McDonalds owns Real Estate - Starbucks is generally not

Many think that McDonalds and Starbucks are very similar because of their branding strategies, and the number of outlets. In fact, this is not so. Many believe that McDonald was very successful around the estate and not burgers, that is not exactly the whole case is.

If you read the book by Howard Schultz, "Pour Your Heart Into It," you might change your opinion on Starbucks, because they are vertically integrated their own fields of coffee, while Ray Kroc did not possess the fields of potatoes or beef . Simplot has become one of the richest people during their day and ended up basically running all Idaho.

Starbucks is the gem of all tenant shopping centers, almost considered a tenant, their stores are located in very small spaces and they are selling a "drug" at the bottom, in order to draw customers. Many companies want to be near a Starbucks, like Quiznos, Subway, hair cut places, travel agencies, insurance offices, etc. Starbucks owns its stores, are not a franchise, like McDonalds.

In some respects, can control the quality, consistency, cleanliness, service customers better, somehow McDonalds has done an incredible job of training and management systems, most franchisors ever achieve that level of 'cutter' ism cookie "

As for Ray Kroc comment on real estate to Harvard MBA class that "We are in real estate, not the hamburger business," Well, if you believe that this statement as the truth then you might want to rethink some of that. You see partner Ray Kroc was a real estate guy and Ray Kroc got in a little over his head and went through a bit 'of turbulent times.

It is not that the property was not a good game, he saved my butt, but there's much more to the story that McDonalds simplifying real estate and those with a history of Harvard professors who are trying, in my opinion, a bit 'incompetent and obviously have not run a franchise company first.

Attention to what they teach on McDonalds, there is much more than real estate franchise. You should not simply assume that the success of McDonalds is due to real estate or because Starbucks does not have its offices, is out in the cold, and how to serve hot coffee and have a lot of customers to prove successful models .......