Overview
This documentary provides a comprehensive account of McDonald’s history, from its early days with the McDonald brothers to its global expansion under Ray Kroc, highlighting key innovations, corporate milestones, and cultural impact.
Early Beginnings and McDonald Brothers
- Maurice “Mac” and Richard “Dick” McDonald were sons of Irish immigrants in New Hampshire, initially seeking wealth and opportunity.
- Moved to Hollywood, worked in film industry, then managed the Mission Theater during the Great Depression.
- Noticed food stands attracted more business than theaters and sold the Beacon Theater to open their first food stand, the Air Dome, in 1937.
- In 1940, relocated to San Bernardino, CA, launching McDonald’s Barbecue with a 25-item menu, primarily barbecue and some hamburgers.
Innovation and Business Model Shift
- Observed that hamburgers outsold other menu items, leading to closure and complete redesign in 1948 for efficiency and speed.
- Introduced assembly line kitchen, eliminated carhops, and focused on a 6-item menu for quick service under the mascot “Speedee.”
- Initially met with resistance, but eventually gained popularity for its fast, affordable food.
Franchising and Expansion
- 1953: Began franchising; first franchise located in Phoenix, AZ.
- Hired architect Stanley Meston to design the Golden Arches, giving McDonald’s its iconic look.
- Developed condiment dispensers for consistency, streamlining kitchen operations.
Ray Kroc’s Entry and Growth
- Ray Kroc, a milkshake machine salesman, was impressed by McDonald’s efficiency and secured a franchise agreement in 1954.
- Founded McDonald’s System, Inc. in 1955 to expand franchises, focusing on consistency and operational standards.
- Solved financial challenges via Franchise Realty Corporation, transforming McDonald’s into a real estate-driven business model.
Product and Marketing Innovations
- Introduced french fries, milkshakes, Big Mac (1967), Filet-O-Fish (1962), Egg McMuffin (1972), and Quarter Pounder (1971-72).
- Emphasized standardization: all locations offered identical products and experiences.
- Debuted Ronald McDonald as mascot in 1963, followed by McDonaldland characters.
Corporate Developments and Challenges
- Transitioned to public company in 1965; rapid U.S. and international growth through the 1970s and 1980s.
- Faced internal leadership conflicts (Kroc vs. Sonneborn), product failures (e.g., Hula Burger, Arch Deluxe), and legal challenges (e.g., hot coffee lawsuit).
- Adapted to changing consumer preferences with healthier menu options, promotional tie-ins, and store redesigns.
Globalization and Cultural Impact
- Expanded to over 100 countries with thousands of restaurants; introduced localized menus and innovations (e.g., McCafé, McDelivery).
- Created enduring cultural icons (Happy Meal, Monopoly promotion, Shamrock Shake).
- Supported philanthropy through Ronald McDonald House Charities.
Decisions
- Sell McDonald’s name and rights to Ray Kroc: The McDonald brothers sold out for $2.7 million in 1961.
- Shift menu to core items for efficiency: Focused on hamburgers, fries, and shakes to speed service.
- Switch to real estate-driven franchise model: Adopted under Harry Sonneborn to drive growth.
Action Items
- TBD – Future Content: Additional McDonald’s innovations and stories to be covered in upcoming projects.
Key Dates / Deadlines
- 1940: McDonald’s Barbecue opens in San Bernardino.
- 1948: Store reopens with “Speedee Service System.”
- 1955: Ray Kroc opens first franchised McDonald’s in Des Plaines, IL.
- 1961: Kroc acquires full rights from McDonald brothers.
- 1967-1971: First international stores open in Canada, Puerto Rico, Australia, Japan, and Europe.
- 1963: Ronald McDonald introduced.
- 1979: Happy Meal introduced nationally.
- 1983: Chicken McNuggets go national.
- 1984: Ray Kroc dies.
- 1994: Hot coffee lawsuit case.
- 2002: First quarterly loss; new store concepts tested.
- 2015: All-day breakfast introduced in the U.S.
Questions / Follow-Ups
- Uncertainty remains regarding creation of the Shamrock Shake.
- Future exploration of McDonald’s lesser-known menu items and innovations is planned.