Mcdonald's history. The history of the McDonald's brothers and their famous brand
Everyone knows about McDonald's fast food restaurants, and every major (and not so) city has these establishments. Despite the fact that the vast majority of people understand and admit that food at McDonald's is unhealthy and unhealthy, these establishments are very popular. And for many people, frequent visits to McDonald's have already become a habit. Now it is a huge chain of restaurants around the world with an established system of work and its own special marketing, but where did the story of this real fast food giant begin?
Brothers Dick and Mack McDonald's Restaurant
The founders of McDonald's, the McDonald brothers, owned a small restaurant in California in the 40s of the 20th century, which brought them a small but constant profit. Things were going steadily, but when the economic situation in the country changed for the worse, the restaurant owners decided to change the concept of service, hoping that this would save their business a little. Then the brothers' restaurant became a self-service establishment, that is, the waiters did not come to each table to take an order, and the visitors themselves took their food from the cashier's counter, and then sat down at a free table. The number of items on the menu also had to be reduced to nine items: there were hamburgers, cheeseburgers, potato chips, pies, french fries and a few drinks.
To keep costs to a minimum, the brothers also changed the food preparation system - now the kitchen has become like an assembly line that continuously produces the same hamburgers and other food. So it was possible to save both on staff and on the ingredients themselves. Food prices have gone down and there have been more visitors. Competitors, whose products cost a little higher, were rapidly losing regular visitors.
After 10 years, namely by the mid-50s, the McDonald brothers' restaurant began to bring them twice as much profit as in the 40s. Dick and Mack made about $350,000 a year from their business. Their restaurant has become quite popular and loved by many Californians. However, the brothers were in no hurry to somehow expand their restaurant activities, either because of the fear of change, or because of ordinary human laziness.
The arrival of Ray Kroc
So the family restaurant business slowly “drifted” until the same Ray Kroc appeared on the horizon, who brought the McDonald’s brand to a new level. Many believe that Ray Kroc is the inventor of the fast food system used in McDonald's restaurants. However, this opinion is erroneous: the very idea of quick service belongs to the McDonald brothers, and they came to it long before Ray Kroc appeared in the business. He had a rather extraordinary mind, however, for some reason, he could not achieve the desired success in those areas in which he tried himself before he found out about the McDonald brothers restaurant.
Having once visited this institution, it dawned on Ray: but such a service system will work "with a bang" almost anywhere! Especially with delicious and relatively cheap food. The brothers did not want to burden themselves with the worries of expanding the business and turning it into a whole restaurant chain. Ray Kroc began to do this, and already in 1955 a company called “McDonalds System Inc” appeared, which sold restaurant franchises. Then, in order to get the right to use the brand created by the McDonald brothers for 20 years, it was necessary to pay only 950 dollars.
In those years, the concept of franchising was already known - the first in this business was Singer with his sewing machines. However, Ray Kroc approached his new activity with full responsibility and commitment - he did not sell franchises to everyone, but carefully selected only competent restaurateurs. Ray Kroc's first year with McDonald's wasn't as fruitful as he expected, with only 18 franchises purchased. Experienced and large businessmen, perhaps, did not consider the fast food business serious enough for them, and aspiring entrepreneurs were afraid of failure in this business, and therefore were in no hurry to declare themselves as contenders for the purchase of a franchise.
After some time, the franchise was sold to journalist Sanford Agat, who managed to show by his own example how much income can be obtained from running the McDonald's restaurant business. In a couple of years, he was able to earn money for a decent mansion. So many entrepreneurs became interested in the McDonald's franchise.
Departure of the Macdonald brothers from the business
In the early 1960s, the McDonald brothers decided to sell all rights to the McDonald's brand to Ray Kroc. The brothers set a price of $2.7 million. Krok was not able to immediately pay such an amount, so he had to look for options on how to get this money. Economist Harry Sonnenborn joined the case. Entrepreneurs applied for a loan, which was immediately denied due to the "unreliability of the catering business." Sonnenborn came up with the idea not only to sell franchises for the business, but also to buy out the land on which the restaurants are located. This idea proved to be key to the development of the McDonald's brand, as without it, Krok and Sonnenborg might not have received the loan.
After a while, the company's account was already quite an impressive amount for those times. However, there was still not enough money for business development, and again there was a need for a loan. Now the company's accountant, Richard Boylen, played a key role in this, using a little trick in compiling the financial statement of activities. In the section of the company's assets, he indicated that real estate (land) that was not yet wholly owned by the company. Being an honest accountant, Boylen put this information in the notes of the report, which are usually written at the very bottom in small print. It was precisely because of this that they did not pay much attention to this information (or simply did not read the report up to this point), and the bank agreed to issue a loan, considering Croc's business to be quite trustworthy.
So Ray Kroc became the owner of all rights to use the McDonald's brand, and the brothers Dick and Mack no longer had anything to do with him. The active development of a chain of restaurants began. In the mid-1960s, the billionth McDonald's hamburger was sold.
After a while, McAvto restaurants began to open. They immediately began to be in demand, and the profit from them was almost half of the income from the entire network. In 1975, McDonald's restaurants were already in more than 20 countries around the world.
Now, McDonald's is second only to Subway in terms of the number of restaurants. The Ray Kroc business is continued by James Skinner and Don Thompson, who are the company's chief executive officer and president, respectively.
Let's start with the correct spelling and pronunciation of the company name. In Russia, the McDonald's trademark is used without a soft mark. This can be easily checked if you go to the official website of the company in Russia. For example, in Belarus, McDonald's is officially spelled with a soft sign.
