Chapter 153:The Possibility of Surpassing McDonald's

"In-house logistics and outsourced third-party logistics each have their own advantages and disadvantages. With in-house logistics, during periods of growth or when the economic environment is stable, it can save a significant amount of costs compared to outsourcing to third-party logistics companies. It also offers greater efficiency in coordination."

"However, when the environment is unstable and less favorable, in-house logistics can become a significant burden. You have to bear the costs of maintaining vehicles, personnel, and more. Therefore, even from a risk management perspective, I recommend a combination of in-house logistics and third-party outsourcing."

"Moreover, by outsourcing some transportation tasks to third parties, you can reduce the initial investment scale, further lowering investment risk. Is this how Walmart operates as well?"

Carter stroked his chin and said, "Exactly, Walmart has always combined its own fleet with second and third-party logistics."

Montgomery nodded and concluded, "Regarding HT Company's supply chain construction, I have prepared two plans. The first is an extension of your plan, Mr. Black. It involves setting up a corn processing center in Illinois and a meat processing center in Mississippi, then using outsourced logistics companies for air freight and short-distance delivery with insulated trucks."

"This plan minimizes the need for cold chain trucks and reduces infrastructure costs significantly. However, it may have a slightly weaker impact in terms of brand influence."

"The second plan involves expanding the site selection to include the top fifty cities. Of course, we can initially exclude Honolulu in Hawaii and Seattle. This approach will increase costs considerably but will result in rapid growth in market scale and market share."

"This way, we can quickly capture the market for tacos as an alternative fast food. If managed well, the long-term advantages will be much greater than operating in just the Northeast and Southwest regions. And most importantly, you have the funds now!"

Thinking about McDonald's development history, from the time Ray Kroc acquired the McDonald's brand in 1961 to opening 5,000 stores nationwide over the past few years... it took seventeen years! Even opening a thousand stores took five years.

Given Carter's current capabilities, he can open a maximum of fifty stores at once, which is still much higher than McDonald's starting point of a single small restaurant!

Even if each city only has one HT store, it would still achieve nationwide coverage and brand recognition!

With such a foundation, as long as the revenue figures are reasonable, there is no need for them to be extraordinary. Montgomery is confident that from the second year onward, they could develop a large number of franchise or licensed stores.

For the first year, the goal is to add fifty stores! In the second year, one hundred stores! By the third year, two hundred stores... this way, by the fourth year, nearly 800 stores could be achieved...

And this is assuming Carter doesn't invest additional funds and the market feedback isn't very favorable. If the market feedback is slightly better, surpassing McDonald's early years within four years seems highly possible!

Thinking about the potential of becoming the next Ray Kroc filled Montgomery with excitement. Yet, amidst his excitement, he maintained his basic composure.

He simply mentioned, "You have the funds now," subtly including a personal touch, and then fell silent, waiting for Carter's reaction.

"Alright... let's do this. We'll first sign a letter of intent, and after you finish your work at Walmart, come over and start. Then we'll do a detailed cost analysis and review the budget for both plans."

Both plans are appealing. The first saves costs, and the second captures market share more aggressively. In the preliminary negotiations, details can be discussed broadly, but when it comes to execution, Carter cannot make a hasty decision...

"A two-month probation period with a monthly salary of $1,500. Is that acceptable, Mr. Ginas?"

"Of course, I'll get started on the preparations right away!"

"Alright, I'll see you off then. Next time you come, we'll have a welcome party for you!"

After seeing Ginas out of the bank, Carter returned to his office. During their discussion, neither mentioned the supply of sauces like salad dressing, ketchup, or consumables like oil and salt.

Carter assumed that as a regional manager at Walmart, Ginas must have channels for these supplies. He didn't bring it up either because he thought it unnecessary or because he planned to gain some benefits from it, like inflating costs to take kickbacks...

Whatever the case, only time will reveal the truth...

"Carter! The company application results are out. HT Catering Company and Doug-Pearson Food Company were successfully registered. However, the Federal Express application was rejected due to a duplicate name."

Just as Carter was pondering about Montgomery and his proposals, Goodman entered the office. Placing three different documents on Carter's desk, he asked casually, "I saw you sent Mr. Ginas off. Why not invite him for a meal?"

"We'll do that next time. With a $20,000 annual salary, he won't be going anywhere."

Carter chuckled, glancing at the documents before setting them aside. He then took out his "Golden Egg Manual" and noted down "Federal Express"...

It seems that once you start tackling practical matters, troubles keep piling up...

"Let's not talk about that. Uncle Goodman, help me think of a good name for our company? It's a pity about the fifty-dollar application fee, being taken just like that..."

"Haha, I advised against using 'Federal' in the name. You didn't listen. Did you think such a name would be easy to register? As for a name... that's a tough one. Neither I nor old Blake are good at naming. Just look at our bank's name..."

"That's... true!"

Thinking about Blake Bank made Carter laugh helplessly. The U.S. is peculiar in this regard!

Cities and counties have a high rate of name duplication, but company registration is strict, almost never allowing duplicate names. The majority of the time in company registration is spent on name duplication checks. If there's a duplicate, the application is rejected, and the registration fee is forfeited.

Reapplying means paying the fees again. The registration fee isn't fixed; it varies based on the business scope you apply for. The broader the scope, the higher the fees, and the more costly it becomes if rejected...

Interestingly, if you leave the company name blank, it defaults to the name of the legal entity. Such registrations are rarely rejected. Many foreign companies use personal names not because they lack creativity or are lazy, but because it's the simplest and most cost-effective option!

Over time, as more names get registered, the practice of not naming companies has become more popular...