Food Franchise Question: How Many Big Macs Do You Need To Sell To Break Even?


food franchises

Are you thinking about buying a food franchise?

Does the idea of owning a McDonald’s franchise-or two, sound appealing?

How long would it take for you to make money as the owner of a food franchise like McDonald’s?

Let’s find out…

 

A Great Food Franchise Question

How many Big Macs do you need to sell to break even on your investment in a McDonald’s franchise?

And…why should it matter?

 

McDonalds Big Mac

 

It matters because once in awhile, people looking at franchises need to be humbled. It’s good for the soul. (Supposedly)

If I could get paid $100 for every time someone, (after finding out that I was in franchising) asked me how much a McDonald’s franchise would cost to buy, I’d have enough money stashed to at least send in the down payment required for one restaurant. Seriously.

Investing in a McDonald’s franchise isn’t for the meek. Actually, it’s not for most people. But, either are Ferrari’s.

ferrari
photo credit: Ed Callow [ torquespeak ] via photopin cc

 

The 1% Food Franchise Club

If you happen to be the proud owner of one or two McDonald’s restaurants, I’d wager that you’re in the 1% club. (Or pretty darn close.) And, I salute you. I’m serious; it took an awful lot of courage to write a check for at least $300,000, a certain degree of intelligence to get help crafting a superb Franchise Business Plan, and some solid business skills to obtain a small business loan. You would also have to have some pretty powerful skill sets in order to negotiate a commercial lease with the best lease negotiators our world has ever known.

The Big Mac Math

You’d need to sell 39,312,039 Big Macs to get your $1.5 million investment in a McDonald’s franchise back.

(Based on the average cost of a Big Mac in the USA-$4.07)

And, how do I know that the average cost for McDonald’s double cheeseburger concoction is $4.07?

Because I looked very closely at the Big Mac Index Infographic below…..

 

Big Mac Index Infographic

Now, go sell some Big Macs.

 


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6 Comments

  1. Hi Joel,
    That’s a lot of Big Macs! I’ve left this comment over at BizSugar too, so maybe you could answer this over there for the benefit of the whole community. Are there places where these sales figures are just unrealistic? You can see McDonald’s franchises just about everywhere, but are there places where reaching the sales level necessary to pay off this investment even over time just isn’t possible?


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