Ray Kroc - founder of McDonald's 2010-04-13 10:51

For most ordinary people, Kroc is just an unfamiliar name. However, when it comes to McDonald’s in today’s world, it’s no secret. Today, McDonald's, Coca-Cola and Disney have become the three major brands in the world's food and entertainment industry. Although McDonald's was founded by the McDonald brothers, it was Kroc who spread the McDonald's brand around the world and became the true "fast food king" in the world today. Kroc's road to success is in line with what we Chinese people often say: only those who love to fight will win!

一

Klock was born in 1901 in a poor family in Obloh, Illinois, USA. His father was an employee of a company and his mother was a piano teacher at home. Although my parents work very hard, it is difficult to support the family with their meager income. The poverty of his family gave Kroc a strong desire for money as a boy. He was keen to tell his classmates about all the dreams he had made up about getting rich. Over time, his classmates gave him the nickname "Danny Sleepwalker". When he recalled his childhood life, he said: "At that time, I hoped that the money would be as much as turning on the light or turning on the faucet. It would never be enough."

However, Kroc is not the kind of person who just wants to quit. people. In order to reduce the burden on his family, he went to work in his uncle's music store to earn money when he was in elementary school. When he was in middle school, he used the money he saved from working part-time to open a music store specializing in sheet music and musical instruments with two friends. However, due to lack of experience, the store closed shortly after opening. At that time, World War I was raging, and the U.S. government launched a nationwide campaign calling on young people to join the military. Kroc, who was originally not interested in studying, was influenced by this and decided to drop out of school and join the army. He persuaded his family, falsely reported his age, was drafted into the army, and then went to the European battlefield. After the war, Kroc retired and returned home, becoming one of many unemployed soldiers. In order to find a job, he traveled around and sold coffee beans, novels, promoted textiles, worked as a waiter in the securities trading hall, and worked as a company cashier. But the business always failed to improve, and the failure to promote real estate in Florida made him fall into the predicament of having nothing. When he later recalled that period of life, he said with emotion: "After the failure of selling real estate in Florida, I was completely broke and penniless. At that time, I had no coat, no raincoat, and not even a pair of gloves. I When I drove into Chicago and walked home through the cold streets, I was almost freezing." In 1922, Kroc joined the Chicago branch of the New York Lily Paper Cup Company and began a thirty-two-year career as a salesman. . He leaves home on time at seven o'clock every morning and rushes to restaurants of all sizes in the city. During baseball season, he also had to get up at 2 a.m. to line up to buy tickets. Still, the salary of thirty-five dollars a week was clearly a tight squeeze for the family. In order to increase his income, after working during the day, he rushed to the WGES radio station in Oak Park at six o'clock in the evening to produce a program, and collaborated with another pianist to perform a piano duet. Whenever he recalled those days, he always said with excitement, "After the day's work was completely over, the moment my head just hit the pillow, I almost fell asleep." However, as time goes by, The experience Kroc accumulated from his failures gradually improved his work. It was also in this position that Kroc began to show his outstanding marketing genius. A beverage shop owner thought it was uneconomical to buy paper cups, so Kroc gave him 300 of them for free to try out. Within a few days, the owner ordered a batch. After all, using paper cups was more hygienic and was very popular. In 1932, he set a record of selling 100,000 paper cups to customers for the first time, and later set a record of selling 5 million paper cups in one year. Soon, Kroc was promoted to a department manager in the Western Branch of Baihe Company due to his outstanding performance, overseeing fifteen salesmen. His life has also been greatly improved. He bought a new house, hired a nanny, and owned a Buick car. The whole family lived a well-off life, and he was very satisfied with this life.

If he hadn't met Al Prince, his life might have been frozen in this day-to-day routine.

Al Prince is a machinist. When he met Kroc, he had just invented a new multi-functional milkshake machine (traditional milkshake machine) that can fill five cups of milkshakes at the same time. Only one milkshake can be consumed at a time). Kroc has a strong interest in this new milkshake machine. With many years of sales experience, Kroc believes that it has broad market prospects. So he decided to quit the paper cup sales job he had been doing for fifteen years and devote himself to selling new milkshake machines. However, when he happily told his wife about his decision, she unexpectedly poured cold water on him. She shouted to Kroc: "You are crazy! If you really do this, you are simply taking advantage of yourself." What a joke! You are thirty-five years old now. Do you think you are only twenty years old and want to start from scratch?" But his wife's objection did not change Kroc's decision. He spent almost all his money to cooperate with Lily Company to buy the national agency rights of the new milkshake machine from Alprin and established Prince Castle Sales Company. After the company was established, although the business was pretty good, Kroc always felt like an eagle trapped in a birdcage, and many of his ideas could not be implemented. After all, he only held 40% of the company's shares. In order to get rid of the constraints, he made a decisive move and used his real estate as a mortgage loan to buy the shares of Lily for US$68,000. It is understandable that this is a stressful situation for a well-off family. Many people were worried about his move, but Kroc was confident about it. He said: "Don't be afraid. As long as you have courage and energy, your career will be successful. If you can't stay still, you will die."

