Dick and Mac wanted to wholeheartedly please their costumers. The provided quick service and good food. After their failed attempt to franchise, they decided to stick to one location. Their goal was to have a family friendly fast food resturant and to improve their product and service in the one location. In compare to Ray Kroc, he had a vision to open multiple locations, a worldwide franchise business. Ray Kroc wanted to open fast service restaurants all around the country.
Ray Kroc was an intelligent man and I believe the McDonalds brothers trusted he could be successful in the franchising business. Although, the brothers were correct and business was growing quickly, Dick and Mac saw the inconsistency that Ray Kroc was providing the customers. I believe that selling the company to Ray Kroc was a good investment for the brothers. They had an opportunity to expand and create revenue with the different locations. Ray Kroc had a vision that the brothers could not see and eventually it caused Ray Kroc to proceed with the company’s growth and when he bought land to sell to franchisees, he bought the company from the McDonalds brothers. Although the brothers could have been a part of the growth, they settled for $2.7 million. I personally do not think that was a good deal, but as a growing franchise businessman, it was the best that could have been done.
The local store franchisees provide a quick and friendly service with a wide selection of goods. McDonalds is a favorite for its quick service, the convenience of a utensil free meal and a take out option was something to top.
As Ray Kroc grew the McDonalds business, he was promised to receive 1.9 percent of the gross sales. He later realized that it was not enough to cover his expenses. Not until he met Harry Sonnenborne, a man who showed him to sell real estate. The difference that franchises and local stores profit is that they receive a percentage of the company’s sells and how successful it becomes. As to real estate agents they buy land and sell it to make a profit on the properties values price.
My view on McDonalds is 50/50. As an entrepreneur, Ray Kroc succeeded on the goal to expand, create, promote, improve and satisfy. McDonalds has became a America trademark, it is a restaurant that we all has had and will probably continue to enjoy. For me McDonalds was a place I just had to go to after school, it was the reward snack for when I passed my classes. In today’s day, it has not held its value as Dick and Ray would had hoped it would. Their goal was to provide quality control, Ray Kroc’s goal was to grow, expand locations and services.