there are additional financial requirements for potential partners in Russia. To receive the installment plan, you must have an initial payment: when buying a new restaurant, it is 40% of the total cost, the purchase of an existing restaurant is limited to a contribution of 25% of the total cost. Moreover, an advance payment from borrowed funds is not considered, only own finances - cash, bonds, debt obligations, a share in a business, real estate (except for the one where the partner lives), securities. For the remaining amount, you can get a loan or installment plan for up to 7 years. The franchisor itself does not issue loans, although it has the lowest interest rates in the business.

To open a franchise, you need at least $ 300,000 of your own funds as an advance. The company encourages individuals with financial capabilities prepared to buy additional enterprises - restaurant chains.

Other requirements for opening a company restaurant

Sufficient experience. The entrepreneur must demonstrate experience in successfully managing multiple businesses.
Fast growth. The company is interested in individuals who can quickly develop with McDonald's.
Business plan. Ability to design and implement.
Proper financial management. Experience in personal management of restaurant operations.
Education. Willingness to undergo training in order to master all the intricacies of the restaurant business with McDonald's.
Knowing your customer is the ability to effectively manage employees, motivate them and ensure service standards.
Perfect credit history If you had to work with banks in terms of loans, the reputation must be impeccable.

Current fees at McDonald's

To date, the contract specifies the size of the company's monthly deductions during the life of the franchise:

Service cost – a monthly fee based on the restaurant's sales performance – a service fee for using the system. To date, this amount is 4% of the monthly sales volume.
Rent is the monthly rent or profitability percentage of rental sales, which represents a % of monthly sales – between 10 and 15%. As a rule, McDonald's is the owner of the property, but also acts as a landlord.
Contribution to advertising costs - 4.5% of the profit.

In addition to the fact that buying a franchise involves running a restaurant and fully participating in it, a compatriot franchisee pays a $10,000 training deposit to complete a practical training course at McDonald's restaurants to delve into all the secrets of craftsmanship - from cooking to fine dining. marketing moves.

After successful training, the company provides the future partner with a list of restaurants for sale that suit the company and management. Upon completion of the transaction, the company must approve the transfer of the franchise from the seller to the buyer.

The franchisee must also participate in all charitable programs that the company conducts.

McDonald's is also considering proposals for the acquisition and long-term lease of land for the construction of its restaurants. Non-residential premises suitable for accommodating catering establishments are also within the scope of the company's interests.

Terms offered by the company

Operation of the constructed or reconstructed premises in accordance with the requirements of the company and the payment of rent to the owner.
Guarantee of payment for brokerage services to individual brokers and companies in case of signing a lease or sale agreement.

Requirements for land

Long queues at the notorious “free cash register”, lines of visitors dreaming of tasting a hamburger with chips and washing it all down with cold cola, the memory of the opening of the first such institution in the capital more than two decades ago - it is not surprising that many aspiring entrepreneurs dream of opening a McDonald's. in own city. Even if there is already one (and more than one), it seems that an additional “Mac” will definitely not be superfluous. Is it really? Let's try to figure it out.

And immediately - a big fly in the ointment ...

McDonalds does not sell franchises in the Russian Federation and the CIS countries - this is official information. Accordingly, any offer relating to the sale of the McDuck franchise is made without the approval of the company. As a result, it is impossible to go straight and simply negotiate with McDonalds.

What to do? In principle, a solution can always be found. For example, to purchase a ready-made, working McDonald's.

How to buy McDonalds?

Even if you have a very strong desire, you can’t just buy a Mac: you will have to go to the USA or Canada for a license. You need to have at least 45 thousand US dollars with you - that's how much you need to pay for a document, however, its presence does not mean at all that the question of how to open a McDonald's in your city can be considered closed.

The fact is that (even though it’s hard to believe when looking at the queue for “cutlet buns”, but the statistics are inexorable) at present, the popularity of McDuck has noticeably decreased. And this trend is intensifying: establishments around the world are suffering losses, closing. Therefore, McDonalds management chooses future franchisees very carefully. Applicant applications are considered by McDonald's USA LLC on a competitive basis, so it may well turn out that the desired restaurant will get another, more competent applicant.

If you succeed in proving your indispensability, then again you will have to shell out a lot of money: at least a quarter of the cost of the restaurant (in this case, the amount payable should not be less than 500 thousand US dollars). Most importantly, it is impossible to use borrowed funds for this purpose: the money contributed must be free, secured by an already existing source of income (a developed business or the presence of real estate, the income from which is comparable to the amount of the contribution).

