How McDonald’s Founder Ray Kroc Developed A Business Model That Grew A Fast Food Empire

With over 38,000 locations worldwide, McDonald’s is arguably one of the world’s most recognizable brands. With a presence in 120 countries and serving close to 70 million people daily, the brand’s reach is indisputable, and largely unmatched in the QSR space—or any other space, for that matter. 

So, how did a small burger joint in Des Plaines, Illinois grow to become the goliath of fast food? Look no further than its founder, Ray Kroc. 

Born in 1902, Kroc always had a knack for sales and business. Starting off as a paper cup salesman in his teens, his interest in the restaurant business was piqued after a business trip to San Bernardino, California in 1952 (he was working as a Multimixer salesman), where he was captivated by the emergence of franchised restaurants in the area. Not Long after he arrived home to Illinois, Kroc came across an emerging burger place that was started by two brothers, Dick and Mac McDonald, and was fascinated by the new dining concept they’d set up. By only offering burgers, fries and drinks, they were able to keep the quality of their food high while keeping preparation speed low. 

Kroc partnered with the brothers as their franchising agent, working to build a system that would consistently produce the same quality food across all McDonald's locations. By creating a systematic approach that required all McDonald’s franchisees to follow the same principles, his idea of serving quality food fast became more than just mildly successful. In fact, famous menu items like the Big Mac and Filet-O-Fish were actually created by franchisees who innovated within McDonald’s model standards, allowing their creations to be adopted systemwide.

By placing a particular emphasis on the replicability of McDonald’s processes and operations, Kroc created one of the world’s most prevalent fast food chains. Not only has his model made McDonald’s a household name, but it has also ensured efficient operations and a nearly identical experience for consumers at all locations, regardless of where they may be in the world. 

One of the most important lessons to take away from Kroc’s McDonald’s model is to implement and stick to a system that works. For McDonald’s, that means one based on quality, service, cleanliness and value. His system is also a three-legged stool, meaning the model only works if franchisees, employees and McDonald’s suppliers all work together. At the end of the day, a business is only as successful as all the parts that keep it moving, and Kroc’s business acumen ensured McDonald’s would be the system to beat well into the future. 

Image courtesy of AP.