Ray Kroc is the man who founded McDonald's. At that moment, when the fate of the future food giant was being decided, its founder was 52 years old, and his health was no longer pleasing.
Raymond Kroc himself did not invent anything, except perhaps the future concept of the McDonald's franchise company. All the cooking standards and technologies that were used by McDonald's establishments were invented by two brothers, Maurice (Mac) and Richard (Dick) McDonald. But the success of the company is increasingly associated with the name Ray Kroc. How did it happen?
Ray Kroc: childhood and youth
The future founder of the famous corporation was born on October 5, 1902 in a suburb of Chicago (Illinois). Louis Kroc - the head of the family and part-time Ray's father from the age of 12 worked in a company that specialized in money transfers. Rose Kroc, the mother of the future entrepreneur, was a housewife. In addition to Ray, the family had two more children - sister Lauren and brother Robert.
Louis Kroc was an avid baseball fan, with a particular focus on the Chicago Tiger Cubs. He infected his eldest son with this hobby, and later, at the peak of his success, Ray would buy the famous San Diego Padres baseball club.
The Krokov family did not have huge funds. To replenish the family budget, his mother often gave piano lessons (she also taught Ray this skill, which later helped him find additional work).
Part of the housework in the absence of the mother fell on the eldest son, mostly it was cleaning. My grandmother also helped with the housework. It is known that she carefully monitored the order and cleanliness in the house, having inherited this quality, Ray would later set a high bar for cleanliness among eateries.
An interesting fact: after washing the floors, my grandmother covered them with newspapers so that they were always clean. Newspapers lay on the floor until the next cleaning.
Louis Kroc tried to give his children a complete education. Ray was not interested in studying. Often he just lay on the bed in thought. He later explained it this way:
Competitors can steal my plans, but they can never read my mind. If so, I will always be ahead of them by several miles.
First job
From elementary school, he was attracted to trade. Sometimes, instead of studying, he helped his uncle sell carbonated drinks.
In high school, Ray Kroc rents a closet with friends for $25. They sell sheet music and musical instruments there. Ray entertained customers with piano playing and songs performed by himself. But sales were very poor, because almost no one knew about the existence of the store. The venture soon failed and they had to close.
It is known that Ray was an excellent speaker, which contributed to his future career. After all, this quality mainly helped to convince the intractable McDonald brothers to sign a contract, as well as future franchisees (people who bought the rights to use the McDonald's trademark). Oratorical qualities began to form and develop precisely in childhood, when the boy worked in trade.
How the founder of McDonald's started: first successes
In 1917, by deceit, throwing himself a few years, he goes to war, where he later becomes the driver of an ambulance of the Red Cross.
Interesting fact: during the First World War Croc served in the same regiment with Walt Disney.
At the end of the war, Kroc returns to Chicago. Yielding to the persuasion of his parents, against his will, he continues his studies. But this imposed hobby does not last long, after a semester he quits classes and becomes a street vendor.
At that time (in the early 20s), the Croc family moved to New York, which was a real blow for Ray, because he already had a relationship with a girl, Ethel Fleming, with whom they were going to marry. But soon the family returned to their homeland. The beloved's parents set conditions according to which Ray needed to find a stable job. This is how the "King of Fast Food" starts his career at Lily Cup selling paper cups. In 1922, young people got married, and in 1924 their daughter Marilyn was born.
To feed his wife and daughter, Ray had to work harder. During the day he sold paper cups, and in the evening he played the piano. Later, he was even recognized as the best dealer of the company and received a promotion.
In 1930, Ray's father died of a cerebral hemorrhage. In those years, the stock market collapsed - all the assets of Louis Kroc depreciated, he could not survive this blow.
Implementation of mixers
In the late 30s, engineer Prince invents a mixer that could simultaneously prepare 5 cocktails. Krok decides to start a company selling mixers, leaving his old job and losing his regular income. The wife did not support his undertaking, the relationship became cold. But Ray Kroc's rule is:
If you do not like to take risks, you should not meddle in business.
In 1939, he registered his company for the sale of mixers "Malt-A-Mixer". His firm maintained two employees: a secretary (June Martino), who later became a co-owner of McDonald's and the first woman who was allowed to trade on the New York Stock Exchange, and Ray Kroc himself. He traveled around the country and sold mixers.
The founders of McDonald's (Dick and Mac McDonald) started their work with an ordinary cafe. It was located in Arcadia, a city in the state of California. Since this city is not crowded, the brothers decided to move to San Bernardino. But there was no money for a new building. A brilliant idea came up, the brothers decided to move the building from Arcadia to San Bernardino. But along the way, a problem arose - a bridge over the road. And here, too, the brothers showed ingenuity, deciding to cut the building in half.
In the first half of the 20th century, establishments called dry-ins were popular in America. They have been designed to cater for customers who stay in the car.
Dick and Mac decided to follow the new trends, namely, they opened a cafe for motorists such as dry-in. In the new establishment, everything was arranged according to the latest trends: 27 items on the menu, waitresses in uniform brought the order to the car. The cafe became wildly popular, but soon sales began to fall. There were several problems:
- hooligans on motorcycles scaring away other visitors;
- confusion in orders;
- extra spending on wages;
- the cost of replacing dishes (in establishments of this type it often fought).
The brothers noticed that the lion's share of the profits, namely 87 percent, came from three items: hamburgers, french fries, soda. It was decided to revise the menu and remove a dozen unnecessary positions. Continuing to eliminate the shortcomings of the created institution, the founders of McDonald's:
- replaced ordinary dishes with paper ones;
- the waitresses were removed, thereby completely moving away from the idea of a dry-in, now customers had to go to the cashier themselves;
- removed cigarette vending machines (reducing the number of unwanted guests);
- distributed the functions of cooking among the kitchen workers.
