Ray Kroc facts for kids
Quick facts for kids
Ray Kroc
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Kroc in 1976
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| Born |
Raymond Albert Kroc
October 5, 1902 Oak Park, Illinois, U.S.
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| Died | January 14, 1984 (aged 81) San Diego, California, U.S.
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| Resting place | El Camino Memorial Park San Diego, California, U.S. |
| Occupation | Businessman; franchisor |
| Years active | 1954–1984 |
| Known for | Purchasing, popularizing and "founding" McDonald's |
| Political party | Republican |
| Spouse(s) |
Ethel Fleming
(m. 1922; div. 1961)Jane Dobbins Green
(m. 1963; div. 1968)Joan Kroc
(m. 1969) |
| Children | 1 |
Raymond Albert Kroc (October 5, 1902 – January 14, 1984) was an American businessman. He is famous for making McDonald's a global fast food giant. Kroc bought the company in 1961 and served as its CEO from 1967 to 1973. Many people see him as the person who truly built the McDonald's Corporation into what it is today. After leaving McDonald's, he owned the San Diego Padres baseball team from 1974 until his death.
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Ray Kroc's Early Life and Jobs
Raymond Albert Kroc was born on October 5, 1902, in Oak Park, Illinois. This town is close to Chicago. His parents, Rose Mary and Alois Kroc, were from Czech families. His father, Alois, made money buying and selling land in the 1920s. However, he lost it all during the stock market crash in 1929.
At age 15, Ray Kroc decided to leave high school. This was against his parents' wishes. When the United States joined World War I, he lied about his age. He wanted to join the American Red Cross as an ambulance driver. But the war ended soon after he joined, so his service was short. During the 1920s and the Great Depression, Kroc worked many different jobs. He sold paper cups, worked as a real estate agent in Florida, and played piano in several bands.
How Ray Kroc Built McDonald's
After World War II, Kroc worked as a salesman. He sold machines that made milkshakes for a company called Prince Castle. Sales of these machines dropped because of cheaper products from other companies. Kroc was very impressed when he learned that Richard and Maurice McDonald had bought eight of his machines. They used them at their restaurant in San Bernardino, California. So, in 1954, Kroc went to visit them.
Franchising and Expansion Plans
After Kroc made a deal to sell McDonald's franchises, he wrote a letter to Walt Disney. They had met during World War I while training to be ambulance drivers. Kroc asked Disney if there could be a McDonald's restaurant in his new Disney Development. Some stories say Disney agreed but wanted to charge more for fries. Kroc supposedly refused because he didn't want to overcharge his customers. So, Disneyland opened without a McDonald's. However, some believe this story was changed by McDonald's marketing. It is more likely that Disney simply did not approve the idea.
Kroc made many new changes to how food franchises worked. One big change was selling only single-store franchises. At that time, it was common to sell rights for large areas. Kroc knew selling big licenses was a quick way to make money. But he also saw that it made it harder for the main company to control how the chain grew. Kroc wanted all McDonald's locations to offer the same great service and quality. By only allowing one store at a time, Kroc could keep some control over the people running the restaurants. This helped him make sure all McDonald's were consistent.
Rules for McDonald's Restaurants
Kroc had strict rules for McDonald's. He wanted restaurants only in suburban areas. He did not allow them in downtown or city areas. He believed these areas might have more break-ins after closing hours. Restaurants had to be super clean all the time. The staff had to be neat, well-groomed, and polite to kids. The food had to be exactly the same everywhere. Restaurants could not change anything about the recipes. Kroc also insisted that nothing should be wasted. Every container had to be scraped completely clean. He also did not allow cigarette machines or pinball games in any McDonald's.
Buying Out the McDonald Brothers
In the 1960s, many new fast food chains started. They copied McDonald's ideas, like Burger King and KFC. Kroc became frustrated because the McDonald brothers wanted to keep only a small number of restaurants. They also kept telling Kroc he could not change the original plans. Even though Kroc asked many times, the brothers never sent official letters allowing changes.
In 1961, Kroc bought the company from the brothers for $2.7 million. This amount was planned so each brother would get $1 million after taxes. It was hard for Kroc to get this money because he already had debts from expanding. But Harry J. Sonneborn, who Kroc called his "financial wizard," helped him find the money.
Kroc was upset that the brothers would not give him the land and rights to their first restaurant in San Bernardino. The brothers had given that original location to their first employees. In anger, Kroc later opened a new McDonald's restaurant close to the original. The brothers' restaurant had been renamed "The Big M" because they forgot to keep the rights to the McDonald's name. "The Big M" closed six years later. Some say Kroc promised, with a handshake, to keep paying the brothers a 1% royalty from their first agreement. But there is no clear proof of this. Neither brother ever said they were unhappy with the deal. Richard McDonald reportedly said he had no regrets.