For the remaining amount (from 600 thousand to one and a half million US dollars), you can also take a loan - but not in any financial institution (although this issue is not officially identified, practice shows that this is exactly the case), but in an organization that has connections with McDonald's. The loan term is seven years.

So, you can sum up the intermediate results - how much does it cost to open a McDonald's in your city, provided you buy an establishment in a "ready-made" form: before you get your fast food restaurant at your disposal, you need to pay 1.5 million US dollars, and then the same amount (minimum) - pay within seven years. And this is without taking into account the interest on the loan.

You can, of course, find alternative ways. For example, to go to work at McDuck and, as usual, starting with a “free cash register” and washing toilets, sooner or later rise to the rank of restaurant manager. This process cannot be called fast: there is a possibility that they will not be allowed to “be at the helm” even after ten years of impeccable service. In addition, the manager is still not an owner, but a hired employee, albeit with a good salary and very broad powers.

Opening McDonald's: nuances and pitfalls

There are quite a few specific moments associated with the opening of a new restaurant from this chain. For example, you can’t rent a room for a Mac - it must be owned. There are a lot of requirements that it must satisfy - starting from the area (at least 400 "squares") and ending with the location (an area with high human traffic, not sleeping). An examination of the premises is also mandatory, which will cost 100 thousand, regardless of the result.

Not everything can be purchased for a restaurant: the manufacturing company must be from the list recommended by McDonald’s. The same applies to semi-finished products, since one of the main "chips" of the institution is the same taste of dishes in all restaurants in the world.

In total, the opening alone will require at least 2 million US dollars. In addition to confirming the availability of this money, the company, along with the application, must submit a detailed business plan based on complex marketing research. As for current expenses, you need to understand that the maintenance of McDuck is not cheap: the cost of transporting semi-finished products of Makkomplekt increases this cost item by a quarter, staff training (and personnel not trained according to McDonald's programs will not be able to work there) also noticeably "inflates » consumables.

With regard to the distribution of profits, the situation is as follows:

4% of sales - monthly contributions to McDonald's
brand rent – an amount charged either as a fixed amount or as a percentage (the exact value depends on the pricing policy of the company, the calculation formula is not transparent).

So, is it profitable to open a McDonald's in your city? Rather no than yes: according to statistics, even the most “promoted” restaurants do not bring more than 10–25% of profit, while the owner’s own income, until the loan is repaid, is unlikely to exceed 5%. This indicator is extremely small: even when placing a similar amount of funds on a bank deposit, you can safely count on much more attractive conditions.

In this material:

How to open a McDonald's in your city, how much does a franchise cost and what are the conditions for acquiring it - such questions are asked by both novice entrepreneurs and experienced businessmen who seek to implement in their city a successful business model of a fast food chain that is so popular all over the world.

Features and basic conditions of the McDonald's franchise

McDonald's was founded in 1940 and became the founder of the fast food industry. Today, the network enterprises have over 31 thousand catering establishments in 119 countries. The company opens some restaurants on its own, but most McDonald's establishments operate on a franchise basis. So, in the USA there are more than 80% of them, in Europe - more than 50%.

Today, the business empire owns only about 15% of the establishments, the remaining 85% are run by its franchise partners. She began developing her franchise network in 1955.

It was franchising that allowed the company to become the world leader in the catering industry. McDonald's has repeatedly won prizes in the ranking of the most profitable and popular franchises in the world.

The first McDonald's appeared in Russia in 1990 on Pushkinskaya Square. Since its opening, the restaurant has been very popular and has had huge queues. Today it is considered the most popular in the world among all network establishments. McDonald's is consistently very popular with Russians, and Russia accounts for a significant portion of the company's revenue.

Now McDonald's has opened its doors in 85 Russian cities, and its network includes more than 314 enterprises. Initially, when opening restaurants in Russia, the company focused only on its own resources. But recently, entrepreneurs have the opportunity to purchase a McDonald's franchise. The main reason that forced the company to start implementing a franchise business model is the active growth of competing chains (such as Burger King and KFC) and the desire to maintain its place in the market.

Before you open McDonald's in your city, you need to familiarize yourself with the terms of the franchise. It is worth noting that not every entrepreneur, especially a beginner, can afford to purchase a restaurant franchise. Only experienced businessmen with a solid start-up capital can buy it.

Quite stringent requirements are imposed on a potential partner: he must have sufficient experience in entrepreneurial activity (and successful) and business planning, be able to manage finances, have an ideal credit history and high learning ability.