Facts have proved that Kroc's approach is Quite far-sighted. After the end of World War II, as the economy recovered and the market prospered, Kroc's business became increasingly prosperous. In 1948 alone, he sold 8,000 units, and his annual salary reached With US$25,000, he has since entered the ranks of the American middle class. At this time, it had been thirty-two years since he joined Lily Company in 1922 to sell paper cups. Due to experiencing too many hardships in starting a business, the fifty-two-year-old Kroc was already suffering from numerous injuries and illnesses. He suffered from arthritis, diabetes, etc. He also had symptoms of thyroid enlargement and had his gallbladder removed. However, it is not bad to have such a big career in life, and Kroc can enjoy a wonderful later life in his career. He joined a country club where celebrities gathered and lived a carefree life that many Americans dream of. In the eyes of his friends, his career has reached its peak and there is no room for further development for him. However, his peaceful and comfortable life did not last long. By chance, Kroc stood at the starting point of a new career.

Two

It was one day in November 1954. Kroc met a business bar owner in Washington. The owner said to him: "I want you to sell to A milkshake machine like a McDonald's fast food restaurant in San Bernardino, California." Kroc didn't take the boss's words to heart at the time. However, what he did not expect was that in the following days, more and more bosses made this request to him. Kroc was puzzled by this: "It's really strange. My machines are everywhere. Why do everyone want me to sell milkshake machines to McDonald's?" At this time, McDonald's sent another request to Kroc. Order for two milkshake machines. This can't help but surprise Kroc, because a fast food restaurant has one or two milkshake machines, which is enough to provide five to ten cups of milkshakes at the same time, while McDonald's has eight machines, which can provide forty cups of milkshakes at the same time. Isn't that enough? Surprised, he called the company's salesman in the west and asked: "What are they doing with so many machines?" The salesman shouted at the other end: "They are all put to use!" "All of them are put to use?" "Klock couldn't believe his ears, and he decided to go find out.

The McDonald's fast food restaurant is located in San Bedino, a burgeoning town 80 kilometers northeast of Los Angeles.

"That would just give us a lot of headaches, and where are we going to find the right people?" said brother Richard.

"What do you think of me?" Kroc took courage and said.

Perhaps Kroc's extraordinary experience moved the brothers, and the McDonald brothers subsequently negotiated cooperation with Kroc. Kroc serves as the sole agent for McDonald's to promote its fast food restaurants nationwide. The contract period between the two parties is ten years. Kroc directly charges franchisees a licensing fee of US$950, and the company withdraws 1.9% of the franchise chain's sales as a guide. Fees, 0.5% of which belong to McDonald Brothers and others.

三

On March 2, 1955, the headquarters of McDonald's Corporation, with Kroc as chairman and general manager, was listed in Chicago, USA. In April of the same year, the first standard McDonald's chain store founded by Kroc also officially opened in Despumont, on the West Side of Chicago. This was also the first truly modern McDonald's franchise store in the world. From the beginning, Kroc intended the store to be a model for future franchises. He created a set of extremely strict operating systems for this purpose. This is the famous unified management system with QSCVO as the core (Q_ualitb-hamburgers with high quality, delicious taste and comprehensive nutrition. Service-fast, agile, warm and thoughtful service; Cleanness-the store is clean and sanitary, and the environment is pleasant; Value-reasonable price, high quality and convenience) . Facts have proved that Kroc's method is very effective. Less than a year after opening, the store has achieved impressive annual revenue of US$158,000. In July of the same year, Kroc sold his first franchise in Fresno, California, and opened a second chain store. By the end of the year, the two chains had combined sales of $235,000. Although the McDonald's chain business first tried its best, it achieved great success. But Crocodile couldn't be happy at all. The agreement with the McDonald brothers was like a sharp knife stuck in his heart, making him unable to sleep or eat well. Because all he owns is the right to promote the McDonald's national chain, not everything about McDonald's, the McDonald brothers have the right to terminate their contract with Kroc at any time. Moreover, according to the contract, the McDonald brothers can reap profits from the 300 chain stores that Kroc has painstakingly managed every year, with net income reaching hundreds of thousands of dollars every year. This also makes Kroc unwilling. As the ten-year agreement period between Kroc and the McDonald brothers approaches, the initial mutual appreciation between the two parties has turned into mutual suspicion. Kroc's worries were growing day by day. He knew very well that unless the McDonald brothers were asked to leave, the company would not be able to develop. "I must buy all the rights to McDonald's and replace the McDonald brothers. No matter what the outcome, this is to have my own business and develop my own kingdom. No matter how high the price is, I must pay it!" Kroc said after some careful consideration , finally decided to have a showdown with the McDonald brothers.

