Transcript for:
McDonald's History and Innovations

mcdonald's is a restaurant that is famous for serving hamburgers fries milkshakes and other signature sandwiches that has made the fast food chain an icon since its creation in 1948 there are over 38 000 mcdonald's restaurants in over 100 countries worldwide mcdonald's takes on the task of serving 69 million people around the world daily and since the restaurant's existence one out of every eight americans have worked at a mcdonald's the history of mcdonald's it starts in the early 1900s with two brothers maurice also known as mac mcdonald born november 26 1902 and richard mcdonald as most people called him dick mcdonald born february 16 1909 to patrick and marguerite mcdonald along with their parents and their three sisters mack and dick mcdonald were part of a poor family of irish immigrants who found a place to settle in rural new hampshire their father patrick who worked in a shoe factory worked in the factory for 42 years until he was laid off with no pension which led to the mcdonald brothers realizing that their area in new hampshire didn't have much for them that would make a decent living or a great life the mcdonald brothers at a very early age focused on being millionaires richard mcdonald at eight years old determined to be rich told his father that he was going to be a millionaire 1926 with the help of a distant relative working in hollywood california at the time mac mcdonald then decided to pack his bags and head west the distant relative had connections with the booming movie industry and said he could hook the brothers up with jobs dick mcdonald after graduating high school in 1927 also moved to hollywood to be with his brother and work on their dreams now living in hollywood the freshly implanted new hampshire brothers worked as handymen truck drivers and set movers at columbia movie studios on sets of various silent films at the time they realized after getting paid 25 dollars a week that it wasn't going to be enough to become the millionaires that they dreamed of being and the fact that there was no future in the work that the brothers were doing as well they decided to save as much money as they could and find a way to still stay in the movie business even though they're trying to save money the mcdonald brothers were still pretty much flat broke and in 1930 they were hearing talks from other people in the film industry and what these people were talking about was a random movie theater about 20 miles outside of los angeles california called mission theater with the combination of slow business and hardly making a profit if any at all the owner of the mission theater wanted to be out on the lease so the brothers approached the owner of the mission theater and they said look we don't have any money but we will take on the lease and if we happen to make money later on down the road we'll sit down and we'll figure out a deal and so that's how the mcdonald brothers wound up running a movie theater the mission theater had the capacity to seat 750 moviegoers and the brothers also installed a snack bar as well in 1931 the mcdonald brothers then opened up the theater with a new name the beacon as the beacon opened up in the first couple years of the great depression that was due to the major stock market crash of 1929 business was slow and it was just enough to keep things operating throughout the early to mid 1930s with the brothers putting all of their money into the theater and not too much of any profit coming from it they're always behind on monthly bills to keep the theater running in extreme times with the fears that the theater was going to be foreclosed on the brothers bury their silver in the backyard since this was in the middle of the great depression a lot of the other area businesses around the beacon theater weren't making that much money either the brothers noticed though when they'd opened up the front doors to the theater and looked outside they saw that this root beer and hot dog stand on the corner was getting a lot of customers all the time so after seven years of running a movie theater the mcdonald brothers saw that food sold a lot more than movie tickets so the beacon theater was sold off and the mcdonald brothers used the money from the sale of the beacon to set their sights into getting into the food business in 1937 the brothers at this time then opened a food stand called the air dome it was an octagon-shaped food stand near the monrovia airport along route 66. hot dogs were the first things that were sold at the air dome and then later hamburgers were added at the cost of 10 cents each along with all you could drink orange juice for 5 cents now why all you can drink orange juice well they lived in an orange grove town and there's an ample supply of oranges so they had enough oranges to be able to supply all you could drink orange juice being located in a town where the biggest appeal of the town was the race track the brothers made quite a lot of business during the racing season but as soon as the season was over business got really slow in 1940 due to the slow season being a factor the mcdonald brothers wanted to get away from their current location and move somewhere else but they needed the money so they looked to a bunch of different banks to try to get loans here and there and almost every bank denied them except the bank of america which then granted the mcdonald brothers five thousand dollars so with the five thousand dollar loan in hand the two brothers moved the entire food stand 45 miles east to a working class town with a population of one hundred thousand called san bernardino california and with this move came a huge overhaul of the menu with a total of 25 items which was made of mostly barbecue and also a new name turning the food stand's name from the air dome to mcdonald's barbecue the mcdonald brothers didn't know anything about making barbecue but after a few days of someone showing them the ropes of working a barbecue pit they were set and they were on their way now at this period in time drive-ins were a huge thing very very popular and so mcdonald's barbecue was set on a corner lot with drive-in service so at this point this is when things started booming for the mcdonald brothers as they were making forty thousand dollars a year from mcdonald's barbecue that's roughly about seven hundred thousand dollars in today's money now there are two demographics of customers who usually frequented a drive-in there were the teenagers to the young men in their 20s who were only there to flirt with the younger women who worked as car hops and then there were also the working class families just wanting a cheap meal and the mcdonald brothers saw that the young working families were more of what they wanted to serve more than the rowdy teenagers that were just there uh wasting time a fun little fact about the mcdonald's barbecue drive-in is that the old uniforms from the beacon theater were re-used by the carhops to wear while they were working even though the carhop business was a success the mcdonald brothers wanted to see more growth and were making plans for remodeling the business as world war ii ended and in america approaching a new age based on how fast things could be serviced or food could be prepared they realized they needed a quicker way to serve food the brothers looked at the car hops and they saw them as slow and unreliable and they spent a lot of time flirting with the customers in order to get larger tips they also looked at the menu and tallied up what sold the most and what they realized from all of the barbecue sandwiches and everything else it was the hamburgers that made the large part of the sales so based on the large number of sales and how hamburgers were easily able to cook and make they laid out their ideas and in october of 1948 closed down their drive-in to redesign this new version of the restaurant looking for full efficiency they looked at how the ford model t was built with the ford assembly line and turned their kitchen and cooking area to much like an assembly line while construction and renovations were underway the sign out front of the san bernardino location read closed for alterations the first one in america the drive-in hamburger bar owned and operated by mcdonald brothers dropping the word barbecue from their name and now simply going by mcdonald's on december 12 1948 the first mcdonald's reopened to a fully new and redesigned look and feel they dropped most of their menu items for a more simple menu and this original menu consisted of six items hamburgers cheeseburgers potato chips coffee soft drinks and apple pie the 20 car hops were eliminated which meant no waiting staff and orders were taken and food was served at the counter as there are self-serve areas with condiments and napkins and trash cans where customers could dispose of their own trash much like the past food stands the mcdonald brothers had this one also had no dining area and relied on the people driving up getting out and ordering from the counter along with all of these designs also came a mascot a chubby man with a hamburger head with a chef's hat and his name was speedy to represent the restaurant's quick service as these redesigns and cuts happened this made mcdonald's able to sell their burgers for half as much as any other restaurants a lot of people around this time thought the mcdonald brothers were crazy for switching up their whole design of their restaurant and at first the customers really weren't that happy about the new restaurant they would drive up honk their horns and flash their lights waiting for a car hop to come out and then they just leave when they realized no one was going to come out the first month of business for mcdonald's was pitiful it was just sad it got so bad that they would have employees park their cars in front of the mcdonald's to give it the look that there was a lot of people eating there and business was booming the first couple months