Where is the McDonald's restaurant with the highest revenue

Fast food, get rich quick

Every day 410,000 people visit one of the 184 Austrian branches of the US burger chain McDonald’s. In 2012, the Austrians left almost 550 million euros in fast food restaurants. After all, Austria contributes almost three percent of the worldwide turnover of 27 billion dollars. This is not only good news for the US bosses of the world's top-selling restaurant group, who are based in Oak Brook, Illinois. The 48 Austrian franchisees also have every reason to cheer. Because no other restaurant concept enables such high profits. In the industry it is said: Anyone who was able to get a restaurant contract has a license to print money.

"You can earn good money with McDonald’s," says Michael E. Heinritzi. As an absolute burger giant, he already operates 41 fast food restaurants, 13 of them in Austria and 28 in Germany. The dazzling entrepreneur who is married to Alexandra Swarovski has a turnover of 100 million euros per year.

At McDonald’s, however, neither the hamburgers nor the entrepreneurial successes are served on a silver platter. If you want to get filthy rich here, you have to put on your apron and pull off the labels yourself. Even Heinritzi has to apply for each restaurant anew.

Very high profitability

Andreas Schwerla's career proves that it pays off. As a McDonald’s boss, he was the highest-ranking McManager in the country until March. After five years of strong growth, he swapped the executive chair for the deep fryer and became a franchisee.

Schwerla knows what to expect: “The return has always been good. We achieve very high sales figures for the catering industry. In this way, we can achieve a very high level of profitability at the locations, ”says the person who knows the group figures like no one else. Insiders speak of up to 20 percent return on sales for the group and as much again for the franchisee. Nobody in the industry even comes close to achieving such values. But the real winning numbers are guarded like the recipe at CocaCola.

Hard road to becoming a millionaire

But first you have to dig deep into your pocket yourself. “A franchisee has to invest around 700,000 euros per branch,” Schwerla calculates. The future burger seller has to put a good 40 percent of this on the counter. Walter Jarz, who hired McDonald’s Germany back in 1973 and now operates seven branches in Carinthia, previously hired franchisees: “I had to turn down a lot of people who said they could invest their money, hire a manager and head off to the Bahamas. If you want to run a McDonald’s restaurant, you have to be in business every day for the first few years, ”says the fast food veteran.

But that's not all: Before the license is awarded, the US company requires a one-year, unpaid training: Even those who want to invest six-figure sums in taking over a branch have to complete a tough basic training - cleaning the floor, standing at the hot grill plate for hours and Toilet cleaning included. “Find somebody who has so much money to spare and is ready to do the ox tour again,” says Jarz.

His Viennese colleague Winfried Schmitz, who runs eleven branches, agrees: “You have to run the company with all your heart and soul and stand in the restaurant every day. You can't just run a McDonald’s restaurant on the side. ”Schmitz has 550 employees and generates around 19 million euros in sales per year.

Big stakes, big win

Every single McDonald’s branch achieves an average annual turnover of 2.9 million euros. Of course there are big differences, depending on the location and size. By the way, the restaurant with the highest turnover is in Villach. Franchisee Reinhold Krämer: "We completely rebuilt the branch three years ago and implemented numerous innovations that are well received."

And that is also part of everyday life for a franchisee: investments. In the past few years, all branches have been rebuilt according to the new design - and above all expanded to include the successful McCafés, which have again attracted new customers. Franchisee Martin Spörker: “We invested well over 100,000 euros in the redesign per branch. It was a feat of strength, but it is paying off. There are completely new groups of customers such as business people who hold short meetings with us. The guests stay longer and consume more, ”says the delighted entrepreneur who runs a total of six restaurants in Lower Austria.

You can read more about the McMillionaires and the interview with McDonald’s boss Andreas Schmidlechner in the current print edition of NEWS (15/2013)

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Comments

stabilisreport replies

I think Subway does it through a Dutch BV, which in turn pays out to Lichtenstein and from there the money goes to the company's founder with final taxation - in fact, he gets the money untaxed in the USA.

Report

And with the franchise fees, they cut profits and pay less taxes. So it is a profit withdrawal without paying taxes and that is what makes it so profitable. The money goes through tax havens. Starbucks, Burger Kng etc. do the same. The control hole should be plugged. Like the VAT refund!

burbankReport

Exactly and that is what all major corporations in Austria do, e.g. Ikea, VW, REWE etc., which have their main company on the Cayman Islands or Amsterdam and declare the profits as license fees. At the start, these companies receive favorable locations, tax exemptions and privileges from the state. All that is needed is a change in the law in our country, but unfortunately there are many politicians on the board of these companies.

Hotchilli9Report

the franchise fees go to the franchisor and are costs that of course reduce your own profit! these are to be taxed as income by the franchisor! where is the problem, perhaps in the lack of economic understanding?