At one of the most recognizable restaurants in the world called Mcdonalds story creation long remained unknown. Over time, the veil of secrecy opened, and McDonald's history will be briefly described in this article. Today I would like to tell you how it all began, to dwell on significant dates for the company and unusual facts.
In the global financial market, restaurant chain shares are valued very highly. Despite the fact that McDonald’s history knows both ups and downs, their value has steadily increased over the past 10 years. After all, if Russians look into fast food restaurants only occasionally, then, for example, in America, many people do not cook at home at all. Instead, people prefer to look at McDonald`s and buy a pair of hamburgers they have loved since childhood.
Any individual can earn on McDonald's shares, enough sign up on the website of the robot for trading on the exchange.
And if there is demand, there will be a steady income. The profitability of McDonald's shares is higher than the industry average, and their growth potential exceeds 25%. So that on the securities of the famous company you can earn good money.
Background: how it all began
But it's time to go to the story about the company McDonald's, the story of which began in the 30-s of the XX century. At this time, the first fast-food eateries appeared in the USA. They belonged to the famous White Castle network. The hamburgers that were on the restaurant menu were truly exotic.
Two guys from the town of Saint Bernardino became interested in the idea. These were the MacDonald brothers - Richard and Maurice. When the story of McDonald's is briefly described in articles, they are more often called Dick and Mac. MacDonalds worked as decorators in Hollywood for several years, saved money and decided to start a business. They bought a small cinema, but the idea was not justified.
Four years later, the brothers sold the cinema and opened a restaurant for motorists. The institution was located at the crossroads of two streets of Hollywood and was called “Porosyachka parking”. There were only pork sandwiches in the menu, but people were bribed by the opportunity to make an order and get food without leaving the car.
Opening of the first McDonald's restaurant
The brothers didn’t stop at the discovery of a small fast food point. They decided to close a small restaurant in Hollywood to open a new one in San Bernardino, and to focus all their efforts on it. In 1940, McDonald’s history continued with the founding of the first restaurant of the San Bernardino chain. The design was an octagonal building. Through the large windows, people could see the process of cooking. For that time it was unusual, and this format attracted the attention of customers.
The McDonalds brothers decided to optimize their new restaurant as much as possible. To serve guests even faster, the menu has been reduced to a minimum. It was estimated that 87% restaurant profits bring the entire 3 position to the menu, hamburger, french fries and coca cola. Instead of 25 positions, only nine items were left in it. It was food and drinks that were particularly popular: hamburgers, cheeseburgers, french fries, chips, crispy cakes, coffee, milkshakes and Coca-Cola adored by Americans. Pizza, fish dishes and fried ribs were ruthlessly removed from the menu.
Thanks to such a simple menu, MacDonald’s managed to reduce the number of employees in the kitchen whose work was expensive. Instead of metal dishes appeared paper. Later, the self-service system was introduced, the need for waiters disappeared. As the bandwidth increased dramatically, the price of branded hamburgers was reduced by half and began to be 15 cents.
Despite the fact that the McDonald brothers' restaurant was relatively small and could not compete with the developed chains of other restaurants, by 1945 the flow of visitors increased several times. The attendance of the institution has grown to 300 people a day. The location helped, the place was very popular, the number of people was large. The annual turnover of the institution began to reach 200 dollars: at that time it was a solid amount.
Interestingly, the first schemes of the internal space of their restaurant, the McDonalds brothers, were drawing with chalk on a tennis court. Then they called the workers, and forced them to run around the whole space, imitating the work, in order to understand how comfortable it would be to work in the improvised kitchen.
Simultaneously, Dick and Mack were engaged in the improvement of the technological process. Restaurant kitchen has received a new stainless steel equipment. It was placed in such a way that each employee performed simple and well-defined functions. Thanks to competently adjusted work, food was given away as quickly as possible. The restaurant was very popular with local residents, but the story of the creation of McDonalds does not end there.
The McDonald Brothers Restaurant continued to gain popularity. Over time, people were able to buy food without leaving the car. For the brothers, the Drive-in format also proved to be profitable; it was inexpensive to maintain such a restaurant.
The renewed restaurant, opened in 1948, was a huge success. The queue to the counter with hamburgers at peak hours reached 100 people. Two years later, the brothers were able to double the profit. Richard and Maurice became wealthy and respected people. They began to be invited to lunches, dinners and other events with the participation of local nobility.
Dick and Mac have a huge house, one of the most luxurious in San Bernardino. The cost of the 25-room mansion was $ 90. The brothers' names became known throughout California. The fast food restaurant's annual turnover has gradually reached $ 000 per year. The MacDonald's even admitted that they were getting bored with their work. The business was well-established and functioning perfectly, the brothers received a stable income.
