Lead: In the mid-1950s salesman extraordinaire Raymond Albert Kroc charmed the founders of a little restaurant chain into placing him in charge of expansion. His problem: feeble profits.

Intro: A Moment in Time with Dan Roberts.

Content: As the consummate marketer, Kroc was able to sell franchises at a rapid rate, but there was no mechanism to force franchisees to adhere to McDonald’s business model and his obsession with “QSC – Quality, Service and Cleanliness.” The solution was to go into the real estate business. The company would buy the land and build the building and after a rigorous selection process sell the outlet to the franchisee, whom Kroc now considered his partner, at a ridiculously low rate. The conditions for operation were built into the lease for the property, the cost of which was determined by a graduated percentage of gross sales.

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