The history of creation and development of McDonald's

The small  restaurant of brothers Makdonald in the city of San Bernardino (California) was nothing a remarkable institution in the 40th years of the XX century. The restaurant made for the owners quite good profit – about 200 thousand dollars a year, and it quite suited them.

The situation changed for the worse when the country started having not the best times. Are necessary there were changes. Makdonald decided to remake system of customer service in a root.

The essence was such is that small restaurant transferred practically to self-service – the client secured the order at a metal rack, and then itself looked for a free little table.

Besides, Makdonald  reduced the range, having left only 9 points which hamburgers, cheeseburgers, some soft drinks, pies, coffee, and chips entered. There were French fries later.

Owners also completely remade kitchen, having turned it into some kind of conveyor. Thus, it was succeeded to cut down as much as possible expenses, and to reduce the prices of hamburgers twice - from 30 cents to 15. For competitors it was the crushing blow.

Thanks to such innovations, owners already to the middle of the 50th years began to get profit by one and a half times big, than before – about 350 000 dollars a year. The small restaurant became popular in all California, and about it even started writing in newspapers. Makdonald were rather lazy people, and didn't hurry somehow to expand the business.

And proceeded until  that Ray Krok became interested in restaurant. Krok was the classical dreamer who threw school in 15 years. In the 52 it tried a set of occupations, but didn't achieve notable success anywhere.

Having got to restaurant Makdonalds once, and having seen the long turn at a rack, he understood that such system can work anywhere. Especially, at the price of a hamburger of 15 cents!

Owners were it seems as well as wish to expand the business, but simply didn't want to be engaged in it. Thus, Krok appeared in due time in the right place. In 1955 the franchasing company "McDonald's of Systems, INK" opens. The cost of each franchize made 950 dollars in 20 years of use.

The idea wasn't new – the well-known Zinger so sold the sewing machines. But the McDonald's system promised to be more perfect. Krok wasn't going to sell franchizes to the first comer, and looked for only good restaurateurs. The franchize was on sale only on restaurant, but not on the whole state as practiced before.

To achieve success it appeared absolutely not simply. For the first year it was succeeded to sell only 18 franchizes – large players preferred to buy franchizes on certain territories, and small were afraid of uncertainty.

So proceeded until a certain journalist to Sanford Agatha didn't get one of Krok's franchizes. In some years to Agatha managed to earn decently, and to buy the big house. It was the striking example of that the system works, and buyers became in this idea seriously interested.

In 1961 Krok conceived to redeem from brothers Makdonald all rights to use a trademark. Those with pleasure agreed to this offer and established the price – 2.7 million dollars.

Krok had no such money. It was necessary to look for the credit. Banks, unanimously, refused, motivating it with that fast food – an unreliable type of business. Then Ray together with the financier of the company, Harry Zonnenborn appealed to universities of the USA to grant the loan. At first the preliminary agreement was reached, but then unexpected refusal suddenly followed.

Zonnerborn early in the morning, even without having managed to shave, I took off for New York for discussion of causes of failure. The reasons were the same – unreliability of fast food, as business. Then Harry said, become legendary, the phrase "…. we are engaged in real estate". Also I stated an idea essence.

And it was that McDonald’s wanted to get slowly together with restaurants and the earth on which they were. At first the company rented the earth at the fixed price for a period of 20 years. The size of a rent made 700 dollars a month is was much for those times.

But time went, inflation grew, and the payment under the contract remained invariable – 700 dollars. Already in the sixties many owners of land literally tore and threw as 700 dollars turned into real kopeks.

The interesting moment – not the company, and the restaurateur – the buyer of the franchize paid for the earth. Upon purchase of the franchize it had to bring 10 000 dollars on the deposit. On the expiration of 10 years returned it a half of the sum, and through 20 – all. These 10 thousand made the first payment of McDonald's for the earth.

Soon the company Kroka and Zonnenborna "the Franchise of Isteyt" owned assets more than for 16 million dollars. Farther it was necessary to obtain the credit in bank – a task difficult as the company didn't get properly on feet yet.

The problem was solved by the accountant Richard Jay Boylan, having made some changes to reports of the company. Thus there were no frauds or offenses – simply Richard who was also a lawyer, brought in assets of the company the real estate which isn't belonging to it so far, and specified this fact in the small note. And as such notes are read seldom, the credit managed to be obtained.

Krok redeems all rights that use of a trademark, and receives a full freedom of action. From this point continuous growth of business began, and in 1965 the milliard hamburger of what the whole show was made was sold.

McDonald’s issues stocks worth 22.5 dollars apiece. In some weeks their price grows almost twice. Ray Krok who worked nearly ten years, without gaining normal income, I became the millionaire. In 1996 McDonald’s of the first of the companies which are engaged in fast food comes to the New York exchange. In four years the number of restaurants reached 16 000.

In 1975 the first restaurant like Mack Avto was open. Today, a half of the income of the company falls to their lot. At this time McDonald’s owns restaurants already more than in 20 countries of the world, and its turn makes 2.5 billion dollars. In 1984 Ray Krok – the person who all the life couldn't brag of the capital, but in 30 years about McDonald’s which earned 600 million dollars dies.

Summing up the result, it is possible to tell that McDonald’s is the largest network of restaurants worldwide today. Its personnel totals more than 450 000 people, and the annual income makes about 20 billion dollars. Ray Krok's dream came true – he really created the company which, first of all, cares of clients.