McDonalds Corporation: History Essay
During the 1930s drive-throughs became the trends for fast food restaurant especially in the United States. Brothers Maurice and Richard McDonald had introduced their first carhop in Pasadena, California in 1937. Although this establishment was only small and offered limited food, they provide a unique fast food service to the customer.
Wanting to get more customers, the brothers opened up a restaurant which they called “Dimer” because every food sells for a dime. The 1950s were fruitful years for the brothers and had many franchises in the food business.Incidentally, these progresses are not enough as they have expected. In 1954, Ray Kroc, a milk-shake machine salesman has been able to meet the brothers to sell them equipment for their milk-shake mixer.
Kroc unknowingly will become one of the greatest personalities in the history of food chain business. Getting an interest with the McDonald’s business, Kroc’s helped in its expansion. Becoming a part of the McDonald’s team, he created a McDonalds’ franchise company known as McDonalds System Incorporated.McDonald’s Corporation was adopted in the year 1960 as it was still known today.
In 1961, the McDonalds sold to Ray Kroc the entire rights of the future business empire. A year after that, Kroc showed to the public the Golden Arches, McDonalds company logo. Kroc thought that he must capture the media market and incidentally made a deal with the McDonald brothers’ franchiser, Goldstein. Goldstein was also good on ideas on promotion and thought of getting the children as the target audience for their products.Able to gain more popularity and patrons, the one-billionth McDonalds hamburger was served live on TV in 1963 while the 500th McDonalds restaurant opened up in Toledo, Ohio. The 500th graduate of Hamburger University was also given an award live on television on that same day.
This University was put up in 1961 by McDonalds’ former senior chairman, Fred Turner to teach students the overall operations procedures, providing quality service and cleanliness unique with McDonalds. By this time, McDonalds has already an array of food aside from their popular hamburger.They now offer bag of fries, milk shake, ice cream, fried chicken and many more. Ronald McDonald became the official mascot of McDonalds in October 1963 and has become the national spokesperson of the world’s most popular food chain. In 1967, McDonalds has already accumulated $100 million dollars in total assets and was one of the top companies included in the New York Stock Exchange The goal does not end here for Kroc and so in 1969, Kroc’s McDonalds needed a new promotion company and found Needham, Harper and Steers which launched McDonald for its TV commercials.
The following year, they launched their first TV commercial and Needham also presented his commercial characters such as Hamburglar, Mayor McCheese, Grimace and Officer Big Mac for McDonalds and the children loved them (Daniels). Although McDonalds still holds the number 1 slot as the world’s most popular food chain, it also has its setups during its early years. While McDonald was just a concept to be an established food chain, Kroc experienced lots of despair and fear. When he launched his business in 1955, food chains like A&W, Dairy Queen, Tastee-Freez, and Big Boy were all already popular.Kroc wants to be different in order to be recognized among the best. Consequently he took pains in differentiating his product from these food companies to be able to be on the competitive edge.
During the 1960s, chain’s restaurants were earning and average of $75 million in sales while McDonald’s get an average earnings of $159,000. Kroc’s McDonald’s was going bankrupt. After conscientiously raising the money and purchased McDonalds from the previous owners, he launched different strategies to effectively promote McDonalds on the national level.One of these is through national advertising.
He introduced Ronald McDonald on his commercials as his national campaigner and immediately the kids went for Ronald. The start of the 70s has what became the successful years for McDonalds Corporation. It opened restaurants in many industrialized countries such as Japan, Holland, Germany, Guam, Panama and Australia. While in the 80s the Caribbean, Hong Kong, Latin America and New Zealand also had their franchise for McDonalds.
Kroc’s success is dependent on his view as compared with his rivals. He considers franchisees as business partners not just customers. Supplying his franchisees with his milk-shake formula and ice cream is not enough and so he wanted them to have an operation and food products that is branded only to McDonalds. When he envisioned that he could see in the future 12,000 sets of Golden Arches standing up as outposts of a mighty commercial empire, indeed it is not a vision after all but part of his success on his future (Gross).
Ray Kroc embarked on an ambitious campaign decades ago, lost his wife and almost lost everything. He owes his success with his partners and franchisees and the will to have it all propelled him. On January 14, 1984, Ray Kroc left a business empire at the age of 81. On his behalf the Ronald McDonald House Charities (RHMC) was founded. Today, more than 120 countries have their McDonalds and serving more than 54 million customers a day in different parts of the world.