this post was submitted on 13 Jun 2025
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[–] WoodScientist@sh.itjust.works 4 points 2 days ago

Ironically, the building on the right is not from forgetting their place in the fast food chain. Rather, it's from remembering and embracing their real place in the chain. McDonalds isn't a fast food company; it's a real estate company. That's where their real money is made. They build restaurants in high traffic areas with growing economies. They make some money from food sales, but the real long-term profits are from value of the land and the market value of the building.

The reason that all restaurants have become so bland and boring is that in the drive to pursue efficiency above all else, fast food companies have started optimizing their buildings for resale value. A building with really distinctive architecture - like an old Pizza Hut - doesn't have good resale value. You either keep using it as a Pizza Hut, or you rent it out for a greatly reduced rent.

A McDonalds that is just a big bland box has more book value than a McDonalds that has a play place. Very few potential renters want a play place or the architecture to accommodate one. If McDonalds needs to close one of their restaurants and rent out or sell the old building, one without a play place will hold its value better.

McDonalds is a real estate company, not a burger company. That's finally shown up in their actual architectural design.