MCDONALD’S is known around the world, but you may not know much about its history.
We all love a Big Mac or Happy Meal, but who is the inner circle and who started it?
Who owns McDonald’s?
McDonald’s has been owned by Kroc since April 1955, which was founded by Ray Kroc.
Kroc’s first McDonald’s location opened on April 15 of the same year in Illinois, USA.
Shortly thereafter, Kroc formed McDonald’s System, Inc., now known as McDonald’s Corporation.
In 1961, Kroc bought out the McDonald brothers, who founded the franchise, for $2.7 million (£2million).
Since then, Kroc has owned the exclusive trademark rights for all McDonald’s locations.
Who Founded McDonald’s?
McDonald’s was founded by McDonald brothers Richard (Dick) and Maurice (Mac).
Simultaneously with the founding of McDonald’s, the two brothers also created the “Speedie Service System”, now known as Fast Food.
Who were the McDonald brothers?
Richard and Maurice McDonald were two American entrepreneurs who founded McDonald’s.
The idea for the restaurant came to them in 1937 after opening a hit dog stand in California, USA, which proved to be a huge hit with customers.
In 1940 they decided to branch out and open a larger hot dog stand in a different location in California to attract more people.
It proved successful, and soon the McDonald brothers adjusted their business to focus on their most popular products: hamburgers, milkshakes, and french fries.
Richard McDonald died on July 14, 1998, aged 89, having outlived his brother who died on December 11, 1971, aged 69.
Who Was Ray Kroc and What Was His Net Worth?
Ray Kroc was an American businessman who partnered with the McDonald brothers in 1955.
In the early 1940’s, Kroc became the exclusive United States distributor of the “Multimixer,” a blender that could mix five milkshakes at once.
In 1954, he was intrigued when he received an order for eight of these multimixers from just one restaurant in San Bernardino, California.
He visited the restaurant to find the original branch of McDonald’s, run only by the two McDonald brothers.
Impressed by what he saw, Kroc partnered with the McDonald brothers the following year and was the first to propose the restaurant be franchised.
Kroc managed to open three McDonald’s restaurants in 1955, including the first franchise restaurant in Illinois.
Kroc bought out the McDonald brothers in 1961 – leading some today to believe he “stole” their company.
Kroc died on January 14, 1984 with a net worth of $600 million – which would be the equivalent of $1.4 billion (£1.06 million) today.
His story is told in the 2016 biopic The Founder.
How much does a McDonald’s franchise cost?
There are 38,000 McDonald’s restaurants in 100 countries, the vast majority of which are franchised.
Buying a store or building a whole new store is a huge emotional and financial commitment.
But opening one could result in delicious returns – between £1.5million and £4.3million a year, according to McDonald’s.
To invest in a McDonald’s franchise you need about 25% of the available funds or about £100,000.
The remaining 75% can be funded by a bank, and franchisees can use banks with which McDonald’s has a relationship and that offer competitive prices.
For 80% of restaurants franchised in 2018, the cost of purchasing franchise rights and equipment ranged from £350k to £1.85m – and this was calculated using profitability over a 10 year period.
In addition, you must pay a monthly franchise fee of 5% on net sales and a 4.3% contribution to the company’s marketing fund.
The monthly fee that 80% of franchises paid in 2018 and 2019 ranged from 12.25% to 21% of your restaurant’s net sales.
Does the original McDonald’s still exist?
The very first McDonald’s restaurant opened in May 1940 in San Bernardino, California.
It does not exist anymore. It was demolished in 1972 – but part of the original famous ‘Golden Arches’ sign, placed on the site in 1953, still exists.
An independent McDonald’s museum opened on the San Bernardino grounds in 1998.
The oldest existing McDonald’s restaurant is now a drive-up hamburger stand in Downey, California.
It was the third McDonald’s restaurant to open on August 18, 1953.
https://www.the-sun.com/lifestyle/consumer/1907154/who-owns-mcdonalds/ Who owns McDonald’s? | The US sun