KROC, RAYMOND ALBERT

Raymond Albert Kroc (1902–1984)had the energy, the salesmanship, and the inspiration to build the greatest international restaurant chain empire in the world, McDonald's Corporation. He was a genuine pioneer of the modern fast-food restaurant business. He took the assembly-line methods of big industry and applied them to a restaurant franchise business that produced a small, standardized menu at low cost to the consumer. Kroc was a super salesman who, at age 52, bought "the golden arches" symbol and the name from the McDonald's brothers drive-in restaurant of San Bernardino, California, to build the McDonald's chain of restaurants. Based on the concepts of a limited menu of controlled quality and predictable uniformity, Kroc's restaurants operated on the credo of "quality, service, cleanliness, and value," and used a massive advertising campaign to promote itself.

In 1902 Kroc was born in Chicago, Illinois, the son of relatively poor parents. He went to public school in the Chicago suburb of Oak Park, but did not graduate from high school. Instead, he left school to open his own music store. When World War I (1914–18) began, Kroc lied about his age in order to serve as an ambulance driver for the American Red Cross (like his neighbor in Oak Park, author Ernest Hemingway).

Kroc, passionate about music as a young man, returned to Illinois after World War I to become a jazz pianist, playing with at least two well-known jazz orchestras. He also became the musical director of one of Chicago's pioneer radio stations, WGES.

Yet, in 1924, a restless Kroc, dissatisfied with the outlook for a career in music, decided to become a salesman. During a period of booming development in Florida, he left Chicago to try his hand at selling real estate in Fort Lauderdale. The boom collapsed in 1926, and Kroc returned to Chicago with his first wife and their child. In Chicago, Kroc became a salesman for the Lily Tulip paper cup company, where he later became Midwestern sales manager, and developed strong promotional and sales skills.

In 1937 Kroc ran into an invention that captured his imagination—a machine called a "multimixer" that could make five milkshakes at a time instead of just one. At a time when milkshakes were very popular, Kroc saw the potential in this invention. By 1941 he had left Lily Tulip and founded his own company to serve as the exclusive distributor for the multimixer. It was a successful business that made Kroc modestly wealthy, but it was not the one that would bring him legendary greatness as an entrepreneur.

Kroc became intrigued with one of his multimixer clients, the McDonald brothers, who owned a drive-in restaurant in San Bernardino, California. The brothers used eight of his mixers at once. A curious Kroc traveled to California in 1954 to find out why so many mixers were being used by this single drive-in.

Kroc discovered the brothers McDonald sold just three items: hamburgers, French fries, and milkshakes. Moreover, the "restaurant" only had walk-up windows. The McDonald brothers were specializing in the first "fast food" service.

Kroc marveled at the efficiency of the operation. He was certain he had stumbled on that "once in a lifetime opportunity." The McDonald brothers agreed with Kroc's suggestion that he should open a national chain of their restaurants. The energetic 52-year-old veteran salesman entered into a franchise arrangement with the brothers and in 1955 opened his first store in Des Plaines, Illinois. Kroc quickly opened many franchises and oversaw quality control with an iron hand. His practice of purchasing the land used by the franchises for their operations, not leasing, eventually made McDonald's one of the largest real estate owners in the world.

By 1971 Ray Kroc had bought out the McDonald brothers' share of the business and became the sole owner of McDonald's Corporation. Kroc publicized his business relentlessly using every kind of advertising. Early in his career as Chief Executive Officer (CEO) of the business Kroc said, "I put hamburgers on the assembly line." His stores were not restaurants. Instead they were designed for frequent customer turnover. He forbade the installation of telephones, jukeboxes, or anything that encouraged loitering in the establishment.

Kroc opened his "McDonald's University" in 1972, where every new franchise owner trained in McDonald food production techniques. The school became known as "Hamburger University."

The company used national advertising in every available medium during the 1960s, when McDonald's clown-spokesman, "Ronald McDonald," was born. Television advertising was aimed at both children and adults. The McDonald's brand name had an enormous impact on America's cultural fabric. The golden arches became the second most widely recognized trademark, behind Coca Cola.

The company is striking success. Some labor experts estimated that McDonald's was the first place of employment for one in fifteen Americans. Fast-food industry observers estimate that 96 percent of Americans have eaten at McDonald's at least once.

The company founded its international division in 1969. At the end of the twentieth century the international division provided 50 percent of McDonald's operating income, putting the "golden arches" into 85 countries, and adding $30 billion to its annual income.

McDonald's is also known for its philanthropy, including the creation of Ronald McDonald Houses, which provide live-in facilities for family members of seriously ill, hospitalized children. These residences, which are often near hospitals, have been a great help to the parents of the terminally ill.

In 1984 Ray Kroc died of heart failure at the age of 81. He was survived by his third wife. One of America's most successful entrepreneurs, Kroc is often thrust into the pantheon of American business world that includes Henry Ford, Andrew and Dale Carnegie, John D. Rockefeller, and J.P. Morgan.

KROC, RAYMOND ALBERT

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