Business Man Makes Billions From McDonald's And Gives Zero Dollars To Original Founders

this is a true story of how a small town businessman took the McDonald's brand from its original Founders and made billions of dollars from it today we will be watching a movie based on the real life story of Ray Kroc called the founder the movie starts in the year 1954 with Ray Kroc struggling to sell milkshake machines to some Drive-In restaurants across the country he seems annoyed by the inefficient Services of the small food businesses that take forever to deliver this food order and when the food arrives it's usually not what he ordered although ran his wife Ethel have saved enough money for the two of them to live a comfortable life in Arlington Heights Illinois Ray is unable to get settled he wants to do something for himself and earn more money at home and also while driving he keeps listening to a motivational speech that says persistence and determination alone are all-powerful the speech motivates him to create his future and become a successful person one day after being rejected by a couple of restaurants for his milkshake machine he calls Gio Martino his secretary she informs him that she received an order for six milkshake mixers from a restaurant in California Ray thinks that she misunderstood the order as it is an unusually large order compared to the orders that he usually gets so he calls the restaurant to confirm the order himself to his surprise the order of six milkshake mixers is actually wrong and if they want eight milkshake mixers instead he then confirms the address of the restaurant which is located in San Bernardino in Southern California out of curiosity Ray decides to travel all the way to San Bernardino himself to see what kind of a restaurant requires eight milkshake mixers upon reaching there he is amazed to see a walk-up restaurant which is extremely busy the name of the restaurant is McDonald's and Rey is mesmerized to see the Speedy service top quality food disposable packaging and a family-friendly environment he sees long queues of people waiting for their turn to place their orders Ray joins a clue and is surprised by how quickly the crew is moving in no time his order is processed and he is unable to believe that it's his order it is surprised to see an entirely different concept of a restaurant the food comes in disposable wrappings as compared to the old-fashioned silverware and he can carry it wherever he wants without any hesitation he sits on a bench nearby and notices other people enjoying the food coincidentally he meets one of the restaurant's owners Mac McDonald Ray appreciates him for his marvelous efforts in creating this walk-up restaurant Mac being a nobleman is delighted to hear Rey's gratitude and eagerly offers him a tour of his restaurant kitchen during the kitchen tour Mac explains to Ray that the main goal to achieve in this game of fast food restaurant is speed is surprised to see the custom-built tools in the kitchen that help them achieve Speedy services and also the employee's efficient work ethic the custom-built tools and machines help them make one hamburger in 30 seconds and that's the reason behind their successful running restaurant Ray then meets dick McDonald who is busy figuring out the right temperature for cooking the fries since the restaurant is too chaotic and they can't really talk much there Ray invites them to dinner to hear their story at the dinner Ray learns about the brother's origin story of McDonald's turns out they came to Hollywood to work for films and eventually opened a beautiful movie theater in Glendora which was forced to close due to the Great Depression so they opened a food stand of hot dogs and orange juice in Arcadia but since there weren't enough people in Arcadia they decided to relocate it to San Bernardino due to the shortage of money they moved the stand that they already had put it on a truck and started to sell hot dogs later they upgraded the truck into a McDonald's famous barbecue drive-in restaurant with 27 items on the menu and uniform waitresses bringing food right to the customer's car at first the restaurant did quite well but later sales started to level off as there were a lot of complications with thrive in restaurants the McDonald's Brothers weren't getting the right kind of customers and they knew they had to change their business model if they wanted to continue so after brainstorming a few ideas and looking at their current sales they realized that selling hamburgers french fries and soft drinks generated a major chunk of profit almost 87 percent so they decided to focus only on these three items while stropping everything else they decided to make it a walk-up restaurant where customers would need to walk in and not drive in eliminating the need of team members required at a drive-in restaurant they further plan to use disposable food packaging to reduce silverware costs they decided the tagline of their restaurant would be orders ready in 30 seconds and that's how they were going to attract customers to implement their Speedy Delivery system the brothers and a group of employees spent an afternoon on a tennis court drawing their crazy plan with chalk to determine the most efficient plan for the kitchen to speed up food preparation after hours of making changes and testing the efficiency of the kitchen design they'd