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McDonald's restaurant owner chose to locate its business in Stratford, because it is near customers. Stratford is a very busy place; people come to the shopping centre, in which McDonald's restaurant is located, to shop around

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Introduction

Task 3: Business location Choice of ownership : Franchise Name of business: McDonald's Area: Stratford To all businesses one of the most important things is where the business is located. The correct location is crucial in order for business to be successful. Bad location can cause a lot of problems and cut down the profit. Good business location attracts more customers and increases profit. The following are factors considered by McDonald's when choosing their location. McDonald's restaurant owner chose to locate its business in Stratford, because it is near customers. Stratford is a very busy place; people come to the shopping centre, in which McDonald's restaurant is located, to shop around. If customers get hungry they can always come to McDonalds, because they don't need to go far away from the shopping centre, McDonald's restaurant is right there. In Stratford people come to the library, which is only few meters away from McDonald's. ...read more.

Middle

So customers can come from different parts of London. Also it has access to trains, so customers can event come from outside of London. Stratford has very big bus stop. Buses go to very different areas, so again customers can come from very different places. Stratford has few buses which go Stanstead airport, people who are traveling to Stanstead might want to go to McDonald's to eat something before a long journey. Customers who come with cars, do not have any problems with can parking, Stratford shopping centre has 4 floor car parking. McDonald's restaurant is located in very board road, so it makes easier to suppliers to deliver products. In some cases it might be better for a business to locate near its competitors because customers 'shop around'. A business locating away from the others might be at a disadvantage because customers visit where there are many shops or restaurant to look at and choose from. ...read more.

Conclusion

But this is what more sole trader business does; franchisors usually decide to open up a business where they know that they can make a big profit. Business generally need to pay rent to hire their shop/premises and also have to pay high rates to the councils if located in a sought after area. In Stratford rent is very high, because it is a popular place, it's near the tube station, and it is in a shopping centre. A lot of people come to Stratford every day. McDonald's chose to locate the business in Stratford with very high rent because they thinks that they can make a lot of profit and cover the rent. The closer the business is to the inner cities the higher rent and rates you are likely to pay. Feedback - a very good pass. You demonstrate a good understanding of the factors affecting location. ?? ?? ?? ?? Agne Griauslyte ...read more.

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