Ray Kroc is the man behind the world's 29,000 fast food restaurants, serving more than 45 million people a day. But he met the MacDonald brothers at the age of 52, having an impressive list of illnesses and problems behind him. The history of the development of McDonald's is at the same time the history of the development of Ray Kroc, who managed to earn $ 600 million at a very respectable age! This man managed not only to get rich quickly and fabulously, but also significantly change the lifestyle of many people in the world.
The beginning of the journey - the McDonald brothers
The McDonald brothers are the founders of the famous chain of restaurants. It was with their help that the history of McDonald's began. They opened their first fast food restaurant in 1940. In the cafe of that ancient time, 25 dishes were traditionally served. The brothers significantly simplified the menu, leaving hamburgers andcheeseburgers, french fries, pies, chips, coffee and milkshakes. All this was prepared and served very quickly in McDonald's restaurants. The history of the famous brand also began with the transition to self-service visitors, kitchen remodeling and food price reductions.
By the way, in those days, girls could not work in such establishments, as the brothers believed that they would distract the male staff from work. The McDonalds were able to capture the desires of people in the difficult post-war period. Their business was doing great. The brothers were very active in promoting the McDonald's restaurant. The history of the logo began its journey in the mid-50s, it was then that the well-known red-yellow arch icon appeared. But the institution still lacked scope. It was then that Ray Kroc appeared - the man who changed the fast food restaurant forever.
Thanks to whom did the development of McDonald's happen?
Ray Kroc is not the inventor of fast food or anything else. The only thing he knew how to do well in his life was to trade. For a long 17 years, he sold paper cups from a well-known company, and then created his own business selling ice cream machines. True, competitors soon released a new model of the device, and Ray had to close the company. In desperation and looking for work, he began to travel around the country and one day he heard interesting news.
A small restaurant ordered as many as ten of its ice cream machines. On theWhen asked about what was going on there, his acquaintance replied: "People make money." Krok, without a moment's hesitation, got behind the wheel and drove off to sunny California. McDonald's, whose history dates back to 1940, was in for big changes.
Franchise in San Bernardino
Once in the small town of San Bernardino, Ray hurried to see the coveted cafe. McDonald's turned out to be a small roadside establishment with a fast service system and disposable tableware. Ray saw iron kitchen counters and a very small menu of nine items. But most of all, he was surprised by the prices, which were half the prices of competitors. The McDonald brothers, who, unfortunately, were real mattresses, ran all the affairs here. The income that they had was quite suitable for them, and they did not want to achieve great success. If Kroc had not appeared in their lives, the history of McDonald's would simply have stopped. The brothers did not look for investors, but those sponsors that appeared on their way themselves were dissuaded from investing large sums in the construction of restaurants.
Selling a franchise for the right to open for very little money (up to 2.5 thousand dollars), they did not even require a percentage of the income of this institution. The bankrupt Ray Kroc took matters into his own hands and offered the brothers a new scheme of interaction.
The history of McDonald's: the sale of franchises by Croc
Krok offered the owners of the establishment to sell franchises across the country with his help. The price for 20 years was $950. Andeach café must pay a percentage of the profits, which is shared between the McDonald brothers and the enterprising Croc. The percentage was given by the new owners for the use of the logo, brand and fast food system invented by the brothers.
At the time when Kroc and McDonald's significant acquaintance took place, all well-known fast food restaurant chains were already selling franchises. It was believed that this is an easy way to earn good money. Many people who sold franchises were not interested in the further development of the brand and did not follow all the terms of the contract. They only cared about getting money. Kroc, on the other hand, wanted the history of the McDonald's brand to follow a different path. He wanted the restaurant to generate consistent income without dishonoring the brand across America.
He gave up selling franchises in large areas, trading the right to open only one restaurant. If the owner of the establishment showed that he could be trusted with the brand, Ray allowed him to open another cafe. He did not cash in on restaurateurs, forcing them to buy equipment and products of his choice, but strictly monitored the quality of all purchased products. She had to meet standard McDonald's standards.
True, buyers were not pleased with such conditions. We althy investors wanted to buy a license for an entire state, and people with fewer opportunities were not satisfied with the fact that the franchise was only valid for 20 years under the strict control of Kroc. Ray only sold 18 franchises in his first year of new business. Moreover, half of the restaurateurs did whatever they wanted, selling even pizza and hot dogs in cafes. Ray Kroc dreamed of something completely different. An unexpected incident helped him - acquaintance with Sanford Agate.
McDonald's: Sanford Agate's success story
46-year-old journalist Agate saved up $25,000 and wanted to start his own business. Kroc sold him a franchise to open a restaurant in the town of Waukegan. Agate paid the construction fee, bought the equipment, and ran out of money.
In May 1955, the small restaurant opened to an unexpected resounding success. Every day his income was about a thousand dollars. The man who leased the land was outraged. He had no idea that a small establishment in a small town would bring the owner an income equal to 30 thousand a month. He himself received only one thousand for rent. Soon, Agate bought himself a luxurious house and began to live for his own pleasure. This success inspired many people who had little savings but a great passion for work and we alth. People began to line up for Kroc, hoping to repeat the success of Sanford. The history of McDonald's has moved forward. Krok was not selling people a new business, he was giving them success! The restaurant paid off in about six months, starting to bring excellent profits. For the sake of this, people were ready to fulfill all the instructions and requirements of Ray, as he wanted. His dreams began to come true.