Franchising in those days was just beginning to develop, McDonalds decided to make money in this direction. They invented the architecture of new restaurants, a single style. The idea of golden arches, on the building of the restaurant belonged to the brothers. In the future, the famous golden arches became one of the most successful commercial symbols in the world.
The brothers tried to sell franchises for their restaurant, but the new restaurants were not as successful. Franchise owners changed the menu in their restaurants, disrupted the technological process, and often did not even maintain cleanliness in the kitchen and outside the restaurant. Of course, this state of affairs did not suit the perfectionists Dick and Mac, so they stopped developing this direction.
Ray Kroc and his role in the history of the company
A brief history of McDonald's, which is rather difficult to describe, would be impossible without one person. His name was Ray Kroc, and it was with his appearance that the famous network began to develop.
Raymond Kroc and McDonald's fate brought in 1954 year. At that time, the traveling salesman, already an elderly man, was selling cocktail mixers. Once he received a large order for his mixers and became interested in his customers.
Ray arrived in the town of San Bernardino, visited a restaurant and met his brothers. To his surprise, the famous establishment turned out to be a small roadside cafe. The small menu and disposable dishes seemed to him an unusual decision and were very impressed. But most of all, Kroc was struck by prices: they were twice as low as those of competitors. After meeting with the owners of this place, brothers Dick and Mack, the merchant mixers Ray got the idea to create a network of these restaurants throughout America. At that moment, this idea seemed fantastic. Ray had no big money, only his perseverance and determination!
Ray Kroc has ensured that the brothers gave him the right to sell franchises. New restaurant owners had to pay 950 dollars for a license, as well as 1,9% of the turnover of each institution. Of these funds, MacDonald only got 0,5%. The remaining 1,5% mixer vendor took himself. It may seem that the terms of cooperation were rather modest. But Ray immediately appreciated the prospects of the project and was confident in the success
Later, these 1,5% and McDonald Brothers' rigid framework will be constraining factors for business development. The enterprising Ray Kroc will look for a way out of this situation.
For information: Today, the franchise of the famous MacDonalds network costs a million dollars.
Officially, the McDonald's story began in 1955. At this time, Ray Kroc registered a company that was named McDonald`s System Inc. Five years later, it was decided to rename it, and the company became known as McDonald`s Corporation.
The franchise network began to expand rapidly. After 4 years, it already included 228 restaurants. They were talked about all over America. Businessmen, attracted by the success of the company, increasingly turned to Kroc with a request to sell the franchise.
Creating a food empire
McDonald's story continues in 1961. At this time, Ray Kroc decided to buy out the rights to the brand from the brothers and become the sole owner. The McDonald brothers called the price at 2,7 million dollars and 1% of the company's profits monthly. In order to manage the amount of 2,7 million, an enterprising enthusiast had to take a large loan, the maintenance of which cost 14 million. And the condition in 1% of the profit was concluded not on paper, but by a handshake.
Kroka was frustrated only by the fact that the cost of the transaction did not include the original establishment in San Bernardino. Dreaming of getting it, Ray opened another restaurant nearby and gradually forced MacDonald’s out of business.
Shortly after these events, Maurice MacDonald died. As for Richard, he could not forgive the former partner of such a betrayal. Richard was outraged by the fact that Krok, who was an employee, in all historical references began to announce the founder of the company.
Despite the contradictions between McDonald’s partners, the story of creation still knows Ray Kroc more. It was he who began to build a fast food empire, and the decision to buy the brand turned out to be momentous. In the middle of 60-s, hundreds of fast-food restaurants were in the corporate asset.
By the way, in the absence of the opportunity to prove that in the transaction for the transfer of rights to the brand, there was a condition in 1% of the profits, the McDonald brothers never received their fee. To date, this amount would be 100 million dollars annually.
Kroc has developed and implemented a technology that allows replicating restaurants with a single level of service. Hamburgers, which were sold in the United States, were no different from their counterparts in any other country in the world.
In 1967, McDonald`s’s business reached the limits of the States and began to conquer foreign markets. Restaurants franchise network appeared in Puerto Rico and Canada, and after 4, the Europeans tried the products of McDonalds.
Ray Kroc died in 1984 year. By that time, the former mixer seller was 81 a year old, and his fortune was estimated at 500 million dollars.
Interesting Facts About McDonalds
About how seriously Kroc approached the case, they say a lot of facts. This amazing person not only improved culinary technologies and developed business. He developed a whole customer service ideology. Subsequently, it was referred to as the “KKCh and DK system” - culture, quality, purity and accessibility.
