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If I had a brick for every time Ive repeated the phrase Quality, Service, Cleanliness and Value, I
think Id probably be able to bridge the Atlantic Ocean with them. Ray Kroc
How do you create a restaurant empire and become an overnight success at the age of 52? As
Ray Kroc said, I was an overnight success all right, but 30 years is a long, long night.
Origins
In 1917, 15-year-old Ray Kroc lied about his age to join the Red Cross as an ambulance driver,
but the war ended before his training finished. He then worked as a piano player, a paper cup
salesman and a multi-mixer salesman.
In 1954 he was surprised by a huge order for 8 multi-mixers from a restaurant in San Bernardino,
California. There he found a small but successful restaurant run by brothers Dick and Mac
McDonald, and was stunned by the effectiveness of their operation. They produced a limited
menu, concentrating on just a few itemsburgers, fries and beverageswhich allowed them to
focus on quality at every step.
Kroc pitched his vision of creating McDonalds restaurants all over the U.S. to the brothers. In
1955 he founded the McDonalds Corporation, and 5 years later bought the exclusive rights to the
McDonalds name. By 1958, McDonalds had sold its 100 millionth hamburger.
A Unique Philosophy
Ray Kroc wanted to build a restaurant system that would be famous for food of consistently high
quality and uniform methods of preparation. He wanted to serve burgers, buns, fries and
beverages that tasted just the same in Alaska as they did in Alabama.
To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into
his vision, working not for McDonalds, but for themselves, together with McDonalds. He
promoted the slogan, In business for yourself, but not by yourself. His philosophy was based on
the simple principle of a 3-legged stool: one leg was McDonalds, the second, the franchisees,
and the third, McDonalds suppliers. The stool was only as strong as the 3 legs.
Rewarding Innovation
Ray Kroc believed in the entrepreneurial spirit, and rewarded his franchisees for individual
creativity. Many of McDonalds most famous menu itemslike the Big Mac, Filet-O-Fish and the
Egg McMuffin were created by franchisees. At the same time, the McDonalds operating
system insisted franchisees follow the core McDonalds principles of quality, service, cleanliness
and value.
McDonalds passion for quality meant that every single ingredient was tested, tasted and
perfected to fit the operating system. As restaurants boomed, the massive volume of orders
caught the attention of suppliers, who began taking McDonalds standards as seriously as
McDonalds did. As other quick service restaurants began to follow, McDonalds high standards
rippled through the meat, produce and dairy industries.Again, Ray Kroc was looking for a
partnershipthis time with McDonalds suppliersand he managed to create the most
integrated, efficient and innovative supply system in the food service industry. These supplier
relationships have flourished over the decades: in fact, many McDonalds suppliers operating
today first started business with a handshake from Ray Kroc.
Hamburger University
In 1961, Ray launched a training program, later called Hamburger University, at a new restaurant
in Elk Grove Village, Illinois. There, franchisees and operators were trained in the scientific
methods of running a successful McDonalds. Hamburger U also had a research and
development laboratory to develop new cooking, freezing, storing and serving methods. Today,
more than 80,000 people have graduated from the program.