Tuesday, May 29, 2012

Meet Ronald McDonald’s Father


Ray Kroc is the brains behind the world-renowned fast food chain McDonald’s. The first store was opened in 1955 and since become a leader in the fast food franchising business around the world.

Kroc was born in Chicago, Illinois on October 5, 1902.  He dreamed to being an ambulance driver during the World War I but the war ended before he had the chance to be one. In his search for a job, he ended as a seller of paper cups, as a pianist, and as salesman for a milkshake machine in the 1950s. Being a salesman, Kroc had the opportunity to travel to many restaurants and cafes across the nation to sell his milkshake machine. During these travels, Kroc became convinced that many restaurants poorly managed. While selling his milkshake machines, he stumbled upon a restaurant located in San Bernardino, California, named McDonald’s. The restaurant was owned by siblings Richard and Maurice McDonald.

At that time, McDonald’s already had eight milkshake machines. Since each machine can make five milkshakes at one spin, Kroc was intrigued that a McDonald’s restaurant like this would need to make forty milkshakes with the eight machines at once. Kroc thought of selling machines to every McDonald’s store.

Kroc cracked a business deal with the McDonald brothers. Initially, they agreed that Kroc would get 1.5% of the franchisees’ profit. After a while, Kroc realized how small his share was. Kroc asked the brothers to acquire the rights to the McDonald’s name.

In Kroc’s vision, he wanted a restaurant that ran like a food factory – hot food, fast service, and consistent quality regardless of location. He set up procedures for food preparation to ensure the same quality in each McDonald’s store.

In 1956, Kroc established the Franchise Realty Corporation which bought tracts of land where McDonald’s stores can be potentially opened. By the end of 1960, there were more than 200 McDonald’s stores in the US.

Kroc’s restaurants sell service not food. This was McDonald’s cutting edge at a time when the restaurant chain industry was dominated by the likes of A&W, Dairy Queen and Big Boy.

Kroc died on January 4, 1984.

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