Such a philosophy has easily taken root in countries with different national and culinary traditions. On its basis, detailed instructions were issued for restaurant staff. The 750 pages dealt in detail with the situations that employees face. Special attention in the book was paid to the analysis of official powers, the intricacies of cooking, corporate culture and, of course, customer relations.
Interest is the views of Krok on gender relations. According to a talented merchant, they cannot be inside a corporation. Therefore, at the start of the development of the network, only men took on waiters' vacancies. The management believed that customers too often flirt with waitress girls, and this slows down the workflow.
In addition, McDonald’s restaurants planned to be family-run. After all, adults with children leave large amounts of money in restaurants, and what should they take from teenagers? Therefore, the playgrounds were equipped for the little ones, and the cheerful clown Ronald MacDonald was supposed to welcome the little guests.
The empire remained asexual until American feminists intervened. The company was accused of sexism, and Croc had to yield. The girls began to be recruited, but the principle of "asexuality" was not affected by this. In McDonalds entered a special uniform. Both male and female staff had to wear shirts, trousers and caps with long visors. It was almost impossible to remain sexually attractive in such conditions.
"Calling appearance" of employees of the company fell under a strict ban. The girls could not come to work with her hair, long or painted nails, wear jewelry, use bright cosmetics and perfumes with a strong smell. The guilty received warnings. If they recruited four - the employee turned out to be behind the gate.
The company paid great attention to the development of consumer demand. Visitors were regularly offered new dishes, and Krok took an active part in the development of recipes. True, they did not bring much success to the corporation. But the real culinary hit McDonald `s was the" Big Mac "- an invention of Jim Delligatti.
This man has never been a professional cook. During the war, he served in the American army, and after it ended, he began to travel around the country, working as a snack bar. Over time, Jim managed to save money, buy a McDonalds franchise and open a restaurant in Pittsburgh.
Delligatti did not doubt that many visitors prefer big sandwiches. That's what he created: a juicy two-story sandwich with branded sauce. Enthusiast Jim for several years promoted his idea to the management of the company, was refused, but perseverance won out.
Thus, the most popular sandwich, which began to sell in the state of Pennsylvania, gradually conquered the whole world. After “Big Mac” appeared in the menu of all restaurants in the country in 1968, the company's turnover grew by 12%.
Over time, this tasty, but not very healthy product))) began to be used by The Economist magazine. The staff of the magazine introduced into circulation such a concept as “Big Mac index"- a comparative indicator of the cost of living in different countries.
There is another interesting fact that can shock supporters of healthy eating. Jim's family said that he loved his sandwiches very much and ate at least one or two Big Macs a day. However, the creator of the “Big Mac” lived for 98 years!
A real triumph of the corporation was the opening of the first McDonald's in the USSR, which took place in 1990. People were so eager to try outlandish overseas food that they were ready to stand in lines for hours. So, only on the first day of work, the restaurant gave drink and fed more than 30 guests.
Expansion of a manufacturing corporation
By 1965, the company was represented in almost all states of the country. 731 operated a business for the benefit of consumers, and more than a hundred new restaurants were opened every year.
The McDonalds story continues with the departure of Ray Kroc from his post. The head of the corporation entrusted the high post to his student. Frederick Turner, who came to the team as a waiter and rose to such a position, was his favorite and his right hand. Sometimes Krok even called Fred a son.
In 1967, Turner took over as executive president. The following year, he was president, and in 1977, he became chairman of McDonald`s corporation.
Fred immediately set strict standards for the restaurants of the chain. For example, it was forbidden to fry more 24 cutlets on one grill at the same time. Refined and consumption rates of products. So, for making 10 cutlets, you had to take exactly 1 a pound of beef. The thickness of the french fries should have been 7,1 mm.
Particular attention was paid to the development projects of new restaurants. Golden arches from the roofs disappeared, instead of colored tiles they began to use bricks. Sloping roofs replaced by more modern counterparts - mansard. The premises of institutions became much more spacious.
The merit of Fred Turner was the opening of McAuto restaurants, which took place in 1975 year. Customers had the opportunity to receive orders within 50 seconds, and they could not even get out of the car.
In such institutions there were three windows. The first was intended to accept the order, the second - to pay for the purchase. In the third window packages with food were given out. As a result, people were serviced as quickly as possible, and the management was able to solve the problem of lack of parking spaces.
During Turner's reign, new facilities were constantly being commissioned. Only in 1974 year opened 515 catering points. The total number of network enterprises reached several thousand. Thanks to Turner, McDonald’s restaurants have appeared in more than 100 countries around the world.
About the improvement of the menu, Fred also did not forget. He had an amazing sense of sense and understood what the consumer needed. Thus, during the management of the company, Turner introduced a sandwich with cod into the menu of Filet-o-Fish.
