Beyond Burgers: McDonald's Real Estate Legacy in Canada

McDonald's, the global fast-food giant, is not just a household name known for its consistent offerings; it also boasts a significant presence in the commercial real estate sector. In Canada, the brand's expansive growth was spearheaded by George Cohon, the celebrated founder of McDonald’s Canada, who recently passed away at the age of 86. Let's delve into the unique connection between McDonald's and real estate, exploring its journey from a single location in Richmond, B.C., to over 1,400 establishments across the country.

George Cohon's Vision

In the late '60s, Cohon, with a background in law and U.S. Air Force service, collaborated with McDonald's owner Ray Kroc to expand the fast-food chain in Canada. What started with a franchise agreement covering Eastern Canada soon evolved into the establishment of McDonald’s Restaurants of Canada, setting the stage for rapid nationwide growth.

McDonald's Canada Expansion Timeline

By 1977, McDonald's had opened its 250th restaurant in St. John’s, Newfoundland, marking its official coast-to-coast presence in Canada. Cohon's commitment to quality, service, cleanliness, and value, combined with McDonald's consistency, catapulted the brand into becoming Canada's largest food service organization by 1981.

Real Estate Dominance

While McDonald's is synonymous with fast food, it is also a major player in commercial real estate. The company either owns or leases the land and building for each franchised location, making it one of the world’s largest commercial real estate operators. The success lies in the brand's unique revenue stream, deriving income from rents and fees paid by franchise owners, in addition to a percentage of restaurant sales.

McDonald's Canada Today

With approximately 1,400 locations serving around 2.5 million people daily, McDonald's Canada continues to thrive. Notably, over 85% of Canadian McDonald’s restaurants are locally owned and operated by independent entrepreneurs, allowing for widespread growth without significant capital expenditure.

Real Estate Landscape Across Provinces

McDonald's locations vary widely in scope and size across Canada. Ontario leads with 514 locations, including the largest at nearly 9,000 sq. ft. on Yonge Street. Quebec, housing the largest Canadian McDonald's at 12,000 sq. ft., follows with 323 locations. Alberta ranks third with 201 restaurants. Beyond standalone establishments, the emergence of McCafé locations, known for their coffee-house-style offerings, adds diversity to the McDonald's portfolio.

Challenges and Changes

While McDonald's continues to open new locations, some are closing to accommodate changing times. Recent closures include the infamous Ottawa McDonald's and strategic shutdowns in Toronto and Vancouver to make way for developments, including mixed-use projects and rental housing.

George Cohon's Legacy

George Cohon's legacy extends beyond business success. His contributions include bringing Ronald McDonald House Charities to Canada and saving Toronto’s Santa Claus Parade in 1982. Recognized as a member of the Order of Canada, Cohon's impact on McDonald's and Canadian communities remains enduring.

McDonald's stands not only as a fast-food giant but also as a real estate powerhouse in Canada. From coast to coast, the iconic golden arches continue to shape both urban and rural landscapes, offering Canadians a familiar and cherished sight. As the brand evolves, the legacy of George Cohon underscores the intertwining of business success and community impact. Stay tuned for more updates on McDonald's unique journey in the Canadian real estate realm.