What made Ray Kroc different from the brothers was that he was able to make a McDonald’s franchise out of the restaurant. The brothers lacked experience in the business world and didn’t understand how to manage more than one restaurant. This led to their previous restaurant failures.In the film we see that the brothers opened 5 restaurants, 3 in Southern California, 1 in Sacramento and 1 in Phoenix and did not plan to expand further due to the quality control and inconsistent menu. After realizing this, the brothers realized that having one great restaurant was better than 50 not great ones.
He provided a better bargain, and one could work with other people. He may grow McDonald’s business in this way. First, the 1.9% of gross sales from the franchise fee that Kroc returned to the brothers was what made him money. of that, 5%. However, this was barely breaking even for Kroc, who decided to use a novel strategy to set his franchising business apart after seeking assistance from a financial expert. According to the plan, Kroc would first purchase the land for the restaurants, and the franchises would then pay Kroc to lease the space. granting Kroc more authority and negating his grip over his franchisees.
In the early days, Kroc made his money by franchising McDonald’s to his friends from the golf course. The difference between the McDonald brothers and Ray was that the McDonald brothers didn’t run the store themselves – they outsourced the work to Ray. This meant they had to face the same issues as the brothers did.The real money came when he and Harry turned McDonald’s into a real estate corporation, leasing the land and the franchise from the brothers in the process. No, this doesn’t change my view of McDonald’s. The burger joint that started out as a place for families to eat quickly turned into a corporation, with Kroc at its helm.This empire became wealthy and expansive, with Kroc amassing a large amount of money.