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The American fast food industry started with simple hot dog and hamburger stands in
California and has now spread to every corner of the United States, as well as overseas.
McDonalds started as a small restaurant operated by the Dick and Mac McDonald
brothers. The menu only consisted of burgers, fries, and beverages but this led to a very
effective operation. Ray Kroc had pitched an idea to the brothers about expanding the
restaurant across the country. In 1955 Kroc founded the McDonald’s Corporation and
bought the exclusive rights to the McDonald’s name.
Ray Kroc promoted the vision of,” working not for McDonald’s, but for themselves,
together with McDonald’s.” Kroc also said “In business for yourself, not by yourself.”
Since Kroc was so enthusiastic about the entrepreneurial spirit he also promoted and
rewarded his franchisees for individual creativity. Since McDonalds has created a strong
grasp on operations, cost, and quality in the United States this has carried over into a
centralized international; structure leading to the success of domestic and foreign
operations.
Kroc believed that McDonald’s would follow the same principle as a three-legged stool.
One leg was owners and operations, the second suppliers, and the third was company
employees. The idea behind the three-legged stool was that the McDonald’s corporation
was only as strong as the three legs. McDonalds still continues to use Kroc’s philosophy
while creating some of their own organization structures and beliefs. McDonalds not only
promotes consistency in their product but also in how they treat customers, provide
