McDonald's Success Story

This success story fast food restaurant McDonald's began in 1940 with the opening of a restaurant by Dick and Mac McDonald in San Bernardino, California. They introduced the "Speedee Service System" in 1948, which later became the basic principle of ready-food restaurant modern. McDonald's first mascot, named Speede, is a man with a hamburger shaped head with a chef hat. Speede later replaced by Ronald McDonald in 1963.

McDonald's currently does not make the year 1940 as year of birth of McDonald's restaurants. They chose 15 April 1955, when Ray Kroc bought McDonald's franchise license from Dick and Mac in Des Plaines, Illinois, as a day of his birth. Kroc later purchased the shares of McDonald's brothers and led the company to expand throughout the world. McDonald's shares went on sale to the public in 1965.

Owned aggressiveness against the wishes Kroc McDonald brothers. Kroc and the McDonald brothers fighting for control of this business, but eventually McDonald brothers who left the company. This dispute is documented in both the autobiography and autobiographical Kroc McDonald brothers. Sites where McDonald brothers first established a restaurant is now used as monuments.

With aggressive expansion throughout the world, McDonald's used as a symbol of globalization and the spread of American lifestyle.

In 1960, there were more than 200 channels of McDonald's in the United States, rapid expansion is fueled by low franchise fees. Ray Kroc has created one of the most powerful brands of all time. But he almost did not get benefits. Finally, he decided to use real estate as a financial supporter of the cause of McDonald's into a profitable operation. In 1956, Kroc founded the Franchise Realty Corporation, bought the land and act as the owner of the restaurant for the franchisee interest.

With this step, McDonald's began to gain real income, and the company took off. Kroc later introduced a national advertising program to support the franchise which spread rapidly, and after it appears that growth in the region slowed the company's origin in the early 1970s, he began his passionate drive and success to create a global presence for McDonald's. Throughout the company's spectacular growth, Kroc did acrobatics balance walking on a difficult stretch of the rope, impose strict standards on the entire system while encouraging entrepreneurial spirit that welcomes ideas from all levels. Many of these ideas that contribute to the amazing success of the company. In the accumulated wealth of $ 500 million, this burger king to change the nation's cultural landscape and forge an industry that even among America's greatest export. The success of McDonald's widely imitated offers an excellent example for managers and executives today are trying to find efficiencies greater production.

With a humble hamburger place on the assembly line, Kroc showed to the whole world how to apply advanced management pross the most boring business. In order to be advanced by way of McDonald's, the companies must establish the basic principles of services they offer, the job breaks down into parts, and then continually refine reassemble and many steps to run the system without restraints. Today, companies involved in the pizza, insurance claims processing, or selling toys benefit from the type of system pioneered by Ray Kroc. Until the level when such operations maintain quality control, and maintain customer satisfaction, profits will flow.

As a milk shake machine salesman, Raymond Kroc routinely visit clients. But when the salesman was fifty-two years away from his home near Chicago to southern California to meet with the two biggest clients, the result was not a routine thing. Maurice and Richard McDonald left New Hampshire in 1930, tried to seek his fortune in Hollywood. Because they can not get big results in Tinseltown, the brothers eventually became the owner of the drive-in restaurant in San Bernardino, dusty little town as much as fifty-five miles east of Los Angeles. While most restaurants bought one or two Prince Castle Multimixer, which could mix five glasses of milk shake at the same time, the McDonald brothers bought eight pieces. And Kroc wanted to know what kind of operation requires the ability to make forty cups milk shake at the same time. So he went to San Bernardino, and what he saw there changed his life. Kroc stood in the shade of two golden arch gleaming restaurant, which lit up the sky at dusk, and saw the queue of people winding like a snake outside the restaurant octagonal. Through the walls of the building made entirely of glass, he watched his employees, who wore paper hats and white uniforms, were busy in a very clean restaurant, serving burgers in a dish, fries and milk shakes to the families of the working class who arrive by car . "Something must be going on here, I say to myself,"

Kroc later wrote in his autobiography, Grinding It Out. "This is certainly the most spectacular trading operation I have ever seen." Unlike so many food service operations ever seen by Krock, this place is humming like a machine postponed up perfectly. As Forbes put it, "in short, these brothers bring efficiency to business quickly." They offer a menu of nine types of food - burgers, fries, milk shakes, and pies - get rid of their seats, as well as utensils and paper instead of glass or porcelain. They also designed the assembly line so that they can serve an order in less than sixty seconds.

