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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