McDonald's: the story on HearLore

McDonald's

The first McDonald's restaurant opened on the 15th of May 1940 in San Bernardino, California, founded by brothers Richard and Maurice McDonald with a singular goal of making one million dollars before they turned fifty. This humble hamburger stand, located at 1398 North E Street, did not start as the global empire it is today but as a streamlined operation that revolutionized the dining experience. The brothers introduced the Speedee Service System in 1948, a radical departure from the carhop service that had previously dominated the industry. They fired twenty carhops, removed all silverware and plates, and replaced them with paper wrappings and cups to eliminate the need for a dishwasher. The menu was drastically simplified to just nine items, including hamburgers, cheeseburgers, three soft drink flavors, milk, coffee, potato chips, and pie. Richard McDonald later explained that their entire concept was based on speed, lower prices, and volume, a philosophy that would eventually attract a man who would change the course of American business history.

The Man Who Bought The Dream

Ray Kroc joined the McDonald's operation on the 15th of April 1955 as a franchise agent, marking the beginning of the corporation as it is known today, though the brothers had already opened eight locations. Kroc was an aggressive business partner who eventually drove the McDonald brothers out of the industry, purchasing their equity in 1961 for 2.7 million dollars. The sale cost Kroc a fortune in today's currency, yet it secured his control over the brand that would become the most successful fast food corporation in the world. The original San Bernardino restaurant was eventually torn down in 1971, and the site was sold to the Juan Pollo chain in 1998, which now serves as headquarters for that chain and a Route 66 museum. Kroc's vision extended far beyond the brothers' original scope, transforming the company into a symbol of globalization and the spread of the American way of life. The present corporation credits its founding to Kroc, and his aggressive tactics ensured that the McDonald's name would be synonymous with the golden arches that replaced the original mascot, Speedee, in 1962.McDonald's has become a master of localization, adapting its menu to reflect consumer tastes in countries across the globe, from the soup served in Asian restaurants to the beer sold in Germany and France. In India, the company introduced millet-based buns on the 4th of September 2024, utilizing three major and two minor millets to provide more calcium, iron, and protein, while also respecting religious prohibitions against beef consumption. The company has opened vegetarian-only restaurants in India, with the first one opening in 2012 at Amritsar, and serves items like the McRice in Indonesia and the Ebi burger in Singapore and Japan. In France, McDonald's is known as McDo and sells macaroons, Croque McDos, croissants, and pain au chocolat, while in New Zealand, the chain sold meat pies until 2020 after partially relaunching the Georgie Pie fast food chain. The company has even opened a restaurant and McCafé on the underground premises of the Louvre in Paris, demonstrating its ability to integrate into diverse cultural landscapes while maintaining its core identity.

Common questions

When did the first McDonald's restaurant open and who founded it?

The first McDonald's restaurant opened on the 15th of May 1940 in San Bernardino, California, founded by brothers Richard and Maurice McDonald. This location was situated at 1398 North E Street and began as a streamlined hamburger stand with a goal to make one million dollars before the founders turned fifty.

When did Ray Kroc join McDonald's and what happened to the original San Bernardino location?

Ray Kroc joined the McDonald's operation on the 15th of April 1955 as a franchise agent and eventually purchased the brothers' equity in 1961 for 2.7 million dollars. The original San Bernardino restaurant was torn down in 1971 and the site was sold to the Juan Pollo chain in 1998.

What specific menu items and localization strategies does McDonald's use in India and Europe?

In India, the company introduced millet-based buns on the 4th of September 2024 and opened its first vegetarian-only restaurant in 2012 at Amritsar. In Europe, McDonald's sells beer in Germany and France, macaroons and croissants in France, and is known as McDo in France.

How does McDonald's generate revenue and what is the scale of its real estate holdings?

McDonald's generates significant revenue from owning 70% of restaurant buildings and 45% of the underlying land, which is valued at an estimated 42 billion dollars. This real estate strategy makes the company the second-largest private employer in the world after Walmart with 1.7 million employees.

What were the outcomes of the McLibel case and the Liebeck v. McDonald's Restaurants trial?

The McLibel case lasted ten years and resulted in a European Court of Human Rights ruling that the unequal resources of the litigants breached the defendants' rights to freedom of speech. The Liebeck v. McDonald's Restaurants trial awarded 2.86 million dollars to 81-year-old Stella Liebeck for third-degree burns, which was later reduced to 640,000 dollars.

What are McDonald's future expansion plans and digital transformation goals for 2027?

McDonald's plans to add 900 restaurants in the U.S. and 10,000 more worldwide to reach 50,000 restaurants globally by 2027. The company aims to expand its loyalty program to 250 million 90-day active users and automate restaurants using artificial intelligence and Google Cloud technology.