The Founder: McDonald's story

By Karen - 09 September 2021

When Ray Kroc, the founder of McDonald's, was a salesman of milkshake mixers, he used "chicken and egg and chicken" as an example to illustrate whether production efficiency should be improved before production and sales should be increased; or the increase in customer demand forced production capacity While improving, the 52-year-old found McDonald's. This street burger restaurant has a steady stream of people in line, and the service is extremely efficient (you have just ordered the meal, and the prepared meal will appear in your hands). At that time, the American catering industry did not have the concept of Takeaway. This way of packing takeaway made him surprised and creative. When he visited the McDonald's production line and ate with the two McDonald's brothers to learn about their entrepreneurial history, he was deeply attracted and excited. This is a good restaurant he has not encountered in the catering industry for so many years. In this way, Ray joined McDonald's and became a franchisee.


The biggest difference between the two brothers Ray and McDonald's is his goal and philosophy. For the two McDonald’s brothers, they only hope to have a restaurant of their own that can be liked by customers and can be profitable, and they are satisfied. But for Ray, he wants more than that. He wants to drive it from a small place to a big city, throughout the United States, and then all over the world. For him, this is "Do for your country." This goal and philosophy determines the differences they will have when dealing with various issues. Regarding quality control, Ray believes that he should find people who have similar values as his own as franchisees, but the two brothers are afraid of quality problems and set up as few shops as possible. When encountering specific problems, Ray always thinks about how to solve these problems, and the two brothers always refuse all kinds of attempts and changes because of the fear that the brand will be affected.


Ray is really a courageous person. When he identified McDonald's, he pledged his only real estate and made a desperate move. When his store expanded to the thirteenth store, and cash flow problems, he met his nobleman, a financial consultant, and the financial consultant gave him the advice of establishing a real estate company, choosing a location to buy land, and then renting the land to franchise. This not only solves the cash flow problem, but also strengthens the control of franchisees, and also controls the two McDonald’s brothers. Ray did what he said and founded McDonald’s Corporation in 1955. So from then on, McDonald’s has also become a real estate company.


In the end, due to the discord in business philosophy, the two brothers Ray and McDonald's parted ways. It can be said that Ray eventually bought the McDonald's brand, and the two brothers each received $1.35 million as compensation. In Ray’s words, what he wanted was the name “McDonald’s”, just like the logo he loved the McDonald’s golden arches. He felt that they were unique and had a beautiful symbolic meaning.


I am very impressed after watching this movie. Ray's positive enthusiasm and love for this cause are unforgettable. Although from a certain angle, his ambition and greed make people see the intrigue of the business world, but it is also the most real business society. .


It just so happens that my current job usually comes into contact with many entrepreneurs in the catering industry. Watching this movie also made me think about many related issues, such as how to build a brand, franchise mode, quality control, and how to save costs and provide healthy food. Balance between.


"Nothing in the world can take the place of Persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent." This passage in the movie impressed me the most. Although this is not Ray Kroc original. When he was a milkshake mixer salesman, he motivated himself with these words. When he successfully became the founder of McDonald's and gave a speech in a public place, he still said this passage. This sentence is the essence of this movie. The success of McDonald's proves how important it is to persistence and determination. Not only entrepreneurship, no matter what you do, persistence and decisions made are the most important things. I have always admired people who can have the spirit of self-discipline, no matter what they do is big or small, because in my eyes, self-discipline and persistence are the definition of success.