The Father Of Mcdonald's: The Miracle Of Building Ants And Soldiers

If McDonald's "common prosperity" has any magic weapon, that is: only do it to franchisees. value The only thing to do is to earn the money that you should earn, stick to the insistence on simple things, treat the partners fairly, and the free market. Economics A firm belief in fair trading principles.

In April 21, 2011, the largest restaurant chain in the world Operate McDonald's released its first quarter financial results for the 2010 fiscal year: sales in the first quarter amounted to $6 billion 110 million, an increase of 8.9% over the same period last year, and net profit of $1 billion 210 million, an increase of 11% over the same period last year. Many people may not know that the founder of McDonald's empire is not a McDonald's brother, but Ray Kroc (1902 - 1983). McDonald's McDonald's system, "a strong alliance of small businessmen", has probably created more millionaires than any other company in the world. It can be seen as a "common prosperity" and highlights the win-win power of stakeholders.

Lobbying failed McDonald's
Crocker was born in an ordinary family in Chicago. After graduating from high school in 1917, he worked as a paper cup distributor in 1922 - the supply and service company of sterilized paper cups. In 1930, crook signed a large order to supply paper cups for a food chain store, which led him to see a new way to improve the sales volume of products. It is this logic that drives Crocker's chain operation in McDonald's 25 years later. In 1937, the supply and service company of sterilizing paper cups and Clok set up a new company at a ratio of 60 to 40. The sole agent was to sell the milkshake mixer of the Prince ice cream shop. A few years later, clock bought the stock of sterilized paper cup supply and service companies.

In 1954, clock heard from his customer phone that he wanted to order a multi head mixer in the McDonald brothers restaurant. He flew to California to investigate, a less than 200 square foot octagonal building, and even no dining seats, but the customers were full. Crocker asked a customer who was dining in a car park outside the restaurant: Why did the McDonald's shop attract so many people? The answer is: "you see, you can buy the best hamburgers that you have never eaten before spending fifteen cents on it, and you don't have to wait for a long time like anywhere else, accept bad service and tip."

Crocker is amazed at the efficiency of the restaurant. They only provide a limited number of foods hamburgers, French fries and soft drinks, so they can pay close attention to the quality of each link. Crocker tried to persuade McDonald brothers to open this restaurant to the United States, but the McDonald brothers were content with the status quo and did not want to be Laughton himself. So he asked McDonald brothers to authorize him to set up a McDonald's chain restaurant.

Authorized

From the beginning

The McDonald brothers authorized Crocker to reproduce the mode of McDonald's restaurant, carry out chain operation, and unify the use of McDonald's name. According to the agreement, the development of franchisees can collect 1.9% franchise fee and a one-time cost of $950 for each franchised restaurant. According to the franchise fee of 1.9% of the franchised restaurant's turnover, 0.5% of them belong to the McDonald brothers and 1.4% of Crocker.

After returning to Chicago, Crocker raised funds to build his first McDonald's restaurant as a model to emulate the franchisees. The first restaurant opened in April 1955. During the construction and operation of the restaurant, Crocker discovered and solved the technical details that even the McDonald brothers did not realize, such as the structural changes brought about by climate differences. After more than three months of hard work and good restaurant operation, he became confident and began to look for franchisees.

The two most important assistants to help Croc create the McDonald's empire are Martin and San Ben. Martineau was an office secretary recruited by Klock when he sold Prince mixers in 1948. He was deeply trusted by Klock because of his honesty and integrity. Sannaben resigned from McDonald's in 1955 from the position of vice president of Tastee Freeze, a Dalian lock company in the US. At the market price, Crocker couldn't afford to buy San Ben, but Sang Na was very optimistic about the prospect of McDonald's, and was willing to join only $100 a week to earn enough money to support his family. Soon, the loyalty and devotion of Martin and San Ben were both rewarded. In 1956, when he was convinced that McDonald's would become an American company, he gave Martin and Sannaben 10% and 20% McDonald's shares respectively.

Time Crisis

Go to the battle-front without any burden

After having a good business model and professional talents, the development of McDonald's is not smooth sailing. Between 1957 and 1958, McDonald's suffered a financial crisis.

In 1956, businessman Bauhall signed a contract with McDonald's to help him find suitable plots and build a good restaurant and then rent it to McDonald's. But the actual result is that Bauhall did not get the explicit property rights of these lands and houses. The landowners went to court to request property preservation for eight restaurants that were rented to McDonald's. The final settlement of the problem cost $400 thousand, mainly by borrowing from suppliers who have formed a common relationship with McDonald's, and McDonald's has gone through a crisis that may bankrupt him. There is also a potential benefit of this, which is to strengthen the relationship between McDonald's and suppliers. Because McDonald's "win-win cooperation network" mode enables suppliers to expand with the expansion of McDonald's scale. A more crucial point is that McDonald's, in order to avoid conflicts of interest, resolutely not to be a restaurant supplier, so that an independent supplier will not be afraid of being fired by McDonald's as long as its product quality is guaranteed.