with all their tactics to try to draw people in it still failed the brothers started talking to each other and said hey you know what maybe this ain't gonna work out maybe let's just go back to barbecue in the drive-in but as fate would have it they decided to keep going with this idea after about three months of being in business they started to collect a few customers here and there these consisted of cab drivers sales clerks and construction workers and they liked eating at mcdonald's because they love the quickness and they could get their food and not have to wait so long while they're on their lunch break from their jobs there was another factor that started making mcdonald's take off is that the younger customers the kids and teenagers thought it was a neat idea to be able to order food themselves and get their order and carry their trays of food around and do things for themselves all this slow but gradual collection of customers it became a massive hit in the area to the point where the mcdonald brothers were pulling in a hundred thousand dollars a year and so we're at 1949 and potato chips on the menu are now replaced with french fries and apple pies are now replaced with milkshakes instead of food taking 20 minutes to be served on say a lunch break or dinner it took only one minute instead 1952 mcdonald's was featured in american restaurant magazine with a picture of the restaurant stating quote the most revolutionary development in the restaurant industry in the past 50 years with this article in the magazine people from all over the united states came to try out mcdonald's the mcdonald's brothers realized that the old octagon-shaped food stand was needing a special unique look dick mcdonald was looking at different shapes of buildings that other food stands had and he really wasn't satisfied he saw most of them as scrawny and small and when he looked at the house he lived in with the big columns in the front he drew up an idea of the restaurant with four columns and then he said ah that looks terrible and then he made one with an arch going parallel with the building then he realized hey that didn't look too bad and then he drew two arches running along each side of the building and then he realized that that look gave the building a lot of flair after interviewing at least four different architects together the brothers hired stanley clark meston to work together to design a new building for mcdonald's meston with his assistant charles fish found various ways to improve efficiency they even drew out the exact measurements of every single piece of equipment they had in the kitchen in the tennis court in the backyard of the mcdonald brothers house besides the improvements they gave mcdonald's a more unique look compared to the other restaurants as it had red and white tile along with stainless steel colorful sheet metal large panes of glass white red yellow and green neon lights that pulsed and most of all two 25 foot yellow arches made of sheet metal with neon trim and even during the early stages of design they called these two arches the golden arches during the process of looking at how faster burgers could be made the brothers looked at which condiments were used the most as workers making the burgers at the time were using a wooden spoon to put condiments on three or four burgers at a time it was a problem and dick mcdonald needed to find a way to solve it so as a kid he remembered having peppermint patties and realized how every single peppermint patty had the same amount every single time so he went to a candy factory posing as a writer saying he was going to do a story about the candy factory to figure this out a woman at the candy factory took him to a marble table where they made peppermint patties and showed dick this metal cone with a hole at the bottom with a stick inside that whenever you'd lift the stick for a certain amount of time that was the way everything came out evenly dick mcdonald knew that this was the key for the mustard and ketchup being added to the burgers he then came back and asked a machinist that did experimental work for the mcdonald brothers if he could find a way to make a funnel that would give the right amount each time because if the stick was lifted too much there'd be more the same as if it was lifted less which in turn would give less of the condiment so he figured the best way was to make a trigger to make the condiment dispenser give the right amount every time still as richard mcdonald's dream of becoming a millionaire by 50 years old was still a bit off they started getting into franchising the golden arch design and the system by may 1953 neil fox who owned a string of gas stations up and down the coast of california he became the first franchisee opening his mcdonald's with the golden arches design in phoenix arizona later a second franchisee was from neil fox's brother-in-law roger williams and bud landon williams and landon opened their mcdonald's august 18 1953 in downey california this location is known as the oldest surviving mcdonald's as it stayed true to its original look and it's never had to comply with any changes from the mcdonald's corporation created by ray kroc because this was franchised out by the mcdonald brothers so they were under a totally different contract so this is the oldest authentic looking mcdonald's from back in the day as they knew their restaurant was going to be big they wanted to quit franchising and build mcdonald's restaurants up and down the coast of california but after looking at this non-franchise way of doing things the brothers realized that they would have to take care of all of these restaurants themselves and it'd be a lot more trouble than it was worth the brothers then hired a franchise agent bill tancy and he sold 21 franchises and from these franchise sales nine more mcdonald's restaurants opened but then bill ran into some health problems and had to pull out of helping mcdonald's now as many people who have any amount of an idea of who ray kroc is you know we really can't tell the history of mcdonald's unless he is brought into the picture so at this point ray kroc he was the exclusive salesman of the multimixer and the multi-mixer is a milkshake mixer that can mix five milkshakes at once so as he noticed in his sales that mcdonald's had ordered eight multi-mixers for one restaurant he flew out to visit the mcdonald's to see how they were running things and he was truly impressed so now we're gonna dig into ray kroc's life and give a brief but really not so brief history of ray kroc from his beginnings to where he was in life at this point and from here on out mcdonald's will then skyrocket into what it is today all because of ray kroc [Music] raymond albert crock was born on october 5th 1902 to the couple lewis and rose crock which lewis immigrated to the united states from the czech republic lewis crock loved baseball and worked for western union since the age of 12 ultimately becoming the superintendent rey's mother rose who was born in the united states was a housewife and taught piano lessons as ray kroc grew up in oak park illinois a suburb of chicago illinois ray learned how to play the piano from his mother's lessons which led him to play the organ at his church he also enjoyed playing baseball with his friends and working odd jobs at grocery stores and later having a lemonade stand outside of his parents house between eighth grade and the first year of high school ray worked at his uncle's drug store and he learned how to make people more comfortable with a smile and a friendly salesman conversation and making people purchase more food than they originally came in for attending high school in oak park illinois ray grew to be highly intelligent not the type that would study and find books entertaining but ray was always imagining things and thinking of a way to make them happen as he had a lot of confidence in himself he was superior during debates at school as he was always able to convince anyone to see his point of view in the summer of 1916 when ray was 14 years old he saved up all the money he made from working other jobs and him and his two friends all put in a hundred dollars each and opened up a music shop and they sold sheet music along with small instruments like ocarinas and ukuleles rey would dress up in a sharp suit to impress the ladies passing by hoping to draw them in to sell some sheet music that he'd play on the piano but after a few months with little to no sales ray and his two friends cut their losses sold their remaining stock to a larger music store and split between sophomore and junior year high school ray sold coffee beans along with a few other things and realized he was done with school and dropped out as the united states had entered world war one at this time everyone was talking about going over and helping the cause ray knew that that's where he wanted to be he lied about his age to get into and join the red cross signing up as an ambulance driver to be shipped overseas while in training at the camp in connecticut he came across another kid who lied about his age to get in everyone in the training camp saw this kid as kind of odd because when everybody else would be out in their off time he would stay back at the camp and just keep drawing he was none other than walter elias or as most people know him as walt disney and as walter got assigned to learn how to repair motors and drive cars on rough terrain he wound up getting influenza and was sent home ray kroc however he never got to be sent overseas as the war ended before he was assigned then he was just sent back home to chicago where he went back to school only to drop out and start working in the real world instead in 1919 ray now 17 years old by the request of his parents went back to school but then dropped out again after one semester and he started selling ribbon novelties and playing piano and fun fact he once played at a brothel and if you read his book grinding it out uh the