The key point in creating a diner
But the McDonalds did not stop there, they wanted to reduce the waiting time from 30 minutes to 30 seconds. To do this, it was necessary to close a cafe that makes a profit and arrange a redevelopment of the building. Dick and Mac were tennis fans, so they had their own court at their disposal, with the help of which redevelopment was carried out. It was lined with a plan of the room, taking into account all the parameters and zones (cooking and assembling hamburgers, side dishes, etc.)
Later, employees of the institution were invited to the tennis court. They were told to pretend they were in the building doing the cooking. As a result of this simulation, the kitchen was redrawn several times until the work and the occupied space were completely optimized (this lasted about 6 hours).
This plan has been implemented. Not without difficulties, but after a while, McDonald's won the hearts of customers, gaining more and more popularity in his town.
The owners of McDonald's easily shared the secrets of their restaurant with anyone they met who asked them about it. And if someone was surprised, the brothers shrugged their shoulders: “Our restaurant has transparent walls. Naturally, the idea was stolen from them more than once, but no one was able to repeat the success.
Ray Kroc's acquaintance with the McDonald brothers
One day he met the MacDonald brothers. At a time when the sale of mixers was on the decline, someone ordered 8 pieces at once. He was very surprised, because if each mixer was preparing 5 cocktails at the same time, who needed to prepare 40 cocktails at the same time. Ray thought it was a mistake, but the order was confirmed. It was after this that he decided to go to the city of San Bernandino, from where the order was made marked with McDonald's.
When he arrived, he saw a huge line for hamburgers for 15 cents. He drew attention to the unusually fast service system. The same system, invented by the brothers, still exists in all restaurants of the chain. Despite the huge number of people, the service was of high quality and quickly.
Another feature of their establishment was that customers themselves approached the cashiers and ordered what they needed. Thus, a system of partial self-service was created. There were no flies or debris on the premises. The brothers cleaned it themselves so as not to spend money on a cleaner.
Upon learning that this was the same supplier of mixers, the McDonalds invited him into the kitchen. Ray saw an open kitchen with a conveyor belt, which prepared almost all the dishes from the menu. The small number of names also surprised him. But everything was very thoughtful and cost much cheaper than in similar restaurants. All utensils were paper and disposable, which was also financially beneficial.
Ray realized it was now or never. “I was 52 years old. I had diabetes and arthritis. I had my gallbladder and most of my thyroid removed. But I believed that I could change a lot in my life, ”he recalled.
Start of cooperation
Kroc suggested that they start selling a franchise. But Dick and Mac were not madly happy with this idea, since they had already tried to start activities in this direction, but it had failed. 5 restaurants were opened under a franchise, but the difficulty was in controlling the quality of food and the cleanliness of the establishment, an inconsistent menu (at that time, entrepreneurs thought that if you buy a franchise, then you have the right to do whatever you want with it despite the contract).
He offered himself to them as an agent for a franchise company. Not immediately, but they agreed to sell him the right to distribute the franchise, worth 15 thousand dollars for 10 years. But he didn't have that kind of money.
Infected by the idea of the brothers, the future founder of McDonald's tried to borrow money from the bank. However, he was denied a loan. He took a rather desperate step - he mortgaged the house and insurance. An agreement was signed with Mac and Dick, according to which Kroc could sell McDonald's franchises, while receiving a 1.9% commission, of which 0.5% was intended for the brothers.
After that, the McDonald’s empire was created, and Kroc himself earned about $600 million with more than 30,000 restaurants around the world. However, he is known not so much as a brilliant manager, but as a person who changed the approach to mass nutrition.
First McDonald's franchise sales
A little theory on the topic of franchising relationships.
- Franchising is a way of organizing business activities, during which the franchisee, for a certain fee, receives the right (license) to use the trademark and its technologies.
- A franchisor is an owner company that transfers the right (license) to use a trademark and its technologies.
- A franchisee is a person or company that acquires the right (license) to use a trademark and its technologies.
- Lump-sum fee - is a one-time start-up payment of the franchisee in the form of a fixed amount specified in the contract. The $15,000 that Kroc paid was a lump sum.
- Royalty is a regular payment for using a brand. Royalties in our history favored 1.9 percent of the franchisee's revenue.
And so, believing in this project and mortgaging his house, Ray Kroc went on a tour across the country with a developed proposal and the name of McDonald's. The existing franchise system has existed for quite a long time in the United States, since the arrival of the Zinger company (the production of sewing machines). Ray Kroc just added a couple of his touches.
Franchise sales were carried out as follows: there was only one restaurant per city. Ray Kroc established a strict rule that a license was given to one person per restaurant for a period of 20 years. The cost of the license reached 950 dollars (lump sum), and the franchisees also had to pay 1.9% (royalties) of the restaurant's revenue (1.4% to themselves, the rest 0.5% to McDonald's).
Everyone who bought a license had to meet the high requirements of the company both in terms of quality, service and logistics of the goods.
The rules he established and strict control did not allow the franchisee to deviate from the original agreements. For those who met all the standards, Ray sold the rights to open other restaurants under the brand name McDonald's. Violators lost their only restaurant at the expiration of the franchise agreement.
Difficulties encountered
Thanks to this approach, in the first year, Kroc managed to sell only 18 franchises. Many were scared away by the company's requirements and the terms of holding a license. Those who did buy the rights were wealthy acquaintances of Kroc who had little interest in the business. Accordingly, there was a lot of confusion in the first franchised McDonald’s, and dishes from other national cuisines appeared on the menu.