The franchise price largely depends on the city chosen for opening. So, for a small city with no more than 500 thousand people, it will cost about 1.2 million dollars.

The partner is allowed to both purchase an existing McDonald's restaurant and open a new one. In the first case, you need to spend from 0.5 to 1.2 million dollars, depending on the city and location of the institution. Starting a restaurant from scratch requires a minimum investment of $45,000 for the right to brand the restaurant. About $1.5 million more will be required for its arrangement (repair and finishing works, equipment installation, room design, etc.)

Important note: to open a restaurant, you need to have your own savings in the amount of at least 40% of the cost of a working establishment and 25% if you open it from scratch.

It is forbidden to make an advance payment in the amount of at least 300 thousand dollars for borrowed funds. Only the potential partner's own assets are considered: this can be real estate, securities, a share in an existing business, etc. For the remaining amount of capital investments for opening, you can get a loan from a bank.

The franchise is concluded for a period of 20 years with the possibility of extension. With such high investments, the company promises a quick payback: up to 1 year.

Partners receive not only a successful business model, but also marketing support, local training and field trainings are provided for them.

Features of the McDonald's Franchise

The franchise provides not only large initial investments, but also monthly deductions (or royalties). It:

remuneration for using the business model — 4% of turnover;
contribution to the marketing budget - it is 4.5% of the profit;
rent - from 10 to 15% of total sales (if McDonald's is the owner of the property and the landlord).

Also, the partner is required to pay the so-called training deposit of 10 thousand dollars. This is a tuition fee in the McDonald's network, which allows you to delve into all the nuances of doing business: both marketing moves and the secrets of the kitchen.

Only after training, McDonald's provides the partner with an up-to-date list of restaurants for sale.

The franchisee undertakes to participate in all charitable events held by the network.

Separate requirements apply to the location of the restaurant. It should be one of the central streets, near the metro, places of trade and entertainment. The area of the premises should be 2000-3500 sq m. It should be the front part of the building or a point in the mall. In the latter case, corner rooms are preferred.

Among the technical requirements: power supply - 210 kW; water and gas supply, sewerage - 18 cubic meters per day.

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Do you want to open a McDonald's franchise, but don't know how much it will cost and what results you can expect? Then you definitely need to familiarize yourself with the conditions of the program, the existing requirements and possible income.

McDonald's is one of the most famous and sought-after representatives in the catering market. The network was organized back in 1940. Then about the "fast food" few people heard. This is why almost everyone associates fast food with McDonald's establishments.

Such popularity of the brand is explained not only by excellent taste characteristics, but also by fast service, affordable cost. Families with different levels of income can afford to eat at McDonald's.

With the advent of the company, a new era in catering began. And even today, interest in the brand is very high. By the number of outlets and customers, McDonald's can rightly be called the most common.

In more than 100 countries, McDonald's branded establishments are open. There are about 30,000 of them in total. About 15% of them are owned by the company itself. The rest are managed by franchisors.

Interestingly, McDonald's, working with its franchisees, not only acts as a franchisor mentor, but is also a real estate investor. We are talking about the construction and arrangement of buildings where catering points open.

Benefits of Buying a McDonald's Franchise

It is through franchising that McDonald's has become the leading catering chain in the world. According to experts, the offer of this organization is included in the top 200 franchises. Moreover, such interaction with its partners has been conducted since 1955. Although the McDonald's franchise came to Russia not so long ago.

Interestingly, the fast food industry in the field of franchising has been losing ground lately. But this does not apply to McDonald's at all. On the contrary, the strategy used perfectly fit into the domestic business, even despite the consequences of the last economic crisis. The number of franchised outlets is constantly growing, increasing the amount of total operating profit.

It is impossible not to talk about the benefits of using such a franchise. The undoubted advantages include the following factors:

Brand customer focus. When people think of fast food, they always think of McDonald's. Therefore, if they want a quick and inexpensive meal, they often go here.
High and stable demand for products. Potential franchisees do not have to advertise their establishment or products. People will come to him.
Having a well thought out strategy. Moreover, the tactics used have been successfully operating for more than 7 decades.
Excellent financial performance. Due to the fast service and affordable prices, the number of visitors every day is very high. As a result, the turnover turns out to be large, bringing the owner of the establishment a constantly high profit. This, in turn, allows you to quickly recoup your investment.
Comprehensive support from the franchisor. A potential partner not only undergoes training, but also receives a ready-made business model, assistance in finding suppliers.