one woman he describes in that book is just the way he describes her is just hilarious i definitely recommend checking the book out in the summer of 1919 ray gave up selling ribbon novelties and he started playing in a band at pawpaw lake at a popular summer resort called edgewater along the lake were hotels and businesses that would have visitors that would come over to edgewater's pavilion to attend dances and see the band play this is when rey met his future wife ethel fleming she was the daughter of an owner of one of the hotels near the lake when ray and ethel first met they hit it off perfectly and after that they were inseparable early 1920 ray's father got a promotion at his job to work for adt and with this new job the kroc family had to move to new york rey was wanting to marry ethel and he didn't want to move but he wound up moving anyways to new york and he worked the cashier's cage at the wooster thomas office and one morning ray shows up for work and he sees that the office is boarded up and there's a posting stating that it had gone bankrupt rey out of a job and happy to have a reason to go back home ray left to go back to chicago and his family followed soon after as they realized they weren't really happy in new york 1922 rey ready to marry ethel his father gave him some advice that if he wanted to marry a woman then he better have a steady job so rey looked and he saw that these things were preventing infection during the great american flu epidemic of 1918 and they were quite innovative and getting more popular so we got into selling paper cups and after getting hired at the lily tulip paper cup company ray kroc and ethel fleming got married 1923 ray now 21 years old being very personable with his customers and always checking up on them it led him to be the top salesman for lilly tulip and at this time ray young and hard working he really started showing how much of a hard worker he was he'd be waking up early every morning and by 7 am he'd be hitting the soda fountains in the area and then by 5 30 p.m he would go to his other job for radio station wges which had a studio in a hotel a few blocks away from where rey and ethel lived during the evenings ray would play the piano at the radio station from six to eight leave to go home and get dinner and then come back to the station to play from 11 pm to 2 am go home then by 7 a.m he'd be back out on the street selling paper cups this nearly around-the-clock schedule of work started to strain the relationship between rey and his wife ethel things got less tense though when rey started getting time off on saturdays to spend with his wife october 1924 rey and ethel had their first and only child a baby girl named marilyn spring 1925 ray struck up a friendly chat with the owner of a german restaurant about cars ray wound up getting the account to sell cups to this restaurant and this made ray enough money to buy a new ford model t right off the lot now during the cold winters in chicago this made the paper cup business slowed down and at this time ray saw real estate in florida booming almost comparable to the gold rush so ray taking a chance at it was granted a five-month leave of absence and moved to florida ray quickly found a job selling real estate for wf morang and son ray was legitimate but the boom seemed too good to be true as the boom ended and suddenly business went to a complete stop now freshly out of the real estate business ray thought of going back to chicago but someone overheard him messing with a piano in his house and got him into playing in the willard robinson orchestra after a while of playing in the nightclub ray was making 110 dollars a week which got ready to rent out a much larger apartment for his wife and his sister-in-law as this was the time of prohibition on alcohol and the nightclub ray played at illegally served alcohol it eventually got busted from cops getting past security too quick before people could hide their drinks everyone including ray got thrown in jail three hours later though ray was released and took a look at his life in florida and his wife at this point was homesick and his sister-in-law was dating a man and living her own life in florida so ray and ethel and their daughter marilyn headed back to chicago 1927 ray chucked playing the piano on the side to make some extra money and he focused solely on selling paper cups for lilly tulip and he started selling smaller paper cups to street vendors and larger cups to concession stands at beaches and zoos everywhere you could think of in 1930 ray putting in hard work selling paper cups he snagged a deal selling paper cups to the walgreen drug company and after snagging this account ray went on to get other larger business accounts as well and through the 1930s even with the economic depression at an all-time high ray was so successful at selling paper cups that he was able to buy a brand new buick hire a secretary and also have a living maid at his home 1932 croc was surrounded by all kinds of things that were growing and showing up everywhere as he sold paper cups and one of the things that he saw were these little stone castles all over the state of illinois these castles were set up by an engineer and a customer of ray crock's earl prince prince called these ice cream shops prince castle ice cream parlors in michigan ray had another customer who was making a new form of milkshake that was a lot thicker and colder it was a more frozen style of milkshake that wasn't as runny as the milkshakes at the time walter fredenhagen owned the prince castles in ray crock's area ray mentioned this new form of milkshake to walter but walter said it was you know just another thing that he just didn't want to deal with ray he finally convinced walter and earl prince to check out the milkshakes in michigan after the two saw the milkshakes for themselves they knew they had to start their own version of the thicker and colder milkshake as they set out to make their version of this milkshake they realized that the one spindle mixers would always burn out as they would repeatedly be making milkshakes and that's when earl prince invented the multi-mixer it was a milkshake mixer with six spindles that could make six milkshakes at once it was originally six spindles but then over time they were realizing messes happened when there was six it was just too much so they cut it down to five spindles instead and that's what became the standard ray was ecstatic to show off the multi-mixer to lily tulip cup company and they loved it and they signed a contract for sanitary cup and service corporation to be the exclusive distributor of the multi-mixer but when lily tulip headquarters in new york caught wind of this they frowned upon it stating that they were only a paper cup company that was it nothing more ray kroc being disappointed about this earl prince told rey that he should just quit lily tulip and work for him exclusively selling the multi-mixer but there was still the contract that lily tulip had with sanitary cup for the multi-mixer crock angrily yelled and his boss worked out a deal finally where they would own 60 of prince castle sales and croc would own 40 percent 1938 sales were pretty slow for the multi-mixers starting out but all the while still ray was thinking of a way to get the sixty percent of ownership from sanitary cup and inevitably end up having full ownership ray had a small office in chicago the secretary did most of the office work as ray was always out traveling and trying to sell the multi-mixer to every soda fountain and restaurant that he could in 1940 after two years of selling the multi-mixer and it was slowly gaining some steam ray thought it was time to own it completely his old boss replied 68 thousand dollars in cash ray increased his mortgage to be able to pay the 12 000 in cash up front and his boss let him pay the rest of the 56 000 off over five years plus interest with his choice of work and getting into this debt this only worsened the marriage between rey and ethel it was probably the worst time to take on this debt because in december 1941 the united states entered world war ii and there was a restriction on the use of copper with copper needed to wind motors for the multi-mixers and earl prince unable to come up with any other inventions that didn't have restrictions ray found himself out of work but he quickly found a new job selling malted milk powder and paper cups called malta plenty late 1941 until the end of the war in 1945 ray selling multi-plenty was able to keep his life afloat and also continue paying off his debt to lily tulip to now he had full ownership of prince castle sales in 1945. as business boomed after the war ray was pushing his multi-mixers to tasty freezes dairy queens and a w root beer drive-ins the late 1940s were great years for ray selling on average 5 000 multi-mixers a year and one year selling 8 000 multi-mixers at 150 dollars a piece early 1950s though ray's sales were starting to look threatened as walgreens drugstores stated that they were removing soda fountains from their stores many more places soon followed as this was the time when suburbia was growing and as soda fountains were popular in the cities they were less and less frequented and this caused rey's customers to start dwindling down competition from other companies selling their version of multi-mixers didn't help either so as the multi-mixer was looking like it was going to hit a dead end soon ray was looking for a new and innovative product to sell that would have the same great effect just like the multi-mixer had ray thought he had something when one of his salesmen turned him to his neighbor who had built a kitchen table with benches that would fold up into the wall they called it the fulda nook it soon turned out though that the salesman who turned rey onto it was trying to con him in some kind of way and this made ray fire him along with not pursuing the fulda nook anymore so 1954 while ray was on the hunt trying