MCDONALD’S is one of the biggest fast food chains in the world, but not many know who’s on the inner circle.
We all enjoy a Big Mac or Quarter Pounder with cheese, but where did the chain start and who founded it?
McDonald’s serves 69 million customers worldwide every day
Who owns McDonald’s?
McDonald’s has been owned by Kroc since April 1955.
Kroc’s first McDonald’s location was opened in Illinois, USA, on April 15 that year. Not long afterwards, Kroc founded McDonald’s System, Inc., known today as the McDonald’s Corporation.
In 1961, Kroc bought out the McDonald brothers – the founders of the franchise – for $2.7million (£2million).
For the last 60 years, Kroc has owned the exclusive brand name rights of all McDonald’s locations.
Who founded McDonald’s?
McDonald’s was founded by the McDonald brothers, Richard (Dick) and Maurice (Mac).
At the same time as founding McDonald’s, the two brothers also created the ‘Speedee Service System‘, now known as ‘fast food‘.
Who were the McDonald brothers?
Richard and Maurice McDonald were two American entrepreneurs who founded McDonald’s – now the world’s largest chain restaurant.
The idea for the restaurant came to them in 1937, when they opened a hot dog stand in California, USA, which proved very popular during the car racing season.
McDonald’s started out as a hot dog stand – but its founders quickly realised that hamburgers, milkshake and fries were their bestsellers.
In 1940, they decided to open a bigger hot dog stand at a different California site, in a bid to attract more customers year-round.
Their new restaurant proved a success, and soon the McDonald brothers adapted their business to focusing on hamburgers, milkshakes, and French fries – their most popular items.
Richard McDonald died on July 14, 1998, at the age of 89, having outlived his brother, who died aged 69 on December 11, 1971.
Who was Ray Kroc and what was his net worth?
Ray Kroc was an American businessman, who went into partnership with the McDonald brothers in 1955.
In the early 1940s, Kroc became the exclusive distributor in the United States of the “multimixer”, a blender that could simultaneously mix five milkshakes.
In 1954, he was intrigued to receive an order for eight of these multimixers from just one restaurant in San Bernardino, California.
The first franchise opened by the brothers in Downey, California, is the oldest McDonald’s to still exist today.
He visited the restaurant to find the original branch of McDonald’s, being run only by the two McDonald brothers.
Impressed with what he saw, Kroc went into partnership with the McDonald brothers the following year, and was the first to suggest franchising the restaurant.
Kroc managed to open three McDonald’s restaurants in 1955, including the first franchised restaurant in Illinois.
Kroc bought the McDonald brothers out in 1961 – leading some today to believe that he ‘stole’ their enterprise from them.
Kroc died on January 14, 1984, with a net worth of $600 million – which today would be the equivalent of $1.4 billion (£1.06 million).
His story is told in the 2016 biopic film, The Founder.
The famous ‘Golden Arches’, first introduced in 1953.
How much does a McDonald’s franchise cost?
There are 38,000 McDonald’s restaurants in 100 countries with the vast majority being franchise operations.
Buying into one, or building an entirely now store, is a massive emotional and financial commitment.
But opening one could lead to mouth-watering returns – between £1.5m and £4.3m a year, according to McDonald’s.
To invest in a McDonald’s franchise, you’ll need about 25% of unencumbered funds, or roughly £100,000.
The remaining 75% can be funded by a bank, and franchisees may use banks which McDonald’s has a relationship with that offer competitive rates.
For 80% of restaurants franchised in 2018, the cost of purchasing franchise rights and equipment was between £350k and £1.85m – and this was priced on profitability over a 10-year period.
On top of this, you’ll need to pay a monthly 5% franchise fee on net sales and a 4.3% contribution to the company’s marketing fund.
The monthly fee paid by 80% of franchises in 2018 and 2019 ranged between 12.25% and 21% of your restaurant’s net sales.
Does the original McDonald’s still exist?
The very first McDonald’s restaurant was opened in San Bernardino, California, in May 1940.
It does not exist anymore. It was demolished in 1972 – but part of the original famous ‘Golden Arches’ sign, introduced at the site in 1953, still exists.
An independent McDonald’s museum was opened on the San Bernardino site in 1998.
The oldest existing McDonald’s restaurant today is a drive-up hamburger stand in Downey, California.
It was the third McDonald’s restaurant to open, on August 18, 1953.
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