- What makes Ray Kroc and the brothers different from each other?
- 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?
- How did the local store franchisees make money?
- How did Kroc make money? How was that different than the franchisees, running the local stores?
- Does this film change your view of McDonald’s?
Answers:
1.The Mcdonald brothers had a more ethical approach to the business and wanted to ensure the quality of their products and fast service which is what they were known for. Ray Kroc was more interested in expanding the business, and in charge of the real estate aspect of the business.
2.I think the McDonald brothers did do the right thing by selling out to Ray Kroc because the way everything was going, Ray had more control over the company and even if they were to take him to court it would just be such a long process. As far as the deal goes, I think it was a good deal at the time, but unfortunately they never received any royalties.
3.The local store franchises made money by selling the food and creating sales which then is used to pay for rent and royalties.
4.The franchisees would make money from the business at their local store, and pay rent, which the rent would go to Ray Croc which was his source of income because he was in charge of the real estate.
5.It doesn’t change my view of McDonalds but it is interesting to learn about how this big company developed and expanded throughout the world. It wouldn’t be as big as it is without Crocs contribution.
Greetings. I agree with your answer for question number 5. My view wasn’t altered, by my knowledge of the history was.
Hey Nadia, I agree with you on question number one, it was clear that the Mcdonald brothers were more focused on quality over quantity and cared about the ethical aspects of their business more than Ray.
Hi Nadia! I think this is interesting to note that the real estate was truly crucial to growing the successful business — location, location, location! I was thinking about this several weeks ago, before I knew we’d be watching this movie (sorry Professor, hadn’t read that far in the syllabus!), when I was driving back from a convention in Chicago back towards the East coast and I was in the middle of nowhere Ohio. In the middle of nowhere Ohio, I came around a bend in the highway and off in the distance I saw the Golden Arches shining bright in the darkness, lifted some 200 feet in the air on a giant pole. Like a moth to the flame, I was drawn off the highway into some sweet, fatty sustenance that only cost me $12 dollars and ten minutes of time. The location of the store and the sign placement were so genius — by being the only thing around, and having a location right off the interstate, and having a giant sign, the location was totally buzzing with other wayward flies like me.