to find the next big thing that he could sell he kept getting calls here and there asking about those mixers that the mcdonald brothers have after these calls and hearing a bit more buzz ray looked up the orders from this one restaurant in san bernardino and seen that they ordered multi-mixers in bulk it shocked him when he saw that the one store alone this mcdonald's restaurant needed eight multi-mixers so rey wondering why a restaurant would need so many multi-mixers he decided to fly out to this place he got to san bernardino early in the morning right before the mcdonald's opened he passed by it and saw it was just a small drive-in no seats inside and customers had to walk up to the window to order ray watched as the first cars pulled up which were the workers as they got ready to open up the mcdonald's the workers were all dressed up in clean-cut white button-down shirts and white pants wearing paper hats some getting the kitchen ready and the others heading to the back storage area running up sacks of potatoes on carts a combination of racing the uniforms and all these people working efficiently impressed him right away when 11 am hit mcdonald's open for business for the day and people started filling in and lining up almost instantly customers who had gotten their food were eating it like crazy it was insane for rae to see how much the people were eating up the food at this time most drive-ins had the motorcycle and teenager rough and tumble kind of crowd but mcdonald's had this family-oriented image which rey also liked looking at the people lining up and the others in the parking lot eating their food in their cars ray chatted up with some of the customers and he found out that most people liked mcdonald's because of their fries and hamburgers how great they tasted and also that most of their food was about half as much as any other restaurant when the crowds finally died down around 2 30 p.m rey then approached mack and dick mcdonald and they were more than happy to talk to rey the brothers referred to rey as mr multi-mixer this conversation led to a dinner that night where rey learned how the system of the restaurant worked step by step and how to prepare the food on its menu and its prices cheeseburgers were 19 cents hamburgers were 15 cents soft drinks were 10 cents milkshakes 20 cents and coffee was 5 cents after the dinner the brothers took rae to see the architect who is working on the new design of the mcdonald's this new design had yellow arches and neon lights croc in the back of his mind saw that there was a few flaws with it but yet again he was still amazed after the dinner and ray was back in his hotel room laying in bed he was sitting there thinking of having mcdonald's restaurants coast to coast in the country more importantly each of these restaurants having eight multi-mixers in each one which in turn would make him rich at this point croc had no intentions of owning mcdonald's he was just thinking of expanding mcdonald's restaurants so he could sell more multi-mixers so here we have ray kroc he's 52 years old he's suffering from a slew of different health problems from diabetes to arthritis he realized that the multi-mixer sales were dwindling and he had to do something about this seeing mcdonald's and how well they were doing he had to find some way to make something happen so the next day ray showed back up to mcdonald's and he studied how the burgers were grilled and more importantly how the french fries were made as they were the best fries that he and everyone else eating at mcdonald's had ever had after the lunch rush on the second day ray and the two mcdonald brothers were in the mcdonald brothers office and ray gave this big speech about how mcdonald's is a gold mine and they needed a strike and get more restaurants out there after rey gave this big enthusiastic speech it was met with dead silence mac mcdonald broke the silence and told rey that they liked the way they were living and they didn't intend to complicate things by opening up even more mcdonald's restaurants as it would just give them more headaches than anything rey then replied back to the mcdonald brothers saying that they didn't have to deal with it if they were to hire somebody to take care of the running and open up the new places for them the mcdonald brothers then asked rey who would want to bother doing that ray looked at himself and he said i could so after this meeting ray was back on a plane heading towards chicago with a signed contract from the mcdonald brothers to be their franchise agents the mcdonald brothers and rey's contract was that it was 1900 for the franchise fee along with ray kroc getting 1.9 percent of gross sales of any franchises he brought on board and the mcdonald brothers would get .5 percent of the gross sales at home the mcdonald's contract put more ice on ray and ethel's marriage as ray was now focusing almost 100 percent into mcdonald's which he had to in order to make a living for his family in 1955 ray started working as the franchise agent for mcdonald's and having the exclusive rights to sell the mcdonald's brothers method and with that he founded the mcdonald's system incorporated on april 15 1955 with the help of a friend art jacobs ray went in 50 50 with art to build their mcdonald's in the chicago suburb of des plaines illinois seven minutes away from rey's home the first year of ray's mcdonald's was filled with kinks even during the building process when he needed a basement in the mcdonald's in which the original blueprints of mcdonald's didn't have from temperature problems to keeping the store well ventilated to the fries not coming out like the ones that rae had tried at the mcdonald brothers store there was all kinds of problems so after three months rey had his own system down of having fans on the potatoes to make sure that the fries came out like they should so dealing with these problems after building the restaurant rey was made aware of two things after the agreement was done one was that the brothers had sold the name mcdonald's to 10 other stores in california and arizona the areas with those mcdonald's stores were off limits but the rest of the united states to franchise out stores were all rays and the second thing is that the mcdonald brothers sold the franchise rights of mcdonald's in cook county illinois where rey's mcdonald's was located to an ice cream company so rey had to buy out the rights from the company for twenty five thousand dollars twenty thousand dollars more than what the ice cream company had originally bought it for ray struggled to get the money together but luckily he still had money generated from prince castle sales so this is what ruffled the feathers between rey and the mcdonald brothers as the brothers never mentioned to rey that they sold the rights to the ice cream company prior [Music] [Music] so we're getting ahead of ourselves a bit let's go back to about a month after rey opened his mcdonald's made 1955 saw harry sonneborn come into the fold he had recently resigned as vice president of finance for tasty freeze which harry had ordered multi-mixers from rey before while working at tasty freeze he noticed how rae had a good thing going with his mcdonald's and called ray wanting to be a part of it rey knew that he needed help franchising mcdonald's but he was spread thin and he knew he couldn't afford anybody regardless harry met rey in rey's office harry 39 years old at the time walked in standing at six feet tall lanky but disciplined and serious as they discussed the high risks of franchising on a larger scale ray told harry at the end of the meeting that he couldn't afford to hire him harry then said he'll figure out the lowest amount he could take as a salary to support his family and bring it to rey hoping to be hired when harry came back he told ray he could work for a hundred dollars a week harry was hired on the spot as executive with his knowledge of the ins and outs of everything legal and financial he became a valuable asset to mcdonald's ray looked at mcdonald's as a family friendly place so we made sure franchises would not have pay phones jukeboxes or vending machines which would create an environment where people would hang out longer than it would take for them to eat their meals and leave by the end of 1955 kroc opened two more mcdonald's locations which grossed 235 thousand dollars in sales at every location ray used the mcdonald brothers format and also used the motto if you have time to lean you have time to clean to all of his workers including himself to make sure the restaurants were cleaned spotlessly 1956 eight mcdonald's restaurants were opened and rey wanted the franchise to be more than just a name that all kinds of different people used he wanted to make sure that every mcdonald's was the same so basically a mcdonald's in chicago would have the same exact food and appearance as it would in new york city or in santa claus indiana ray realized that he had to make a development business where all the mcdonald's would be under one marketing program nationwide but for all of that to happen hiring people to supervise and make sure each store operated smoothly took money so the solution for the money problem and to get this ball rolling it was all thought up by harry sonoborn with the franchise realty corporation it was designed only to hold mcdonald's real estate and this company signed leases and mortgages for the land and buildings passing the cost onto the franchisee with a 20 to 40 percent markup and with this they lowered the franchise fee to 950 dollars franchise realty started with a thousand dollars up front and harry turned it into 170 million dollars worth of real estate this became the biggest decision financially in mcdonald's history which has made the restaurant to be as big as it is as the same model is still in place today so as this happened ray harry and the secretary june worked like crazy around the clock in these early years feeding this baby of a restaurant