What makes Ray Kroc and the Mcdonald brothers different from each other?
Ray Kroc starts out as a persistent yet unsuccessful milkshake machine salesman out of Illinois. Until he runs into the brothers who request 8 of his machines be delivered to their restaurant, he seems to be down on his luck. The Mcdonald brothers had at least 10-15 years of experience running their own business before they met the infamous Kroc. Through trial and error, they eventually manage to get their burger business off the ground and it becomes a hotspot in San Bernardino, California.
While each of them faced their own adversities starting out, Dick is a creative to his core. He introduced the Speedee service system which helped shape the way we think of fast food today. With the help of his brother Mac, they were able to perfect this system; an addition to what made them so popular. Impressed by the high-quality food and exceptionally quick service Ray asks the brothers out to dinner. He wanted to learn the genius behind the Mcdonald’s brand.
Kroc wanted to be a part of what the brothers already had, and he saw a golden opportunity. He suggests that their brand is franchisable. He didn’t contribute any creative ideas or implement his own blueprint for their system but came along as one of their first expansion partners. When Ray and the brothers go into business together is where you can immediately see the personalities of the trio clash. An example of this is displayed early on, when Ray suggests a brand deal with Coca-Cola on the cups. Dick says it’s not Mcdonalds, and he doesn’t like the idea of an Ad on their product. Ray didn’t get the answer he wanted and hangs up the phone in Richard’s face. He does this several times throughout the movie, and one of the brothers even state he is a hothead. The McDonalds’ I feel, slowly started to realize that possibly this is someone they shouldn’t have trusted.
Do you think the Mcdonalds brothers did the right thing by selling out? Did Ray Kroc give them a good deal?
I believe the brothers did a very generous thing by offering to go into business with Kroc, but they got way more than they bargained for in conclusion. Mac wanted to make his brother’s dream come true and in a way it did but ultimately, they lost their name and brand. I wouldn’t say the brothers did the right thing by selling out. They got 2.3 million for their idea and company name but lost out on at least 100 million in royalties because their handshake deal wasn’t honored, and it was never in writing. Ray Kroc is the Don King of burgers; he completely undermined the entire operation. The Big M; the Mcdonalds brothers’ new restaurant was only able to stay open for one year before being torn down in ’72. Ray Kroc intentionally set up a franchise right down the street for them to ensure their demise. They got a terrible deal.
How did the local store franchisees make their money?
The local stores only made money from actual sales. If nobody was flipping burgers nobody was making money. Overhead costs were deducted from total revenue and rent was to be paid for the land the store stood on.
How did Ray Kroc make money? How was that different from the local franchisees?
Kroc met a man named Harry Sonneborn, who suggested he should stop selling burgers and start selling real estate. Kroc started to buy the plots of land the franchises were to be built on. He would then lease the land to the new store owners; and charge the stores rent, or a percentage of sales which ever was greater. He basically pulled off a cosmic double dipping scheme. It was different, because he was now as Harry suggested not only selling burgers but land also.
Did this movie change your view of Mcdonalds?
When the movie ended, I felt sympathy for the brothers. I felt as is Ray Kroc did them extremely wrong, but I don’t think I can take back the amount if times I’ve ate there in my life. To make this assignment more fun, I ordered Mcdonalds for lunch off uber eats and watched the movie. I wouldn’t say it exactly changed my view. One thing I can say is if Kroc hadn’t stepped in Mcdonalds might have become another small-town staple, or a hole in the wall burger spot you visited on vacation in California. It’s messed up how Mcdonald’s got so big, but Kroc came in with a global vision while the brothers were happy with being local superstars.