Almost thirty thousand McDonald's restaurants around the world, which daily serve more than forty-five million visitors, owe their astounding success to Ray Crock. This entrepreneurial man at the age of fifty-two years decided to completely change his life, relying on the founding brothers who did not at all dream of a large-scale business project. And today the whole world is simply inconceivable without this global network of restaurants, which was able to change the lifestyle of many people.
Pick your recipe
The founders of the restaurant chain of the same name - the McDonalds brothers - started their business in 1940. Having opened their first institution, they significantly changed the menu traditional for that time. Of the usual 25 dishes, only French fries, hamburgers, chips, pies, coffee and milkshakes remained. The main idea was to increase sales through quick cooking and service. In addition, self-service, modernization of the kitchen area and a significant reduction in prices were introduced.
It is interesting that in those years only men worked in the McDonald's brothers’establishments, since the girls were perceived by the owners exclusively as a source of work distracting the workforce. The McDonald's restaurant began to flourish very quickly due to the fact that the founders very accurately determined the desires of people in the war and post-war time. And the world-famous logo of the restaurant chain appeared in the mid-50s of the last century.
Ray Crock and McDonald's
Sales manager Ray Crock spent seventeen years selling paper cups from a well-known company. Then he decided to start his own business, reprofiling for the sale of ice cream production units. In a new endeavor, he could not stand the intense competition and burned out. Just at the time when he was traveling around the country in search of the realization of his businessman’s potential, he came up with interesting information that one small restaurant ordered ten units for ice cream at once. This moment became decisive in his stunning career.
Having learned the address of this institution, Ray Crock, without a second thought, went to California in his own car. Now the McDonald's was waiting for global change.
Franchise sales
The McDonald's Roadside Cafe in little San Bernardino immediately surprised Ray with its disposable tableware, metal kitchen racks, a modest menu, very low prices and a fast service system. After the first conversation with the MacDonald brothers, an experienced “salesman” immediately realized that the owners of a unique establishment did not want to seriously expand and generally conduct business without attracting investors. They sold their deductible demanded by the market for a waste of two and a half thousand dollars, not at all interested in the further fate of these restaurants and not demanding a percentage of profit.
Quickly realizing how to get the business on track, Ray agreed with the MacDonald brothers on a new franchise sales system. Now the relationship scheme was built on a different basis. The franchise was sold for twenty years for $ 950, with a percentage of profits for using the brand, logo and the quick service system, which was shared between the founding brothers and Krok, was also provided.
Despite the established system of franchise circulation at that time, which provided for only a one-time receipt of money for their sale, Krok convinced the MacDonalds that it was possible to secure a steady income and the distribution of the network throughout the country. Moreover, he did not seek to trade franchises on the terms of their implementation in large territories, but made a deal only with the owners of restaurants who proved by their activity that they could trust their brand with a reputation.
Ray Kroc took a very responsible attitude towards the implementation of a large-scale project and carefully monitored the quality of purchased products by restaurants included in the McDonald's network. He understood that large investors did not like buying a license for individual establishments, rather than for a state, for example, while entrepreneurs with limited finances were not satisfied with the twenty-year validity of the franchise instead of indefinite conditions. Therefore, he gained patience and was satisfied with the modest result of the debut year in eighteen franchises sold.
Sanford Agatha and Ransom of McDonald's Founding Brothers
The success story of the McDonald's restaurant chain owes a happy occasion when Krok sold another franchise to journalist Agatha, who had saved a certain amount and wished to start a small business. A newly born businessman decided to open a restaurant in the city of Vokegan, for which he bought a franchise, equipment and paid for the construction. And in May 1955, this small restaurant opened and, to the surprise of many people, immediately began to enjoy the enormous popularity of the local population. Deafening success was associated with a monthly profit of the institution, equal to thirty thousand dollars, which was not at all characteristic of this type of activity. Soon, Agate became the owner of a luxurious mansion and began to live in a big way.
This story quickly flew over almost the whole country and inspired many enterprising people with small savings to take the tried and tested path. Since that time, Croc no longer had a shortage of customers. The scheme worked like a clock and guaranteed franchise owners a payback in six months. Now the conditions for fulfilling the strict standards of the McDonald's network have been met strictly by all owners of establishments.
In 1961, the founding brothers of the McDonalds agreed to persuade Krok to sell him his well-known brand and the right to solely manage the franchise. The M logo was valued at $ 2.7 million, for which Ray needed a serious loan to buy. Safely resolve this situation helped the financier of the restaurant chain Harry Sonneborn, who after a series of setbacks guessed to get ownership of all the restaurant land and buildings.
Harry was able to "draw" on a paper for creditors such a chic business plan in which he convinced them to invest not in fast food, but in real estate. After receiving the necessary amount, Krok quickly settled with the MacDonalds and set about developing his own business.