What makes Ray Kroc and the brothers different from each other?

Ray Kroc and The Brothers had a different vision regarding Mcdonald’s. The Brothers first did not want to franchise Mcdonald’s and had a limited menu. The Brothers wanted to focus on the food, like burgers and drinks. On the other hand, Ray Kroc wanted to focus more on the business side and grow the business. Ray kept trying to get rid of the contract and buy the company.

Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?

Ray Kroc first started selling milkshake machines to Mcdonald’s. After, he offered to franchise the store, even though the brothers were first against it. Initially, the brothers agreed on getting 1.9% of the franchisees’ profit. However, Kroc did not pay them. In 1955, Ray Kroc opened 18 franchisees and bought the company for $2.7 million. I don’t think the brothers did the right thing by selling the company because they could’ve gotten more money, and Ray Kroc didn’t pay them for the percentage of the sale.

How did the local store franchisees make money?

Ray Kroc trained all of his employees to make high-quality, fast burgers. He was also open-minded to new ideas from other franchisees. For example, filet-o-fish, Big Mac, and Egg McMuffin were created by other franchisees. Also, the stores were independent.

How did Kroc make money? How was that different than the franchisees, running the local stores?

After opening a few franchisees, Kroc then opened a real estate company. The company would buy the land franchisees could rent to run McDonald’s restaurants. After making a lot of money, he purchased Mcdonlds for 2.7 million dollars from the brothers.

Does this film change your view of McDonald’s?

The movie did not change my view on Mcdonald’s; however, I was shocked at how Ray Kroc accomplished being that successful. He went from selling Milkshake machines to owning Mcdonald’s, worth 183.7 billion dollars. Kroc had clever ideas about expanding the company and making it thrive today. Even though I think he was a little unfair to the brothers, Kroc was smart and knew what he was doing.

Ray Kroc and the brother had a great relationship up until the end. Kroc felt the original McDonald’s stores franchised by the brothers were poorly run. He saw an opportunity to spread the business, and the brothers declined. He also saw the company’s future; unfortunately, the brothers were too short-sighted. Kroc also used different advertising methods at various levels to create a famous brand name and used his many years of experience in sales to his advantage.

When Ray Kroc arrived at Mcdonald’s in San Bernardino, he was truly impressed from the beginning. Kroc fueded the brothers for control and bought the business and name rights for $2.7 million, which was a lot of money at the time. I think it was a good deal because I also believe that business is business and that you need to see the long-term value in your business, and Kroc thought of all of that. 

The local franchises’ primary focus was making money, so they focused on marketing their ideas to increase customer volume, which worked.

Harry Sonneborn advised Ray to get into the real estate business. Kroc takes the advice of Harry Sonneborn and pivots into buying the real estate he leases back to the franchise to make money. He had to make that shift to grow the business and his investment to reach his goals.

As a kid, I loved McDonald’s even though I rarely had it because my parents didn’t allow us to since they knew how unhealthy it was. As I grew older, I eventually stopped eating it because I focused more on healthy eating choices. However, the film did inspire me to think like an entrepreneur like Ray Kroc. He took risks as a true entrepreneur, applied his skills, experience, and gifts of salesmanship, and made McDonald’s the world’s largest restaurant chain it is today.

1. What makes Ray Kroc and the brothers different from each other?
   Ray Kroc is someone who is more concerned with profit and expansion, whereas the brothers are more concerned with the integrity and consistency of their product.  Both Ray Kroc and the brothers value efficiency, however, they value efficiency in contrasting ways.  Ray Kroc views efficiency in a more money-centered way; his aim is to lower expenses in any way possible while still having a product that is passable.  This is seen when he pushes to replace their milkshakes with vanilla and chocolate powder packets in order to cut down on electricity costs.  For the McDonald’s brothers, they view efficiency in a more well-rounded way and would never compromise their original intent, values, or desires. It is not within their character to compromise the quality of their food for the sake of cutting costs. The McDonald’s brothers are shocked and almost disgusted by the idea of replacing a milkshake with powder packets for the sake of saving on electricity costs.  Their integrity is central to them and is ultimately their downfall as well as Ray Kroc preys on their good nature.
   I think their differences can be best summed up in this exchange between Ray Kroc and Dick McDonald, where Ray Kroc says, “Business is war. It’s dog eat dog, rat eat rat. If my competitor were drowning, I’d walk over and I’d put a hose right in his mouth. Can you say the same?” In response, Dick McDonald says, “I can’t, nor would I want to.”
   
2. Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?
   I don’t necessarily think they did the “right thing,” by selling out to Ray Kroc, but I believe they also felt as if they had no other choice because of how Ray Kroc pulled the rug out from under them.  While they were able to keep San Bernadino, (as it was a non-negotiable, since they wanted to give it to their employees out of their loyalty and as a show of goodwill), their desire for 1% proprietary was the most beneficial part of their deal with Ray Kroc, and they did not even get that written in actual ink or signed.  As previously mentioned, Ray Kroc preyed on their good nature; by saying the perpetuity would have to be on a “handshake basis,” he was guaranteeing that they would never see any of that money, and to this day, as stated at the end of the film, they never saw the money they would have earned from 1% proprietary.
   
3. How did the local store franchisees make money?
   The local store franchisees only make money through the actual services and sales after the overhead costs (supplies, utilities, etc.) were deducted from their total earnings/revenue.  The fact they were responsible for these costs was part of the reason why earlier on in the film, Rollie Smith expressed concern to Ray Kroc about the cost of their electricity bill as the milkshakes were a bigger expenditure than they were anticipating. 
   
4. How did Kroc make money? How was that different than the franchisees, running the local stores?
   Kroc made money by entering into the real estate business with the help of Harry Sonneborn.  By leasing the land/building that the franchise would run its business on, and then being paid 4% of each franchisee’s monthly sales, and a monthly rental fee for the land, Kroc was able to see profits from the franchisees.  It also gave a different kind of incentive for quality control, since it put a kind of hierarchy of sorts in place.  For franchisees running the local stores, the way they earn money is very different due to the fact that their earnings are based upon the actual customer-facing transactions through sales of their food/product.  There is a different level of day-to-day responsibility and management that must be done in order for them to receive their profits.
   
5. Does this film change your view of McDonald’s?
   It does and it doesn’t.  In order for any company to make that amount of revenue in a year, there has to be some employees within their operations that are not getting properly compensated for the work they are doing for the company, and how that work in turn helps produce profit for the company.  I say that to say that, I’m not surprised that a billion-dollar company has sheisty beginnings.  I am surprised though that it was not the brothers who took the bigger lead on expanding the business, and I think it’s really morally foul that McDonald’s as a corporation—to my knowledge—has not done anything to try to make amends to the family of the McDonald brothers, however, I understand that with how businesses tend to run in terms of legality, and without the ability to prove the “handshake” agreement, they are not likely to compensate retroactively or moving forward in any capacity. 

1. What makes Ray Kroc and the brothers different from each other?

The ability to take chances on brilliant ideas sets Ray Kroc apart from the brothers. Ray Kroc recognized the lucrative commercial potential. Ray persisted and raised the bar for McDonald’s as a result. The brothers, though, were committed to testing different approaches within their primary restaurant to advance. They concentrated entirely on what they already had. In contrast to Ray, who looked for dependable leaders to handle the restaurants, they didn’t think it was possible to uphold their ideals and honesty when it came to creating new sites.

2.Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?

Although the brothers were good local businessmen, I believe their choice was more wise than right because they weren’t ready for expanding . According to Kroc, the name “McDonald’s” was highly distinctive and uncommon, which is what inspired him to obtain it. It’s the type of name that makes you wonder what it is, so you pay attention to it. It was the best and most shrewd approach, as Kroc had better business understanding than the brothers. His presence aided McDonald’s in becoming the enormously successful business it is today.

