What’s the story with McDonald’s?
Just seeing the famous logo of this global fast-food chain—a golden letter M on a red background—or simply thinking of a hamburger with fries brings McDonald’s to mind. But do you know how this company got its start and what its history is? No? That’s a shame, because it’s very interesting, and we Czechs also have a small part to play in its success.
The company’s history begins with brothers Richard and Maurice McDonald, whose father owned a stand where he sold hamburgers and soda at very low prices. The brothers originally had no ambition to get involved in this business, as they had jobs in Hollywood as prop builders. After some time, however, they noticed that there was really high demand for their father’s hamburgers, so they seized the opportunity they saw in this line of business. They opened their first restaurant, called “McDonald’s Bar-B-Q,” in 1914 in San Bernardino. The focus was clear: hamburgers, french fries, soda, and sweet American pies. They tried to minimize food preparation time as much as possible, just as they did with prices. It was no wonder the business was booming. Over time, they changed the company name to the now-familiar McDonald’s and began revamping the entire restaurant and logo, which originally featured a man in a cap. The changes also affected the menu and the products offered.
And it was precisely at this moment that Ray Kroc, the son of Czechoslovakian immigrants and an economist, entered the scene. He was selling milkshake mixers, which was also why the brothers took notice of him. They ordered several blenders from him, which was unusual, so Ray—whose business wasn’t doing very well—began to take an interest in them. He knew the company had tremendous potential, so he suggested to the brothers that they start a franchise. In this way, the fast-food chain spread throughout the United States.
The success was enormous. In 1962, Ray bought out the brothers’ shares for $2.7 million, and the company was finally all his. You know the rest. The company expanded to the rest of the world and today is one of the most famous fast-food chains, with a market value of around $121.5 billion (I think that if the brothers had known this, they definitely wouldn’t have sold out and would have preferred to keep the business in the family, as they say). So now you know how it all went down, and I’m sure that the next time you go out to buy that famous burger, you’ll definitely think back on this story.