Left: First McDonald’s Rai Kroc (ninth company) in Des Plaines, IL. Right: Kroc 1975. Source: Wikimedia Commons
The sign says McDonald’s, but it’s Rai Kroc, whose name and face are inside. Fast food, as we know, was shaped by the late Kroc, who in 1955 opened his first McDonald’s franchise and built a global empire. American business hero Rai Kroc is a man to be thanked (or blamed) for all the big Macs, McDonald’s fries, fish fillets or happy meals you’ve eaten in your life. The facts about Raia Kroc’s achievements and his life story are the least inspiring.
Source: (Rich Gorilla)
Rai Kroc, born on October 5, 1902 in Oak Park, Illinois, worked several jobs before becoming a billionaire tycoon. He sold paper cups, worked as a merchant and even played the piano in bands. Kroc was selling blenders at Castle Castle when he met Richard and Maurice McDonald. Eight of his mixers were purchased in San Bernardino, California, and Kroc was impressed with the operation. The restaurants are clean and mechanized, and the staff is caring and professional. Kroc opened its first location in Des Plaines, Illinois, on April 15, 1955. The location remained until 1985, when it was demolished. Five years later, they rehabilitated the place and built a museum and souvenir shop.
The money is in the real estate sector.
McDonalds makes more money in real estate than in fast food sales, despite being the largest fast food chain for burgers and serving about 66 million people every day. His view of the real estate sector came not from Rai Kroc, but from employee Harry Sonnenborn. When Kroc struggled to open several locations quickly, he encountered financial obstacles. Sonneborn’s solution was to lease the land instead of buying it directly and then lease it to a franchisor, who ran the restaurant. Because of this business model, Kroc bought the McDonald brothers for $ 2.7 million in 1961, and in 1963 Kroc opened its 500th location.
Kroc breaks the original
The third store that opened is now the oldest. Source: (wikipedia)
When Kroc bought the chain, the McDonald brothers refused to sell the original location in San Berardino, deciding to give the founders the original location. The McDonald brothers did not retain the rights to the name of the chain, so they changed the name of the original restaurant “The Big M”. Kroc opened McDonalds near “The Big M”, and that original location was closed six years later.
Attempts at other innovations.
Source: Mental Thread / Candi Pickup / Chloe Effron)
In addition to retaining the name of the fast food chain, it maintained the speed of service used by the McDonald brothers and compensated customers who waited more than five minutes. Kroc also standardized food production. Kroc wanted to try new additions to the menu, including pizza for a limited time. This menu item did not last long, as production encountered several obstacles for the company to fail; has only been tested in limited markets. At one point, they also tried McSpaghetti, a fajita and a French toast called McStuffin. However, there was one food he promised McDonalds he would never make: hot dogs. According to Kroc, it was not known what happened to the hot dog, and the hot dogs are below the quality standard accepted by Kroc. However, the company tested McHotdog, especially at the Rogers Center, home of the Toronto Blue Jais.
Creating an educational institution
Source: (Business Insider)
Kroc was a pioneer in other ways as well; He opened the first business training center, known as Hamburger University, in 1961, in the basement of Oak Grove, Illinois. It was run by Fred Turner, the first McDonald’s steak, who later became CEO in 20 years. The University of Hamburger employs 16 full-time teachers and can teach in 28 languages. Students do not learn how to turn burgers into college, but focus on real-life management skills. One of the important things they learn is the “three-legged chair” business model, another idea that Kroc gave to the business world. In 1983, the university expanded to $ 40 million in facilities and had branches around the world. It is not easy to enroll at the University of Hamburg, which is actually a very competitive program. Graduates receive a degree in hamburgers.
He had a famous butler
The famous Croc Butler. Source: (goodreads)
With his success, Kroc managed to hire a butler, which may not be unusual, but what was unusual was the fact that his butler was famous before he worked for Kroc. Butler, Patrick Dennis, was a famous author who wrote the best-selling novel, Aunt Mom. Patrick Dennis, however, was a pseudonym and Kroc knew him by the surname Tanner.
Ronald McDonald’s house in Peoria, Illinois. Source: (95.5 GLO)
Kroc made good use of his money when he founded the Rai Kroc Foundation. The foundation has donated millions to charity, with a focus on medical conditions. The foundation was specially founded by Ronald McDonald Houses, which would provide accommodation near medical institutions for families whose children are hospitalized. Kroc also donated a large sum of money to the 1972 Richard Nikon re-election campaign.
Life after retirement
Source: (San Diego Union-Tribune)
Kroc retired in 1974 and bought the San Diego Padres. In the years since the purchase of the equipment, the service has significantly improved. When he died in 1984, the team used gang assistance with their initials, RAK; In the same year, the Fathers played in the World Series, and in 1999, Kroc was inducted into the Hall of Fame.
Kroc suffered a stroke in 1980, and later entered an alcohol rehab center. He died of heart failure in 1984. After Kroc’s death, his third wife, Joan, increased philanthropy, including a $ 1.5 million donation to the Salvation Army to build Kroc Centers, community centers to serve needed neighborhoods.