An Industry is Born
A SPEEDEE SYSTEM ERA
In 1954 the brothers were approached by a man who would change their business forever. Ray Kroc a multimixer milkshake machine sales agent, noticed the brothers’ success and offered the brothers a contract where he’d help them grow their business country-wide. Kroc, now a franchise agent, started the franchise in Des Plaines, Illinois. Ray saw a vision of the potential this business had, and he knew the fortune it could make across the world. Kroc’s vision grew and McDonald’s had blossomed into 145 restaurants by 1960. Kroc bought the brothers’ company in 1961 for $2.7 million. Kroc was a visionary who didn't see a small-town restaurant in San Bernandino, California but saw a billion-dollar company and franchise opportunity. Kroc first came to this restaurant in 1954 to provide them with multimixing machines. He was stunned by this approach to this food service. Kroc being the businessman he was, saw an opportunity in their unique business venture.
Ray Kroc with McDonald’s executive Fred Turner, 1975,
theguardian.com
McDonald's Speedee System tennis court layout (The Founder), 2016, thatmomentin.com
"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."
- Ray Kroc
In summary, Kroc knew the potential in profits and impact the company held so Kroc met with the McDonald brothers and discussed his vision of franchising the restaurant. At first they were doubtful and nervous about what this new venture would look like, but they gave in. Kroc envisioned 1,000 McDonalds in the United States alone. He began his first franchised restaurant in Des Plaines, Illinois. From there it was history it grew and grew from that little restaurant in San Bernardino, California to over 40,000 restaurants today.