The Delicious Empire of McDonald's │Grinding It Out: The Making of McDonald's │Book review │Part 2

In the last blog- The Delicious Empire of McDonald's │McDonald's: Behind The Arches │ Book review │Part 1, we have seen how McDonald's was established by McDonald's brothers.

In this part, we will see how Ray Kroc changed the face of McDonald's and reached the pinnacle of success.

Around 1950 when the McDonald's was making $100,000 profit, Raymond (Ray) Kroc showed up mysteriously.

Raymon (Ray) Kroc

Ray Kroc's company used to manufacture milkshake machines at that time. McDonald's order 8 milkshake machine form him.

Ray Surprised that what are they going to do with 8 machines (In the mid-'20s, 8 machines' order is considered as huge order).

He took a flight and visited the McDonalds. He was surprised by seeing the cleanliness, hygiene and cooking procedure. He realized that these kinds of franchises will worth billions of dollars.

He decided to purchase McDonald's. He had a futuristic plan to grow the McDonald's but after hearing the amount told by McDonald's brothers, he shocked. McDonald's brother asked for $270,000 dollars. Ray got upset and left the deal incompleted.

Ray was confident that opening McDonald's franchises all over the world will make him billionaire. But he did not have $270,000.

At that time, Harry J. Sonneborn helped him Harry was working for McDonald's as a manger. He was good at handling and creating money.

They both started a company named 'Franchises Reality Corporation'. They started to purchase the key places in the town and cities and give out them on a rental basis.

They got a huge profit in this business and after collecting $270,000, they purchased the McDonald's.

Reality Corporation company was also making a huge profit and gave additional benefit to Ray. If anyone approached Ray to open an outlet of McDonald's then Ray started to give the key places in the city on rent for that franchise.

So, he got a party for both the McDonald's franchise and also for his real estate business. Ray Kroc was now making double money form a single customer.

In 1965, the company went public and entered in the stock market. At that time, McDonald's had more than 1000 outlets. In 1971, the outlet numbers were reached more than in 2000.

In 1984, Raymond Kroc died. At that time, the total outlets were 8000. Today, those 8000 outlets became 35000 outlets across the world.

Both Kroc and McDonald's brother maintained hygiene in their outlets. Even it is said that Ray used to sweep the parking lot if he found it dirty. It is myth that he used to clean the bathroom sink also by using toothbrush.

On the other hand, McDonald's brother was happy with their $ 270,000. They both never run after money but every year they used to purchase new Cadillac without fail.

In 1999, a farmer form France spread a rumor around the world that McDonald's food is unhealthy and dangerous to the body.

To see whether this ts true or not, Morgan Spurlock, a Hollywood director ate only McDonald's food for the next month.

After that, he undergo medical tests and found that he has gain too much weight and cholesterol. His other medicals tests were also confirmed that Mcdonald's food harmed his body seriously.

He made a documentary of that (Link shared below) named 'Super Size Me' which went viral on the internet.

Now, McDonald's changed their menu. They have added some healthy food also. Around 47 million in 120 countries daily eat McDonald's food. Due to that viral documentary 'Super-Sized Me', McDonald's changed its 'Super Size Burger' to 'Happy Meal'.

In 2002, first-ever in McDonald's history, company bore the quarterly lose. McDonald's shut down around 175 outlets within a month.

Though McDonald's Food is not good for health but yet a good example of management. A milkshake manufactured become real estate agent first and then become the owner of the world's largest growing food chain.

This is all about McDonald's. Summery of the book 'Grinding It Out: The Making of McDonald's' written by Ray Kroc. Click the lick below to purchase the book.