In what should be the golden years, Raymond Kroc, the founder and builder of McDonald's Corporation, proved himself as an industry pioneer that does not lose its ability to Henry Ford. He revolutionized the restaurant industry by imposing discipline on the production of hamburgers, fries, and milk shakes. By developing the operating system and delivery of advanced, he made sure that the fries are bought by customers in Topeka will be the same as the ones purchased in New York City. Such consistency made McDonald's the name of those who define the American fast food.
In 1960, there were more than 200 channels of McDonald's across the country, fueled by rapid expansion of low cost franchises. Ray Kroc had created one of the most powerful brands of all time. But he almost did not make a profit. Finally, he decided to use real estate as a financial supporter of the cause of McDonald's into a profitable operation. In 1956, Kroc founded the Franchise Realty Corporation, bought the land and act as the owner of the restaurant for franchise buyers with interest. With this move, McDonald's started to earn real income, and the company took off. Kroc then introduced a national advertising program to support a franchise that spread quickly, and when it appears that growth in the company's home territory is slowed in the early 1970's, he began a vigorous encouragement and success to create a global presence for McDonald's.
Throughout the company's spectacular growth, Kroc did acrobats balance on tightrope walking on a hard, tough standards imposed on the entire system while encouraging entrepreneurial spirit that welcomes ideas from all levels. Many of these ideas that contribute to the amazing success of the company. In gathering a wealth of $ 500 million, this hamburger king changed the cultural landscape of the nation and forge an industry that even among America's greatest export. McDonald's success is widely imitated offers an excellent example for today's managers and executives who seek greater production efficiencies.
By placing a simple hamburger on the assembly line, Kroc showed the world how to apply the advanced management pross the most boring business. In order to be advanced by McDonald's, companies should establish the basic principles of service they offer, breaking down the work into sections, and then continually re-assemble and tune a lot of steps until the system runs without restraint. Today, companies involved in the pizza, insurance claim processing, or selling toys benefit from this type of system that was pioneered by Ray Kroc. Up to the level when such operations maintain quality control, and maintain customer satisfaction, profits will flow.
As a milk shake machine salesman, Raymond Kroc routinely visit clients. But when the salesman was fifty-two years away from his home near Chicago to southern California to meet with the two largest clients, the results are far from being routine. Maurice and Richard McDonald left New Hampshire in 1930, tried to seek his fortune in Hollywood. Being unable to get great results in Tinseltown, brothers eventually became the owner of the drive-in restaurant in San Bernardino, a small dusty town as far as fifty-five miles east of Los Angeles. While most restaurants bought one or two Prince Castle Multimixer, which could mix five glasses of milk shakes at the same time, the McDonald brothers purchased eight pieces. And Kroc wanted to know what kind of operation that requires the ability to make forty cups of milk shakes at the same time.
So he went to San Bernardino, and what he saw there changed his life. Kroc standing in the shade of two golden archway glittering restaurants, which lit up the sky at dusk, and saw the queue of people winding like a snake out of the octagon-shaped restaurant. Selurunya through building walls made of glass, he looked at the male employees, who wore paper hats and white uniforms, are busy in a very clean restaurant, serving burgers in a dish, fries and milk shakes to the working-class families who arrive by car . "Something must be going on here, I said to myself," Kroc later wrote in his autobiography, Grinding It Out. "It's definitely the most amazing trading operation I have ever seen." Unlike so many food service operation ever encountered by Krock, this place is humming like a machine that postponed-up perfectly.
As Forbes put it, "in short, these brothers bring efficiency to business quickly." They offer a menu of nine types of food - burgers, fries, milk shakes, and pie - get rid of the seat, as well as using cutlery and paper instead of glass or porcelain. They also designed the assembly line kasaran so that they can serve the order in less than sixty seconds. Kroc knew instantly that he had seen the future. "That night in my motel room, I thought hard about what I saw during harinyal. Shadow McDoland's restaurant scattered around the intersection of roads throughout the country paraded through my brain. "
With approval in hand, began to meet his shadow Kroc of McDonald's restaurants that exploded from coast to coast. He started by building a restaurant chain's first joint venture - a model of eksperimewntal in Des Plaines, Illinois, outside Chicago, which bersifatkan the same low price, as well as a limited menu, and quick service restaurants such as San Bernardino. Restaurant, which opened on April 15, 1955, reached a respectable sales of $ 366.12 to rapidly enter the profit. Kroc restaurant watching warily as a new mother, personally led the activities of the kitchen and scraping gum off the parking lot with a knife expression. For Kroc, mimics a single shop McDonald brothers just the beginning.
To be able to build a joint venture restaurant, Kroc knew that he must impose discipline on the restaurant industry is loosely managed. And that means perfecting a standardized operating procedures in a process that can be replicated. Forty years earlier, Henry Ford had realized that mass production of cars requires a marriage between the precision automobile parts and assembly processes are efficient. Kroc interview is to apply the same discipline in making sandwiches. By using the idea that "no science to create and present a hamburger," Kroc gave to the pieces of beef gilingnya exact specifications - fat content: below 19 percent, by weight: 1.6 ounces: diameter: 3.875 inch; onion: ¼ ounce . Kroc even built a laboratory in suburban Chicago to devise a method of making perfect fries at the end of the 1950s. Instead of just supplying the franchisee with the formula milk shakes and ice cream, Kroc wanted to sell to new partners of the operating system.
