The film “The Founder,” which chronicles the history of McDonald’s and the relationship between Kroc and the McDonald brothers, may change one’s perspective on the fast-food giant. It highlights the business dynamics and ethical considerations involved in the growth of the franchise. The portrayal of Kroc as a shrewd businessman willing to take advantage of opportunities and the McDonald brothers as innovators who faced challenges underlines the complexities within the business world. It prompts viewers to consider the impact of ambition, trust, and business ethics in the success and expansion of iconic brands like McDonald’s.
Ray Kroc and the McDonald’s brothers, Richard and Maurice McDonald, differed in their vision and approach to the fast-food industry. The brothers initially developed the innovative and efficient “Speedee Service System” at their original San Bernardino, California, restaurant, emphasizing quick service, a limited menu, and a streamlined kitchen. They aimed to maintain quality and efficiency in a few select locations. On the other hand, Ray Kroc, a struggling milkshake machine sales agent, saw the potential for nationwide expansion. He envisioned McDonald’s as a franchise opportunity and focused on scaling the business, emphasizing uniformity and brand consistency across multiple locations.
The McDonald’s brothers faced a choice when Ray Kroc expressed interest in franchising their concept. Selling to Kroc allowed them to cash out, but it also meant relinquishing control over their brand and vision. Kroc, driven by ambition and a desire for expansion, convinced the brothers to sell the company to him. The deal was initially fair, with a promise of a percentage of future profits for the brothers, but Kroc later reneged on that agreement, leading to tension and legal battles.
The local store franchisees made money by running individual McDonald’s outlets. They paid a franchise fee and a percentage of their sales to the McDonald’s Corporation. In contrast, Ray Kroc made money through real estate. Instead of relying solely on franchise fees, Kroc established a separate entity to purchase the land on which the McDonald’s restaurants were built. Franchisees then leased the land from Kroc, providing him with a steady stream of income independent of the store’s sales.
References:https://en.wikipedia.org/wiki/The_Founder ,https://www.rottentomatoes.com/m/the_founder ,https://www.reddit.com/r/movies/comments/14uoz6n/what_is_your_opinion_on_the_founder/ .
Gabrielle Phillips : “The Founder” Assignment
The Founder