3.How did the local store franchisees make money?

By coming up with fresh concepts that generated interest and encouraged repeat business for McDonald’s, local franchisees made money. Additionally, the managers would bring in customers who liked them, which would increase the number of people that came in.

4.How did Kroc make money? How was that different than the franchisees running the local stores?

Kroc profited from his franchising business and his real estate venture with McDonald’s. He also acquired the brothers’ business. This was distinct from the franchisees and managing the neighborhood locations since he went beyond simply overseeing operations at McDonald’s and acquired land and leased it to franchise partners, causing the business to develop. resulting in him generating a sizable profit

       5. Does this film change your view of McDonald’s?

       Due to the nature of the franchise and how they promote unhealthy eating, this movie did not really alter my opinion of McDonald’s. However, I was quite interested to learn how Kroc accomplished everything he did. I had never witnessed entrepreneurship at this level before, and it impressed me. Overall, Kroc overcame many obstacles to build McDonald’s into the industry powerhouse it is today, and I can admire that.

1.What makes Ray Kroc and the brothers different from each other?

I believe that what makes Ray Kroc different from the brothers is the aversion to take chances on ideas or plans that he sees are worth it and not give up. As mentioned on the movie, persistence is key for success. Ray had that trait deeply engraved in himself, while the brothers did not. Even though the brothers tried and experienced with different approaches to grow the business, when it came to maintaining new locations, they soon gave up on the idea since they thought maintaining the integrity and consistency in all of the locations was impossible.

2.Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc have the brothers a good deal?

If we see it from a monetary point of view, the deal was good, but it is also important to consider all the things the brothers went through in the process of the partnership. I do not believe that their major motive was to make a profit that way and when Ray started to franchise McDonald’s the way he wanted to, they felt like their ideas and dream was being drifting away from its original path and intention. In this case I believe it was a good choice to sell out just because it had come to the point where it was affecting their lives on a whole different level and the process of suing would have bring them more problems than peace.

3.How did the local store franchisees make money?

At first I believe some of them tried to implement new and trendy items on the menu that were not approved or did not follow the standards to maintain consistency across all locations. But after that, their focus was set on proving quality and fast food efficiently, meaning getting the orders right.

4.How did Kroc make money? How was that different from the franchisees, running the local stores?

He started to make money when after meeting with Hanne Sonneborn, realized that in order to make money he should start buying land and lease it to McDonald’s, and we know already know that he was the only one with the power to decide to who and where to lease. That way, he made money from both sides of the business by investing in more locations and at the same time, making a profit out of them. Also, this allowed him to control what happened in these locations, changes did not need to be approved by the brothers anymore and he could overview and supervise these location as he pleased.

5.Does this film change your view of McDonald’s?

I would say that it does not changes who I interact with it, I have never been a fan of fast food anyway, so the movie does not make me want to stop consuming from them or consume more. It does in fact bring an insight of how it was founded and the history of Ray Kroc, the founder. I know now that he was not the one that came up with the speedy system for example, nor with the structure for the system. Ray might be an opportunist and showed being ruthless when it came to business but that got him to success and managed to found one of the biggest companies in the world.

1. What makes Ray Kroc and the brothers different from each other?

While the brothers of McDonald’s preferred to have just one franchise in one place, Ray Kroc sought to expand the McDonald’s chain all across the country. So, they have different thoughts and opinions towards their business.

2.  Do you think the McDonald’s brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?

I think the decision they made was more smart than right. Because despite being good local business people, the brothers weren’t prepared for the big time. According to Kroc “McDonald’s” was a very unique and uncommon name which is what made him purchase it. It is a type of name where it catches attention because you get curious about what it is. Since Kroc had a stronger business sense than brothers, it was the right and smartest move. His presence helped McDonald’s grow into the giant big company it is today. 

