MACCA’S LOOKING FOR NEW OWNERS
GOT $1m to spare, a track record of success and a willingness to work in the trenches alongside your teenage employees?
If so, a coveted McDonald’s franchise might be up your alley. But it’s not as simple as buying your way in.
McDonald’s, which this year celebrates 50 years of operations in Australia, is looking to open about 100 new restaurants over the next three years, and invest more than $600m in new and existing assets.
But the company’s 245 existing franchisees – who on average own about three stores – will generally have first dibs on new sites hitting the market.
McDonald’s operates just more than 1000 restaurants across Australia, with about 80 per cent owned by franchisees and the rest owned by the company.
McDonald’s Australia chief executive and managing director Andrew Gregory said the company, which has sold more than 1.9 billion cheeseburgers in Australia over the past five decades, prided itself on its ability to train up new franchisees, but operators had to be stewards of the brand who were willing to work in the business.
“Of the 25 to 40 restaurants that we build (each year), most of the new restaurants will be awarded, or the opportunity given to, existing franchisees,” he said.
“That’s a really great recognition and reward. Having more restaurants over time is part of your successful career at Macca’s.’’
However Mr Gregory said bringing new franchisees on board helped with diversity of approaches.
“We have a lot of confidence in our ability to teach people how to successfully run a McDonald’s restaurant,” he said. “So what we’re looking for is not necessarily someone with a food background.
“They need to be an owner-operator of the business, not a passive investor.
“That’s the starting and end point in the discussions.’’
Franchisees needed to be able to show they had about $1m in “unencumbered equity”, and the ability to engage and motivate “literally hundreds of employees” in their local community.
The new sites coming online would largely be in suburban and regional areas, Mr Gregory said, with a “limited number” of new franchisees able to join the fold.
McDonald’s weathered the pandemic well, Mr Gregory said, and its intention to invest more than $600m indicated its confidence in the future.