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In the 1940s, brothers Dick and Mac MacDonald owned a small restaurant for motorists. If earlier the barbecue menu consisted of 25 dishes, now there are only 9 left.
Customers put something from the list for themselves from the counter: hamburger, cheeseburger, chips, pies, three kinds of soft drinks, milk and coffee. This allowed the cutter to bring the already low price of hamburgers down from 30 cents to 15 cents.
In December 1948, the new McDonald brothers' restaurant opened. True, it took some time for its promotion. But after a few years it turned out that the spirit of the post-war period was definitely captured. A small hamburger factory made an annual profit of 350 thousand dollars. An innovative approach was able to double the number of visitors. During peak hours, the small hamburger counter was crowded with up to 150 visitors.
American Restaurant Magazine wrote about the successful trading method in 1952. As a result, the brothers began to receive up to 10 requests a day asking for a secret. The first licensee was Neil Fox, who ran a restaurant for motorists in Arizona. The brothers decided that this establishment would be the first experience in creating a whole network. With a sloping roof and tiled red and white tiles, with golden arches in front of the entrance, it was a classic example for the first wave of McDonald's restaurants.
To start the process in a new location, Dick and Mac crawled around the tennis court, chalk out the kitchen structure. Even the movement of employees when preparing dishes was studied, this made it possible to place the equipment most efficiently. The chalk was washed away by the rain, the brothers had to paint again, improving the design. The restaurant proved to be very successful, and the McDonald brothers became the pioneers of franchising.
For a thousand dollars, they offered their licensees the brand name McDonald's, a conceptual description of the fast food system. Art Bender, who was the brothers' first employee in their restaurant, went to the restaurant for a couple of weeks. This employee helped the licensees get the job done. In 1954, the new system came under the attention of ordinary traveling salesman Ray Kroc. Tom was already 52 years old. The pension seemed to be around the corner.
However, Croc was able to found the company, which is known today as McDonald's. He was a rather unusual person. He dropped out of school at 15 and went to World War I. Croc was a dreamer who was constantly looking for new products to sell. He started with paper cups in Chicago, then there was real estate in Florida, and he ended up at McDonald's in San Bernardino as an exclusive distributor of cocktail machines.
Kroc wondered how the brothers managed to sell as many as 20 thousand servings of cocktail every month. Having appeared in this establishment in the morning and saw how quickly the line of buyers of burgers and potatoes was moving, the traveling salesman realized that such a system would work everywhere.
The McDonald brothers themselves did not want to engage in global control over the expansion of the licensing business across the country, trusting Ray Kroc. On March 2, 1955, he founded a new franchise company, McDonald's System, Inc.. Already on April 15, 1955, the McDonald's restaurant appeared in Dez Plens, Illinois. There the first hamburger was presented by Art Bender, only this time the product belonged to Ray Kroc.
Bender retired, being the owner of as many as seven establishments. Croc managed to keep the basic principles of the brothers' structure - a limited menu, quality food, production with an assembly line, fast service. In addition to this, standards of purity have been added. The knowledge of the traveling salesman in franchising helped Croc to create the whole system.
By agreement with the MacDonald brothers, they received up to $ 950 from Croc for each new restaurant and a small portion of the turnover. The company began buying or renting properties from its restaurants, which provided a competitive advantage. Kroc tried to make licensees constantly increase their turnover. After all, their failure left its mark on the company. Thanks to his ability to negotiate, Kroc persuaded suppliers, managers, creditors. He was so absorbed in his mission that until 1961 he worked for free at all.
By early 1957, 14 McDonald's restaurants had sold 50 million hamburgers for a turnover of $ 1.2 million. And after 4 years, there were already 228 such establishments that sold 400 million hamburgers worth $ 37.6 million. Kroc understood that for further development he needed to buy out the business from the MacDonald brothers. After all, the net profit of Krok's company was only 77 thousand dollars a year, with debts of 5.7 million.
The brothers requested $ 2.7 million, of which $ 700,000 would have gone as taxes. That was the price for inventing the fast food industry. Kroc took out a loan secured by the real estate of his company, the repayment of the loan eventually cost him $ 14 million. But now the growing system was in the hands of one master.
Growth in the United States has been driven by turnover, an extensive restaurant chain, hamburger stocks and high quality standards. In 1963, on a live television show, Ray Kroc sold the billionth hamburger. In 1965, a national meeting of licensees was held in Florida to mark the company's 10th anniversary. In the same year, McDonald's became a public company, entering the market with shares at $ 22.5. In just a few weeks, these securities have doubled their value.
Ray Kroc's work without a paycheck has paid off. He immediately became a multimillionaire. And in 1966, the company was listed on the New York Stock Exchange, an important step for hamburger restaurants. In 1967, the first price increase took place - the main course increased in price from 15 to 18 cents. But in 1968, the thousandth restaurant opened in Des Plaines, not far from Croc's first establishment.
By 1970, there were already 1,600 restaurants in 50 states and 4 countries. The trade turnover reached $ 587 million. A couple of years later, the billionth mark for this indicator was exceeded. In 1975, the first McAuto restaurant opened, turning over $ 2.5 billion in more than 3,000 companies. At the same time, the company also sold the $ 20 billion hamburger. In 1977, Ray Kroc became senior chairman of the company and Fred Turner became chairman of the board. He used to work on the grill at Croc's first establishment.
In 1980, the company owned 6263 restaurants in 27 countries around the world. They sold over 35 billion hamburgers and generated a turnover of 6.2 billion. On January 14, 1984, Ray Kroc died, having managed to do everything planned with his company. By 1990, the turnover reached 18.7 billion, and there were already 11,800 establishments in 54 countries.
The history of McDonald's development in other countries has not been so smooth. There were also unsuccessful starts in Holland and the Caribbean. Managers tried to adapt the menu to local realities until they realized a simple thing - what works well in the United States will work everywhere. A strong partner who was prepared for business became an important part of the success. Japan is a prime example.
In 1971, Den Fujita became a partner of McDonald's there. The first establishment appeared in 1971 on a tiny area of 50 square meters in the heart of Tokyo. It took only 39 hours to erect it instead of the traditional 3 months. On its first day of operation, the restaurant sold $ 3,000 worth of merchandise, and at the end of 1993 McDonald's became the most successful restaurant chain in the country with 2300 outlets.
In the same 1971, restaurants opened in Germany and Australia, in France and England, McDonald's appeared in the early 1970s. More than 600 restaurants of the American brand have been opened in each of these countries. It is Canada, Japan, France, Germany, England and Australia that are known as the big six McDonald's, providing 80% of all profits outside the United States. The appearance of a retail outlet in Russia caused a real boom. The establishment of 2200 square meters was visited by more than 30 thousand people on the very first day, which became a real record. But negotiations on the opening of such a restaurant have been going on since 1976.
The opening of McDonald's in Beijing in April 1992 set a new record - 40,000 visitors per day. The restaurant chain has become popular in Eastern Europe, and they opened in the Middle East. There food is prepared in accordance with Islamic laws. In addition, there are no posters depicting the clown Ronald in Saudi Arabia, since Islam prohibits the image of idols. And in 1995 the first kosher McDonald's appeared in Jerusalem.
So the increase in the number of establishments around the world confirmed the correctness of Ray Kroc, who understood the universality of the service formula. Today the net profit of the trading network is more than $ 5 billion a year, and about 700 thousand people work at McDonald's.