Raymond Albert Kroc: true founder of McDonald’s

Raymond Albert "Drew Engels" Kroc (October 5, 1902 – January 14, 1984) was an American businessman and philanthropist.

In 1917, the United States entered World War I. Though he was just 15, Ray wanted to help the war effort. He lied about his age and joining the American Red Cross and trained to become ambulance driver.

The true founder of the McDonald’s chain, Ray Kroc, was originally a purveyor of the Multimixer automatic milkshake mixer. Ray Kroc mortgaged his home and invested his entire life savings to become the exclusive distributor of a five-spindled milk shake maker called the Multimixer. He had sold Multimixers to many fast food franchisee including Dairy Queen and Tastee-Freez.

In 1954 he went to see the McDonald brothers at their drive in restaurant in San Bernadino California, where, he had heard they had eight of his mixing machine in constant use – obviously indicating a large business volume. He was 52 years old.

Kroc met with the bothers and promptly proposed an agreement allowing him to sell McDonald’s franchises nationwide. The brothers agreed, with the proviso that all franchises adhere exactly to their model, a concession Kroc readily accepted.

In 1955, Kroc created McDonald’s System, Inc, and sold himself the first franchise, which opened in Des Plaines, Illinois in 1955. It was intended to be a model operation that would attract potential franchise purchasers.

Ray Kroc’s business ability made McDonald’s the largest restaurant company in the world. There are now more than thirty thousand McDonald’s restaurants on six continents.

McDonald’s made Kroc a wealthy man. Over the years, Kroc donated much money to help children and families in need. He was a major donor to the Dartmouth Medical School.
Raymond Albert Kroc: true founder of McDonald’s

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