Food Franchise

Posts Tagged ‘Des Plaines’

Love them or hate them, you have to admire the success of McDonalds in the business world as they expand across the globe, one of the most recognizable companies on earth with their trademark golden arches prominently displayed in almost every country around the world. Most people do not have to travel too far in the western world to find their local McDonalds outlet and it would seem there is no end to the meteoric rise of the most popular food outlet in existence. Like any successful business, McDonalds had to begin somewhere and as is so often the case, that beginning was very humble and basic.

Dick and Mac McDonald may well be the originators of the McDonald brand, but Ray Crock is the man who was instrumental in starting the ball rolling on the McDonalds empire that has become a global concern. The story begins with Ray Croc, a salesman who had the distribution rights to a five-spindled milk-shake maker, making the trip west to California to check out the McDonalds hamburger stand using eight multi-mixers. This was the beginning of the relationship between Croc and the McDonald brothers which would eventually result in branches springing up all over America. Ray opened the first of the new restaurants in 1955 in Des Plaines, a branch that no longer exists as an outlet, but has appropriately become a museum for everything McDonalds.

PROFILE

Croc and an associate named Fred Turner set about raising the profile of the McDonalds chain, giving it the instantly recognizable look known all over the world. Fred Turner remains Chairman of the Board today having been involved in the mid-fifties establishing the foundation for the empire.

The name McDonalds has become synonymous with the “Big Mac”, something that was introduced in 1968 thanks to a certain Jim Delligatti who operated a dozen franchises in the Pittsburgh area. The “Big Mac” is without doubt the most popular of all the products sold at McDonalds over a period spanning decades. Eventually, McDonalds branched into the breakfast trade offering their fame Egg McMuffin form 1973 and offering coffee and apple pies that have become popular fare with the people of America and now around the world.

!979 was the year when McDonalds introduced the kids happy meal with its colorful box containing food for kids and a little toy to keep them amused while in the restaurant.

Many of the outlets now are now fitted out with children’s play areas allowing the adults to dine in peace. McDonalds has come a long way since those humble beginnings in 1955. They are now massive in the corporate world and look as though they will continue to grow. They have continued to move with the times and created an organization second to none. Restaurants can now be found in countries all over the world and are instantly recognizable thanks to their trademark golden arches.

A look at the origins of the McDonald’s restaurant chain, as well as some notable dates and facts from it’s more recent history.

-1937-1947: Before McDonald’s Was McDonald’s-

* In 1937, Dick and Mac open the Airdome. It is a hot dog stand in Arcadia, CA.

* In 1940, Dick and Mac move shop to San Bernardino, CA, and call the new restaurant McDonald’s

* Come 1948, the brothers McDonald are sick of running the same old kind of restaurant. In an effort to increase service speed, they started working with an assembly line process that would allow them to serve more customers in the same amount of time. They cut the menu to further speed up serving times. They only offered burgers, fries, and milkshakes. Business boomed.

* Of note: McDonald’s does not recognize any of these restaurants as an official part of their chain. These are just the building blocks on which McDonald’s as we now know it was built.

-1948-1961: Kroc Takes Over-

* Enter Ray Kroc. in 1954 Ray Kroc pulled up to the restaurant looking to sell milk shake mixers. After the McDonald brothers purchase eight of them, Kroc figures that if there were more McDonald’s, and each store bought eight mixers, he would be a rich man. He proposes the idea to the brothers and they ponder who would open the stores. Kroc suggests himself, and takes over franchise operations.

* On March 2, 1955, Kroc opens a franchise in Des Plaines, IL, that is recognized by McDonald’s as the first official restaurant. First day’s revenue: $366.12.

* Kroc allows anyone to open a franchise for about a grand, and also takes 1.9 percent of each franchise’s profits. He pays 0.5 percent to the McDonald’s brothers.

* Milestone: In 1958, McDonald’s sells it’s one millionth hamburger.

* The buyout. In 1961, Kroc purchased McDonald’s from the brothers for the hefty sum of 2.7 million dollars. However, if the brothers would have just kept their %0.5 percent, it would have made them around $175,000,000 in 2007 alone (McDonald’s profits exceeded 3.5 billion in ‘07.)

*Also in 1961, Kroc opens Hamburger University to train new employees. The purpose is to ensure the product is consistent at all franchise locations.

-1962-Present: The Rest is History-

* 1968: Jim Delligatti, a franchisee out of Pittsburgh, comes up with a little something called the Big Mac. I hear it caught on.

* 1971: First Franchise in Europe opens.

* 1973: Herb Peterson comes up with the Egg McMuffin. Thanks Herb!

* 1974: First Ronald McDonald house is opened in Philly. Say what you will about the company, but they have done a lot of really good things for very deserving people.

* 1979: Happy Meal is introduced. The reaction: people were happy.

* 1993: Company has now sold over 100 billion burgers. Many signs still say “over 99 billion served” because there just isn’t room for another digit.

* Today: McDonald’s has franchises in over 100 countries world wide. It was 108th on Forbes 2007 Fortune 500 list.