The brothers did receive a portion of the money from their contract with Ray Kroc. It was given to the McDonald’s Corporation, and Dick and Mac McDonald received 0.5% of that sum. The myth in the film is that Ray cheated the brothers out of that 5% by playing them like fools. So, even if the McDonald brothers ultimately formed a separate company, the arrangement was still unjust to them.

4.How did the local store franchisees make money?

It all started with a franchisee (a business visionary) purchasing a location and receiving access to the franchisor’s (the setup organization’s) company assets, such as its name, strategies, frameworks, and brands. Franchisees must pay a franchisor a variety of costs depending on the type of business and required licenses. These often include start-up costs, annual fees, and sometimes commissions or expenses on perks. The foundation of a franchise’s success is preparing the employees by teaching them and demonstrating their presumptions. The more effective your reps are, the happier your clients will be. Positive customers spend more money and will give you a lot less grief than negative ones. The franchisee generates revenue by Area is crucial: The McDonald’s business has a pretty clever idea on how the local store should operate depending on where it was built.

5. How did Kroc make money? How was that different from the franchisees, running the local stores?

Having implemented the franchise concept at McDonald’s, the brand has grown like wildfire, and North America is home to more McDonald’s franchisees than any other region in the world. Franchisees rent buildings to McDonald’s, often at markups that McDonald’s claims, in order to rent the cheap food it sells. This model provides an unquestionably predictable and consistent income stream, in addition to lower labor expenditures, due to a more straightforward approach to productivity, as a result of leasing payments and royalties received from franchisees. McDonald’s is able to negotiate favorable terms because it controls the property and has a long-term lease. Franchisees pay a monthly fee, similar to a membership.

6. Does this film change your view of McDonald’s?

The movie somehow changes my perspective of Mcdonald’s because it is nice to know that the owner came up with the idea with nothing in his hand but just an interesting name. He was creative enough to give it a try and it worked out perfectly fine. It’s always inspiring to know that you can create something big from something very small if you believe in yourself.

1. what makes Ray Kroc & the brothers different from each other?

The difference between Ray Kroc and the brothers is that when Ray Kroc is determined and truly believes that something can result into something great, he won’t give up. He strives to accomplish the goal regardless of the ups and downs he faces. Additionally, the McDonald brothers faced an issue where they tried franchising but all of them didn’t do so well in business. The management was poor, and the menus weren’t what they originally sell. They decided to just focus on their business in Los Angeles. Overall, the McDonald brothers did take a risk before and it didn’t end with good results therefore, they put an end to it.
They have a strict and hesitant mindset where if one thing goes wrong, they plan on not doing it again to prevent any trouble whereby Ray Kroc has a mindset that he’d continue to try because he believes that learning from your mistakes can evoke into a better outcome for business. Also, Ray Kroc likes to get things done quick. For instance, in the movie Ray Kroc states he’s adding a basement and furnace to a McDonald’s restaurant and he’s doing it all in a fast-paced manner, meanwhile in San Bernardino, the brothers like to get their work done thoroughly and rigorously which can take some time.

2. Do you think the McDonalds brothers did the right thing by selling out to Ray Kroc? Did Ray Kroc give the brothers a good deal?

From my perspective, the McDonalds brothers did not do the right thing by selling out to Ray Kroc. Ray Kroc was insinuating to many that he made McDonalds when that’s in fact a lie. Also, he was changing a lot about McDonalds that the brothers did not agree on. For example, having powdered milk for ice cream instead of actual milk but he continued doing so to all franchisees except the brothers. Also, he wanted to rise his 1.4 percent cut of a 15 cent hamburger but the deal was done and the brothers didn’t want anything to change about the contract. Moreover, Ray Kroc would evoke stress and frustration to the McDonalds brothers due to Kroc wanting complete control over everything and he’d make adjustments to the company without the agreement of the brothers in writing because the adjustments weren’t “changes” in his own words “It’s not a change. It’s a company. It’s it’s own separate company. Which puts it outside your purview.” However, the brothers would strongly persist that anything related to McDonalds is within their purview. Ray Kroc also implemented the name “McDonalds” in his real estate corporation like he owned and created McDonalds himself. All in all, there were a lot of complications on the way Ray Kroc and the McDonald brothers would work together.