Kroc knew instantly that he had seen the future. "That night in my motel room, I thought hard about what I see during the day. Shadow McDoland's restaurants scattered around the cross roads throughout the country paraded through my brain. "

With approval in hand, Kroc began to meet the shadow of the McDonald's restaurant that exploded from coast to coast. He started by building the first chain restaurant joint venture - an experimental model in Des Plaines, Illinois, outside Chicago, which is the same low prices, as well as a limited menu, and quick service restaurants such as San Bernardino. The restaurant was opened on 15 April 1955 it reached a respectable sale for $ 366.12 with a profit quickly enter. This restaurant Kroc watched warily as a new mother, personally led the activities of the kitchen and scraping gum from the parking lot with a knife expression. For Kroc, imitating a single store McDonald brothers were just the beginning. In order to build partnerships restaurants, Kroc knew that he had to impose discipline on the restaurant industry are loosely managed. And that means improving standardized operating procedures in a process that can be imitated. Forty years earlier, Henry Ford was aware that mass production of cars requires the marriage of precision automobile parts and an efficient assembly process. Kroc interview is to apply the same discipline in the making of sandwiches.

By using the idea that "no science to make and serve hamburgers," Kroc gave ground beef pieces precise specification - the fat content: below 19 percent; weight: 1.6 ounces: diameter: 3.875 inches; onion: ¼ ounce . Kroc even built a laboratory in the suburbs of Chicago to design a method of making the perfect fries in the late 1950s. Instead of simply supplying franchisee with formula milk shake and ice cream, Kroc wanted to sell to its new partner one operating system. In other words, he made a service cap. And this revolutionary tool to be used by McDonald's to create a joint venture restaurant in which a restaurant in Delaware and one in Nevada restaurant will serve burgers exactly the same size and quality, each containing the same pickle slices, each burger served in a tray of similar with fried potatoes cooked with the same length of time. As remembered by Kroc, "Perfection is difficult to achieve, and perfection is what I want in a McDonald's. Everything else secondary to me. "

But the department claims the right to serve a strategic purpose. "Our goal, of course, is to ensure repeat business based on reputation rather than the system
quality of a restaurant or a single operator, "said Kroc. Although McDonald's franchise grew everywhere in the whole region in the Middle West and West like wildflowers after a spring rain, the company's success seems to be short lived. While the original agreement that established the McDonald brothers caused franchisee Kroc loved the earliest, it also causes a new company that was born directly into the possibility of bankruptcy. During the year 1960, when the partnership was to dredge the money the restaurant $ 75 million in sales, earnings McDonald's only $ 159,000. "In short, the concept Kroc to build a McDonald's, John Love. And Kroc's dream house of cards began to collapse under its own weight. While mired in debt and no profit growth can be imagined, Kroc faced a classic dilemma. He was not able to expand the business. And he could not stay afloat.

Fortunately, Harry Sonnenborn find a solution. He thinks McDonald's should make money by renting or buying a location that will be stalls and then lease it back to the franchisee at first with 20 percent price increase, and then 40 percent. Under this plan, McDonald's will find a suitable location and sign a lease agreement with a specified interest rate. Real estate strategy with the aim of perfect mastery of the larger Kroc. Rather than sell the franchise as the covering geographical, which will give the holder the right to build as much or as little-at least the store as they please in a particular area, Kroc only sell individual franchises, low cost $ 950. This deadly that the operators are not willing to play follow the rules can only be opened no more than one channel. After submitting a stable financial affairs into the hands of an expert Harry Sonnenborn, Kroc began to expand and professionalize the industrial empire is growing. Under the new conception, each franchisee and operator as a plant manager. Knowing that the size of the advanced industrial complex is a professional management, in 1961 Kroc launched a training program, the new restaurant in Elk Grove Village, Illinois. There, the group managing franchisee training and service in the scientific method to manage a successful McDonald's and train them in teaching Kroc of Quality, Service, Cleanliness and Value. "I put a hamburger on the assembly line," Kroc liked to say. Hamburger also includes research and development laboratory to develop a mechanism for cooking, freezing, storing, and serving. Wherever there is no dichotomy between central control and operating autonomy more pronounced than in the ad.

