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A comment on WeWork Goes Bankrupt, Capping Co-Working Company's Downfall. Parent comment

Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by httpz on Tuesday November 07, 2023 @12:33AM (#38173630)
What's interesting is McDonald's HQ owns the real estate of many McDonald's locations and takes rent from the franchisee. This way they can guarantee a steady stream of income regardless of their food sales.

I'm not sure how this would've worked out for WeWork.

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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by winkeltripel on Tuesday November 07, 2023 @01:05AM (#38173743)
McDonalds also refinanced that real estate after opening the store, to build up liquidity for the next location.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by dylan604 on Tuesday November 07, 2023 @01:32AM (#38173864)
At this point, isn't GE a financial company more than an engineering/electrics company?
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by throwaway2037 on Tuesday November 07, 2023 @02:25AM (#38174131)
That was true until the Global Financial Crisis in 2008. Now, they use their finance arm to help customers finance very large purchases. This is common in heavy industry.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by dylan604 on Tuesday November 07, 2023 @11:30AM (#38178862)
Isn't that precisely how it started? Then, they realized they had so much they could open that financing to more than just large industrial clients. Did they just scale it back to their original intent?
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by bandrami on Tuesday November 07, 2023 @01:21AM (#38173815)
I've seen a good business study that argues McDonalds is a real estate company with food products as a loss-leader.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by okeuro49 on Tuesday November 07, 2023 @02:02AM (#38174002)
This was the plot of the film "The Founder" on the founding of McDonalds.

https://m.imdb.com/title/tt4276820/

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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by preommr on Tuesday November 07, 2023 @02:03AM (#38174004)
There's a good scene in "The Founder" that covers that concept [0]

[0] https://www.google.com/search?q=youtube+mcdonalds+you%27re+i...

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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by lordnacho on Tuesday November 07, 2023 @04:38AM (#38174933)
It's a general business trope, isn't it?

Ford is a pension fund that happens to make cars.

Berkshire Hathaway is an insurance company that makes a lot of investments.

A supermarket is a bank that sells food.

GE at one point was also more or less a financial company that sold industrial goods.

I guess the thing is once you take a financial view of how a business works, a lot of things don't look like what they normally look like.

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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by bandrami on Tuesday November 07, 2023 @04:45AM (#38174978)
I know at one point GM cars were mostly used to sell GMAC financing, though I think that particular inversion has stopped now.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by sgt101 on Tuesday November 07, 2023 @09:52AM (#38177415)
There was this event, it happened in 2008 and it stopped the GMAC thing like the full stop stops this comment.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by pjc50 on Tuesday November 07, 2023 @07:43AM (#38176122)
People complain about "ZIRP", but it did reduce the benefits of co-mingling finance with retail and decoupled consumer credit from being quite so critical to sales.
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by Shawnj2 on Tuesday November 07, 2023 @11:27AM (#38178819)
Amazon is a cloud computing company that uses its resources to host an online shopping website
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Re:WeWork Goes Bankrupt, Capping Co-Working Company's Downfall by FireBeyond on Tuesday November 07, 2023 @01:32PM (#38180843)
Harvard is a hedge fund that occasionally educates people.
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