In 1959, only about $90 thousand of net worth of McDonald's wanted to expand. After applying for a loan to the bank, the $three loan from the three insurers was reduced by 22.5% of the shares, and the share of McDonald's holdings was reduced to 54.25%. The $1 million 500 thousand became the driver for the takeoff of McDonald's rocket. Since 1960, McDonald's has begun to own a restaurant that is wholly owned by acquisition or investment.

At this time, another problem restricting the development of McDonald's is becoming more and more serious and needs to be solved thoroughly: McDonald's brothers hold McDonald's brand and McDonald's Corp is in an authorized position. The McDonald brothers sat on the whole McDonald's restaurant system with a turnover of 0.5%, but they were indifferent to the development of the company. They did not even enter the gate without even playing the phone, which made Crocker very angry. With the expansion of McDonald's restaurants everywhere, it is necessary to make some necessary modifications to the architectural design and food products according to the local climate and other conditions. The agreement stipulates that any change of McDonald's restaurant needs the written consent of the McDonald brothers, which greatly restricts the expansion, but the McDonald brothers refuse to make any changes to the original agreement.

In 1960, Crocker asked McDonald brothers to make a bid to buy McDonald's brand franchise from McDonald's. The McDonald's brothers offered 2 million 700 thousand dollars. By 1972, McDonald's paid all the interest and paid a total of nearly 14 million yuan. But compared to 0.5% of McDonald's brothers, the deal is a bargain. In 1976, McDonald's restaurants had a turnover of more than 3 billion dollars, or 0.5% dollars a year, which was 15 million dollars.

"Do business for yourself"

To answer who is the problem of McDonald's, we need to define the concept of "McDonald's" first. McDonald's is from surname and brand, originally from two McDonald brothers, followed by McDonald's Corp. McDonald's Corp was originally made by crook, followed by three people like crook, Sannaben and Martin. In 1966, McDonald's shares were issued and listed in the OTC market at a price of 20 times earnings, becoming a public company. McDonald's is now a listed company on the New York stock exchange.

Only a small portion of McDonald's restaurants around the world are owned by McDonald's. most of them are franchisees, each with its own owner (franchiser or licensee, and a licensed person may have many McDonald's restaurants). Crocker likened McDonald's to a three legged stool: McDonald's, franchisees and suppliers. Persuasion and commitment are the strengths of Crocker, a sales force. He advises franchisees and suppliers to work together, not for McDonald's, but for themselves: "this is for your own business, but not for yourself." McDonald's many famous products, such as big Mac and so on, are all from the franchisee's innovation. McDonald's operation system insists that all licensees comply with the principles of McDonald's: quality, service, cleanliness and value. At the beginning of 1961, Crocker started McDonald's training program and developed into a McDonald's University. At present, more than 80 thousand people have graduated from McDonald's. In 1967, McDonald's established a unified advertising and marketing plan. Each restaurant contributes 1% of its monthly turnover to the "National Franchisee advertising fund". Each restaurant also contributes 1% of its turnover to its local advertising association.

The suppliers of McDonald's are independent companies. The first rule that Klock set for McDonald's is that McDonald's will not produce any products on its own, nor will it become a supplier of franchisees, because this will create conflicts of interest. Today, McDonald's suppliers have formed an effective and innovative supply system, and many McDonald's suppliers began to enter this business field from a handshake with Crocker.

The franchisees and suppliers who belong to different owners can be closely integrated into the "cooperation network" created by McDonald's, which fully reflects the strategic leadership of McDonald's as a strategic core enterprise to the entire cooperation network: to formulate fair and cooperative rules for the entire cooperation network and strictly implement and implement them.

Governance structure: the spanmission of leadership

In 1959, after signing a $1 million 500 thousand financing agreement with three insurance companies, he appointed Sannaben as president and chief executive officer, and he retained the position of chairman of the board. The actual division of labor is that Sang Na is responsible for financial and administrative affairs, while Crocker is responsible for sales, such as restaurant operations and suppliers. In 1967, because of differences in corporate strategy and crook's health problems in two aspects, he retired and had a pension of $100 thousand a year. Because Sannaben thought that after he left, McDonald's would go downhill and sell shares and get millions of dollars. A year later, Martin dono chose to continue to hold shares in McDonald's and enjoy the same retirement benefits as that of San Ben.

He also took up the presidents and chief executives himself. But since the beginning of 1968, he has spanferred the position of president and CEO to his own successor, Fred. Fred joined McDonald's when he was only 23 years old in 1956.

Starting from 1969, crook gradually reduced his involvement in daily management. He only kept the final ruling on the two key issues of the company's purchase of new real estate or new products, which is very similar to the practice of IKEA founder Kamprad. In 1977, McDonald's appointed Fred as chairman of the board, and Smith became president and chief executive, giving Crocker the title of senior chairman of the board. Until 1983, he did not stop working for McDonald's. After getting out of a wheelchair, they still have to work in offices almost every day.

It can be said that in the history of business in the United States and the world, crook and McDonald's have their own uniqueness. Although he owns a large share of McDonald's, his personal wealth is not impressive. But crook and his McDonald's system, "a strong coalition of small businessmen", may create more millionaires than any other company in the world. If McDonald's "common prosperity" has any magic weapon, it is to do something that can add value to franchisees, earn only the money they earn, stick to simple things, do fair treatment to partners, and firmly believe in the principles of free market economy and fair exchange.