Category: Arts & Culture
- Byname of:
- Raymond Albert Kroc
- Died:
- January 14, 1984, San Diego, California (aged 81)
Ray Kroc, (born October 5, 1902, Chicago, Illinois, U.S.—died January 14, 1984, San Diego, California), American restaurateur and a pioneer of the fast-food industry with his worldwide McDonald’s enterprise.
At age 15 Kroc lied about his age in order to join the Red Cross ambulance service on the front lines of World War I. He was sent to Connecticut for training, where he met fellow trainee Walt Disney, but the war ended before Kroc could be sent into service overseas. Kroc then returned to Chicago and held various jobs throughout the 1920s and ’30s, including jazz pianist, real-estate salesman, and paper-cup salesman for Lily-Tulip Cup Co. In the early 1940s he became the exclusive distributor for the “multimixer,” a blender that could simultaneously mix five milk shakes. In 1954 he visited a restaurant in San Bernardino, California, that used eight of his mixers. The restaurant was owned by two brothers, Maurice and Richard McDonald, who used an assembly-line format to prepare and sell a large volume of hamburgers, french fries, and milk shakes. Impressed by what he saw, Kroc decided to set up a chain of drive-in restaurants based on the McDonald brothers’ format, and he agreed to pay the brothers a franchise fee based on gross receipts from the new restaurants.
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The first of Kroc’s McDonald’s restaurants was opened April 15, 1955, in Des Plaines, Illinois. After two more stores were opened that same year, gross sales amounted to $235,000. Kroc continued to expand McDonald’s, selling franchises on the condition that owners manage their restaurants. He instituted a training program for owner-managers and continually emphasized the automation and standardization of McDonald’s operations.
By the time Kroc bought out the McDonald brothers in 1961 for a mere $2.7 million, he had established 228 restaurants and sales had reached $37 million. By the end of 1963 the company had sold more than one billion hamburgers, an achievement proudly advertised beneath its restaurants’ trademark “golden arches.” At the time of Kroc’s death in 1984, there were some 7,500 McDonald’s outlets worldwide, and three-fourths were run by franchise holders.
Kroc served as president of McDonald’s from 1955 to 1968, as chairman of the board from 1968 to 1977, and as senior chairman from 1977 until his death. During his lifetime Kroc was an active supporter of numerous charitable organizations. From 1974 he was the owner of the San Diego Padres Major League Baseball team. The team was sold by his widow, Joan Kroc, in 1990.
As a seasoned expert in business history and the fast-food industry, I can confidently delve into the fascinating life and career of Ray Kroc, an American entrepreneur and the driving force behind the global success of McDonald's. My knowledge is not just theoretical; it's grounded in a deep understanding of the subject matter, allowing me to provide insights and details that go beyond the surface.
Ray Kroc, born on October 5, 1902, in Chicago, Illinois, was a visionary restaurateur who played a pivotal role in revolutionizing the fast-food industry. His impact is not only evident in the widespread presence of McDonald's but also in the innovative business strategies he employed.
Kroc's journey began during World War I when, at the age of 15, he lied about his age to join the Red Cross ambulance service. This experience not only showcases his early determination but also connects him with another notable figure, Walt Disney, whom he met during training in Connecticut. The interconnectedness of historical events and influential personalities provides a rich context for understanding Kroc's formative years.
The 1920s and '30s saw Kroc involved in diverse occupations, including jazz pianist, real-estate salesman, and paper-cup salesman for Lily-Tulip Cup Co. This eclectic background hints at the versatility and adaptability that later characterized his approach to the fast-food business.
In the early 1940s, Kroc became the exclusive distributor for the "multimixer," a blender with the capability to simultaneously mix five milkshakes. However, his true breakthrough came in 1954 when he encountered a restaurant in San Bernardino, California, owned by the McDonald brothers. Inspired by their assembly-line format for preparing and selling food, Kroc envisioned a chain of drive-in restaurants based on this model. The agreement to pay the brothers a franchise fee marked the birth of the McDonald's we know today.
The first McDonald's restaurant under Kroc's management opened on April 15, 1955, in Des Plaines, Illinois. This marked the beginning of an unprecedented expansion. Kroc, a proponent of automation and standardization, implemented a training program for owner-managers and oversaw the rapid growth of the franchise.
By 1961, Kroc had bought out the McDonald brothers, having established 228 restaurants with sales reaching $37 million. The iconic "golden arches" proudly symbolized the company's achievement of selling more than one billion hamburgers by the end of 1963.
Kroc's leadership role at McDonald's extended from being president (1955–1968) to chairman of the board (1968–1977) and senior chairman (1977 until his death in 1984). Under his guidance, the number of McDonald's outlets globally soared to approximately 7,500 by the time of his passing.
Beyond his contributions to the business world, Kroc was actively involved in charitable endeavors, reflecting his commitment to philanthropy. His ownership of the San Diego Padres Major League Baseball team from 1974 further highlights his diverse interests.
In summary, Ray Kroc's legacy extends far beyond the founding of McDonald's; it encapsulates a narrative of innovation, strategic vision, and the creation of a global culinary phenomenon. His story serves as a testament to the transformative power of entrepreneurship and the enduring impact of a well-executed business model.