It should be noted that the opening of McDonald's will be appropriate in many places. For example, it can be a crowded square, an airport, a train station, or even an amusement park, a shopping center.

Franchise Terms

Before figuring out how to open a McDonald's franchise, a potential partner should carefully study the terms of the offer. It is also important to meet the requirements of the franchisor. So, this company takes the search for its partners very seriously. Therefore, you should not hope for a quick and easy design.

Let's start with the fact that it has become possible to acquire a McDonald's franchise in Russia relatively recently. Prior to this, the company opened outlets itself. However, high competition with other catering enterprises forced to reconsider this issue. The chain's main rivals are BurqerKinq, KFC and Wendy's. After assessing the level of competition, franchise enterprises began to appear in the Russian Federation in order not to lose their customers who would also like to visit McDonald's.

Any entrepreneur who wants to become a franchisee is interested in the financial side of the issue. After all, someone is looking for an opportunity to start a business with a small initial investment, and someone wants to invest their own capital in a really profitable business.

It is impossible to call a McDonald's franchise affordable in terms of cost. So, when buying the right to open a restaurant from scratch, you will have to pay $45,000. And you can become the owner of a ready-made catering point by depositing funds in the amount of 500,000 - 1,200,000 dollars.

The franchisor himself sets the amount of required capital at around 1 to 1.8 million dollars. This is quite a large amount. Therefore, a newcomer who does not have capital will not be able to buy a McDonald's franchise.

The signed agreement will be valid for 20 years. After that, the franchisee can either end the cooperation or carry out an extension. Given that investments can pay off in 12 - 18 months, then this is a good opportunity to increase your capital. The amount of monthly profit - from 100,000 dollars.

For various monthly royalties, the restaurant owner will have to give the franchisor about 12 - 13%. Given the high profitability, this is the optimal contribution.

Of the advantages of the franchise, it can be noted that it involves the assistance of the brand owner. Partners receive:

In fact, a person will receive a ready-made business model and all the tools for its implementation. He will only need to track the dynamics, be able to respond to market changes.

Can I buy a franchise in installments?

Opening a restaurant under the McDonald's brand will cost a large amount. Small entrepreneurs who have absolutely no capital will not be able to buy a franchise. After all, for the right to open your own restaurant you will have to pay 45,000 dollars. But you still have to find money for decorating, buying equipment. And this is an additional $1,500,000 for a large city.

In Russia, few can afford to invest in a franchise project. That is why it was decided to provide domestic potential partners with installments:

for the purchase of a new restaurant - 40%;
for the purchase of a ready-made outlet - 25%.

It is important that the funds paid are not borrowed. That is, it will be impossible to take a loan from a bank and use it for a down payment for a restaurant. The rest of the funds can be returned within 7 years. If the partner decides to take a loan, then he will have to apply for it at the bank, since the franchisor himself does not provide such services to his franchisees.

The financial solvency of an entrepreneur is not the only requirement put forward by McDonald's. The person must also satisfy the following conditions:

business experience;
desire to develop quickly;
the ability to work with a business plan, draw it up and use it in life;
experience in administrative work in a restaurant enterprise;
willingness to learn;
have a positive credit history;
ability to work with staff.

Effective work with your employees is the key to success and team cohesion. Therefore, an entrepreneur must be able to find a common language with different people.

Technical requirements

Not every place will be able to open a restaurant. There are requirements for its location:

high level of permeability;
location in the city center or near main roads, near the subway, in shopping centers.

At the same time, from 2,000 to 3,000 m 2 will be required for the premises. They should be located at the front of the building with access to the main streets. The premises themselves must have the following technical characteristics:

availability of water and sewerage;
the presence of gas;
electric power - not less than 210 kW.

When opening in a shopping center, the requirements for technical characteristics may change.

How much will the franchisor need to pay?

A McDonald's franchise involves not only a down payment, but also other deductions in favor of the company. Moreover, they apply for the entire duration of the contract. These are the following fees:

service fee - 4% of sales;
rental payments (if the building belongs to McDonald's, not a franchisee) - 10 - 15% of sales;
advertising fees - 4.5% of net profit.

Additionally, you will have to pay $10,000 for the practical part of the training. This will allow the entrepreneur to understand all the intricacies of the business, including the rules and secrets of cooking, increasing the effectiveness of advertising.

Conclusion

The McDonald's franchise is a great opportunity to get a ready-made business model. But you will have to pay a lot for it. Therefore, not every person can count on being included in the list of franchisees.