to grow into the giant that it was destined to become with franchise realty up and running needing someone that could handle corporate operations ray thought back to a 23-year-old fred turner fred was part of a family group wanting to be a franchisee and while fred was waiting for his family group to figure out where they'd want to put their mcdonald's fred took up rae's offer to learn how mcdonald's operated at ray's displaying store right away fred was a natural leader making sure all things clicked in the store when the family group fell through and a franchise store wasn't built fred was then sent to be a manager at the mcdonald's in chicago and as soon as mcdonald's needed somebody to handle operations fred was pulled by rey to work for his newly appointed position january 1957 fred turner started work on operations of all mcdonald's stores for 475 dollars a month and throughout this time ray and harry were butting heads a lot but both still shared the same dream of making mcdonald's huge harry the more scholar and analytical and rey the more enthusiastic and people-pleasing type june martino the secretary had to be the cushion between the two to keep mcdonald's from imploding meanwhile fred turner had figured out the best shape and size of the hamburger patty one tenth of a pound 19 fat content all beef and no fillers by 1958 there were 34 mcdonald's restaurants and fred turner was handling all of the food and supply purchasing for mcdonald's 1959 the first mcdonald's location in hawaii opens up in honolulu harry sonnebourne became the president and ceo of mcdonald's and also they ran into trouble as one man planning to be a franchisee started building mcdonald's stores on land he didn't have the titles for there's not much more info on the man and what happened to him but ray who at the time had a net worth of 90 000 was having to borrow 400 000 to pay the mess left behind from this man so after this four hundred thousand dollar ordeal ray got the idea to build ten mcdonald's stores ran strictly by the company and through saunaborn three insurance companies came forward to lend 1.5 million dollars this lended money was in exchange for 22 and a half percent of mcdonald's stock the money from these insurance companies made mcdonald's grow like wildfire and it gave the mcdonald brothers back in california a nice chunk of change in 1960 the first company store was opened in columbus ohio ray wanted to bring in new ideas to further grow mcdonald's but due to his contract he had to get any changes that he wanted done approved by the mcdonald brothers ray was curious to see how the mcdonald's stores in california were running so he sent fred turner to check it out fred came back to report that the original san bernardino location was the only real legit mcdonald's the other locations had the burgers and fries but along with it they were serving pizza and another one was serving burritos and enchiladas the problem with this was all these extra menu items drug the quality of the hamburgers down which in turn gave the other mcdonald's restaurants a bad image ray brought it up to the brothers but the brothers just brushed it off and really just didn't care ray wanted to be in control of all the mcdonald's and the mcdonald's brand he was mad but he couldn't do anything about it so at the moment he just had to deal with it august 30th 1960 the 200th mcdonald's location was opened in knoxville tennessee and the first alaska mcdonald's location opens in the city of juneau in 1961 in minneapolis ray was having a dinner with a new franchisee and ray met a married woman who was playing the organ this was joni smith and he fell in love right away and small world because it just so happened that the franchisee was hiring joni smith's husband as the manager for his new mcdonald's restaurant now ray being a married man going to see the mcdonald's in minneapolis was a great excuse to see joni when ray would visit minneapolis he'd make small talk with joni he'd play piano as she'd play organ doing duets and they'd spend a lot of time talking on the phone long conversations at night as ray would tell joni all of his big dreams about mcdonald's and what the future could hold during one of these long phone conversations ray proposed to joni that they both should divorce from their significant others and get married as joan and ray both felt the same way about each other ray put the ball in jones court and divorced ethel right away through divorcing ethel rey wound up giving ethel the house the car all of the insurance and 30 000 a year for life the only thing that ray kept was his share of mcdonald's to pay for all of the legal fees through the divorce ray wound up selling prince castle sales for 150 thousand dollars ray saw this as a small price to pay to be able to marry joan and finally be happy when rey told joan the news joan was happy but joan hit ray with the bad news that she didn't divorce her husband and she needed more time to think about it so rey with a change of plans of not marrying joan right away he focused all of his time into mcdonald's even more with mac mcdonald's health declining and dick mcdonald wanting to retire rey was now determined more than ever and he was also tired of always having to go through the mcdonald brothers for approval of anything at all so rey asked the brothers how much it would cost to buy them out completely the brothers came up with a figure of 2.7 million dollars in cash only the brothers came up with this figure because 2.7 million meant both brothers would get a million dollars each in cash after taxes the obvious problem with this was that ray didn't have 2.7 million in cash so he asked the brothers to finance instead but the brothers were adamant about the 2.7 million in cash only so ray needing cash to buy out the mcdonald brothers and the insurance companies that they got money from previously being tapped out ray and harry found john bristol he was a financial advisor to various colleges and institutions and that led them to get the money so from 12 educational and other kinds of institutions from princeton university to howard university to even the ford foundation ray got the 2.7 million to pay off the mcdonald brothers and to be the sole owner of mcdonald's after the deal was done rey had the thought that the original san bernardino location was his as well the brothers went back on their deal which was through a handshake agreement and wound up keeping their original restaurant ray wanted this spot because it was a very popular spot and it drew a lot of money it was a great location and to not have it after paying the brothers off and owning the mcdonald's brand it got to him ray kroc not usually being a vengeful man he went to the brothers and made it aware that he owned the name mcdonald's and the brothers were legally made to change the name of their restaurant mcdonald's to the big m instead with ray kroc now completely owning mcdonald's the overall image of the restaurants kept some original things and brought in some new things as well the early mcdonald's mascot speedy with the hamburger head was cut and a new mcdonald's logo featuring the golden arches was brought in on the business side of things ray made it to where a franchisee could only own one store at a time this was done so no one owned one whole territory and gave ray kroc more control over mcdonald's altogether rey also sold all the supplies to the restaurants at a decent price and made sure that every franchise was making a decent profit so jumping out of the business side of things and back into rey's personal life later on in 1961 joni called rey after she thought it over and she gave him the news that she couldn't go through with divorcing her husband so after this ray packed his bags and he left chicago for california the first couple years in california for ray were lonely and he spent a lot of time in his house just filling it up with a bunch of stuff it was at this point that he saw reports of the mcdonald's stores and he noticed that joni and her husband opened their own mcdonald's in rapid city south dakota now bouncing back into the business side of things in rey's life which he had plenty to keep his mind occupied as there was a franchisee in cincinnati who was having problems selling on fridays as the city had a huge population of catholics who at the time couldn't eat meat on fridays the competing restaurant in town big boy had a fish sandwich on fridays that got all of the business so this franchisee mentioned that they should also serve a fish sandwich at mcdonald's ray didn't like this idea at first but he was okay with it after he was able to settle with what kind of fish would be served and after an employee added a slice of cheese to the sandwich it just set it off completely and rae gave this fish sandwich the green light to be served and rey named this sandwich the filleto fish so ray looking at this idea of having a sandwich with no meat in it he wanted to give the filleto fish some friendly competition so rey came up with the hula burger and the hula burger was a piece of grilled pineapple with two slices of cheese on a bun so starting on good friday in 1962 in select locations the hula burger and the flail fish were put on the menu the results from the sales of the hula burger and the filleto fish on good friday were filleto fish 350 to the hula burger at just six needless to say the hula burger was taken off the menu shortly after also in 1962 just to stick it to the mcdonald brothers ray kroc built a mcdonald's just a block away from their restaurant the big m 1963 ray fell in love with a woman by the name of jane green she was a really sweet and kind woman who also worked as the secretary for the movie star john wayne jane and ray would go on dates to the point where it was almost every night till just after two weeks of dating they got married 1963 also saw the new mcdonald's mascot in which he came in the form of a clown named ronald mcdonald