On Christmas day late 1950s, Turner and other managers can walk around the Chicago Loop with "Santa Trains," an ice cream truck is transformed into a drive-in McDonal's the wheels. But even love the way the merchandise selling this model now, McDonald's does not have the advertising strategy for the entire company. Conversely, when the operator Jim Zein Minneapolis saw its sales exploded in 1959 after installing a radio ad, Kroc encourage operators to use the air waves with their own campaigns. Successful advertising helps the promotion of greater growth. And in 1965, with 710 McDonald's restaurants scattered in forty-four states, $ 171 million in sales, and a relatively solid balance sheet, McDonald's finally fully blossomed. The company went public in April 15, exactly ten years to the day after Kroc opened the Des Plaines store, selling 300,000 shares at a price of $ 22.50 per share. Many of these shares offered by Kroc, who scrape the money $ 3 million in sales. Kroc deploy this cash to expand the company and against competitors that quickly spread everywhere, because the company's success has spawned many imitations are trying to take advantage of fast-food industrialization increased. Through rapid growth and widespread advertising, McDonald's in the early 1970s a joint venture of fast food restaurants all over the country's largest and easily identifiable characteristics of the American cultural landscape. And the supreme ruler McDonaldland, Ray Kroc, became a national story character. In 1972, when more than 2,200 McDonald's dredge the channel $ 1 billion sales,
Kroc Horatio Alger received a gift from Norman Vincent Peale.

While the value of stock ownership increased to approximately $ 500 million. While McDonald's products into the American staple, this aroused the desire to investigate reform journalist and politician who likes looking for flaws, high profile industry giants Ray Kroc also attracted attention from many parties. While McDonald's products into the American staple, this aroused the haughty attitude of the food industry elite. Mimi Sheraton of New York magazine declared: "Food McDonald's horrible unexpectedly, without any beauty." Politicians are also concerned. In 1974, when the company's market value exceeds the value of U.S. Steel is advanced with slow, Senator Lloyd Bentsen complained: "There's something wrong with our economy when the stock market more in hamburgers and less in the steel."

Many analysts are looking at the growth of McDonald's is fast as it would not be maintained. But Kroc was convinced that the company needs to continue to grow in order to survive. "I do not believe in boredom," he said. "We think and talk in the whole world." Kroc imagine a world where 12,000 pairs of Curves Golden Gate will stand as an outpost of a powerful trading empire. For a base in the capital of European countries is just the beginning. With the passing of ten years, a thousand restaurants are opened by foreign companies in promoting the 27 percent annual growth rate. Syndicate this restaurant so universally recognized as the symbol of American business and influence, so that when Marxist guerrillas blew up a McDonald's restaurant in San Salvador in 1979, they stated that terrorist acts are a mortal blow against the "U.S. imperialists." "Although McDonald's reach to successful, and his personal fortune reached $ 340 million, he was always worried, "

Forbes wrote in 1975, "When Kroc traveled, he insisted on telling the driver to take him at least six McDonald's restaurants to conduct surprise inspections.". Although he killed the competition, the competition did not kill Ray Kroc. He died in old age in January 1984, at the age of eighty-one years old, just ten months before McDonald's sold hamburgers to-50 billion.
Until the year 2004, McDonald's has 30,000 restaurants worldwide with the number of visitors average 50,000,000 people and visitors per day and 1,700 restaurants.

The first McDonald's restaurant in Indonesia is located in Sarinah, Jakarta and opened on February 23, 1991: idea:. Unlike most McDonald's restaurants outside the country, McDonald's also sells fried chicken and rice at a restaurant-restaurant in Indonesia.