Naturally, this could not please Krok, who wanted to introduce a single universal approach and did not know how to reason with future business owners and carriers of his ideas.
Later, Ray began to carefully select future partners for the role of owner of a McDonald's restaurant. The first choice was Chicago journalist Sanford Agate, who had some savings and a desire to start his own business. Kroc naturally persuaded him to buy the franchise. It was decided to build a restaurant building from scratch. Kroc persuaded the owner to lease the land on which they were going to build an institution, for only 5 percent of the turnover of their future enterprise.
On opening day, long queues lined up at the new cafe, and the proceeds no longer fit into the cashier. The owner of the land was quite surprised when the restaurant began to bring super-profits and regretted that he had sold so cheaply. This was an excellent PR company, a poor journalist got out "from rags to riches."
Gradually, the number of young and ambitious entrepreneurs under the McDonald's brand became more and more.
How McDonald's was founded
Raymond Kroc liked to say that he was not selling hamburgers, he was selling a business. He considered the strictest unification to be another guarantee of success. Products and their appearance, color, taste must match the original in all states, the client must not feel the difference. As an agent for the McDonald's franchise company, he was meticulous in maintaining standards.
He had a special relationship with cleanliness. A huge part of the instructions for the franchisee was devoted to cleaning. For example, windows must be washed daily, refrigeration equipment and ventilation grilles - once every two days, ceilings - every week.
Krok gathered a team of professionals around him, he was able to discern talents and attract them to his work. An example is his secretary, June Martino, who ends up co-owning McDonald's and the first woman to be allowed to trade on the New York Stock Exchange.
Fred Turner also serves as a great example of Kroc's foresight, starting as a simple kitchen worker and rising to corporate president and chairman of the board of directors. Harry Sonneborn, whom they met by chance at the bank, became the company's chief financial officer and later became the first president and CEO of McDonald's Corporation.
McDonald's System, Inc.
In 1955, Kroc, without the consent of the McDonald brothers, registered McDonald's System, Inc (renamed McDonald's Corporation in 1960). She was also involved in franchising and leasing land.
Sonneborn helped with the registration of the company. He also came up with a brilliant idea about the sublease, which allowed him to take control of the real estate sector and untied Kroc's hands. The company bought or rented land or buildings for a fixed amount, then subleased them to franchisees, receiving a certain percentage of sales for this.
Disagreements between Kroc and the McDonald brothers
Raymond Kroc was constantly looking for some kind of improvement, additional income or an opportunity to reduce costs. But under the contract, Kroc had no right to change even the slightest detail of the restaurant or menu without their written consent. And they never agreed to anything.
An example is the Pepsi-Cola logo. Ray suggested placing the logo of this company at the bottom of the menu, banners, flyers, in order to receive additional income. But Dick and Mac refused, citing the fact that McDonald's was created as a family company, advertising within it would be superfluous.
Another interesting proposal was an innovation in the preparation of cocktails. Milkshakes were made from ice cream, which added significantly to the electricity bill. He suggested using instant powders instead of milk and ice cream, which would significantly reduce the cost of raw materials and storage, as well as reduce cooking time. But the brothers also refused, saying that milkshakes without ice cream were not needed.
After regularly turning down offers to change, Kroc successfully met Harry Sonneborn, whom I mentioned above. He offered to engage in the purchase of land plots, their turnover and lease out to franchisees, who, under the terms of the agreement, can rent land plots only from the agent of the franchise company, that is, only from Raymond. Thus, it was possible to achieve several goals at once:
- Get a constant direct stream of income, the money will begin to come even before the foundation is laid.
- Get more capital for expansion, which can later be used to acquire new land.
- Obtaining full control over all franchisees
Sonneborn found investors to carry out these goals.
Company sale
Raymond later forces the McDonalds to sell the company. They offered a price of $2.7 million, which was clearly inflated given the current state of the company, and 1% of the company's profits in perpetuity. And also in the conditions it was said that the brothers would receive a restaurant in San Bernardino as a gift, though under a different name. The contract did not stipulate conditions regarding the percentage of profits in order to avoid financial delays. They agreed on the percentage through a handshake and Krok's promise, which he, of course, did not keep.
There were 228 restaurants across the country, the previous year they earned 75 million, but the net profit of Krok's company was only 77 thousand dollars with debts of five and a half million. There was no required amount to buy a trademark, and banks refused to lend, not considering the network of cheap restaurants seriously.
Accountant Richard Boylan helped to turn this deal. He came up with the idea of inscribing land and buildings that they did not own, but which they rented from landowners and gave to their franchisees, into the "assets" of the company. And in "income" - the projected increase in real estate prices. Thus, McDonald's income, at least on paper, quadrupled in an instant.
Later again, Harry Sonneborn finds creditors. To give the money to the brothers, Ray Kroc's company had to borrow the required amount from the Bristol Group, and in return it was paid 0.5% of the gross receipts of all McDonald's restaurants. According to the calculations, the payments should have ended in 1991, but by 1972 it was possible to fully pay off this loan.
After the deal went through, Raymond bought a building next to the brothers' restaurant, which was already called "Big M". By this time, McDonald's was already a serious brand. Within a few years (1968) McDonald's in San Bernardino drove Big M out of business. Dick and Mack were forced to close it, and sell the unique octagonal building for demolition.
The first university to study hamburgerology was opened by Ray Kroc in 1961 in Illinois. There were 14 people in the very first class, now the number of graduates is 275 thousand worldwide. Students learn company standards and McDonald's restaurant management principles. Today there are 7 such educational institutions in the world, one of which is located in Moscow.
