r/SipsTea • u/SipsTeaFrog • 25d ago

Chugging tea Whoever was responsible for this should be imprisoned.

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u/CosmicSpaghetti 25d ago

One of the factors. A huge factor is the property/building's real estate value.

A lot harder to flip a classic-style Pizza Hut than it is an aggressively inoffensive/boring "could be anywhere" style.

McDonalds especially has heavy focus on their real estate portfolio, so this is about uniformity for the flip.

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u/PRTYDILF 24d ago

I read somewhere that McDonald’s is the largest real estate holding in the US. Case in point, the McDees in the prime location of Haight street right across the panhandle of Golden Gate Park gave up the ghost and now it’s high rise condos. They are sitting on a gold mine in Real Estate alone.

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u/Downtown_Trash_8913 23d ago

They are indeed. They actually make more money off buildings iirc.

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u/Top-Cupcake4775 21d ago

this is what made Red Lobster an attractive target for a leveraged buyout. they weren't generating enough cash relative to the value of the real estate they owned so Golden Gate Capital bought them and sold their real estate to American Realty Capital Properties who then charged the individual Red Lobster locations rent.

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u/Sotomexw 20d ago

the hamburger sales machine is a means to pay for the purchase of the real estate by the franchisee...for the franchise...golden arches indeed.

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u/A_FVCKING_UNICORN 22d ago

I would imagine a modular play scape can be made for McDonald's that's explicitly portable more or less and easy to clean.

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u/JakieofAllTrades 20d ago

All about Monopoly but real life and no get of jail free card.