finally have the perfect kitchen setup which would speed up their food making and delivering service but business didn't take off so quickly even after that the customers weren't really happy to get out of their car to their orders and people weren't getting used to the new food packaging but the McDonald's Brothers didn't give up and tried everything they could to give their customers the right kind of service and then it all paid off as McDonald's became the most popular restaurant in the town raid is enthralled to listen to the brother's story and he is unable to sleep that night the next day he proposes that the brothers franchise the restaurant according to Ray this unbelievable establishment should be expanded so that everyone around the world can experience it both the brothers claimed that they had already tried to open franchises in several areas but had difficulty maintaining quality standards in each of them while trying to convince the brothers for franchising reynovus is a painting on a wall of an unusual building Mack explains that it was a concept design created by dick for their franchise in Phoenix sends Ray down to Phoenix where he sees the failed McDonald's franchise restaurant with the golden arches seeing this Ray becomes determined to try to convince the brothers of his idea he returns home and tells his wife about the restaurant that he has just seen in Phoenix with a fully automated system he tells her that he wants to invest in this revolutionary business and become a part of it his wife on the other hand is not so happy about this idea she is satisfied with what they have and wants to live with it happily rather than risking it all they both argue when Rey asks her to support him in his vision the next day ray goes back to his old job as a traveling salesman he is upset after being ignored by restaurants and can't stop thinking about the restaurant idea despite his wife's disapproval he goes to McDonald's to convince the brothers to allow him to lead their franchising efforts dick is reluctant about the idea of franchising again as he is concerned about his brother's Health who went into the hospital the last time their idea of franchise failed Walther Brothers give it a thought and decide to finally agree with Rey however they decide to keep a tighter leash on everything and a complete oversight soon after a contract is drafted for the brothers in Rey with a major condition that no franchise decisions can be made without the brother's approval rayquickly signs the paperwork and then heads to the Plains Illinois to open up his McDonald's franchise but finding funding is difficult since most of the investors refuse to invest in his franchise and so Rey is forced to take a loan his home is leverage but he does not tell his wife about this Ray waits for the final approval of the McDonald Brothers for substantial alterations that he has suggested to be made however the brothers are taking too long to respond more than Rey had anticipated he calls them to ask them how long will it take for the approval dick replies that he has asked his architect to thoroughly review the alterations to make sure everything is safe and up to code Ray gets pissed off as he has a lot of his own money invested finally work for Rey's new restaurant starts and he makes sure that the operations run exactly as they did in San Bernardino however he clashes with the McDonald Brothers when he tries to get sponsorship money from Coca-Cola by putting their name on the menu boards Juarez sees it as a great business opportunity dick McDonald claims that they won't commercialize the restaurant as it is against their core beliefs sue the new restaurant is up and running and Rey is excited about it he manages to keep the quality control in check and also helps his employees however his wife Ethel is still extremely skeptical of his latest venture he apologizes to his wife for neglecting her and Promises to take her to the country club the next day at the Country Club Ray pitches the idea to open a McDonald's franchise to his fellow members who are wealthy investors at first they mock him but soon are ready and willing to get into the new business venture deals for the new franchises are made in consent with the McDonald Brothers however the brothers are a bit skeptical about how they will be able to maintain the quality in so many franchises altogether one day Rey decides to visit a franchise in Schaumburg upon reaching there he is infuriated to see the new franchise lacking quality control due to poor management ethic the franchise lacks a family-friendly environment and there is trash all over the floors it is even more enraged to see the poor quality hamburgers so he rushes to the franchise owner to show him the stale hamburger Ray tries to tell the franchisees to do better as their lack of work ethic will Doom the original franchise efforts but when he discovers that they don't seem to care about the franchise standards as much as he does he cancels his and his wife's membership in the country club and looks for other ways to recruit new franchisees Ethel is pissed about it as she always knew that Rey's new Venture will be a flop one date Rey meets a man named Leonard rosenblatt who inspires him that he can do anything to make a living so Rey helps him open a franchise in Waukegan Leonard runs the franchise according to rules and