Free Essays on Raymond Kroc

Raymond Kroc Ray Kroc was the founder of the immensely successful McDonald’s franchise operation. He was a pioneer of the modern fast-food restaurant industry. He introduced management innovations that are now standard in the business, such as implementing assembly line methods and employing a part-time teenage work force to produce a standardized menu at a low cost. Kroc’s formula allowed him to build an initial investment of a few thousand dollars into a giant, international corporate empire. In 1937, Ray Kroc came up with a new invention: a machine that could mix five milk shakes at one time, called the â€Å"multi-mixer.† He headed his own company to serve as the exclusive distributor for the product. Many years later, he heard of a drive-in restaurant in San Bernardino, California, owned by Maurice and Richard McDonald, which was operating eight of his multi-mixers. Kroc was curious as to how they could possibly use so many machines in a small establishment, so he decided to visit the restaurant himself. Kroc found that the brothers were doing a remarkable business selling only hamburgers, french fries, and milk shakes, while using the principles of the assembly line as their basis for production. Kroc recognized the potential opportunity and approached the brothers about starting a franchise operation based on their restaurant. After some negotiation, the McDonald brothers agreed to join Kroc in partnership. In exchange for one-half of one percent of the gross, Kroc was granted the use of the McDonald name, concept, and symbol (the golden arches), along with unlimited franchise sales rights. Ray opened the first of the chain of restaurants in Des Plaines, Illinois. On that first day, Kroc’s restaurant had sales of $366.12. By 1961, there were over 130 outlets, and in that year he bought out the McDonald brothers for 2.7 million dollars. From these humble beginnings emerged a... Free Essays on Raymond Kroc Free Essays on Raymond Kroc Raymond Kroc Ray Kroc was the founder of the immensely successful McDonald’s franchise operation. He was a pioneer of the modern fast-food restaurant industry. He introduced management innovations that are now standard in the business, such as implementing assembly line methods and employing a part-time teenage work force to produce a standardized menu at a low cost. Kroc’s formula allowed him to build an initial investment of a few thousand dollars into a giant, international corporate empire. In 1937, Ray Kroc came up with a new invention: a machine that could mix five milk shakes at one time, called the â€Å"multi-mixer.† He headed his own company to serve as the exclusive distributor for the product. Many years later, he heard of a drive-in restaurant in San Bernardino, California, owned by Maurice and Richard McDonald, which was operating eight of his multi-mixers. Kroc was curious as to how they could possibly use so many machines in a small establishment, so he decided to visit the restaurant himself. Kroc found that the brothers were doing a remarkable business selling only hamburgers, french fries, and milk shakes, while using the principles of the assembly line as their basis for production. Kroc recognized the potential opportunity and approached the brothers about starting a franchise operation based on their restaurant. After some negotiation, the McDonald brothers agreed to join Kroc in partnership. In exchange for one-half of one percent of the gross, Kroc was granted the use of the McDonald name, concept, and symbol (the golden arches), along with unlimited franchise sales rights. Ray opened the first of the chain of restaurants in Des Plaines, Illinois. On that first day, Kroc’s restaurant had sales of $366.12. By 1961, there were over 130 outlets, and in that year he bought out the McDonald brothers for 2.7 million dollars. From these humble beginnings emerged a...