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McDonald, Ray Kroc
Founder Stories

How Ray Kroc Made McDonald’s the King of Fast Food

McDonald’s Corporation is a leading food retail chain operator that has restaurants in various parts of the world. It serves fast foods and beverages that cater to the locals with a relevant menu. McDonald’s growth is mainly due to efficient marketing strategies and other things. Ray Krocs is one of the most legendary entrepreneurs who founded McDonald’s, and his success came slowly. Entrepreneurs can choose the McDonald’s franchise model when they want to start a new business.

How did Ray Krocs succeed in the fast-food chain business?

Krocs showed interest in the franchising business model

Krocs worked a variety of jobs and made more money in the real estate business. He became the manager of a McDonald’s restaurant in 1954 and showed interest in the franchising industry. The McDonald brothers allowed Krocs to open their restaurants throughout the US with a 10-year master agreement. However, he bought the restaurant in 1961 and planned to serve every country with tasty food at affordable prices.

Implementation of real estate strategies

In 1954, Krocs opened the first McDonald’s franchise restaurant in Illinois and founded the Franchise Realty Corporation. Hanny Sonneborn was the first CEO and president of McDonald’s Corporation, which handled the company’s real estate deals. Furthermore, he helped Krocs know the real estate strategy to own land and lease it to franchisees easily. As a result, the company expanded its franchise business not only in the US but also in other countries.

Brand recognition

Brand recognition is one of the key factors that contributed to the success of McDonald’s business. Krocs invested in establishing strong brand consistency with the famous slogan “I’m Loving’ It, which attracted many customers. He created a logo with the Golden Arches and the iconic mascot Ronald McDonald that influenced the food chain business.

Creation of a franchise training program

McDonald’s introduced a franchise training program in 1961 for franchisees after Ray Krocs bought the business. It was later called Hamburger University and trained franchisees to run a McDonald’s restaurant properly. The training program enabled entrepreneurs to learn more about the franchise business model in detail.

Innovation and adaptation

Kroc’s marketing innovation made McDonald’s successful in the market. He made various changes to the food menu and introduced new items with strong local representation. His objective is to serve high-quality foods with cleanliness, affordable prices, and value. Furthermore, his business aimed to provide a better experience for customers.

Strategy for significant growth

Kroc’s marketing innovation worked well, which accelerated the company’s growth to a greater extent. It involved key components such as retaining, recovering, and converting that built trust among customers who turned into regular customers. The company also embraced things such as digital technologies, food delivery, and experiences.

Technology investments

McDonald’s Corporation invested heavily in technologies such as self-order kiosks and apps for customers to customize their orders. They made customers order a variety of food conveniently and efficiently, which helped reduce wait times. Apart from this, customers are very happy with the increased sales in the market.

Introduction of fast foods and healthy options

McDonald’s introduced new items such as premium burgers and chicken sandwiches to satisfy the needs of global customers. It also offered healthy options like salads, fruit smoothies, and wraps to customers. This helped McDonald’s retain its brand consistency with a variety of food items. As a result, the business started to grow in the market with high success rates.

Successful acquisitions

McDonald’s real estate strategy provided ways to acquire franchises in other businesses that resulted in expansion. Also, the company trained its employees and supported them in various ways after the acquisitions.


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