Ray Krok is a person thanks to whom 29 thousand fast-food restaurants are operating in the world, serving more than 45 million people a day. But he met the MacDonald brothers at the age of 52, having an impressive list of diseases and problems. The development history of McDonald's is simultaneously the development history of Ray Crock, who managed to earn $ 600 million at a very respectable age! This man managed to not only get rich quickly and fabulously, but also significantly change the lifestyle of many people in the world.
Beginning of the journey - McDonald's brothers
The MacDonald Brothers are the founders of the famous restaurant chain. It was with their help that the McDonalds story began. The first fast food establishment they opened in 1940. In the cafe of that time, traditionally served 25 dishes. The brothers greatly simplified the menu, leaving it with hamburgers and cheeseburgers, french fries, pies, chips, coffee and milkshakes. All this was prepared and served very quickly at McDonald's restaurants. The history of the creation of the famous brand also began with the transition to self-service of visitors, alteration of the kitchen and lowering food prices.
By the way, in those days, girls could not work in such establishments, since the brothers believed that they would distract male staff from work. MacDonalds were able to capture the desires of people in the difficult post-war period. Their business was doing well. The brothers were very active in promoting the McDonald's restaurant. The history of the logo began its path from the mid-50s, it was then that the icon of the arch of red-yellow color, known to everyone, appeared. But the institution still did not have enough scope. It was then that Ray Croc appeared - the man who changed the fast food restaurant forever.
Thanks to whom did McDonald's develop?
Ray Croc is not the inventor of fast food or anything else. The only thing he knew how to do perfectly in his life was to trade. For 17 long years, he sold paper cups to a well-known company, and then set up 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 in search of work, he began to travel around the country and once he heard interesting news.
A small restaurant ordered as many as ten of its ice cream machines. When asked about what was going on there, his friend answered: âPeople make money.â Krok, without a moment's hesitation, got behind the wheel and drove to sunny California. McDonald's, whose history began back in 1940, was waiting for a big change.
Franchise in San Bernardino
Caught in the small town of San Bernardino, Ray hastened to see the coveted cafe. McDonaldâs turned out to be a small roadside establishment with a high-speed service system and disposable tableware. Ray saw there iron kitchen racks and a very small menu consisting of nine items. But most of all he was surprised by prices that were half the price of competitors. The MacDonald brothers, who were, unfortunately, real mattresses, were in charge of all the affairs here. The income that they had was quite suitable for them, and they did not want to achieve great success. If Croc had not appeared in their lives, the story of McDonald's would have simply stopped. The brothers were not looking for investors, and those sponsors that appeared on their way themselves, discouraged from investing large amounts 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 ruined Ray Krok took matters into his own hands and offered the brothers a new scheme of interaction.
McDonaldâs History: Croc franchise sales
Krok invited the owners of the institution to sell franchises throughout the country with his help. The price for 20 years was $ 950. Moreover, each cafe should pay a percentage of the profit that was shared between the MacDonald brothers and the enterprising Krok. The percentage was given by the new owners for using the logo, brand and fast food system invented by the brothers.
In those days when there was a significant acquaintance of Krok and MacDonalds, franchises were already sold by all the famous fast-food restaurant chains. It was believed that this was an easy way to make good money. Many people who sold franchises were not interested in the further development of the brand and did not monitor compliance with all contract terms. They only worried about getting money. Krok wanted the McDonald's brand history to take a different path. He wanted the restaurant to generate a steady income without dishonoring the brand across America.
He refused to sell franchises to large territories, trading the right to open only one restaurant. If the owner of the establishment showed that he can 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 must have met standard McDonalds standards.
True, such conditions were not pleasing to buyers. Wealthy investors wanted to acquire a license for the whole state, and people with less opportunities were not happy with the fact that the franchise was only valid for 20 years under the strict control of Krok. In the first year of his new business, Ray sold just 18 franchises. Moreover, half of the restaurateurs did whatever they liked, selling even pizza and hot dogs in the cafe. Ray Crock dreamed of something completely different. An unexpected incident helped him - a meeting with Sanford Agate.
McDonald's: Sanford Agate Success Story
The 46-year-old journalist Agate saved up an amount equal to 25 thousand dollars, and wanted to create his own business. Krok sold him a franchise to open a restaurant in the city of Vokegan. Agate paid a construction fee, bought equipment, and his money ran out.
In May 1955, a small restaurant opened and had an unexpected resounding success. Every day his income was about a thousand dollars. The person who leased the land was outraged. He had no idea that a small institution in a small town would bring the owner an income equal to 30 thousand per month. He himself received for rent only one thousand. Soon, Agate bought a luxurious house and began to live for pleasure. This success inspired many people who had small savings, but a great passion for work and wealth. People began to line up for Crock, hoping to repeat Sanford's success. The McDonalds story has moved forward. Krok was not selling new business to people; he was giving them success! The restaurant paid off in about six months, starting to bring excellent profits. For this, people were ready to carry out all the instructions and requirements of Ray, as he wanted. His dreams began to come true.