the hamburger happy clown he's known all around the world with bright red hair wearing a yellow jumpsuit and red and white striped clothes underneath and wearing big red clown shoes he first appeared in three tv commercials and his appearance in these early years were much different than now the first incarnation had ronald with mangy hair wearing a tray of food on top of his head like a hat and the face makeup was about the same with the red and white these first commercials would be about ronald mcdonald bumping into kids and all of them going to mcdonald's as each of these commercials would end with ronald mcdonald skipping and jumping with cheerful music playing in the background the origin story of ronald mcdonald is mildly disputed as mcdonald's never flat out said who created the character but most evidence points to the man who first played ronald mcdonald willard scott willard scott played as bozo the clown on television from 1959 to 1962. bozo the clown was extremely popular at the time and when scott was done being bozo in 1963 he claimed that mcdonald's contacted him requesting to play as a hamburger happy clown in three television commercials the original ronald mcdonald look would last until 1966 when mcdonald's hired circus performer coco the clown to redesign ronald mcdonald's image to his classic look that people see today in 1965 ray kroc made himself president of mcdonald's ray started expanding on mcdonald's restaurants focusing on opening new restaurants in the suburbs of large cities close to where the majority of most people lived in april 1965 mcdonald's was getting huge but as money came in it kept going back out to feed the growth and not much money for extra costs for other endeavors so this was the factor into why they went public selling shares of the company at 22 dollars and 50 cents a piece and also in 1965 this is when mcdonald's switched from having employees cut potatoes to make french fries to using frozen french fries instead and by the end of 1965 mcdonald's had 700 restaurants in 44 states and on thanksgiving 1966 during the macy's day parade the new redesigned ronald mcdonald makes his television debut on the mcdonald's float featuring the mcdonald's all-american band by the end of 1966 mcdonald's saw harry sonneborn and ray kroc coming to a head as harry was having health problems and he was spending more time away from the office and more time with his wife in alabama rey was wanting to keep pushing mcdonald's and expanded even further than it already was but harry had other plans after talking to other financial buddies and he thought a recession in the coming year would doom the company so harry put a suspension on all existing plans of constructing new mcdonald's stores [Music] at the mcdonald's office there was a rift it was either you were team sauna born or you were team croc in which this also didn't make the environment any better after a few meetings and trying to deal with each other it inevitably came to blows and harry sonnebourne resigned as president from mcdonald's and then he sold all of his stock in mcdonald's as he felt that it would be worth nothing come 1967 and after that he moved to alabama along with harry sonoborn leaving mcdonald's a few more executives on harry's side left as well ray kroc then took over as president and chairman of the board and took off the suspension and started constructing new mcdonald's restaurants morale in the office was low but it slowly got better one person in particular who had really low morale was fred turner but over dinner one night with ray kroc ray had told fred that he will be president within the year after ray did some much-needed tying up of loose ends january 1967 prices of hamburgers were raised from 15 cents to 18 cents it was this year when one of the most famous sandwiches in all of history was created the big mac it was created by a franchisee from pittsburgh pennsylvania jim delegati the big mac consists of two beef patties a special sauce lettuce pickles american cheese onions and a three-piece sesame seed bun one for the top one for the bottom and a slim bun piece in the middle first debuting in delegates uniontown pennsylvania location it sold for 45 cents and went under two different names that didn't work out one name was the aristocrat which people had a hard time saying and the other name was the blue ribbon burger it was then named big mac by a 21 year old advertising secretary named esther rose sales of the big mac got huge and by 1968 the big mac was sold in all mcdonald's restaurants in the u.s the big mac was introduced to the nation as a meal disguised as a sandwich so around this time in mcdonald's history ray kroc was being called the founder of mcdonald's and there's a lot of people that will say well the mcdonald brothers are the founders of mcdonald's not ray kroc he came in and he stole it well as you hear in this story he didn't exactly steal it he put himself in over his eyes in debt but i do say that he is the founder of mcdonald's as everyone knows it as the world knows it today he may have not founded how the food was prepared or the original concept but he did found the mcdonald's corporation and needless to say if ray kroc never came across mcdonald's mcdonald's would have never been as big as it is today and speaking of the mcdonald brothers let's turn our sights over to them as they are still running the big m but they lost so much business as ray kroc put up the mcdonald's a block away this led to the mcdonald brothers selling the big m and quitting the food business for good mac mcdonald wound up getting married and dick mcdonald moved back to new hampshire and he married his childhood sweetheart after both being divorced from other people and for the rest of their lives neither dick or mac had any children of their own also in 1967 canada opens its first mcdonald's in richmond british columbia and the first mcdonald's restaurant in a territory of the united states opens in san juan puerto rico 1968 fred turner is appointed as president of mcdonald's and june martino the original mcdonald's secretary retires and she leaves the company extremely rich as she kept her mcdonald's stock and became an honorary director ray kroc after leaving the seat as president of mcdonald's was now chairman of the board and having time to spend elsewhere besides mcdonald's 24 7. ray kroc's job now was thinking of new ways to develop the restaurant he went to california to take things a little slower and as fate would have things it didn't get too calm as ray was invited to a convention in san diego to speak ray then noticed that jones smith the woman he had an undying love for was on the list of attendees the night before the date he was scheduled to speak ray was driven to a dinner in his rolls-royce seeing joan again ray was just as excited to see her as he did when they first met and they both wound up sitting next to each other at the table after dinner ray invited people to his hotel suite to carry on the party as raid played piano and everybody had drinks people slowly left to go to their rooms as the night went on even joan's husband left early by the end of the night the only people left in the room were rey joan and ray's driver carl as he was a safe buffer making sure nothing scandalous happened the three hung out talking on and on until joan finally left this meeting solidified jones readiness to divorce her husband mary ray rey's wife at the time jane as she was a sweet and warm woman joanie told rey to let her down gently because she didn't deserve to be dealt with so coldly ray agreed and through the divorce with jane jane was given the house in beverly hills mcdonald's opens its 1000th restaurant and up until this point the mcdonald's logo was two yellow arches criss-crossing over each other with a diagonal line going through both arches this changed with the diagonal line being taken out and both arches meeting in the center resembling the mcdonald's m logo that we all know today and to close up 1968 in a really sweet way ray was looking for a dessert item for the mcdonald's menu he tried out strawberry shortcake then he tried out pound cake then he reached out to see if anyone had any ideas and a franchisee in knoxville tennessee had his mom's apple pie recipe of these tiny size fried turnover styled apple pies they were crisp and golden all around with apple pie filling ray loved this idea and the knoxville location wound up being the supplier as it became a menu item across the entire united states by the 1970s march 8 1969 ray kroc and joan smith finally got married on a ranch home in southern california that ray had bought in 1965. june 1969 the look of all of the mcdonald's changed from the stainless steel double arch buildings with the very limited seating inside to the brick and mansard roof look which gave an expanded area for indoor seating that most mcdonald buildings still look like today other fast food chains started popping up and copying the mcdonald's method which ray would be mad about and he'd explained that the other chains were gimmicks and didn't offer the same quality of food and affordable prices ray kroc prided himself on having no soybean filler in the hamburgers and that all the hamburgers were 100 real beef and he made sure that the customers got their food in less than five minutes or they get their money back and by the end of 1969 mcdonald's sold its 5 billionth hamburger in 1970 the shamrock shake was first introduced to celebrate st patrick's day in the united states canada and ireland it was available leading up to and during the month of march and today it's known as a mint flavored shake with a green look the story of how the shamrock shake was created is a bit of a mystery as there's two different stories now when i research for the history of things i want to make sure i'm getting the right story and sometimes i will come across a conflicting story and i'll have to dig and dig and dig until i find which one is