Is Starbucks Secretly A Bank?

[beenz]

This Reminds Me Of The “McDonalds Isn’t A Restaurant It’s A Real Estate Company” Theory lol


“McDonald’s makes much of its revenue by buying the physical properties and then leasing them to franchisees, often at large mark-ups.”

I also saw a documentary about this subject as well along with the ray kroc movie on netflix starring michael keaton (yeah I watch hella random documentaries)

but mcdonald's really gets over because they force their franchisees to build at specific locations where mcdonald's ALWAYS owns the land, thus the franchise owner is set up where they are not only paying franchise fees, but they also gotta lease the land for the mcdonald's. its a genius move by mcdonalds when u think about it.

in my opinion, starting a mcdonald's franchise is far too risky. not only do you need 7 figures just to start it up, but if ur franchise isn't in a prime location, ur essentially fukked investing all that capital while making maybe 80K a year profit when its all said and done.

 

[beenz]

Exactly
If it's a real estate company then it's a real estate company.
They buy land, build a restaurant, and then resell it at profit.
After all, rent in Times Square isn’t cheap, but a Big Mac is.

The founder of McDonalds said: “You don’t build an empire off a 1.4% cut of a 15 cent hamburger, you build it by owning the land on which that burger is cooked.”

They got a whopping $53 Billion (2020) real estate business.

In conclusion, even if people stop eating burgers tomorrow, McDonald’s is not going down, supported by its massive real estate empire. That’s how a sustainable business model is built..

Lessons learned?

1. Try to find a growth model with minimum liabilities. In this case McDonald’s did not have the liability to pay rent yet it became one of the largest fast-food chain
2. As an entrepreneur, it’s important you create an alternate source of income if your original business goes down
3. Focus on building real assets that can provide strength if things do not work in your favor.

here's info on the netflix movie about this subject.

The Founder (2016) - IMDbhttps://www.imdb.com › title

 

[beenz]

Does that 1.6 billion get used in it's entirety by gift card holders.... Do these gift cards expire so to speak

I know I have a Starbucks card with under $1 on it that I won't redeem. Imagine how many other hundreds of millions of cards are out there like that with a balance on them. Essentially an interest free loan for them.

 

[Coli Bot]

They aren’t a bank because they don’t have the transactional relationship with customers.

If anything they are an insanely large cash reserve, but even that isn’t true because behind the 1.6 Billion in cash “loaned” or “lended” by customers, they are actually in debt 1.6 Billion in the value of owed liabilities (coffee or products etc.) to those customers.

IE: I place my money in the bank and the bank does what they want with it and I can withdraw it. They don’t necessarily owe me any asset for putting it in, and are able to invest it so long as they have a percentage to return if I ever want to pull it out. If I invest in a Starbucks card, they have to provide me with that coffee which has overhead and expenses attached.



but this is still a very unique look at their model and assets