[Nick R]

Grinding Out Success: How Kroc Made McDonald’s A Golden Triumph


“We provide food that customers love, day after day after day,” said Kroc. “People just want more of it.”

In unjustified simplicity, Kroc attempted to describe what made his business the global empire it is today. Indeed, it was not as simple as just providing tasty hamburgers and fries. Kroc was an ambitious entrepreneur who embarked on a strategic plan of expansion that would cover nearly every continent. Kroc not only created an immensely successful company, he also built a global brand and revolutionized the American cultural landscape. How did he do it?

He Had Focus: Of one of his very first franchisees, Kroc said, “Sometimes Ed MacLuckie would have forgotten to turn the sign on when dusk began to fall, and that made me furious. Or maybe the lot would have some litter on it that Ed said he hadn't had time to pick up. Those little things didn't seem to bother some people, but they were gross affronts to me. I'd get screaming mad.” Kroc demonstrated the success that comes from applying sophisticated business practices to even the most banal of practices.

He Built An A-Team: Kroc knew that many of the jobs he was hiring for were not the most glamorous. Indeed, it would be easy for a McDonald’s janitor to become disgruntled. But, from the janitors to the franchisees, Kroc did his best to ensure that he created an environment that encouraged innovation, equality and openness.

He Took Risks: “Creativity is a highfalutin word for the work I have to do between now and Tuesday,” said Kroc. When Kroc entered the fast food industry, he did so at a time when it was fashionable to either dine out or eat in. But, Kroc sensed that Americans wanted a change. From concept design to implementation, everything about Kroc’s goal was risky. Unafraid, Kroc charged full-speed ahead, gambling and, as a result winning big.

He Recovered From Failure: To look back on Kroc’s legacy it seems difficult to imagine a time when Kroc had to struggle to achieve his dreams. At the pace with which Golden Arches sprung up around the world, the success of McDonald’s almost seems as if it was inevitable. But, like many of his peers, Kroc indeed had a hard time getting his business idea off the ground. He accepted his losses and defeats but bounced back to win bigger than he could ever imagine.

He Marketed Wisely: From focusing on the local context of his restaurants to fostering an image of a fun and friendly atmosphere with the likes of Ronald McDonald, Kroc proved to be a marketing genius. Through making community contributions, Kroc also established a corporate tradition of creating a positive presence in society.

“The quality of a leader is reflected in the standards they set for themselves,” Kroc once said. By setting the highest of standards for himself and ceaselessly pursuing his dreams, Kroc would go down in history as one of the world’s most successful entrepreneurs.

[Aletheides]

I remember reading a long time ago that Ray Kroc said he wasn't in the restaurant business, but in the real estate business.

Contrary to popular belief he made most of his money from franchising, not from sales of the actual restuarant. A new McDonalds opens somewhere in the world every 8 hours.

Good stuff, even though Mcdonalds is evil

[harrymcwealth]

Aletheides -- when McDonald's originally began the concept of franchising it was completely new. There were no franchise laws. So McDonald's had to tie in their franchising agreements with real estate law, to get franchisees to follow their strict rules. For example, if a franchisee would violate their contract, since McDonald's owned the land underneath, they would simply evict them. Of course that is now not the case.

[strategy]

Originally Posted by Aletheides

I remember reading a long time ago that Ray Kroc said he wasn't in the restaurant business, but in the real estate business.

Contrary to popular belief he made most of his money from franchising, not from sales of the actual restuarant. A new McDonalds opens somewhere in the world every 8 hours.

Good stuff, even though Mcdonalds is evil

Ray Kroc originally told that to a few university students he was lecturing. Robert Kiyosaki later wrote about it in his book 'Rich dad, Poor dad' and then it was written all over the web in internet articles and a big discussion erupted. He's also got great marketing skills. Franchising McDonalds = Genius.

[freedom.project]

If you walk into McDonald's Corporate Office you see on the wall:

"We are in the Real Estate Business"

Just a thought

[gregdavidson]

Whoever thought up of Mcdonald's logo and theme should take a huge chunk of the credit. Without that, Mcdonalds probably wouldnt' be the fast food chain it is today. Anybody disagree?

[dondasz]

Ray Croc was actually a seller of Milk Shake Machines... I do not believe he was involved with real estate prior to McDonalds.

He convinced the McDonalds brothers to franchise their restaurant then he purchased the company from them for about $1M.

[dondasz]

Originally Posted by gregdavidson

Whoever thought up of Mcdonald's logo and theme should take a huge chunk of the credit. Without that, Mcdonalds probably wouldnt' be the fast food chain it is today. Anybody disagree?

The orignal Ronald McDonald was actually created by a local McDonalds Franchisee. He deserves credit for that...

[dondasz]

Originally Posted by dondasz

The orignal Ronald McDonald was actually created by a local McDonalds Franchisee. He deserves credit for that...

The ORIGINAL RONALD MCDONALD



How Much Does a McDonald's Franchise Cost?

[nolimits2wealth]

Don't quote me but I did hear somewhere that macca's is one of if not the biggest real estate owners in the world,for obvious reasons.

[ron komorowski]

I do like Ray Krock and the story, I respect all entrepreneur's efforts but this brings to mind one of my very favorites, Dave Thomas the founder of Wendy's.

Legend has it Dave quit school around 6th grade to help his parents on the their farm. He simply thought one day, "I think people would like fresh vegetables on their burgers" Today they still have the freshest veggies and Dave built his burger empire on that notion.

I like how he put his face next to his burger and his daughter's name as the company. I am sort of following his lead. He looks like a jolly kind of guy that cared.

When Dave was asked what is your single best advice for business he said, "Just be nice to people" This shows me how just a simple caring philosophy and not too much knowledge is needed sometimes; and there is just no stopping a venture if it is right in the heart through the owner and to the consumer.

Please tell me if my recalled info is not correct in any way.

Ron
Inventor of Handi-Straps

[warrensway]

Ray kroc revolutionized what we know today as Mcdonaldsization or any IZATION for that matter whether it be Walmart... Starbucks... or the like. He created a concept, one that could be duplicated. It would have seemed so obvious, but obviously he perfected it. I think we can all take some notes from this very great man when we look into our own ideas and companies.

[optiwizer]

a great lesson in management

[lupe123]

He used a twist in the real estate business. but his persistence is what I like the most about him.

[ryanhami]

Did you know 46 million macdonalds are sold everyday! No wonder they are one of the biggest companies in the world