Ray Kroc is a salesman who sells milkshake mixing machines in different restaurants. His company name is Prince Castle. Kroc does a lot of hard work to sell out the machine, but no one was interested in buying his machine. He calls up his secretary and from another side, she told to Ray that we have got 6 orders of milkshake mixing machines. Kroc was shocked and can’t believe her secretary’s words.
Ray talks to that client who has given the order of 6 machines. Moreover, the client says that we want 8 machines, not 6. Ray gets very happy after listening to this news. One day Ray Kroc visited the client’s restaurant and the client’s restaurant name is McDonald’s Hamburgers. There were a lot of people standing in line.
Initial Phase of McDonald’s
This story is from 1954. At that time people did not stand in line. They would place their order and the waitress would deliver the food up to their car. The concept was going to McDonald’s was totally different. Ray had never seen this concept before. Now Ray also joins the line and gives the order of one burger and one cock. In a very few minutes, he got his order. By seeing this method, he won’t believe that how fast he gets his order.
Kroc is eating his burger sitting on the bench and then suddenly the cleaning guy asks Ray did he like the burger. Ray Kroc reply that I haven’t eaten such a good burger in my whole life. He shows his card to the McDonald’s Hamburgers owner (Mc) and says that you have ordered 8 milkshake mixing machines. Ray Kroc asks Mc how did this venture run. Mc gives a company tour to Ray. Mc says to Ray that speed is the most important element we are considering now.
Business Plan of Dick McDonald’s
For this, first of all, they grill McDonald’s hamburgers. For grilling the items there are 2 cooks. Till then another guy keeps the bun ready. Ray asks Mc where did you get all these items. Mc says we don’t purchase these items. We cook these items themselves. There are different staff for each job and in the end, all the ingredients are mixed up and your burger is ready in just 30 seconds.
Mc reveals that he made it all together with his brother Dick McDonald. This overall concept and idea are of Dick. He is very practical and knowledgeable in this field. Ray is very happy with that both brothers’ work. Mac tells Ray that he and Dick have always wanted to work in the movie business. For a while, they both have done the job of truck drivers. After that, we both open our movie theatre.
Why Dick McDonald’s Plan Break Down?
One day it came that the London Stock Exchange crashed badly. At that time, no one was making money in Glendora leaving just one guy. The guy had a stand of hot dogs and soft drinks. From that particular point of view, we both decided to open our new stand. The brilliant idea came into the mind of Dick McDonald’s. The idea was to shift the stand to (SAN BERNARDINO). Due to a flyover on the road, the stand couldn’t shift from one place to another. The idea totally flopped. Dick gives another idea that we have to relocate the stand into two different parts. This idea was successfully implemented.
Dick says that there was a big problem in this business model. Many teenagers are involved in this business whose services are not too good at the point. Dick noticed one thing we got more orders of hamburgers, soft drinks as well as French fries. After that dick started focusing on that product only. Moreover, we detach some waitresses and started giving orders from the window.
All the food products were given to the consumers in the form of disposal. One problem they have faced in this business model is that many people were blowing the vehicle horn while sitting in it. They all don’t have an idea that they have to come up to the window for the order placing and after that, they would collect their order from that window only.
Who Takes the Franchise of McDonald’s?
Ray goes back to his home but he can’t sleep. He thinks only of McDonald’s. The next morning Ray goes back to Mc brother’s and made an offer of Mc Donald’s franchise in front of them. Ray sees a photo of the newly designed McDonald’s restaurant in Mac Office. Dick gave the idea of that restaurant. Ray asks have you ever made it. Furthermore, Ray went to watch that restaurant. Ray really got impressed by that architect.
Ray goes to his wife and told all the detailed facts about McDonald’s to her. His wife says that he has to focus on milkshake mixing machines. Ray says that he won’t get settled too early. Kroc tries again to sell the mixer but no one buys it. Ray Kroc is tired of working as a salesman and he decides that he will now work with the Mac brothers. He goes to the Mc brothers and told them that he would like to work with them. Mc brothers discussed this proposal with each other and they both agreed on the proposal. Ray got signed on their proposal contract.
After that Ray approaches many peoples for the franchise purpose they all the people reject his proposal. Hence Ray himself takes the franchise of McDonald’s and takes a loan from a bank by mortgaging his house. This is the do and die situation for Ray. If this venture was not successful, he has to lose his house.
