Ray Kroc: McDonald's Founder or Ruthless Operator?

Ray Kroc, widely hailed as the visionary behind McDonald's, was actually a shrewd businessman who acquired the company from its creators, the McDonald brothers. His journey began not as a restauranteur, but as a milkshake machine salesman. Impressed by the brothers' efficient operation in 1954, Kroc saw immense potential for expansion and became their franchising agent.

Kroc's business model evolved significantly, shifting focus from direct sales to real estate. By founding Franchise Realty Corporation, he leased land and built restaurants, then subleased them to franchisees at a higher cost. This strategy, coupled with other fees, generated substantial profits that funded further expansion, enabling McDonald's to grow exponentially.

By 1961, Kroc had bought out the McDonald brothers for $2.7 million, solidifying his control and earning the nickname "the founder." He implemented strict operational principles like QSC (Quality, Service, Cleanliness) and creatively expanded the menu, often facing resistance from franchisees. Kroc's aggressive approach also extended to his ownership of the San Diego Padres and the controversial inspiration behind McDonaldland characters.