In other words, he made a stamp of the service. And this revolutionary means to be used by McDonald's to create a joint venture restaurant in which a restaurant in Delaware and one restaurant in Nevada will present a burger exactly the same size and quality, each containing a piece of the same pickle, every burger served in a tray that similar with French fries cooked in the same length of time. As remembered by Kroc, "Perfection is very difficult to achieve, and I want kesempurnaanlah in McDonald's. All other things secondary to me. "But the department claims the right to serve a strategic purpose. "Our goal, of course, is to ensure repeat business based on reputation systems rather than the quality of a restaurant or a single operator," said Kroc. Although McDonald's franchise grew everywhere in the whole area in the Midwest and West like wildflowers after a spring rain, apparently short-lived success of the company. While the original agreement made with the McDonald brothers franchise buyers cause Kroc loved the earliest, this also led to a new company that was born directly into the possibility of bankruptcy. During the 1960s, when the joint venture this restaurant get money $ 75 million in sales, earning McDonald's only $ 159,000.
"In short, the concept to build Kroc of McDonald's, John Love. Kroc's dream and a house of cards began to collapse under its own weight. While mired in debt and without a growth advantage that could be imagined, Kroc faced a classic dilemma. He was not able to expand its business. And he could not stay afloat. Fortunately, Harry Sonnenborn finding a solution. He thinks McDonald's should earn money by renting or buying a location that will be stalls and then rent it back to the early franchise buyers with a 20 percent increase in price, and then 40 percent. Under this plan, McDonald's will find a suitable location and sign a lease with a specified interest rate. Real estate strategy fitted with the goal of greater mastery Kroc. Instead of selling the geographic franchise as a cover, which will give the holder the right to build as much or as little-shop whatever he wants at least a certain sector in the region, Kroc only sell individual franchises, low cost $ 950.
This kills the operators are not willing to play follow the rules can only be opened no more than one channel. After submitting a stable financial affairs into the hands of an expert Harry Sonnenborn, Kroc began to expand and professionalize the kingdom of this growing industry. Under the new conception, each franchisee and the operator such as a plant manager. Knowing that the measure of an advanced industrial complex is a professional management, launched in 1961 Kroc-one training program at a new restaurant in Elk Grove Village, Illinois. There, the group managing franchisee and operator training in scientific methods of managing a successful McDonald's and train them in teaching Kroc on Quality, Service, Cleanliness and Value. "I put the hamburger on the assembly line," Kroc liked to say. Hamburger also contains research and development laboratory to develop mechanisms for cooking, freezing, storing, and presenting. Anywhere that there is no dichotomy between central control and autonomous operation of the more subtle than in advertising. At the end of Christmas day in the 1950s, Turner and other managers can get around the Chicago Loop with "Santa Trains," an ice cream truck that turned into the drive-in restaurant McDonal's the wheels.
However, although like the way the model is now peddling the merchandise is, McDonald's does not have an advertising strategy for a company. Conversely, when the Minneapolis operator Jim Zein saw its sales exploded in 1959 after radio ads, Kroc encourage operators to use the airwaves with their own campaigns. Successful advertising helps the promotion of greater growth. And in 1965, with 710 McDonald's restaurants scattered in forty four states, $ 171 million in sales, and a relatively stable balance sheet, McDonald's finally full bloom. The company went public on April 15, exactly ten years to the day after Kroc opened the Des Plaines store, selling 300,000 shares at a price of $ 22.50 per sheet. Many of these shares are offered by Kroc, who get money $ 3 million in sales. Kroc deploy this cash to expand the company and against competitors that quickly spread everywhere, because the company's success has spawned many imitations that try to take advantage of fast industrialization of food are increasing. Through rapid growth and widespread advertising, McDonald's in the early 1970s had become a joint venture of the largest fast food restaurants across the country and the nature that is easily recognizable from the American cultural landscape. And the supreme ruler of McDonaldland, Ray Kroc, became a national figure rise.
In 1972, when more than 2,200 McDonald's rake in the sales channel $ 1 billion, Kroc received the Horatio Alger gift from Norman Vincent Peale. While the value of stock ownership increased to approximately $ 500 million. While the product is a staple food of McDonald's USA, it is generating a desire to investigate journalist and politician who likes to reform evil looking, high-profile industry giants Ray Kroc also attracted attention from many parties. While the product is a staple food of McDonald's USA, it is generating elite snobby attitude of the food industry. Mimi Sheraton of New York magazine stated: "McDonald's food is not terrible ketulungan, without any beauty." Politicians are also paying attention. In 1974, when the company's market value exceeds the value of U.S. Steel that has progressed slowly, Senator Lloyd Bentsen to complain: "There's something wrong with our economy when the stock market more hamburger and less in the steel." Many analysts are looking at McDonald's rapid growth as it will not be sustained. But Kroc was convinced that the company needs to continue to grow in order to survive. "I do not believe in saturation," he said. "We think and talk in the whole world." Kroc envisioned a world in which 12 000 pairs of Golden Gate arch will stand as outposts of a mighty trading empire. Establish a base in the capital of the European countries only the beginning. With the passage of ten years, a thousand restaurants opened by overseas companies promoting 27 percent annual growth rate. This restaurant is so universal joint venture known as the symbol of America and influential that when Marxist guerrillas blew up a McDonald's restaurant in San Salvador in 1979, they declared that the terrorist act is a mortal blow against the "American imperialists."
"Although McDonald's reach merged, and his personal fortune reached $ 340 million, he was always worried," Forbes wrote in 1975, "When Kroc traveled, she insisted on her driver to take him at least six McDonald's restaurants to conduct surprise inspections.". Although he killed the competition, the competition does not kill Ray Kroc. He died in old age in January 1984, at the age of eighty-one years old, just ten months before McDonald's sells hamburgers for 50 billion.