Actually, the reality is not as difficult as Kroc imagined in advance. Because the McDonald brothers did not have the same ambitions as Kroc, McDonald's thriving fast food chain did not inspire their passion for entrepreneurship. They just wanted a comfortable and quiet life. The brothers told Kroc: "Ever since the Great Depression cost us the movie theater, we have been determined to have a secure life without having to worry about rent. Now that goal has been achieved. We have a car house full of Cadillacs. Brand-name cars), there are still several houses along the California coast. Even if our wealth increases by another five million dollars, what difference will it make to today?" The words of the McDonald brothers made Kroc excited. However, when he proposed on the phone to purchase all McDonald's intangible assets such as McDonald's brand, trademark, logo, system model, etc. for US$250,000. But the McDonald brothers said categorically on the other end of the phone: "Unless you pay 2.7 million U.S. dollars, and not a penny less. Each of us brothers will get 1 million, and Uncle Sam (the U.S. Internal Revenue Service) will get 700,000."

“2.7 million US dollars, the price you offered is too outrageous!” Kroc called down the phone hard, he was so angry.

Although Kroc has opened more than 200 chain stores in the past few years as an agent, he only collected a pitiful royalty of US$950 per store, plus a 1.4% business commission. It is also used in the initial establishment and system operation of chain stores, and it is often difficult to make a living and can only be subsidized by the income from the milkshake machine. US$2.7 million is undoubtedly an astronomical figure for him! However, when he calmed down, he gritted his teeth and decided to take another risk. He really loved McDonald's so much and wanted to own McDonald's so much! After many efforts, Kroc finally obtained a loan of US$2.7 million from a New York consortium. The conditions are naturally shockingly harsh, with annual interest of RMB 6, repayable in three installments; McDonald's has to use RMB 5 of its monthly turnover to repay the principal; creditors enjoy an annual dividend of RMB 0.5 during McDonald's repayment period. But this did not faze Kroc. In 1961, Kroc accomplished the astonishing move in his life, acquiring all of McDonald's, replacing the McDonald brothers, and truly becoming the owner of McDonald's. McDonald's finally got a free sky. Nothing could stop Kroc. In order to make McDonald's fast food industry stronger and bigger. Kroc has put forward more stringent requirements for enterprises. Any french fries left unsold for more than seven minutes or hamburgers left unsold for more than ten minutes will be thrown away. In order to keep the restaurant clean, he stipulated that the employees must shave every day, have their nails done, and not grow their hair long. Women are not allowed to wear nail polish or excessive makeup. As soon as the customer leaves, the service staff must clean the table and pick up any pieces of paper thrown on the ground immediately. Cigarettes and newspapers are not allowed to be sold in the restaurant. In order to attract customers, Kroc also created the unforgettable clown image of "Ronald McDonald": a tray with hamburgers, malted milk and potato chips on his head, a pair of McDonald's cups on his nose, and shoes on his feet. Two large loaves of bread. Ronald McDonald won the cheers of children as soon as he appeared on the scene, and McDonald's business soared.

While Kroc was making great efforts for his own business, the easily satisfied McDonald brothers each took the transfer fee of one million US dollars received from Kroc to show off their wealth to people everywhere. Of course, Kroc has not forgotten the McDonald brothers at this time. He built an identical McDonald's next to the McDonald brothers' original store. Since Kroc had purchased all the rights to McDonald's, the McDonald brothers had to change the name of their store to "Big Mac." As a result, people thought that the McDonald's store had moved and started to eat at the newly opened McDonald's. The business of "Big Mac" plummeted, with its turnover falling from US$400,000 in the past year to US$81,000 in 1967. Seeing customers lining up in front of Kroc's McDonald's, the McDonald brothers could only shake their heads and sigh, with a wry smile on their faces. Later, it was painful to sell the store. In the end, this original McDonald's store became a record store. Soon, in order to expand his own business, Kroc adopted Sonnenborn's suggestion not to sell hamburgers or land. For this purpose, a company was established to purchase or lease land for use by McDonald's branches. The branch owner paid him a certain monthly rent or a part of the income as land use fees. This move greatly benefited Kroc. After gaining power and freedom, Kroc's career made rapid progress, and he quickly established a huge fast food kingdom. In 1961, McDonald's had 323 chain stores in the United States. Since then, it has been developing at the rate of building more than 100 new stores every year. By 1964, the number increased to 657, in 1965 it reached 710, and in 1967 it increased to more than 900.

Despite his great achievements, Kroc is still running for McDonald's business with great energy. On January 14, 1984, when this 84-year-old man was carefully observing McDonald's operations with a telescope in San Diego, California, he was about to write down several problems he discovered when the pen in his hand suddenly slipped to the ground and his body collapsed. Crooked, never stood up again.

Klock is gone, but the McDonald's business he created is moving forward at an alarming rate. By Kroc's death in 1984, the McDonald's store he founded was growing at a rate of one new store every 17 hours. Now McDonald's has become a veritable "fast food king" and has become one of the three major brands in the United States along with Marlboro and Coca-Cola.