Business Quote by Harry J. Sonneborn
““We (McDonald's) are not technically in the food business. We are in the real estate business. The only reason we sell fifteen-cent hamburgers is because they are the greatest producer of revenue, from which our tenants can pay us our rent.””
About This Quote
McDonald’s treats food as a front‑end to generate revenue for its core real‑estate business.
In simple terms: McDonald’s uses food to profit from property.
Key Takeaway
Focus on the underlying profit engine.
Themes
business strategy
real estate
revenue model
branding
economics
Mood
analytical
strategic
Type
business
economic
When to use this quote
- franchise expansion
- corporate finance
- market positioning
Key Concepts
strategic management
venue diversification
asset leveraging
Questions to Reflect On
- What hidden profit drivers exist in your industry?
- How does the primary product support the core business?
A Different Perspective
May overlook consumer perception of brand purpose.
![“[S]ometimes, when you are a food person, the possible irrelevance of what you are doing doesn’t cross your mind until it’s too late. (Once, for example, when I was just starting out in the food business, I was hired by the caper people to develop a lot of recipes using capers, and it was weeks of…” quote by Nora Ephron](https://sms4smile.com/quotes/img-quotes/d79/nora-ephron-1217_business_s-ometimes-when-you-are-a-food-person-th_980.jpg)
![“If the State does not acquire supremacy over [vast private] enterprises, it becomes their puppet, and they become the real State.” quote by Bertrand Russell](https://sms4smile.com/quotes/img-quotes/bad/bertrand-russell-69_acquire_if-the-state-does-not-acquire-supremacy_1379.jpg)