right and which one is wrong but with the shamrock shake both of these stories seem to have weight to them in one way or another so let's go over each story and i'm not going to tell you whether which one is true or which one isn't because i couldn't figure it out myself the first story is that mcdonald's franchisee hal rosen wanted to have a product to sell during st patrick's day and he came up with the mint shamrock shake in 1966. then there's the second story where the shake was created by rogers merchandising in chicago who was a client for mcdonald's and if this story is true this is the one where mcdonald's originally had lemon lime sherbet along with vanilla ice cream in to make the shamrock shake green and if we're still going along with this story in 1973 the lemon lime was taken out and it was just a vanilla shake with green coloring in it regardless the first mentioning that i could find with the shamrock shake having mint flavoring in it was from a paper advertisement in 1979 and then in 1980 an ad stating new minty shamrock shakes and shamrock sundays which the shamrock sunday was only available for the 1980 st patrick's day season and then after that it was discontinued due to poor sales so nevertheless by 1970 shamrock shakes were being sold at mcdonald's and then came mcdonaldland to where mcdonald's hired an advertising group to create commercials to appeal to kids more than just the simple ronald mcdonald spots and what they came up with was mcdonald land a fantasy land full of upbeat music with live action characters that were always out to get some kind of food from mcdonald's such as the hamburglar always trying to steal hamburgers the mcdonald land themed tv commercials carried on until 2003 and since being under new ownership when the mcdonald brothers sold it off in 1968 the original mcdonald's now called the big m closes its doors for good 1971 the first australian location in yaguna new south wales was opened and mcdonald's in australia is known locally as maccas the first asian mcdonald's opened in the summer of 1971 in japan in tokyo's ginza district and the first european mcdonald's opens in zandam netherlands and there was now a mcdonald's in all 50 states of the united states of america the first early version of the value meal was introduced in the form of the big meal that touted a meal including the big mac a side of fries and a soft drink mcdonald's also adopted the slogan you deserve a break today then a franchisee in fremont california al bernardin the man responsible for bringing frozen french fries to the attention of mcdonald's felt like there should be a burger on the menu that would have more meat to it as he experimented in his restaurant's kitchen he came up with the quarter pounder he started selling them at his mcdonald's using the slogan today fremont tomorrow the world by 1972 the quarter pounder was available on every mcdonald's menu in the united states then just after a year of it closing in 1970 the original san bernardino mcdonald's location was torn down and as the year came to an end mac mcdonald passed away from a heart attack on december 11 1971 at the age of 69. by 1972 mcdonald's was making a billion dollars in sales yearly as america became more fast paced and driven mcdonald's became the go-to place to get food while on the go then there was a franchise operator at the santa barbara california mcdonald's location and asked ray kroc to look into a new sandwich that they created which wound up being the egg mcmuffin it was a slice of canadian bacon a griddle fried egg that is cooked inside of a ring and a slice of american cheese on a toasted and buttered english muffin this gave ray the idea to get into the breakfast food market with mcdonald's a food also going along with the coffee morning customers would always purchase the first egg mcmuffin was served at the belleville new jersey mcdonald's in 1972 and as 1972 came to a close ray kroc wanted to do more with himself and by the end of the year he showed interest to buy the chicago cubs but it didn't pan out october 23rd 1973 the first swedish mcdonald's restaurant opens in stockholm in 1974 ray was looking at the san diego area and realized how beautiful it was so he looked into buying the san diego padres baseball team fortunately for ray the owner of the padres was in financial trouble and he was more than happy to sell the team off even though the san diego padres wasn't doing too hot at the time ray got deeply involved from the team to the office staff to the food being served at the ballpark he gave all the workers for the team raises even when they lost more games than they won at one point rey was so disgusted about how poorly the padres played that he jumped into the announcer's booth and apologized to everyone in the stadium of how bad they played even though rey was hard on the team every once in a while he still loved the whole experience then rey went on to open the first ronald mcdonald house in philadelphia pennsylvania which was a home away from home for families of children in nearby hospitals getting treatment seeing rival restaurant wendy's claiming to have their first modern drive-through window in 1971 mcdonald's opened its first drive through in 1975 in sierra vista arizona their goal was to have the order in and out in 50 seconds or less 1976 the 4000th mcdonald's opened in montreal canada where he also hired chef renee ahrend to make mcdonald's food more nutritious and to help create new menu items in 1977 ray kroc reassigned himself to the role of senior chairman and his book in autobiography grinding it out the making of mcdonald's is available in bookstores ray kroc also celebrated his 75th birthday where harry sonneborn and june martino attended and were all happy to have met again after all the years and disagreements closing out 1977 mcdonald's introduced their breakfast menu consisting of hot cakes toasted english muffins scrambled eggs sausage hash browns danishes and the egg mcmuffin 1978 the 5000th mcdonald's restaurant opens in kanagawa japan [Music] so we're going to branch back a little bit and look at the history of the happy meal so during the mid-1970s yolanna coffinio ran a mcdonald's with her husband in guatemala and created what she called menu ronald the menu ronald consisted of a hamburger small fries and a small sundae the aim of the menu ronald was to help moms easily order something for their kids mcdonald's management heard about the menu ronald and they loved it through some brainstorming they thought if kids got their own meal instead of eating off of what their parents got everyone would be happier as they thought back to the games and fun things printed on cereal boxes that kids would look at while they ate their cereal they turned that into what these meals would be packaged in a cardboard box design with two arches at the top to serve as a handle along with adding jokes stories comics and games to the printing on the boxes the food items in the box along with a small drink would be a hamburger small fries a packet of cookies and a surprise gift the man in charge of developing it all was bob bernstein and he called it the happy meal and the happy meal was first introduced in the kansas city market october 1977 and later on the happy meal hit nationally in the united states in 1979 the original happy meal toys available in 1979 were the mcdoodle stencil a mc wrist wallet an id bracelet a puzzle lock a spinning top or a mcdonald land character eraser also in 1979 menus in braille are introduced and in 1980 the 6000th mcdonald's restaurant opens in munich germany and at the beginning of the decade in 1980 people's tastes were changing and they were one to eat more healthy alternatives so mcdonald's then introduced the mcchicken it sold poorly its first go-around and was discontinued shortly after the mcchicken presently is a bit smaller than it was originally and it's now a part of the dollar menu in 1981 after the failure of the mcchicken sandwich chicken mcnuggets were introduced into select areas to test mark it out the chicken mcnuggets recipe was first created in 1979 by mcdonald's executive chef renee arend as he took boneless chicken meat that's fried in batter and then flash froze it so in 1981 when the mcnuggets first came out everybody loved them so much that other franchises wanted the mcnuggets but the system they were using didn't supply enough chicken to provide for all of the franchises so a couple years later the chicken supply was fixed and the chicken mcnuggets made its national us debut in 1983. and fun fact mcdonald states that mcnuggets come in four different shapes the bell the bow tie the ball and the boot the reasons for these shapes are for food cooking consistency and food safety and they were also chosen for balance of dip-ability and fun so since the mcnugget shortage was happening and other franchises wanted a new menu item renee arend thought of the mcrib it's a rib shaped pork patty smothered in barbecue sauce onions and pickles and being served on a five and a half inch roll the mcrib was first test marketed in the midwest and it did really well then after testing did well it went national and then sales were poor and by 1985 it was removed from the menu the mcrib is popular in germany as it's a permanent item on the menu there but almost everywhere else the mcrib has come back for limited times throughout the years being reintroduced in 1989 up until the present where it usually now appears during the fall season on january 14 1984 at the age of 81 years old ray kroc passed away from heart failure and was buried in san diego california ray kroc spent his final years confined to a wheelchair but still made it to the mcdonald's office in san diego almost every day he never stopped working for mcdonald's his wife joan went on to donate a lot of his fortune at the time of ray crock's death his personal fortune was estimated to be at 500 million dollars but joan gained way more after the fact as