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— CH. 1 · FOUNDING AND EARLY EXPANSION —

McDonald's

~4 min read · Ch. 1 of 6
6 sections
  • Richard and Maurice McDonald opened their first restaurant at 1398 North E Street in San Bernardino, California on the 15th of May 1940. They aimed to make $1 million before turning 50 years old. The brothers introduced the Speedee Service System in 1948 to streamline operations. This system removed carhops and replaced silverware with paper wrappings. The menu shrank from dozens of items to just nine products including hamburgers and cheeseburgers. Richard McDonald later stated that their concept relied on speed, lower prices, and volume. Ray Kroc joined the company as a franchise agent on the 15th of April 1955. He purchased the business from the brothers for $2.7 million in 1961. The original San Bernardino location was demolished in 1971. A museum now occupies part of the site alongside a Juan Pollo chain headquarters.

  • McDonald's has sold more than 100 billion hamburgers since its inception. In 2015, CEO Steve Easterbrook streamlined the United States menu which contained nearly 200 items. The company removed high-fructose corn syrup from hamburger buns during this period. Artificial preservatives were eliminated from Chicken McNuggets by replacing chicken skin and safflower oil with pea starch and rice starch. By September 2018, McDonald's USA stopped using artificial preservatives, flavors, and colors in seven classic burgers. The McPlant plant-based burger arrived in November 2020 following successful testing of Beyond Meat substitutes. Select locations in the UK tested vegan ice cream called Choco Scoop and Strawberry Scoop in 2024. The McValue Meal deal featuring four items launched in 2024 for $5 to provide budget-friendly options. Regional variations include the Hatch Green Chile Double Cheeseburger available only in New Mexico.

  • McDonald's owns land valued at an estimated $42 billion on which many restaurants are situated. Rental payments from franchisees rose 26 percent between 2010 and 2015. These payments accounted for one-fifth of total revenue at the end of that period. The company operates in 120 countries and territories serving 68 million customers daily. There were 41,800 locations as of 2023. The Hamburger Universities train franchisees and management in cities including Oak Brook, Tokyo, London, and Sydney. In China, state-owned enterprises operate franchises under agreements with Beijing Capital Agricultural Group. The company opened a restaurant inside the Louvre museum in Paris. Drive-through service was first introduced in Sierra Vista, Arizona in 1975. A McCafé concept started in Melbourne, Australia in 1993 before expanding globally through kiosks and mobile trucks.

  • In March 2015, workers in 19 U.S. cities filed 28 health and safety complaints with OSHA regarding low staffing and lack of protective gear. Management allegedly told employees to treat burn injuries with condiments like mayonnaise and mustard due to missing first aid supplies. Fast food workers in the United States drew an average of $7 billion in public assistance annually from 2007 to 2011. In South Korea, part-time employees received $5.50 per hour while facing arbitrary schedule adjustments. As of 2013, 90 percent of McDonald's UK workforce held zero-hour contracts. Over 700 young workers filed lawsuits against McDonald's UK in January 2025 alleging widespread harassment and discrimination. These claims spanned more than 450 restaurants and were handled by law firm Leigh Day. The Equality and Human Rights Commission wrote to all 1,400 branches in March 2025 demanding compliance with legal duties.

  • Basketball player Michael Jordan became the first celebrity to have a value meal named after him in 1992. Fans in other regions grew envious leading to a man buying a gallon of McJordan BBQ sauce for 10,000 dollars. Rapper Travis Scott partnered with the company in September 2020 to release the Travis Scott Meal nationwide. Korean boy group BTS released the BTS Meal in 50 countries starting the 26th of May 2021. WNBA player Angel Reese created the Angel Reese Special in January 2025 as the first female partner. Ronald McDonald House Charities received over $182 million in donations in 2022 from customers and franchisees. The company sponsors events ranging from Little League to the FIFA World Cup. Thomas Friedman noted that no country with a McDonald's has gone to war with another. The Economist newspaper uses the Big Mac Index to informally judge currency purchasing power across nations.

Common questions

When did Richard and Maurice McDonald open their first restaurant in San Bernardino?

Richard and Maurice McDonald opened their first restaurant at 1398 North E Street in San Bernardino, California on the 15th of May 1940. The brothers introduced the Speedee Service System in 1948 to streamline operations by removing carhops and replacing silverware with paper wrappings.

Who purchased McDonald's from the founding brothers and when did this transaction occur?

Ray Kroc purchased the business from the brothers for $2.7 million in 1961 after joining the company as a franchise agent on the 15th of April 1955. The original San Bernardino location was demolished in 1971 and now houses part of a museum alongside a Juan Pollo chain headquarters.

What specific menu changes did McDonald's implement regarding ingredients between 2015 and 2024?

McDonald's removed high-fructose corn syrup from hamburger buns during 2015 and eliminated artificial preservatives from Chicken McNuggets by replacing chicken skin and safflower oil with pea starch and rice starch. By September 2018, McDonald's USA stopped using artificial preservatives, flavors, and colors in seven classic burgers before introducing the McPlant plant-based burger in November 2020.

How many locations does McDonald's operate globally and what is the value of its land holdings?

There were 41,800 locations as of 2023 operating in 120 countries and territories serving 68 million customers daily. McDonald's owns land valued at an estimated $42 billion on which many restaurants are situated.

What legal disputes involving workers occurred in the United Kingdom and when were they filed?

Over 700 young workers filed lawsuits against McDonald's UK in January 2025 alleging widespread harassment and discrimination across more than 450 restaurants. The Equality and Human Rights Commission wrote to all 1,400 branches in March 2025 demanding compliance with legal duties regarding these claims.

Which celebrity partnerships have resulted in named meals since 1992 and when did they launch?

Basketball player Michael Jordan became the first celebrity to have a value meal named after him in 1992 while rapper Travis Scott partnered with the company in September 2020 to release the Travis Scott Meal nationwide. Korean boy group BTS released the BTS Meal in 50 countries starting the 26th of May 2021 and WNBA player Angel Reese created the Angel Reese Special in January 2025.