Collo vs McDo

People

Ray Kroc (1902-1984)

A milkshake machine salesman, he became the McDonald brothers' franchising agent in 1955, then the owner of their name. He built the network, not the restaurant.

In brief

  • Born on 5 October 1902 in Oak Park (Illinois), died on 14 January 1984 in San Diego.
  • A salesman of the Multimixer, a milkshake machine, when he discovered the McDonald brothers' restaurant in San Bernardino.
  • 1955: he opened in Des Plaines (Illinois) the restaurant that served as the network's showcase and founded McDonald's System, Inc.
  • 1961: he bought the rights to the name from the McDonald brothers for 2.7 million dollars.
  • ⚠️ The 0.5% royalty “sealed with a handshake” and never paid to the brothers is a scene from the film The Founder (2016): no document attests to it.

Ray Kroc did not invent the McDonald's restaurant: he invented the network. The brothers Richard and Maurice McDonald already had, from 1948, the kitchen, the reduced menu and the “Speedee Service System”. Kroc, a milkshake machine salesman, obtained in 1954-1955 the right to sell franchises, and opened in Des Plaines the restaurant that would serve as the model.

His contribution lies in three decisions. First, absolute standardisation: same procedures, same products, everywhere. Then real estate, devised by his finance chief Harry Sonneborn: the group takes the leases and sublets them to franchisees, which secures it an income independent of each one's commercial success. Finally, the purchase of the name, in 1961, for 2.7 million dollars — a borrowed sum, which left him in debt but master of the brand.

The rest belongs largely to legend, and this must be said clearly: the film The Founder (2016) and Kroc's autobiography, Grinding It Out (1977), are not sources. The 0.5% royalty orally promised to the brothers, the deliberate sabotage of their restaurant renamed “The Big M”: these stories circulate everywhere, but no public document establishes them.

Sources

External sources.

  1. Ray Kroc — biographical entry — Encyclopaedia Britannica
  2. Ray A. Kroc, Founder of McDonald's, Dies at 81 (15 January 1984) — The New York Times

Where this comes up in the case file

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