McDonald’s Romania, the largest restaurant operator in the country, has 60 restaurants of its own besides the seven franchised ones. It works with five franchisees, as one entrepreneur operates three such restaurants in Brasov County. McDonald’s Romania records both the results of its own restaurants and the franchise fees and revenue derived from the five franchisees.
Each franchisee has to pay up to 20% of its revenue as marketing, logo and franchising fees to the parent company. McDonald’s Romania officials have never commented on this information nor provided any details to the contrary. They only said the franchisee pays a specific amount when granted the franchise and then other fees every month.
The seven franchised restaurants posted RON53.7 million revenue last year, up almost 5% on 2013. With 10% to 20% of their revenue paid to the parent company, McDonald’s Romania collected RON5.4 million to RON10.8 million from the five franchisees, according to ZF’s calculations. The directly operated McDonald’s restaurants generate RON424 million to RON430 million out of the RON435 million revenue, or an average of RON7.1 million to RON7.2 million per restaurant.
“Seven out of McDonald’s 67 restaurants in Romania are franchised. The average revenue per restaurant depends on a number of factors,” says Daniel Boaje, chief executive officer of the fast-food chain.
“We may say, though, that one of the reasons why the revenue of the franchised restaurants is higher is that a franchisee supervises their business more carefully and closer than a manager. It’s their business after all, they are entrepreneurs.” (EUR1=RON4.4155)
(English version by Loredana Fratila-Cristescu)