regulations and maintains its standard eventually Ray learns that franchising to middle-class investors can prove beneficial for him as they are willing to follow the McDonald's formula so new franchises begin opening across the Midwest with Rey representing himself as the founder of McDonald's eventually McDonald's franchises began opening everywhere from Dayton Madison Milwaukee Grand Rapids Kenosha and Decatur the McDonald brothers are annoyed to see Ray calling his own restaurant McDonald's no one when in reality that is the second franchise where he travels to Minnesota to attend the opening of the McDonald's franchise there later that evening he goes to a fancy restaurant have dinner there he meets rolly Smith the owner of the restaurant who offers him to open another franchise at McDonald's in Minneapolis Ray meets rowley's wife Juan and he seems to be instantly attracted to her beauty they both sing and play piano together Ray then decides to expand the business to Midwest but to his surprise he wins out of money the 1.4 percent of profits that he gets from the McDonald Brothers seem insufficient to him so he calls the brothers to renegotiate the original contract however the brothers refused to increase his share of profits soon Ray finds out that the refrigeration costs of storing ice cream for milkshakes at the restaurant are eating his profit margin he seems immensely tensed and is unable to think straight Ray eventually visits Joan and Raleigh's business when Joan learns about Rey's Refrigeration issues she suggests they use a powdered milk mix that tastes exactly like a real milkshake Ray eagerly proposes his economizing idea to Dick McDonald but is once again refused when Ray tries to get another loan to help his financial problems he meets a young man named Harry sonneborn sonoborn is given access to the company's finances and quickly discovers solutions to raise financial problems He suggests that Rey should take this franchising business as a real estate business if he wants to make money sonoborn suggests rated by lands and later lease it to New franchise owners to open up a McDonald's restaurant if he does so Ray will have a separate income stream that he won't have to share with the McDonald Brothers sonneborn's suggestion is successful and Rey soon starts earning more and then he changes the name of his company to franchise Realty Corporation when Dick McDonald calls to inquire about this Ray claims that his Corporation is separate from McDonald's and is not covered by their contract soon following his Newfound success rate one night over dinner tells his wife that he wants a divorce Rey is ready to give everything to Ethel except for any shares at McDonald's we also hires lawyers and is ready to pay any amount of money to get out of contract with the McDonald Brothers raise actions irritate the brothers even more when they receive a letter with the official letterhead of McDonald's Corporation and Ray's name listed as president seeing this dick threatens to sue Rave as they're the original founders of the brand but Ray doesn't back down and instead tells the brothers that since he has become really rich with the real estate business he can easily bury them in court cases despite being the original McDonald's founder they simply don't have enough money to battle Rey in court this horrible situation sends Mack into diabetic shock after Mac is admitted to the hospital Ray arrives with flowers in a letter containing a blank check simply indicating that Rey intends to buy out the brother's share of the company the brothers set their terms after knowing that they can't win with Rey the brothers agreed to a 2.7 million dollars lump sum payment ownership of their original restaurant in San Bernardino and one percent of the company's profit annually while Ray is willing to sign off on almost everything he refuses to include the royalty in the settlement and instead offers it as a handshake deal which the brothers agree to following the negotiations dick runs an array in a restroom and questions Ray that he of everything about the company to him so why did he not copy the idea and open his own restaurant Ray claims that such an action would have failed and that the true value of McDonald's is the name itself soon the brothers are forced to change the restaurant's name to the Big M as they're no longer the owners of the McDonald's brand moreover Ray builds a new McDonald's franchise directly across the street giving some tough competition to the McDonald Brothers the film ends in 1970 and we see Rey with his new wife Juan preparing a speech in his luxurious mansion in the speech Ray Praises himself were to success he says that the reason behind his success is persistence this was the same motivational speech that we heard earlier in the film in PostScript we learned that the San Bernardino McDonald's was so popular it forced the original Stand to close and the one percent royalty fee that Rey had agreed over a handshake while the McDonald Brothers never got any money from Rey if Rey had stayed true to his words each of the brothers would have gotten 200 million dollars a year thank you so much for watching if 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Channel: King Recaps

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Id: N4FAwtNN7D4

Length: 15min 4sec (904 seconds)

Published: Thu Jan 19 2023