From Drive-In to Global Empire: The McDonald Brothers' Fast-Food Revolution

In 1937, Richard (Dick) and Maurice (Mac) McDonald embarked on their entrepreneurial journey by opening a carhop drive-in business in San Bernardino, California. Initially, their modest establishment offered hot dogs, but not hamburgers, to their clientele. Over time, they upgraded their business to a larger venue featuring windows that exposed the entire kitchen, a novelty that invited transparency and trust. This upgrade marked the birth of what would become a revolutionary change in the food industry.

By December 1948, the brothers had introduced a groundbreaking fast-food restaurant at the corner of Fourteenth and E Streets in San Bernardino. Named “The Dimer,” this new venture reflected its unique value proposition—every item on the menu, including drinks, fries, and hamburgers, was priced at just 10 cents. With a streamlined menu of 11 items, the McDonald brothers emphasized efficiency by serving food in paper wrappings and using disposable flatware, a concept that would later become standard in the fast-food industry.

The McDonald brothers’ pursuit of efficiency led them to organize their kitchen like an assembly line, significantly reducing preparation time and enhancing service speed. They also pioneered the shift from carhop service to self-service windows, where customers could place and collect their orders—a concept that became a hallmark of modern fast food. In 1953, Dick McDonald introduced the iconic golden arches, just before they opened their first franchise store in Phoenix, Arizona.

By the 1950s, the McDonald brothers were earning $100,000 annually, and their success allowed them to expand to eight additional locations in Arizona and California. Despite their success, they were reluctant to expand nationally. This changed when Ray Kroc, a multi-mixer salesman, joined as their franchising agent. On April 15, 1955, Kroc opened his first restaurant, naming it “McDonald’s,” and later established the McDonald’s Corporation.

In 1961, the brothers sold their rights to Kroc for $2.7 million. Dick retired to New York, while Mac passed away in 1971. Under Kroc’s leadership, McDonald’s grew into a global fast-food empire, forever changing the landscape of the restaurant industry.
From Drive-In to Global Empire: The McDonald Brothers' Fast-Food Revolution

Ray Kroc and MacDonald

McDonald’s was founded by Ray Kroc, one of the pioneers of the modern franchise organization format, in 1955. Raymond Albert Kroc was born in Oak Park, Illinois on October 5, 1902. He grew up with a younger brother and sister.

Ray was good at selling things. He ran a lemonade stand in front of his house. Later, Ray worked in a grocery store and at a soda fountain. After a variety of odd jobs, he had settled on selling Lily paper cups.

In 1939, Kroc made a big decision and started Malt-A-Mixer Company. He began selling Multi-mixers to ice-cream stands and other restaurants. He also sold Multi-mixers to many fast food franchisees, including Dairy Queen and Tastee Freez.

In the early 1950s, increased competition had reduced the sales of Multi-mixers and Kroc needed new outlets. Kroc seen advertisements promoting McDonald’s franchises and was surprised to find that the McDonald brothers had purchased eight of his company’s Multi-mixers. The restaurant, McDonald Brothers Burger Bar Drive-In, operated by Maurice and Richard McDonald, had developed the concept of the assembly-line hamburger with French fries.

There was also a large sign in front of the restaurant displaying two golden arches.

It was entrepreneurial love at first sight - and Kroc immediately foresaw a glowing future for the chain. He persuaded the brothers to sell him the right to license the restaurant and recognized early that site election would be key in spreading the chain across the nation.

In 1955, Kroc created McDonalds’ System, Inc and on April 15, 1955, Kroc opened his first McDonald’s in Des Plaines, Illinois.

By the end of 1957, there were thirty-seven McDonalds. Two years later, the total had reached over one hundred.

Kroc was extremely successful in establishing the chain, but despite this success, Kroc went through numerous legal and personal disagreements with the McDonald brothers along the way.

Kroc finally solved the impasse with the McDonalds by buying them out, for $2.7 million and astronomical sum in 1961. He immediately began an effort to modernize and publicize the establishment, launching what has been described as the most expensive and aggressive ad campaign in American corporate history.
Ray Kroc and MacDonald

Richard James "Dick" McDonald and Maurice James "Mac" McDonald

In 1937, two brothers, Richard (Dick) and Maurice (Mac) McDonald, began their carhop drive –in business in San Bernardino, California. They did not serve hamburgers, only hot dogs. This modest effort was succeeded by a larger place worth windows that exposed the entire kitchen to public view.

The fast-food restaurant was born in December 1948 at San Bernardino, Fourteen and E streets. This new restaurant named the Dimer, where every item on the menu cost10 cents - drinks, fries and hamburgers.

The menu was trimmed to 11 items, served in paper wrappings with disposable flatware.

For maximum efficiency, their organized their kitchen like an assembly line and changed their ‘concept’ for car-hop to self-service windows where customers placed their orders and had them filled.

Dick McDonald came up with the idea of the golden arch in 1953, not long before the brothers opened their first franchise store in Phoenix, Arizona.

By the 1950s, Dick and Mac McDonald were profiting $100,000 a year. They had opened eight more shops in Arizona and California but spurned offers to expand nationally.

Ray Kroc, their multi-mixer salesman later became the franchising agent with license to take the company national. He opened his first restaurant which he named ‘MacDonald’s in April 15, 1955.

Ray Kroc also established the McDonald Corporation.

In 1961, Dick and Mac sold their rights in the business to Ray Kroc for $2.7 million. Dick retired to live in New York, New Hampshire and his brother Mac died in 1971.
Richard James "Dick" McDonald and Maurice James "Mac" McDonald