alt Hacker NewsCan you describe how that is a moat? A structural advantage that prevents other businesses from taking their customers, or their customers from switching. For example, how does McDonalds real estate holdings make it harder for diners to choose Burger King instead?
It gives McDonalds a lot of intrinsic value. It’s definitely a core part of their business. But it doesn’t prevent people from going to Burger King.
They own restaurants in key touristic areas that have massive amounts of potential customers going around. This is a structural advantage because people often just pick the easiest option (especially when it comes to fast food).
For example, in Paris they have two restaurants on Avenue des Champs-Élysées. While there's a Burger King right around the corner (Rue de la Boétie), a lot of hungry tourists will simply not walk in front of it.