McDonald's is one of the largest real estate owners in the world. Every day, 1% of the world's population eats at McDonald's restaurants.
Kroc died of heart failure in a hospital in San Diego, California on January 14, 1984, at the age of 81. $ 500 million is the amount that Kroc possessed at the time of his death. Ray Kroc's autobiography is published in 1992. In 2016, the film "Founder" is released, which tells about the difficult path to success as the main US restaurateur. He was listed by Time magazine as one of the "100 Most Important People of the Century".
A playful and funny clown, round tables standing on the street, huge red umbrellas above them - this is all the external picture. What will we see inside? Huge, huge queues, and at any time of the day, and it’s not worth talking about weekends ... What is in front of us? Of course, McDonald's cafe.
The beginning of a long story.
The forties of the twentieth century are exactly the time when two brothers started their business by opening a small restaurant, which was absolutely standard, was no different. It was located in San Bernardino (USA, California). The business got off to a good start. The income of 200 thousand a year suited the brothers quite well. But black line crept up unnoticed: there were enough such restaurants in the city, so there were fewer visitors, which also affected incomes. The brothers did not give up, they did not even think that the restaurant should be closed, they decided their own business improve making their restaurant stand out from everyone else. The brothers achieved their goal, and the updated restaurant was presented to customers in December 1948.
What has changed? A self-service system appeared, the menu was reduced, the Kitchen began to produce what the masses needed, as a result of which the prices of hamburgers decreased. This, of course, was very popular with customers. There was not a single restaurant in California that did not have waiters. The client made an order on his own and he himself was looking for a free table. The kitchen was now working at the speed of light, despite the fact that only the most basic remained on the menu: cheeseburgers, hamburgers, french fries, chips, drinks. Now the brothers' income has almost doubled. In addition, the unusual self-service restaurant began to be talked about all over the city. The owners did not think about how to promote their business, everything suited them. To make their business more productive, the brothers experienced all the hardships of cooking on themselves: they climbed on their knees, drew diagrams, and placed staff as efficiently as possible.
in a new way began to make not only food, but also drinks. For example, cocktails were whipped with a mixer. Ray Kroc was the man who collaborated with the McDonald brothers, he just delivered his mixers to the restaurant. Ray Kroc was very inspired by the business of the brothers, he offered them cooperation "Such a business will be promoted all over the world" - Kroc issued a verdict. The McDonald brothers didn't really want to to work themselves, everything suited them, so Krok offered his help, to which he received consent.
1960 - the company of brothers received a new name - McDonald's Corporation. Kroc successfully traded franchises, which were sold separately for each restaurant. Moreover, in order to obtain a franchise to own a second restaurant, it was necessary to prove the quality of the first, for which a special commission was convened. What did the MacDonalds themselves get from this? Finally, percentage. The restaurant owners had to pay 1.9% every month, with 1.4% going to Croc and just 0.5% going to the brothers. At the beginning, Krok's idea Not was especially popular, only eighteen franchises were sold. After all, not everyone trusted fast food. The turning point was the acquisition of the franchise by a well-known journalist, who later became very rich. The rest of the businessmen drew the appropriate conclusions. Krok grew rich, but that was not enough for him. Therefore, in 1961, he buys the company from the brothers. The amount was cosmic - 2.7 billion rubles. They did not give loans to Croc, banks simply did not trust the success of promoting fast food. What exit did Kroc find? Franchises sold at a tremendous rate, so they covered all costs. The restaurant buying the franchise had to pay interest.
And then the real business began. Already in 1965 there were about 700 restaurants in the USA. The cost of hamburgers slowly increased, but there were not enough buyers, because the authority was already playing for itself. In 1966, McDonald's shares were already listed on the stock exchange in New York. In 1967, the first restaurant outside the States opens. Canada was the pioneering country. In 2015, there are over a thousand restaurants in Canada. The Caribbean and the Netherlands later also tried their hand at this race, we note, quite successfully.
1971 - McDonald's makes its own first steps to Europe. The first restaurant opens in Germany. This made a splash on the Europeans, now there are about seven hundred restaurants in Germany.
At the moment, there are 6 countries that have the maximum number of McDonald's restaurants on their territory: Japan, Australia, France, Germany, England, Canada. The profit from these countries is about 80 percent of the total.
Now the opening of a new McDonald's is identified with great for local scale event, which is written about in local newspapers.
The year 1976 is significant for Russia, because it was then that the Soviet Union concluded an agreement on a joint venture. The Russians quickly fell in love with fast food, about forty to fifty thousand visitors a day began to be served daily.
And the restaurant, which opened in the capital of China, simply broke all sales records, which was set in Moscow.
The McDonald's restaurant employs a network of farmers who supply only fresh products from the manufacturer. It is no coincidence that even in the smallest corners of our planet we can see McDonald's restaurants. The countries of the Islamic world did not even refuse such yummy, they only had to adjust the menu: remove pork from the list of products.
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On our websites, we offer things like games and coloring pages that do not require the child to provide any personal information. We collect only limited information about personal data from children under 12 years of age (for example, their email addresses) to respond to their on-line inquiries. For example, we may get a child's email address to send them a screen saver, but we immediately delete the email address from our system. Alternatively, we may obtain the child's email address so that we can enter their details to participate in the prize draw. We may also ask the child to provide the parent's email address so that we can notify or obtain consent. Without the consent of a parent or guardian, we will not collect more detailed information from a child under the age of 12, such as mailing address, telephone number. McDonald's will not require a child to provide more personal information than is reasonably necessary for on-line operation as a condition of the child's online operation. Personal information collected from children is used exclusively by McDonald's and other organizations that provide technical, executive or other services to McDonald's. These organizations may provide services such as improving our site, fulfilling requests, or administering sweepstakes. Information about personal data is not sold or transferred to third parties.
