1902–1984
Known as “fast food’s founding father,” milkshake machine salesman Ray Kroc saw the franchise potential in a family-owned hamburger bar called McDonald’s, transforming it into a global brand.
Raymond Albert Kroc worked in various jobs before becoming a salesman for the Multimixer, a blender that could mix five milkshakes simultaneously. In 1954, Kroc visited a hamburger bar in San Bernardino, California, run by Maurice and Richard McDonald, which used eight of his Multimixers. He was immediately struck by its assembly line system, which enabled super-quick delivery of beverages, hamburgers, and fries to customers.
Spotting a business opportunity, Kroc offered the McDonalds a deal: he would set up a chain of McDonald’s and pay the brothers a fee. Kroc began selling single-restaurant franchises so that owners would be running their own McDonald’s hamburger bar. Kroc’s vision was to establish uniformity across every outlet. To do this, he set up a training program in which franchisees were taught how to run a McDonald’s to the required standards of “Quality, Service, Cleanliness, and Value.” These operational principles, along with the provision of familiar food and concentration of restaurants in suburban areas, attracted a new market: families. By 1961, Kroc had set up over 200 McDonald’s outlets across the US, and by the time he died in 1984, there were 7,500 globally.
MILESTONES
STARTS FRANCHISING
Founds McDonald’s System, Inc., in 1955. Buys out McDonald brothers for $7.6 million in 1961.
CATERS TO DRIVERS
Opens first drive-through format in Arizona in 1975; they come to account for 70 percent of revenue.
BUSINESS CHIEF
Makes himself senior chairman of McDonald’s to oversee his business with complete authority in 1977.
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