The following material is copyright © 1996, Byron Preiss Visual Publications, Inc. and Forbes Inc. All Rights Reserved. Published by John Wiley & Sons, Inc. No use may be made of this material without the express written consent of the copyright holder. Ray Kroc, McDonald's, And The Fast-Food Industry In 1954, a fifty-two-year-old milk-shake machine salesman saw a hamburger stand in San Bernardino, California, and envisioned a massive new industry: fast food. In what should have been his golden years, Raymond Kroc, the founder and builder of McDonald's Corporation, proved himself an industrial pioneer no less capable than Henry Ford. He revolutionized the American restaurant industry by imposing discipline on the production of hamburgers, french fries, and milk shakes.
This lead to the now famous, A&W restaurant, they came up with the name by combining the last initials of both men. In 1933 it had one hundred and seventy franchised outlets in the mid-west and west coast. In 1950 there were over four hundred and fifty four hundred fifty restaurants nationwide,. This same year Allen retired and sold out to his portion to (you mentioned partner) business man Gene Hurtz. In 1956 the first international restaurant opened in Canada.
I believe that we are taking it too far by blaming fast food restaurants for obesity and that it is an individual’s responsibility to take the blame. The first fast food restaurants developed in America in the 1920’s and the United States has grown to have the largest fast food industry in the world. Currently one third of American children are obese or at risk of becoming obese and 67% of Americans are obese. McDonald’s was invented in the 1940’s and has since acquired millions of lawsuits for their extremely unhealthy food. Burger King soon followed in the 50’s and has also received its fair share of lawsuits.
Title Name Ethics/316 Date Professor: Cross Cultural Perspective: The McDonald's restaurant concept was introduced in San Bernardino California by Richard and Maurice McDonald of Manchester, New Hampshire in the 1940’s. The Company was later modified by their business partner Ray Kroc of Oak Park Illinois in 1955. Ray Kroc, bought out the business interest of the McDonald brothers and formed McDonald’s Corporation. McDonald’s is known for their fast food chain selling breakfast products, hamburgers, french fries, chicken, soft drinks and milk shakes. It is now a symbol of globalization and the American way of life.
Coincidentally, George Naddaff, owner of 19 Kentucky Fried Chicken franchises, caught on to the “home-cooked” fast food idea and purchased a Boston Market franchise. Boston Market’s direct competition at that point, wanted to participate in their concept which carried them far beyond their current sales and revenue. Some indirect competitors of Boston Market eventually got involved as well. McDonalds ended up purchasing the chain of stores in 1998 and changed a few things to increase the appeal of Boston Market to its consumers. Fortunately for McDonalds, they are a big enough corporate themselves which enabled them to make this deal with Boston Market, whereas the other indirect competitors (local sub shops, Chinese restaurants, etc.)
Two brothers, Richard and Maurice McDonald founded McDonald’s in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald’s in the USA. Mr Kroc offered a McDonald’s franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers.
Invertors and analysts began to ask questions if it was a healthy company. Company Background Vernon Rudolph, who purchased a secret yeast-raised doughnut recipe from a French chef in New Orleans, opened the first Krispy Kreme doughnut shop in Winston-Salem, North Carolina in July 1937 and started selling wholesale to supermarkets. The product quickly became popular; and Rudolph had to cut a hole in the factory for direct retails selling. By the late 1950s, Krispy Kreme had 29 stores in 12 states, many of which were franchise. In 1973, after Rudolph’s death, Beatrice Foods bought the company.
The corporation started out as a small drive-through in 1948 by brothers, Dick and Mac McDonald. Raymond Albert Kroc, a salesman, saw a great opportunity in this market and advised Dick and Mac to expand their operation and open new restaurants. Mr. Kroc bought out the McDonald brothers in 1961. By 1967 McDonalds expanded its operations to countries outside the U.S.A. This unyielding expansion led the Corporation to open 23,000 McDonald's restaurants in 110 countries in 1994, producing $3.4 billion in annual revenues.
Also, because places such as Burger King and McDonald’s cost less than a fancy dining place, they feel they are getting a big bang for their buck. Some people when dining out at a fast food restaurant like to choose McDonald’s because, some of the McDonald’s restaurants have a playground inside that children can play on while their parents eat and have adult conversations, Burger King does not have this option. McDonald’s started its business in 1940, and serves about 68 million people on a daily basis. They also have restaurants in 119 countries, with 34,000 restaurants in the world. They also employ 1.7 million people.
(Laudon C Kenneth, 2012) Domino’s Strategy to Improve Customer Service Domino's, is the recognized world leader in pizza delivery operating a network of company-owned and franchise-owned stores in the United States and international markets. “Domino's started out small – with just one store in 1960. However, in 1978 the 200th Domino's store opened, and things really began to cook. By 1983 there were 1,000 Domino's stores and 5,000 in 1989. Today, there are over 11,000 stores – including more than 5,000 outside the United States.” (Domino’s) Unfortunately, Domino’s was previously agreed by Americans that their home delivery pizzas were among the worst, and they had to do something about it.