Among successful entrepreneurs, Raymond Kroc, the founder of McDonald’s Corporation, got a good idea of starting a new business when traveling from his home near Chicago to southern California to see two biggest clients of his, the buyers of Prince Castle Multi Mixer (milk shaker instrument).
His client told him that in San Bernardino, there were restaurants that used machines to mix forty glasses of milk simultaneously while other restaurants were only able to mix five glasses of milk. Then, Kroc went to San Bernardino to see the restaurant. Arriving at the two gates of the golden arches of glittering restaurants, which lit up the sky at twilight, Kroc saw the queue of people winding like a snake outside the restaurant with its octagonal form.
Through the walls of the building made entirely of glass, Kroc saw that the male employees wearing paper hats and white uniforms at a very clean restaurant were busy serving burgers in a dish, fries and milk shakes to the families of the working class who arrived by car. “Something must have happened here. This must be the most amazing business operation I have ever seen, ” said Kroc to himself. The restaurant is owned by Maurice and Richard McDonald, who offers a menu of nine types of food, including burgers, fries, milk shakes, and pies by removing seats and paper utensils, glass instead of glass or porcelain. This restaurant is designed with a reliable service and is able to serve the orders less than one minute. “This is my future. I feel like a modern-day Newton” he said to himself.
Kroc was convinced that the operation of McDonald brothers could succeed if it was expanded. So the next day, he filed a proposal to the McDonald brothers. These brothers objected, because it sold franchises in Phoenix and Sacramento with low prices and did not get any profits. But, Kroc was a veteran salesman with thirty years experience, and finally he was able to convince Kroc McDonald brothers to sell franchises with a low price, which is 950 dollars. In return, the McDonald brothers would get 1.4% of all sales and 0.5% return. With approval in hand, Kroc began to fulfill his dream of McDonald’s restaurants that exploded from coast to coast. He started by building the first chain restaurant partnership with a model in Des Plaines, Illinois, outside Chicago, which used a low price strategy with the same, limited menu and fast service like a restaurant in San Bernardino. It was the first milestone of the success of McDonald Corporation, and the idea to build it was gained when Raymond Kroc was traveling.