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You are in control of any Personal Information that you have provided to us. At any time, if you wish, you can correct Personal Information or change your preferences for contact from McDonald's or the McDonald's Family, you can notify us by sending notice to the email address below.
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In order to review, delete, change any personal information we have about your child, we ask that you send us such notice
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We may offer links to sites that are not operated by McDonald's. If you visit one of these sites, you should review their privacy and personal information policies. We are not responsible for the policies and practices of other companies, and any information you provide to such companies is subject to their privacy policies.
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All McDonald's Sites operated by the McDonald's Corporation will adhere to this privacy policy. Some Policies may change depending on local laws or circumstances unique to such countries. However, in all cases, the sites operated by McDonald's Corporation will comply with the obligations to our visitors set out in this policy regarding the collection, use and dissemination of personal information.
Franchisee Sites
Remember, we read and argued about? And let's look at the very first institution under this sign in the world.
The very first establishment of the brothers Richard and Maurice McDonald opened in 1940 in the California town of San Bernardino. It was an ordinary cafe for motorists. It brought them about $200,000 a year, but Richard and Maurice were constantly looking for ways to improve it. The very first restaurant was called "McDonald's Famous Barbeque" and offered its visitors about forty types of fried meat.
In the photo above, you can see exactly that original restaurant in its original form.
When, in 1948, the brothers realized that their main income comes from selling hamburgers, a brilliant idea came to their heads. The step was risky, but they nevertheless decided and converted the interior of the restaurant into a conveyor for the production of hamburgers. The menu also changed, now it had several types of hamburgers, orange juice and chips, and a year later the menu was replenished with french fries and, beloved by all of America, Coca-Cola. A modest menu and fast assembly line service brought the price of hamburgers down to 15 cents, much lower than other establishments in the city were offering. The sandwiches sold out with a bang!
They are the first in the world to come up with a completely new concept of fast food based on fast service, low prices and high sales volume. They introduced self-service in the hall and redesigned the kitchen, changing the equipment with the expectation of mass production and faster servings. This drastically reduced the prices of hamburgers, which formed the basis of their assortment.
Word of their success quickly spread, and after an article about their restaurant was published in American Restaurant Magazine in 1952, they received 300 inquiries a month from all over the country. Their first licensee was Neil Fox, and the brothers decided that his car-lover's restaurant in Phonex, Arizona would be the prototype of the chain they wanted to create. The building, clad in red and white tiles, with a sloping roof and golden arches on the sides, became the model for the first "wave" of McDonald's restaurants to appear in the country and a permanent symbol of the industry.
Crawling around their tennis court, the McDonald brothers chalked out an assembly line-style kitchen that was twice the size of their first restaurant's kitchen. By studying the movement of workers during the cooking process, they were able to arrange the equipment in the most efficient way. The rain washed away the chalk, and the brothers had to redo everything anew, improving the design. The success of their San Bernardino business was beyond their dreams, but the potential of the franchising concept they pioneered was far from fully exploited.
For just a thousand dollars, licensees received the name "McDonald's," a basic description of the speedy service system, and could, within one to two weeks, use the services of Art Bender, the brothers' first worker on the counter at the new restaurant, who helped the licensees get started. But in 1954, Ray Kroc, a salesman for the sale of milkshake machines, saw with his own eyes the restaurant of the McDonald brothers. The fast food restaurant industry was ready to take off.
In 1955, the McDonald brothers presented licenses that allowed them to open a chain of fast food restaurants in neighboring cities. The list of cities where it was planned to open branches included Phoenix, Arizona and Downey. One of the very first restaurants is located in Downey today. When it came to opening a chain of restaurants across America, the brothers partnered with Ray Kroc, who sold milkshake machines. McDonald's became a corporation in April 1955. The first restaurant, which was already opened by McDonald's, was called Original McDonald's, it was from it that the history of success and popularity of the world famous network began. Coca-Cola has become a partner of McDonald's, one might say, since its inception.
Exterior of the first store in Des Plaines, Illinois.
Ray Kroc was 52 years old. At this age, many are thinking about retirement. And Kroc founded the company that became the McDonald's we know today. Kroc, who dropped out of school at 15 to work as a Red Cross ambulance driver during World War I, was a dreamer… a salesman who was constantly looking for a finished product to sell. He started out selling paper cups to street vendors in Chicago, dabbled in real estate in Florida, and finally built a good business as the exclusive distributor of the Multimixer cocktail machines. It was the Multimixers that first brought him to the McDonald Brothers hamburger restaurant in San Bernardino, California. After all, if he could figure out how they were able to sell 20,000 cocktails a month, how many more cars could he sell them? But when Kroc showed up at the brothers' restaurant one morning in 1954 and saw a fast-moving line of customers buying whole bags of burgers and fries, he had only one thought: “This system will work everywhere. Everywhere!"
The McDonald brothers did not want to personally control the expansion of their concept's business throughout the country, so Ray Kroc became their exclusive franchise agent. The great salesman has found his final product. On March 2, 1955, Kroc founded a new franchise company called McDonald's System, Inc. On April 15, 1955, his McDonald's opened in Des Plains, Illinois, with the help of Art Bender, who provided patrons with the first McDonald Brothers hamburger and now Ray Kroc's first McDonald's hamburger. After that, Bender opened Croc's first licensed McDonald's restaurant in the California city of Fresno and retired, being the owner of seven restaurants.
