Reading Time: 3 minutesWhen it comes to franchising, many of us want to get the best opportunity from a brand that is a household name. However, when it comes to getting access to the biggest and best in the UK, it is important to find out who is leading the market.
However, being the biggest covers a range of markers and it is important that the biggest franchise has all of the following things in place to be considered the biggest in the UK;
- High turnover
- Most premises
- Large staff base
- Household name
- Trusted customer base
Fast food franchises have long been known to hold the biggest section of the franchise market. It’s a fact that we all need to eat, and when we are trying to manage a busy schedule, it makes sense to pop into your favourite fast food restaurant to grab something to eat.
It’s this prime market that gives many franchisees the opportunity to make a significant amount of money, and this shows no sign of abating right now. Therefore, it is no shock that McDonald’s is the current number one franchise in the UK, with over 1200 restaurants ready to serve you your favourite burgers and fries 24 hours a day.
How Did McDonald’s Become the Biggest Franchise?
There is a huge debate about who makes the tastiest burger and which fast food option is the best, but these debates have very little to di with the success McDonald’s enjoys. In fact, rather than sending their time trying to perfect their food, McDonald’s peeled back the layers of their business model and worked to create a more cost effective system.
The notion of fast food is what has propelled the company forwards. Customers visit a restaurant or drive-thru and are presented with fresh, fast food to enjoy minutes later. This offer has helped the company play into the hands of those who want to eat something with the least hassle.
Their marketing is clever as they appeal to people of all ages; free gifts for kids, a range of choices for parents and supersized burgers for bigger appetites. Couple that with major restaurant renovations and the introduction of tech that makes the McDonald’s experience more user friendly and you have a clear understanding of how the brand got to where they are right now.
McDonald’s was founded back in 1940 as a fast food restaurant in America and soon grew into an international brand, offering franchise opportunities from 1955 onwards. Today they won over 37000 restaurants all over the world and employ nearly 250,000 staff.
The initial franchise opportunity came from a desire to offer the same food, service and quality across multiple locations and by selling franchises, the brand could ensure that this happened. The key motto of the original franchisor was ‘in business for yourself, but not by yourself’, and this ethos is one that is still widely promoted across all countries and franchises.
McDonald’s is renowned for changing the face of eating out; by offering a cheaper, faster alternative to other restaurants, it sealed its place in food history and will continue to serve its loyal customers for many years to come.
Buying into McDonald’s is not just as simple as paying your fees and being given a restaurant. The company has very strict guidelines that potential franchisee must adhere to in order to be successful.
When you have passed the first interview stage, you need to undertake restaurant experience to know how the restaurant works. McDonald’s hold a strong belief that all their franchise owners must know how to do each job int their restaurants, and so you will need to undertake all the training that crew members undertake.
When you have completed your second interview and panel interview you will move into the training phase where you will be expected to work in a store and build up experience before being able to run your own franchise. This process takes a minimum of six months to complete, but it is an essential part of preparing to own your own restaurant.
After passing your training successfully you will be offered a restaurant location and, if you decide to purchase it, will start the handover process.
The great thing about buying into a McDonald’s franchise is the support that you are offered and the ongoing help and information that is shared with you to ensure that your restaurant is a total success.
How Much Does a McDonald’s Franchise Cost?
When it comes to owning a franchise for the largest franchisor in the UK, you won’t be shocked to find out that you will need £110,000 of unencumbered funds in order to get your franchise. There is also an ongoing percentage taken from all sales plus the cost of marketing.
McDonald’s estimate that the typical yearly cash flow after the first year is complete can range from 50k to 550k and that you can expect a 20% return on your investment over 20 years.
Is McDonald’s At Risk Of Failing?
When you buy into a McDonald’s franchise, one of the main benefits is access to the brand. McDonald’s as a brand is faring well on the international market, and if you manage to get a restaurant in a high traffic area, you are more than likely to be a successful franchise.
However, some of McDonald’s franchises do not make the expected sales due to being located in less populated areas or finding themselves in competition with other franchises that are close by. If you are considering entering into a franchise, then it is always important to scope out the area you want to work in and the competition before you hand over any of your money.
I’m Interested, What Do I Do Next?
If you want a slice of the biggest franchise in the UK, then you need to gather the funds required and submit an application.
McDonald’s say that they are looking for a diverse range of people who all have a passion for food and want to be successful in the business world.