Grinding It Out (#324)
I loved the movie The Founder with Michael Keaton which tells the story of Ray Kroc and how he created McDonalds. If you haven’t seen it, The Founder is on Amazon Prime and gets 81% on Rotten Tomatoes.
I liked the movie so much I went and read Grinding It Out: The Making of McDonalds — Ray Kroc’s autobiography that he wrote in 1977 when McDonalds had grown from one restaurant to a 4,000 and had just broken $1 Billion in annual revenue. It is a good CEO autobiography and gives insight into how he developed the company and revolutionized dining in America and around the globe.
I give Grinding It Out ⭐️⭐️⭐️⭐️ out of 5.
Ray Kroc
One might say that Ray Kroc led a very interesting life. Born on October 5, 1902, in Oak Park, Illinois, Ray Kroc experienced a varied career before revolutionizing the fast-food industry with McDonald's. He worked as a paper cup salesman, a jazz musician, a milkshake maker salesman, and even a radio DJ before stumbling upon the McDonald's restaurant, run by Dick and Mac McDonald, in San Bernardino, California, in 1954. Impressed by the efficient assembly-line system and the popularity of the restaurant, Kroc saw immense potential in franchising the concept nationwide. So at the age of 52, he started to expand the company as he worked with the McDonald’s brothers. Eventually, he bought out the McDonald brothers in 1961 for $2.7 million ($28 million in today’s dollars).
Ray Kroc had a personal life was interesting, too. He married his first wife, Ethel Fleming, in 1922, with whom he had a daughter named Marilyn. However, their marriage ended in divorce in 1961. In 1963, Kroc married Joan Beverly Mansfield, with whom he remained with until his death. Joan played an active role in philanthropy and supported her husband's business ventures, becoming a significant influence on his life and career.
Later in life, Ray Kroc's entrepreneurial spirit extended beyond McDonald's. In 1974, he purchased the San Diego Padres baseball team, fulfilling a lifelong dream of owning a professional sports franchise. Under his ownership, the Padres experienced both successes and challenges, but Kroc's passion for the team remained unwavering. Sadly, Ray Kroc passed away on January 14, 1984, in San Diego, California, at the age of 81. Despite his death, his legacy as a pioneering businessman and philanthropist continues to influence the fast-food industry and beyond.
Today, Kroc’s legacy lives on in the McDonald's Corporation — a global fast-food chain that operates over 41,200 restaurants worldwide and serves millions of customers daily. Despite facing shifting consumer preferences and market competition, McDonald's has demonstrated resilience, adapting its offerings and expanding its digital presence to stay relevant in the ever-evolving fast-food industry. In 2023, the company had $25.49 Billion in revenue and $8.469 Billion in net income.
One interesting facet of the McDonald’s story — Harry J. Sonneborn was an early insider at McDonald's and has been quoted as saying: "We are not technically in the food business. We are in the real estate business." That's right, Mickey D's is one of the largest real estate empires in the world. It owns the land for a large number of the locations that its franchisees operate. In return, franchisees must make rental payments every month in addition to their franchise fees. In 2023, McDonald's earned over $7.3 billion in rental income which represents 63.5% of the revenue it has generated from its franchisees.
Ray Kroc Quotes
Here are 10 Ray Kroc quotes to inspire you:
"Luck is a dividend of sweat. The more you sweat, the luckier you get."
"The quality of a leader is reflected in the standards they set for themselves."
"If you're not a risk taker, you should get the hell out of business."
"The two most important requirements for major success are: first, being in the right place at the right time, and second, doing something about it."
"The definition of salesmanship is the gentle art of letting the customer have it your way."
"You're only as good as the people you hire."
"The best kind of revenge is massive success."
"The key to success is being in the right place at the right time, recognizing that you are there, and taking action!"
"McDonald's is a people business, and that smile on that counter girl's face when she takes your order is a vital part of our image."
"Press on. Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. The slogan 'Press on' has solved and always will solve the problems of the human race."
Conclusion
I enjoyed the story of how Ray Kroc built McDonald’s into a juggernaut. Want an inspiring story for your next company meeting? Reach out to TFCG to start the conversation about adding an inspirational key note speech for your next get together.
In the meantime, use the quotes from Ray Kroc to inspire you.