Ray Kroc & McDonald's History, Controversy & Facts

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Eastern Gateway Community College *

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Medicine

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Nov 24, 2024

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pdf

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Ray Kroc and McDonald's: History: Early Life: Ray Albert Kroc was born on October 5, 1902, in Oak Park, Illinois. Before entering the fast-food industry, Kroc had a career as a paper cup salesman and later worked in the Multimixer milkshake machine business. Introduction to McDonald's: In 1954, Kroc learned about a small but successful San Bernardino, California, restaurant run by Richard and Maurice McDonald. The restaurant used a unique and efficient system for preparing and serving food quickly. Franchise Agreement: Recognizing the potential of the McDonald brothers' concept, Kroc proposed the idea of franchising the restaurant. In 1955, he founded McDonald's Corporation and opened the first franchised McDonald's restaurant in Des Plaines, Illinois. Expansion and Success: Under Kroc's leadership, McDonald's grew rapidly. The franchise model, standardized menu, and emphasis on quick service contributed to the company's success. By the end of the 1960s, McDonald's had expanded both nationally and internationally. Controversy: Franchise Dispute with McDonald Brothers: Over time, conflicts arose between Ray Kroc and the McDonald brothers regarding the direction and control of the company. In 1961, Kroc bought out the McDonald brothers for $2.7 million, gaining full control of the company. Supersizing and Health Concerns: In the later years of McDonald's expansion, the company faced criticism for its role in contributing to the rise of obesity and health issues. The introduction of larger portion sizes, promotions, and a menu high in processed foods raised concerns about the impact on public health. Labor Practices: McDonald's has faced criticism for its labor practices, including low wages for its workers. Over the years, there have been protests and calls for improved working conditions and increased wages within the fast-food industry. Impact on Environment: McDonald's, like many large fast-food chains, has been scrutinized for its environmental impact. Issues include packaging waste, deforestation linked to
beef production, and the use of single-use plastics. The company has taken steps to address some of these concerns in recent years. Facts: Golden Arches and Iconic Logo: The iconic Golden Arches logo was introduced in 1962. It has become one of the most recognizable symbols in the world, symbolizing the McDonald's brand. Big Mac and Ronald McDonald: The Big Mac, introduced in 1968, became one of McDonald's most famous menu items. Ronald McDonald, the company's mascot, was introduced in 1963 and has since become a prominent figure in McDonald's marketing. Global Presence: McDonald's is one of the largest and most successful fast-food chains globally, with thousands of restaurants in over 100 countries. The company has adapted its menu to suit local tastes and preferences in various regions. McCafe and Diversification: McDonald's has diversified its menu over the years, introducing items like salads, fruit smoothies, and premium coffee under the McCafe brand. This diversification aimed to cater to changing consumer preferences and health trends. Happy Meal and PlayPlaces: The Happy Meal, introduced in 1979, has been a popular choice for families, featuring a small toy with the meal. McDonald's PlayPlaces, indoor play areas for children, were introduced in the 1980s. Ray Kroc's vision and business acumen transformed McDonald's from a small California restaurant into a global phenomenon. While the company has enjoyed immense success, it has also faced criticism and controversy over various issues, prompting changes in its practices over the years.
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