Photo taken in 1955, this is Ray Kroc's first restaurant in Des Plaines, Illinois.
Shortly after their new restaurant opened, it became apparent that they hit the mark and that was exactly what the Americans wanted. The name of the restaurant quickly spread among the drivers, and its red-and-white tiled building with a sloping roof and golden arches on the sides began to attract more and more visitors.
But Kroc understood that in order to grow further, he needed to buy out the business from the McDonald brothers in order to remove the contractual restrictions under which he worked. Despite the successful operation of the restaurants, Kroc's net income in 1960 was only $77,000, and long-term debts were $5.7 million. The brothers requested $2.7 million in cash, of which $700,000 went to taxes, leaving each of them with a million. Reasonable pay for the time, the brothers thought, for inventing the fast food industry. In 1961, Kroc managed to get a loan against the company's real estate. Although it ended up costing him $14 million to pay off the loan, he bought the ability to control his growing system.
Team McDonald's in Des Plaines.
That same year, in the basement of a restaurant in Elk Grove Village, Illinois, he opened the University of Hamburgerology, a classroom for new licensees and restaurant directors, which has grown into an international executive training center using advanced teaching methods.
US growth milestones were: turnover, number of restaurants, number of hamburgers sold, and the establishment of standards of quality, culture of service, cleanliness and affordability (CC&D) never before seen in the fast food industry. By 1963 we were selling one million hamburgers a day, the billionth hamburger Ray Kroc sold to Art Linkletter during a television show.
The first national meeting of restaurant licensees was held in Hollywood, Florida in 1965 to commemorate the chain's tenth decade. And in the same year, McDonald's became a joint-stock company, putting its shares on public sale at a price of $ 22.5. Within weeks, stock prices soared to $49 a share.
For Ray Kroc, years without a paycheck paid off. The first shares he sold were worth $3 million, and his remaining shares were worth $32 million. Even June Martino, Kroc's longtime associate and secretary at the Multimixer Company, shared in his success, selling $300,000 worth of stock and leaving an additional 5 million shares. A year later, on July 5, 1966, McDonald's was listed on the New York Stock Exchange, a major achievement for a hamburger restaurant chain. In 1967, the price of a McDonald's hamburger went up from 15 cents to 18 cents, the first increase since the McDonald brothers set the price at 15 cents two decades earlier. And the following year, the thousandth restaurant opened in Des Plains, Illinois, not far from Kroc's first restaurant.
Ray Kroc has kept the McDonald brothers' principles: a limited but high-quality menu, an assembly-line portioning system and fast and friendly service, adding to this the highest standards of cleanliness. The quality of food, accessibility, culture of service and cleanliness to this day remain the main principles of the McDonald's chain of fast food restaurants, which have won success around the world.
By 1970, almost 16,000 McDonald's restaurants in all 50 states and 4 countries outside of the United States had a turnover of $587 million. That same year, a restaurant in Bloomington, Minnesota became the first to reach $1 million in annual sales, and a restaurant in Waikiki, Hawaii became the first restaurant to serve breakfast. The following year, the first McCity opened in Chula Vista, California. McDonald's crossed the billion dollar turnover mark in 1972, and the stock split occurred for the fifth time, bringing 100 shares of the original 1965 block to 1,836 shares.
In 1975, the first McAuto restaurant appeared in Sierra Vista, Arizona. This new service system now accounts for almost half of the turnover of all McDonald's restaurants in the United States. That same year, the company's 3,076 restaurants operating in 20 countries totaled $2.5 billion in turnover. The following year, the 20 billionth hamburger was sold.
The exterior of the first fast food restaurant with its neon arches, 1955
In 1977, Ray Kroc was appointed senior chairman of McDonald's, and Fred Turner, a grill worker at Kroc's first restaurant, was appointed chairman of the board. In the same year, more than 1,000 restaurants exceeded $1 million in turnover, and 11 restaurants crossed the $2 million mark. By the time of the silver anniversary in 1980, 6,263 restaurants in 27 countries were doing $6.2 billion in sales and over 35 billion hamburgers had been sold. On January 14, 1984, Ray Kroc died, fulfilling his McDonald's dreams. In the same year, his company's turnover exceeded $10 billion, 50 billion hamburgers were sold, and there were 8,300 restaurants in 36 countries. A McDonald's restaurant opened every 17 hours in the world and the average restaurant had an annual turnover of $1,264,000. By 1990, trade had risen to $18.7 billion and the number of hamburgers sold had exceeded 80 billion. 11,800 McDonald's restaurants operated in 54 countries around the world.
And in 1990, the management of the company changed for only the third time in its history: Fred Turner became Senior Chairman, passing the baton to Mike Quinlan, appointed chairman and senior executive, who began working at McDonald's part-time in 1963 as a sorting clerk mail.
Fred Turner and Ray Kroc review the project of the future restaurant
It was a testament to its consistent and consistent performance over the years that McDonald's was the only company in the Standard & Poor 500 to report 100 consecutive quarters year on year of growth in revenue, earnings, and earnings per share since 1965. Not surprisingly, Better Investing Magazine named McDonald's the most popular company and its common stock the most common.... And Life magazine named Ray Kroc one of the 100 most important Americans of the 20th century.
Grounds of the first McDonald's restaurant, San Bernardino, California
Ray Kroc's dreams of growing the company in the United States were fully realized, but the story had only just begun. McDonald's is taking over the world. While experts were surprised at the rapid development of the hamburger chain in the United States, our company was preparing another surprise for them in the form of expanding the system outside the United States.