Buying rights from the founding brothers
The history of McDonald's took a new path when, in 1961,the founders agreed to sell the well-known brand to Krok and the right to manage it independently without their participation. The letter "M", which is considered a sign of all institutions, they estimated at 2.7 million dollars. The former salesman, of course, did not have that kind of money. Although the restaurant chain brought in a huge income, Ray's percentage was negligible. In addition, the amount of existing debt already exceeded $ 5 million. Kroc urgently needed a large loan. Sonneborn (network financier) persuaded several well-known universities to invest 2.7 million in business development. But the day before receiving the money, a refusal came, motivated by the unreliability of this enterprise. Then Sonneborn came up with the idea of combining the restaurant business and the real estate market. The goal of the company was to obtain ownership of all restaurant buildings and the land on which they stood. And it was very difficult!
Acquisition of land and buildings
The history of McDonald's would not have been so radiant if not for Harry Sonneborn. He made a huge contribution to the development of the network. By finding an experienced accountant, Harry creates on paper the appearance of a very successful company. This was necessary in order for the banks to agree to give a good loan. By telling lenders that the firm's core business was not fast food, but property sales, in 1961 Kroc was able to take out a $2.7 million loan. Finally, the brothers received their compensation and retired completely. McDonald's story has moved on without its founders.
Hamburger University
In the 70s, the fast food chain becomes extremely popular. Croc's income is growingday by day. The famous edition of Forbes published a note stating that his fortune is equal to 340 million dollars. But the former salesman did not even think of stopping! Despite his rather advanced age, he does not stop working and improving.
In 1961, he opens a laboratory called "Hamburger University". There was a study of all the parameters of cooking potatoes, buns and cutlets. The "University" is still working, however, top managers of the company are trained in it. In the 60s, a famous clown named Ronald came to replace Speedy. The history of McDonald's currently means nothing without this character loved by all children in many countries of the world. The kids go to the restaurant on the weekends, wanting to see this fun guy!
In 1984, Ray Kroc died. Today, a huge corporation is run by James Skinner (the fourth person to cope with such a difficult task).
Fast food restaurant in Russia
For a very long time, the people of our country could not taste the same cheeseburgers as the Americans. The owners of the network explained the refusal to sell the franchise by the instability of the Russian economy and politics. The history of McDonald's in Russia began with long negotiations in 1976. This happened during the Olympic Games in Montreal. The Soviet Union eventually signs an agreement with a large chain of fast food restaurants. In 1990, the first McDonald's in Russia was opened, located on Pushkinskaya Square. Successestablishment was amazing - on the first day of work, a line of 30 thousand people lined up in front of the doors! This has never happened in the history of the network. Now many of these restaurants are scattered across the territory of our country, and the management plans to open many more establishments.
Interesting facts about the company
The history of McDonald's was briefly reviewed by us in this article, and now you can devote time to interesting and unusual facts about this corporation:
- As mentioned above, women were not allowed to work in fast food restaurants. Feminists fought fiercely for their rights and won the right to work at McDonald's in the 1970s. True, their form was no different from the male. In addition, they were forbidden to use make-up and wear jewelry and bijouterie during their shifts.
- The system to attract children is very active, because all the kids want to get a closer look at Ronald the Clown and get a toy from the Happy Meal dinner.
- Coming to a restaurant of this chain, always say what portion of the product you want to receive. By default, the largest portion of potatoes or soda will break through to you. This saves time and adds money to the owner's pocket.
- Fast food restaurants have been subjected to terrorist attacks more than once. Over the entire history of the network, 13 such crimes have been committed in India, Greece, France and other countries of the world.
- The company's food is often criticized for its calorie content andharmfulness. Morgan Spurlock made a documentary called "Double Help". It tells how fast and tasty food leads to obesity and the development of many diseases of the internal organs.
- The largest corporate restaurant in Europe is located in Russia on Pushkin Square (this is the very first restaurant in our country, opened in 1990).
- The company's management is doing everything to make profits grow, people are happy and do not go to competitors. Recently, free Wi-Fi has been provided in all establishments. With unlimited Internet access, people stay longer at cafes and tend to order more food than originally thought.
- The corporation cooperates with such large companies as Hummer and Disney. Their cooperation consists in joint advertising of each other.
- Ray Kroc, before meeting the founding brothers, was selling plastic cups, had his own small company selling mixers, and also played the piano. He was married three times. In 1974, Kroc purchased a baseball team.
- One of the employees Ray called his son. The young man came to work as a waiter and gave himself up to work so much that Ray simply could not help but notice him. After Kroc's death, it is Fred Turner who will head the largest corporation.
Raymond Kroc fulfilled his dream of becoming a millionaire with only $950 cash in the beginning. To achieve the ultimate goal, he needed: a passion for victory, a sharp mind and insight, as well as a littleprovidence. He became a great example for many people going towards their goal. The corporation's products are now loved and chosen by millions of people around the world, because it meets all quality standards! And the taste of the Big Mac hasn't changed since it was first made.