mcdonald's continued to grow she continued to be charitable and most notably she had in her will to leave 1.6 billion dollars to be donated to the salvation army and 225 million dollars to national public radio on november 30th 1984 dick mcdonald the first cook behind the grill of a mcdonald's was served the ceremonial 50 billionth mcdonald's hamburger in 1986 the 100th ronald mcdonald house was opened 1987 the first promotional mcdonald's monopoly game was ran 1992 the first mcdonald's in africa in the arab world opens in casablanca morocco 1993 the first mcdonald's in the middle east opens in israel in melbourne australia the mick cafe is debuted the mick cafe is a sub-city area of mcdonald's and it was created to bring an atmosphere and also to create foot traffic at the entrance as the melbourne location had a really long distance between the entrance and the counter in 1994 came the famous hot coffee case as they went to trial the hot coffee case was a lawsuit that stella liebeck a 79 year old woman had against mcdonald's when in 1992 she ordered a coffee from mcdonald's and accidentally spilled it on her lap making her suffer third degree burns and having her wind up in the hospital for eight days as she underwent skin grafting procedures liebeck's attorney argued that mcdonald's coffee being served at 180 to 190 degrees fahrenheit was defective and too hot compared to other places that served coffee this sparked a lot of controversy as people said that it's not the company's fault if someone spills coffee on themselves a spokesman for the national coffee association said that the temperature of the mcdonald's coffee conformed to the industry standards and even more so when coffees at other places like burger king and starbucks were looked at they had higher temperatures than mcdonald's prior to going to court mcdonald's refused to settle so lybeck seeking 160 000 for medical expenses and compensation and 2.7 million in punitive damages the jury decided that the hot coffee warning on the coffee cups was not large enough the judge wound up lowering the verdict and awarded stella lyback with 64 000 both mcdonald's and lybeck then settled for a confidential amount before it went to appeals in 1996 to appeal to the adult audience with some more sophistication mcdonald's attempted to expand a new sandwich the arch deluxe the archdeluxe was called the burger with the grown-up taste as it was a quarter pound of beef on a split top potato flour sesame seed bun topped with a circular piece of peppered bacon leaf lettuce tomato american cheese onions ketchup and a secret mustard and mayonnaise sauce it was first test marketed in october 1995 in mcdonald's restaurants in canada and then it officially released in may 1996 with an expensive advertising campaign due to its certain style of commercials the high calories and the price of the sandwich going over two dollars a piece the arch deluxe flopped hard as mcdonald's spent over 300 million dollars in research production and marketing in 1997 we saw the mcflurry it was invented by a franchisee in canada in 1995 the mcflurry was first test marketed in hawaii and then it became an international sensation the mcflurry is whipped vanilla mcdonald's soft-serve ice cream in a cup mixed with a variety of candies cookies or toppings and served with a plastic spoon that is also used during the making of the mcflurry serving as a blender blade to mix the ingredients in 1998 dick mcdonald passed away leaving behind a 1.8 million dollar estate by the end of dick's life he looked back fondly and warmly about the whole situation with rey almost considering ray kroc a friend not regretting at all missing out on the fortune ray made dick learned not to let things get to him and it was for the better 2002 mcdonald's posts its first quarterly loss in history at 344 million dollars with this new low in the stock price mcdonald's started messing around with new ideas on how to revamp the brands in the stores so they started out by testing a new store idea so in october of that year mcdonald's opened one of two of its corporate stores in lincoln nebraska to test the three-in-one mcdonald's concept the mcdonald's three in one had a sandwich and platter dining area a bakery and ice cream area with gourmet coffees and a traditional mcdonald's restaurant rolled into one at first the idea of the three-in-one mcdonald's was doing okay then april 2003 the second three-in-one mcdonald's was opened so even though the three-in-one menu offered things like meatloaf and turkey with gravy along with cinnamon rolls and ice cream sundaes most people just went to the regular mcdonald's section to get big macs and fries so with that the three-in-one mcdonald's restaurant concept was killed off mcdonald's then started to promote a more healthier and high quality image introducing premium salads mcgriddles and chicken selects mcdonald's comes out with its new slogan i'm loving it in 2004 came a documentary film by morgan spurlock who eats nothing but mcdonald's for 30 days to show the effects the food has on his body the movie was called super size me in which after this movie came out mcdonald's dropped the super size options from their menu 2005 ronald mcdonald gets a more fit and sporty look and mcdonald's opens a wi-fi service for the nintendo ds video game system and mcdonald's in singapore started the mc delivery service where customers could order food over the phone and get it delivered to them wherever they are 24 hours a day 7 days a week in 2006 mcdonald's announced that by march of 2006 they will have nutritional information of all of their food on its packaging and that the menu would push for more healthier options such as salads and chicken along with this fresh food push came a redesigning of their restaurants called forever young and seeing that the mcdonald's last redesign was almost 40 years prior in 1969 mcdonald's was in a bad need of a new look building-wise a lot of people argued though that the brown mansard roos was part of mcdonald's brand but spokespeople for mcdonald's stated that the renovation of mcdonald's restaurants was an investment that needed to be done in order to keep business going for the next 50 years in the late 90s mcdonald's urged its franchisees to paint the brown roofs red and yellow as a form of a band-aid to keep the buildings looking new and fresh but by 2006 a whole new renovation needed to be done with these forever young renovations it would turn mcdonald's to look much like how a stand-alone starbucks coffee shop would look and for the most part the renovations and redesign was all for the better in 2007 mcdonald's put out a 42-ounce super-sized soda under a new name called hugo 2009 mcdonald's debuts three different angus burgers the angus deluxe the angus bacon and cheese and the angus mushroom and swiss in 2010 mcdonald's debuts its fruit and maple oatmeal to its menu 2012 mcdonald's starts posting the calories of each of their products on menus and in their drive-throughs in 2015 mcdonald's in the united states started its all-day breakfast menu where customers could order breakfast items any time of the day and not just in the morning anymore in 2016 the film the founder based on ray kroc's book grinding it out starring michael keaton as ray kroc is premiered and it hit theaters nationally in the united states on january 20th 2017. 2018 in celebration of the 50th anniversary of the big mac a new sandwich called the grand mac was available for a limited time the grand mac was a big mac but just larger with one-third pound of beef 2019 mcdonald's opens the mick hive located in sweden it's the world's smallest mcdonald's it's scaled down to exact specifications for bees to have a hive in the mikh hive was made to bring attention to save the bees around the world that have been dying off to a various amounts of factors the mick hive represented the many mcdonald's restaurants in sweden who put bee hives on their roofs and wildflowers in the garden areas of the restaurant in efforts to save the bees the mchive wound up being sold at an auction for ten thousand dollars where the proceeds went to the ronald mcdonald house as mcdonald's has gone from a small barbecue stand in california to a small company swimming deeply in debt to a massive boom going worldwide the familiar and great tastes of food from mcdonald's is here to stay and bring more tastier things for the future [Laughter] hi can i help you yeah hi can i just order one triple cheeseburger please yes ma'am all right thank you so now we are officially at the end of the documentary it is late november 2021 and uh you and i both deserve something after this and now you may be asking yourself what about the mcdlt what about like the the fish mcbites what about the mc pizza what about all these other things the pies all the different dipping sauces i just want you to know that uh there's gonna be a lot of surprises coming very soon this only really covered the history of mcdonald's there's so much more that we could get into here's to maurice and richard mcdonald more importantly ray kroc is i'm going to have my favorite thing off the menu which is a triple cheeseburger and uh here's to you guys dick mac mcdonald ray crock cheers that is amazing um eat the rest of this later forgot to get a coke or something to drink so to everyone watching this and has enjoyed the documentary and everything thanks for watching this took a lot of time and effort and just a lot of energy and uh collecting things getting all the materials together to make this whole thing possible i read books on this i did plenty of online research and i made sure everything was correct okay why is this car stopped right here okay i hope this documentary was very informative to you and it helped you on your studies or is just entertaining something for you to watch late at night and you're trying to fall asleep whatever the case thank you guys for watching and uh that's it i'm dj glowing ice bye [Music] you