Redemption of rights from the founding brothers
The history of McDonald's took a new path, when in 1961 its founders agreed to sell a well-known brand to Croca and the right to manage it independently without their participation. The letter "M", considered the mark 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 huge revenue, Ray's percentage was negligible. In addition, the amount of debt already exceeded $ 5 million. Krok urgently needed a big 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 the enterprise. Then Sonneborn came up with the idea of ââcombining the restaurant business and the real estate market. The company's goal was to obtain ownership of all the restaurant buildings and the land on which they stood. And it was very difficult!
Land and building acquisition
The McDonald's story would not have been so radiant if not for Harry Sonneborn. He made a huge contribution to the development of the network. Having found an experienced accountant, Harry creates on the paper the appearance of a very successful company. This was necessary so that banks agreed to give a good loan. Having told creditors that the main business of the company was not fast food, but the sale of real estate, in 1961 Krok was able to take a loan of $ 2.7 million. Finally, the brothers got their compensation and completely retired. The history of the McDonald's has moved further without its founders.
University of Hamburger
In the 70s, the fast food chain became extremely popular. Krok's income is growing day by day. The famous Forbes publication published a note stating that his fortune is $ 340 million. But the former salesman did not think to stop! Despite his rather advanced age, he does not cease to work and improve.
In 1961, he opened a laboratory called the University of the Hamburger. Here there was a study of all the parameters for the preparation of potatoes, rolls and cutlets. The "University" is working now, however, the top managers of the company are trained in it. In the 60s, the famous clown named Ronald came to replace Speedy. The story of McDonaldâs currently means nothing without this character, beloved by all children in many countries of the world. The kids go to the restaurant on weekends, wanting to see this fun guy!
In 1984, Ray Crock died. Today, a huge corporation is managed 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 try the same cheeseburgers as the Americans. The owners of the network attributed the refusals to sell the franchise to the volatility of the Russian economy and politics. The history of McDonaldâs 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 was opened in Russia, located on Pushkin Square. The success of the institution was amazing - on the first day of work, a line of 30 thousand people lined up in front of the doors! This has not happened in the history of the network. Now many of these restaurants are scattered throughout our country, and the management plans to open many more establishments.
Interesting facts about the company
The history of McDonaldâs was briefly reviewed by us in this article, and now you can take the time to interesting and unusual facts about this corporation:
- As mentioned above, women were forbidden to work in fast food restaurants. Feminists fiercely fought for their rights and in the 1970s won the right to work at McDonald's. True, their form was no different from men's. In addition, they were forbidden to use makeup and wear jewelry and jewelry during the work shift.
- The system for attracting children is very active, because all the kids want to take a closer look at the clown Ronald and get a toy from the Happy Mil lunch.
- Coming to a restaurant of this network, always say what portion of the product you want to receive. By default, the largest portion of potatoes or soda water will break through. This saves time and adds money to the pocket of the owner.
- Fast food restaurants have repeatedly been subjected to terrorist attacks. In the entire history of the network, 13 such crimes were committed in India, Greece, France and other countries of the world.
- Food companies are often criticized due to calorie content and harmfulness. Morgan Sperlock made a documentary called Double Serving. It tells how fast and tasty food leads to obesity and the development of many diseases of the internal organs.
- The largest restaurant of the corporation in Europe is located in Russia on Pushkin Square (this is the very first restaurant in our country, opened in 1990).
- The management of the company does everything so that the profit grows, people were satisfied and did not go to competitors. Recently, free Wi-Fi has been provided in all establishments. Having unlimited access to the Internet, people stay longer in cafes and, as a rule, order food for a larger amount than originally assumed.
- The corporation cooperates with such large companies as Hummer and Disney. Their cooperation is to jointly advertise each other.
- Ray Croc, before meeting the founding brothers, was engaged in the sale of plastic cups, had his own small company selling mixers, and also played the piano. He was married three times. In 1974, Crock acquired the baseball team.
- Ray called one of the employees his son. The young man came to work as a waiter and was so devoted to work that Ray simply could not miss him. After the death of Croc, it was Fred Turner who will lead the largest corporation.
Raymond Crock fulfilled his dream and became a millionaire, initially holding only $ 950 in cash. To achieve the final goal he needed: a passion for victory, a sharp mind and insight, as well as a little providence. He has become a great example for many people who are reaching their goal. Corporation products are now loved and chosen by millions of people around the world, because it meets all quality standards! But the taste of big mac has not changed since its first preparation.