In the 1940s, two brothers, Dick and Mac McDonald opened a small restaurant of a standard type in San Bernardino (CA). Brothers received a steady income from the restaurant of about 200,000 dollars a year. Soon, however, the situation changed for the worse: there were many restaurants of such kind, and brothers’ revenue began to decline. To stay afloat, it was necessary to make changes, and the brothers decided to completely change the look of the restaurant.
They switched to self-service on the counter, giving up the menu for the barbecue of 25 meals in favor of a limited menu of just nine items: hamburger, cheeseburger, three kinds of soft drinks, milk, coffee, potato chips and pies, which shortly after the resumption of the restaurant was added by french fries and milkshakes. They redesigned the kitchen, where all the equipment was made of stainless steel and designed for mass production and speed. Furthermore, they greatly reduced the competitive for hamburger from 30 cents to 15.
When a new restaurant of McDonald brothers was reopened in December 1948, it took some time to make it popular. But it soon became obvious that they grasped the spirit of post-war America. By the mid-fifties, their small factory for the production of hamburgers was bringing an annual income of 350,000 dollars. The sales volume compared with their previous restaurant has almost doubled. At peak times it was common to see a crowd of about 150 visitors at a tiny desk.
Rumors about their success spread quickly, and after publishing articles about their restaurant in American Restaurant Magazine in 1952 they received 300 requests a month from all over the country. In 1954, a salesman of machines for making milk shakes, Ray Kroc, saw restaurant of McDonald brothers. Kroc founded the company, which became a kind of McDonald’s we know today.
Ray Kroc became an exclusive franchising agent of McDonald brothers. He founded a new franchising company called McDonald’s Systems, Inc. At the end of 1956, the turnover of 14 restaurants was $1.2 million; nearly 50 million hamburgers were sold.
Kroc understood that for the further growth he needed to buy business from McDonald brothers to remove contractual restrictions. Brothers have requested $2.7 million in cash. By 1970, the turnover of nearly 16,000 restaurants located in all 50 states and 4 countries outside the US totaled $587 million. McDonald’s was opening in the world every 17 hours. By 1990, there were 11,800 McDonald’s restaurants working in 54 countries around the world.
The growth of McDonald’s in the country and abroad proved the correctness of Ray Kroc, who at the beginning of the founding of McDonald’s thought that this restaurant would work everywhere.
In the 1940s, two brothers, Dick and Mac McDonald opened a small restaurant of a standard type in San Bernardino (CA). Brothers received a steady income from the restaurant of about 200,000 dollars a year. Soon, however, the situation changed for the worse: there were many restaurants of such kind, and brothers’ revenue began to decline.