The first restaurant outside the US June 1, 1967, in Canada, and the race began. Today there are over 1,000 restaurants in Canada. When Canada's McDonald's introduced pizza to the menu in 1992, they quickly became the world's largest pizza retailer.
First ever McDrive hosted in Sierra Vista, Arizona
On April 29, 1988, an agreement was signed in Moscow on the establishment of a joint venture between the Canadian company McDonald's Restaurants of Canada Limited and the Main Directorate of Public Catering of the Moscow City Executive Committee - Moscow-McDonald's.
The authorized capital of the future joint venture was 14.952 million rubles.
It was planned that the total number of McDonald's catering establishments in Moscow would be increased to 20.
In 1988, Moscow newspapers reported that the first Moscow McDonald's would hire students and schoolchildren, most of them on a part-time basis. “Given the intensive work, the pay will be high - two to two and a half rubles per hour,” wrote the newspapers of those years.
On May 3, 1989, construction began on the first McDonald's restaurant on Pushkinskaya Square in Moscow, and on January 31, 1990, it was opened.
At dawn on January 31, 1990, over 5,000 people gathered in front of the restaurant, waiting for the opening. On the first day of operation, the McDonald's restaurant on Pushkinskaya Square served more than 30 thousand visitors, setting a world record for the first working day in the history of McDonald's. Previously, the world record belonged to a Budapest restaurant - 9 thousand 100 visitors
The first fast food establishment had 700-900 seats inside the building and another 200 in the summer outdoor area.
In 1990, a hamburger cost 1.5 rubles, and a Big Mac cost 3.75 rubles, while the average salary of a Soviet person was 150 rubles. For comparison: a monthly bus ticket cost 3 rubles.
The second and third restaurants of the chain opened in 1993 on Stary Arbat and Gorky Street (now Tverskaya Street).
The first restaurant outside the capital was opened in St. Petersburg in 1996.
Also in 1996, McDonald's launched Russia's first in-car customer service concept, McAuto, which operates on the principle of multiple windows, which allows you to order and receive products while in your car.
In 1992, McComplex was opened for the production of semi-finished products for a chain of restaurants, producing about 70 million kilograms of products per year.
Today, there are 218 McDonald's restaurants in Russia, which serve more than 600,000 visitors daily.
1971 also saw the opening of the first restaurants in Germany and Australia. Today there are over 600 restaurants in Germany, and about 635 in Australia. In France and England, the first restaurants appeared in the early 1970s, there are currently 625 enterprises in France, and more than 700 in England.
And here is the very oldest McDonald's in Downey, California. The restaurant hasn't changed much since it opened in 1953.
Richard McDonald opens the first roadside McDonald's Bar-B-Que in San Bernardino at 14th and East Streets, where it is still located.
The McDonald brothers decided to renovate their cafe and change the menu, which from now on contains only nine dishes. The main course of the menu was a 15 cent hamburger, with which, for only 5 cents, visitors could get a huge glass of orange juice.
The famous french fries appear at McDonald's and become a bestseller.
Ray Kroc visits McDonald's and becomes partners with Richard and Maurice (also known as Dick and Mac). Soon Ray is already an official franchise agent. He introduces a milkshake to the restaurant menu.
In Des Plaines, Illinois, thanks in large part to Ray Kroc, a second McDonald's opens. On the opening day of the restaurant, its revenue was $366.12. More than 700 McDonald's will open over the next decade.
23 years after the opening of the first restaurant, the 500th McDonald's opens in Toledo, Ohio.
In 1965, McDonald became a formal corporation, selling its shares publicly for $22.50 a share. The initial sale of shares took place on the day of the 10th anniversary of the opening of the network.
1963
Ronald McDonald entered the business, the net profit of the McDonald's network exceeded $ 1 million.
With the opening of the first McDonald's restaurants in Canada and Puerto Rico, McDonald's has become an international chain. This process has continued uninterrupted ever since, eventually McDonald's branches are open today in 118 different countries.
The famous Big Mac appears at McDonald's.
In addition to the lunch menu, McDonald's also has a breakfast menu, which includes sandwiches and an egg called McMuffin. The McMuffin egg was invented by Herb Peterson, a McDonald's manager from Santa Barbara, California.
McDonald's is celebrating its 25th anniversary.
In an effort to cater to health-conscious customers, on May 15, 1987, fresh salads appeared on the McDonald's menu.
Opening of the first McDonald's in the USSR and Russia on Pushkin Square in Moscow. At that time, it was the largest of all restaurants of this chain, which broke the record of the McDonald's chain, serving 30 thousand visitors on the opening day.
McDonald's launches a website, McDonalds.com.
In 2005, McDonald celebrated its 50th anniversary since opening its first restaurant.
McDonald's introduced a snack (snack) to the menu, adding a sandwich to lunch.
In competition with cafes and bistros, McDonald's is launching a line of latte and cappuccino in restaurants - McCafe, which also includes freshly squeezed fruit cocktails and Frappes.
McDonalds Museum in Des Plaines, Illinois
The museum of this king of fast food is located in San Bernardino, here you can see a mini-copy of the corporation's first restaurant with original equipment, which includes Ray Kroc cocktail machines. Very interesting exhibits are the uniforms of employees, which have changed many times over the years of the network. And of course, a lot of old ads, photos and a video library, which can be used to trace the history of the restaurant chain.
sources
http://mcdpopculture.blogspot.com
http://lifeglobe.net
http://kervansaraymarmaris.com
http://www.vmireinteresnogo.com
http://ria.ru
http://makdak2004.narod.ru/item4.html
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