3 Franchises of McDonald’s
Then the work of opening the franchise starts but there are many problems in the middle. There are some things that Mc Brothers don’t like and there are some things that Ray doesn’t like. But the restaurant gets ready and starts running well. Ray takes full care of his restaurant. He likes the work of a servant there very much. Then after the restaurant is closed, Ray cleans the area of the restaurant.
The next day Ray and his wife were doing dinner with their friends. His friend’s business is going well. When Ray talked about his restaurant to his friend they all make jokes about him. One day Mc brothers got the news that Ray had opened 3 new McDonald’s franchises. Dick thinks that have they done anything wrong by telling all the business strategies to Ray.
The friends to whom Ray had sold the Mac franchise were not able to maintain the standard of the restaurant. And those people were also selling their items in it. The restaurant was also completely dirty and burgers were not being prepared properly. Ray comes back to his home and tells his wife that he has canceled all his memberships where his friends go. His wife doesn’t happy with this because she says that they are our best friends. You can’t do like this with them.
The next day one guy visits Ray’s office for selling a Bible. Ray offers a McDonald’s franchise to that guy. The guy agrees with Ray’s offers. Ray tells his wife that I need such people. His aim was to create Mc Donald’s family. Many people take a franchise of this and also take care of quality control.
Bank’s Last Warning to Ray
Ray was very happy about this. After a few days, Ray goes to the restaurant for dinner and he loves to eat there. The restaurant owner already knows Ray and says to him that I also liked your work. The owner of the restaurant says to Ray that I also build one franchise of McDonald’s. Moreover, Ray’s attention goes to one girl who was playing piano over there. After that, the restaurant owner introduces that girl in front of Ray. The owner says that she is my wife.
When Ray comes back home, his wife says that some people are interested in your business model. She thinks that her value was down day by day. Ray’s secretary says you are running into a lot of debt. Ray’s wife gets very angry about mortgaging the house. After that Ray goes to meet with the restaurant owner and asks for some money for help, but unfortunately, the owner says that I do have not too much money. The owner’s wife says to Ray I have a brilliant idea that how you and all your Mc Donald’s franchise earn up to 100 dollars.
The idea of the owner’s wife was milkshake powder. We can use the powder for the preparation of milkshakes. Due to this, they could save more electricity. Ray says to Dick that I have gotten a solution to our problem. Dick says that without milk there is no possibility of making a milkshake. Ray is now completely in debt and the bank has also given him the last warning.
Wrestle Between Ray and Mc Brother’s
When Ray leaves the bank, he finds a man who tells Ray I can help you. Rays show all the transaction records and contract to that guy. The guy told to Ray that you don’t have any cash revenue. After some time, McDonald’s becomes famous all over the country. Dick says to Ray in an angry tone Why did you write McDonald’s Corporation on your letterhead. Mc takes over the phone from Dick and says to Ray that this is not your company. This company was established by us. We have invented 30 seconds order delivery system.
Ray says that when I first comes to Mc Donald’s I came up with an amazing idea that how we can grow in the future together. But you want to stay only in your old position. But I wanted to win and create a different future. There is no place in business for people like you. Mc says that you get out of this business. Ray says how will you do this. Mac says that we will file a case against you. Ray says yes okay do it but you guys will not be able to afford me. You only run a burger business locally but I play on a national level.
Who Owns McDonald’s Firm?
After a while Mc’s blood pressure gets high and he faints. The next day Ray goes to the hospital to meet Mac. He gives a blank cheque to Mac and goes from the hospital. After some time, Dick calls Ray and made an offer of 2.7 million, as well as they both, want a 1% profit share in the company. Ray got angry after listening to Dick’s wording.
Then Dick, Mc, Ray, and his lawyer have a meeting. Ray’s lawyer on Jha says that Ray accepts all his conditions except one condition. 1% profit of the company. Ray says that I have already done the deal with my investor and will not agree to the deal. But you will continue to get a royalty. Dick and Mac agree to this. And they sell McDonald’s to Ray.
No one has and will never reach McDonald’s level. There is one thing that makes McDonald’s special and that is its brand name. Ray speaks, that there is nothing in the world that can replace your stubbornness.
The Success Story of Ray Kroc makes the biggest impact on people’s life.