3. How did the local store franchisees make money?

The local franchisees made money by creating creative ideas that gained interests and made customers continue to come back to McDonald’s. To add on, the managers also would bring customers that are fond of them increasing the amount of customers that come in.

4. How did Kroc make money? How was that different than the franchisees, running the local stores?

Kroc made money off his franchise corporation and his McDonalds real estate company. In addition, he bought the brothers company. This was different than the franchisees and running the local stores because he exceeded from just managing business inside of McDonalds but obtained land and leased them out to franchise partners resulting in the company to continue to grow. Thus, making him earn great profit.

5. Does this view change your view of McDonalds?

I view McDonalds as a restaurant that serves unhealthy food to adults and kids. When talking about health, McDonalds is not precisely up to standards towards a good health. However, the movie made me realize the entrepreneurial side of McDonalds and the ideas and actions that resulted in McDonalds to go national. McDonalds originated from Dick and Mac McDonald who had a vision for themselves but someone like Ray Kroc was hungrier. Therefore, he took it into his hands to make their company into something national. Later on, Ray Kroc bought their company leaving the brothers with one million dollars each after taxes and no royalties. Overall, Ray Kroc’s actions towards the brothers can be very saddening but his way of expanding the McDonald brother’s idea was genius.

Roy Kroc from the beginning of the movie is portrayed as a business man that values his financial success and growth, with what’s next to come. Obtaining his success seems to be the only goal since there is no deterrence even if his choices effect anyone else. The first example is his relationship with his wife. The McDonald’s brother other on the opposite spectrum success comes from fulfillment of what they have currently accomplished. They talked much of their prior failed attempts at the first dinner with Roy and even with their failures they seemed excited by what they have thus accomplished.

The differences between Roy & the brothers can give insight that even though the decision the made have seemed as the wrong move but all they wanted was to continue with their one location. The deal was the best the brothers would have gotten because of lack of representation in a court room. They never got what to them represented success [their first restaurant] but monetary wise they achieved a huge payout.

Roy was charging the franchisees a monthly rent for the land and supplies needed to run a McDonalds location. The profit made at the restaurant was kept by the franchisees. It can be seen as a win win model of business because the popularity of the chain gave way to more customers.

I do not see McDonalds any different since I don’t eat their food. The large amount of stores and low quality food is not appealing. The brothers where trying to avoid this reaction from their customers but Roy only cared about profit not long term customer retention.

1.The McDonald brothers were entrepreneurs who were primarily concerned with the quality of services.  They were focused on fast and high-quality fulfillment of their obligations. The Macdonald brothers pondered, experimented and did not give up which led their business to such success. They were innovators who were not afraid to put their seemingly unsuccessful and crazy ideas into practice. In turn, Ray Kroc just wanted to make as much money and success as possible no matter what. He was focused on commerce and making money, while ignoring the principles and rules of the founders, which led the business to success.

2.On the one hand, it’s good that they sold him a franchise, since Ray Kroc successfully distributed other franchises in America, and made this catering popular. On the other hand, the McDonald brothers did not want this, they wanted to have a family business that they could personally control.

3.Franchises were focused on commerce and making money, while ignoring the principles and rules of the founders that led the business to success. Franchise owners introduced innovations that violated the original rules.

4.Ray Kroc opened a franchise corporation in which he attracted new investors for business. He deliberately outwitted the brothers by buying out their business and began to change the rules appointed by the brothers.

5.I didn’t even know that behind such a world-wide popular catering, there was such an intricate and time-consuming story. To date, the innovations invented by the MacDonald brothers are working successfully. McDonald’s still pleases consumers with fast service and low prices.