The history of the appearance of this sandwich is also not quite normal. He came up with an entrepreneur from Ohio, who was faced with a sharp decline in profits in his restaurant. The reason turned out quickly: the institution was located in the Catholic quarter, and Catholics do not eat meat on Fridays. When the fish sandwich appeared on the menu, financial matters were getting better.
To increase sales, Frederick Turner introduced fried chicken to the menu. This happened in 1983, when the demand for beef fell slightly. To attract young visitors came up with "Happy Mil" with a toy, and "McMuffin with an egg" became the leader among delicious and hearty breakfasts.
Of course, financial problems have not bypassed even such a successful company. In the 60-ies, she suffered a real crisis. The outlets opened one after another, but many of them stopped paying off. Perhaps this was due to an unsuccessful location. Often, catering points opened in small provincial towns. The income level of the local population was low, and people did not want to spend money on going to restaurants.
1984 was a sad year for the corporation. Ray Kroc, the man who actually created the empire, passed away. By that time, its scale had become enormous: 8 establishments operating in 000 countries of the world. Until his death, Croc traveled around his possessions in the most remote corners of the country, making sure that McDonald's service standards were strictly observed.
McDonald's successes abroad
The global expansion of the corporation began in 1967, with the opening of a restaurant in Canada. This was followed by presentations in Latin America (by the way, fast food is most loved here), in Japan and other Asian countries, in Australia, Africa, Europe, and later in the USSR.
Few people know that negotiations on the opening of the first restaurant in Moscow were conducted during 14 years. As before, and now this institution is the largest in Europe.
Despite the fact that the range is uniform and is approved at the company's headquarters, the menu in different countries is developed taking into account national peculiarities. So, in Italian restaurants pizza is served to visitors. In the institutions of India do not prepare sandwiches with beef, and in Muslim countries - with pork.
Since McDonalds is guided by a strategy to support its manufacturers, all products for restaurants are purchased locally. The only exceptions are sauces brought from the USA.
McDonald's today is thousands of successfully operating enterprises around the world. The total number of the chain's establishments exceeds 37 restaurants, and the geography covers more than a hundred countries. In total, the McDonald's service sector employs about 000 million people. The annual profit of each establishment averages $ 2 million. Even more impressive is the net profit of the corporation - more than $ 1,5 billion.
Market share is mainly supported by franchising: 80% of chain restaurants operate according to the franchise scheme. The profit from it comes in the form of royalties - a percentage of the income that the direct owner receives. This money is transferred for marketing and brand use.
Most of the company's revenue brings the European market. In the total revenue structure, Europe’s share is about 40%. The second most important is the US market, which accounts for about 32% of revenue. Finally, 23% of corporate profits is provided by the Asia-Pacific region.
The headquarters of the corporation is located in Chicago. Its management periodically collects and approves plans for adjustments. For example, when Americans sounded the alarm about the nation's obesity, network experts prepared product lines with a minimum amount of calories. In addition, an expensive marketing company was developed that encouraged citizens to play sports and limit themselves to food.
Even the Williams sisters took part in McDonald’s promotions. Famous tennis players released a movie that urged Americans to lean on fruits and nuts instead of buns and donuts.
The company never stays away from social problems. She takes an active part in charity events, helps to improve people's lives. We can say that Ray Kroc's biggest dream - to create a company that cares about consumers - has come true, and such a company is McDonald's.
Significant dates in McDonald’s history
Acquisition of the company from the McDonald brothers. The buyer was Ray Kroc, the cost of the transaction amounted to 2,7 million dollars.
In the US, 700 McDonald's restaurants operate.
McDonald`s shares are beginning to enjoy increased demand on the New York Stock Exchange.
Opening a restaurant in Canada and entering the corporation on the world market.
By this time, catering points have opened in Japan, Australia, UK, Germany, France. Restaurants open in these parts of the world are beginning to bring up to 80% profit.
January of this year was marked by the opening of McDonald's in Moscow. The total number of visitors on the first day exceeded 30.
The restaurant of a famous chain opens in Tel Aviv (Israel). In accordance with the laws and religious characteristics of this country, the composition of popular fast food is being revised.
The total number of restaurants operating in 108 countries reaches 11 establishments.
This time the record was set by Russia. The restaurant, opened in Moscow, topped the attendance rating among 30 food outlets. Experts estimate that 000 million people eat there a year.
McDonald's capitalization reached $ 64,2 billion. By the beginning of the year, the network consisted of 33 establishments opened in 000 countries.
The market value of the corporation has reached 136,93 billion. At the same time most of the shares of McDonalds is in free float.