Kroc kept the "Speedee Service System" for making hamburgers. The McDonald brothers first started this system in 1948. Kroc made sure all operations were the same everywhere. This meant every burger would taste the same in every restaurant. He gave strict rules to franchise owners about how to make the food. These rules covered portion sizes, cooking methods, cooking times, and packaging. Kroc also refused to cut costs by using things like soybean filler in the hamburger patties. These strict rules also applied to how customers were treated. For example, money had to be given back if an order was wrong. Also, customers who waited more than five minutes for their food got their money back.
By the time Kroc died, McDonald's had 7,500 restaurants. They were in the United States and 31 other countries. In 1983, all the restaurants together made over $8 billion in sales. Kroc's own wealth was about $600 million.
Ray Kroc and Baseball
Kroc stopped running McDonald's in 1973. He was looking for new things to do. He loved baseball his whole life, so he decided to get back into it. He found out the San Diego Padres baseball team was for sale. The team was almost sold to someone who wanted to move them to Washington, D.C. But that sale was stuck in lawsuits. Kroc bought the team for $12 million, keeping them in San Diego.
In Kroc's first year owning the team (1974), the Padres lost 102 games. But over one million fans still came to watch them play. This was a big success for baseball teams back then. Before Kroc, their highest attendance was 644,772 fans in 1972. The San Diego Union newspaper said Kroc was "above all, a fan of his team."
On April 9, 1974, the Padres were losing a game to the Houston Astros. Kroc grabbed the microphone and spoke to the 39,083 fans. "I've never seen such stupid ballplaying in my life," he said. The crowd cheered loudly. In 1979, Kroc talked publicly about wanting to sign future free agent players. This led to a $100,000 fine from Commissioner Bowie Kuhn. Kroc became frustrated with the team. He gave control of the team to his son-in-law, Ballard F. Smith. Kroc said, "There's more future in hamburgers than baseball."
After Kroc's death, the Padres wore a special patch with his initials, RAK, in 1984. That year, they won their league championship. They played in the 1984 World Series but lost to the Detroit Tigers. In 1999, Kroc was honored by being put into the first class of the San Diego Padres Hall of Fame.
Ray Kroc's Personal Life and Legacy
The Kroc Foundation supported research, treatment, and education for various health issues. These included diabetes, arthritis, and multiple sclerosis. It is most famous for creating the Ronald McDonald House. This is a non-profit group that gives free places for parents to stay. These homes are close to hospitals where their children are getting medical care.
In 1973, Kroc received the Golden Plate Award from the American Academy of Achievement.
Ray Kroc was a Republican his whole life. He strongly believed in people helping themselves. He did not like government welfare programs. In 1972, Kroc gave $255,000 to Richard Nixon's campaign to be re-elected. Some people, like Senator Harrison A. Williams, said Kroc made this donation to try and get Nixon to stop a bill about minimum wage.
Kroc died from heart failure in a hospital in San Diego, California, on January 14, 1984. He was 81 years old. He was buried at the El Camino Memorial Park in Sorrento Valley, San Diego.
Kroc's first two marriages ended in divorce. He was married to Ethel Fleming from 1922 to 1961. He then married Jane Dobbins Green from 1963 to 1968. Kroc and Ethel met in 1919 and married in 1922. They moved to Chicago, Illinois, and had a daughter named Marilyn in 1924. His third wife, Joan Kroc, was a philanthropist. She gave a lot more money to charity after Kroc passed away. She supported many causes, like promoting peace and stopping the spread of nuclear weapons. When she died in 2003, her remaining $2.7 billion was given to many non-profit groups. This included $1.5 billion to The Salvation Army to build 26 Kroc Centers. She also gave $200 million to National Public Radio because she believed in public radio. She also donated to community centers in neighborhoods that needed help.
Ray Kroc in Popular Culture
Ray Kroc's story and his business style are featured in different ways:
- Mark Knopfler's 2004 song "Boom, Like That" is about Kroc buying McDonald's.
- Kroc wrote a book called Grinding It Out. It was first published in 1977 and reissued in 2016. This book was used to make a movie about him.
- Michael Keaton played Ray Kroc in the 2016 film The Founder. The movie shows how Kroc developed the franchise and bought McDonald's. It also shows a critical view of how he treated the McDonald brothers.
- Kroc is featured in the documentary series The Food That Built America on the History channel.
- He is also featured in Tim Harford's radio show 50 Things That Made the Modern Economy. The episode "Fast food franchise" talks about how his franchise model helped the fast food industry grow.
See also
