The fast-food chain McDonalds’ first started in the United States by the founder, Ray Kroc who saw the success and decided to introduce more highly celebrated food such as the famous French fries, Big Mac, Quarter Pounder, Chicken McNuggets and also the Egg McMuffin.
McDonalds’ Success unprecedented
The chain started in 1955 and to date, McDonald’s is now a leading global fast-food retailer with more than an astounding 32,000 restaurants serving over 60 million customers in 117 countries every day.
McDonalds’ in Malaysia
Believe it or not, over 75 percent of McDonald’s restaurants worldwide are operated by independent business people. The first McDonald’s restaurant in Malaysia was opened in December 1980.
The rights were granted from McDonald’s Corporation, USA to Golden Arches Restaurants Sdn Bhd to operate the restaurants in the country. The first outlet was opened at Jalan Bukit Bintang in April 1982.
Since McDdonald’s made its way to our shores, it gained popularity steadily and today, there are more than 200 restaurants nationwide. Serving more than 10 million customers monthly, McDonald’s is still expanding with around 20 restaurants annually.
Global Reputable Brand
Besides being known for fast food, McDonald’s has also been providing a number of jobs to the Malaysian workforce. Currently, all the restaurants have over 8,000 employees and more than RM2 million were invested to train them.
Equipped with strong business and marketing plans, the restaurants are expected to experience positive growth in the years to come.
Franchise McDonalds’ in Malaysia
This makes McDonalds’ an excellent choice when it comes to franchising a business. There is no other brand in the market that allows you to own and start operations without any headaches of marketing or sales.
This is one brand that is well established and gives you the perfect kick-start you need from any business.
Costs of starting a McDonalds’
The initial investment you will need to start a McDonalds’ franchise would be about RM5 million depending on your location and operation costs. The franchise fee for this business is USD22,500 for the first 10 years and others. A percentage of your monthly sales will be paid as a rental to the company.
What do our experts say?
This simply means that you need a lot of cash in order to run a McDonalds’ business. In fact, it has been reported that the average annual revenue for a McDonalds’ outlet is about RM2.5 million. You will have to fork-out 40% of the startup costs before the business can start.
- Brand Reputation – Very strong and market leader in fast food globally.
- Initial Capital – Very high. You will need about RM5 million to start of which it cannot be borrowed funds.
- Return on Investment – Sustaining the business is key but you can be certain that there will be ready customers.
- Location – Can be in both shopping malls or stand-alone shops. Location is not crucial but it must be visible.
- Customer Segment – Families, young and trendy.
- Franchise Fee – US$22,500 for the first 10 years.
- Other Fees – RM10,000 for training deposit, 5% from monthly gross sales for advertising, 18-20% from monthly sales for rental.
- Royalty Fees – 5% from monthly sales.
The Final Word
Remember, if you are looking forward to running a quick service recognized restaurant in the world, join McDonald’s and be part of the team. This is one business that is almost a sure-win but you will need to have a lot of money to start with and to sustain.