History of McDonald’s 1938-Today (Full Documentary)

McDonald's is a famous restaurant known for serving hamburgers, fries, milkshakes, and signature sandwiches. It has over 38,000 restaurants in more than 100 countries worldwide. The chain serves 69 million people daily and one out of every eight Americans have worked at McDonald's.

In the early 1900s, Maurice (Mac) and Richard McDonald were born into a poor Irish immigrant family in rural New Hampshire. Their father worked in a shoe factory for 42 years until he was laid off without a pension. This led the brothers to realize that their area didn't offer much for them to make a decent living or achieve great success.

In 1926, two brothers moved to Hollywood with dreams of becoming millionaires. They worked odd jobs at Columbia movie studios but realized it wasn't enough. Determined to stay in the movie business, they saved money and sought a new path.

In 1930, the broke McDonald brothers took on the lease of Mission Theater with no money. They renamed it The Beacon and struggled to make a profit during the Great Depression. After seven years, they realized that food sold more than movie tickets.

In 1937, the McDonald brothers opened an octagon-shaped food stand called the Airdome near Monrovia airport. They initially sold hot dogs and later added hamburgers for 10 cents each along with all-you-can-drink orange juice for 5 cents due to ample supply of oranges in their town. Business was good during racing season but slowed down after it ended in 1940.

McDonald's Famous Barbecue Drive-In in San Bernardino, California underwent a major menu overhaul with 25 barbecue items and a new name. The brothers learned to work the barbecue pit and made $40,000 per year (equivalent to $700,000 today). They targeted working-class families over rowdy teenagers at drive-ins.

The Birth of McDonald's After World War II, the McDonald brothers realized the need for quicker food service. They redesigned their restaurant to operate like an assembly line, focusing on efficiency and simplicity. Despite initial skepticism and slow business, they attracted customers with quick service and self-serve options.

McDonald's Success Takes Off With a simplified menu and efficient operations, McDonald's started attracting customers such as cab drivers, sales clerks, construction workers as well as younger customers who enjoyed ordering food themselves. This gradual increase in customer base led to massive success for the McDonald brothers by 1949.

In 1952, McDonald's was featured in American Restaurant Magazine as the most revolutionary development in the restaurant industry.

The McDonald's brothers redesigned their food stand, drawing inspiration from architectural shapes. They hired Stanley Clark Meston to design a new building with unique features like red and white tile, stainless steel, neon lights, and two 25-foot yellow arches. Dick McDonald solved the condiment problem by getting inspired at a candy factory and creating a trigger for dispensing mustard and ketchup evenly.

In 1953, Neil Fox became the first franchisee to open a McDonald's with the iconic golden arches design in Phoenix, Arizona. This marked the beginning of franchising for McDonald's. The oldest surviving McDonald's location is in Downey, California and has maintained its original look as it was franchised out by the McDonald brothers under a different contract.

Ray Kroc, the exclusive salesman of the multimixer, noticed that McDonald's ordered eight multi-mixers for one restaurant. Impressed by their operation, he flew out to visit them and this encounter would change everything for McDonald's.

Ray Kroc was born in 1902 to Lewis and Rose Kroc. He learned piano from his mother, played baseball, and worked odd jobs growing up. In high school, he excelled at debates and had a lot of confidence in himself. At the age of 14, he opened a music shop with friends but later sold it due to low sales.

During World War I, Ray Kroc joined the Red Cross as an ambulance driver. He met Walt Disney at a training camp in Connecticut and was set to be shipped overseas, but the war ended before he could go.

In 1922, Ray Kroc got a job at Lily Tulip Cup Company and married Ethel in 1923. He excelled as a salesman due to his personable nature, hard work ethic, and dedication to multiple jobs. However, the demanding schedule strained his relationship with Ethel.

Marilyn Kroc's parents had their first child, Marilyn, in the spring of 1925. Ray also secured a deal to sell cups to a German restaurant owner after striking up a friendly chat about cars.

Ray moved from Chicago to Florida, where he worked in real estate during a booming period. After the boom ended, he joined a nightclub orchestra and got involved in illegal alcohol serving. Eventually, homesickness led him back to Chicago.

The Invention of the Multi-Mixer In 1938, Ray Kroc's customer introduced a thicker and colder milkshake. Despite initial reluctance, Ray convinced his customers to check out the new milkshakes in Michigan. They decided to create their own version but faced issues with one spindle mixers burning out. Earl Prince invented the multi-mixer with six spindles which was later reduced to five due to messes during operation.

Challenges and Business Expansion Ray showed off the multi-mixer to Lily Tulip Cup Company who signed an exclusive distribution contract for it. However, complications arose when Lily Tulip headquarters disapproved of this deal as they were just a paper cup company. After facing slow sales initially, Ray worked on owning full ownership by taking on debt and eventually succeeded after World War II ended.

Ray was on the lookout for a new product to sell after the multi-mixer. He came across an idea called 'Fold A Nook' but soon realized it wasn't what he expected. While still searching, he received inquiries about mixers from the McDonald brothers.

Ray Kroc visits a small drive-in McDonald's in San Bernardino and is impressed by the efficient operations, clean-cut workers, and family-oriented image. He learns about the low prices of food items and sees potential for nationwide expansion.

After the lunch rush, Ray gave a passionate speech to the McDonald brothers about expanding and opening more restaurants. The brothers were hesitant at first but eventually agreed after Ray offered to take care of running and opening new places for them.

Ray Kroc founded the McDonald's system in 1955 with Art Jacobs. They faced challenges during the building process, including temperature and ventilation issues. After three months, Ray developed his own system to ensure quality fries. He later discovered that the name 'McDonald’s' had been sold to other stores in California and Arizona.

McDonald's 1955 - 1966: The early years of McDonald's were marked by rapid expansion and innovation, including the introduction of new menu items like the Filet-O-Fish and Big Mac. Ray Kroc played a pivotal role in transforming McDonald's into a global franchise powerhouse.

After resigning from Tasty Freeze, Harry Sonneborn approached Ray Kroc to be a part of McDonald's. Despite financial constraints, Ray hired him for $100 a week. With his legal and financial expertise, Harry became an invaluable asset to the company. By 1955, three McDonald's locations grossed $235k in sales using the family-friendly format with spotless cleanliness.

Harry Sonoborn, with Franchise Realty Corporation, designed a solution to the money problem by holding McDonald's real estate and passing the cost onto franchisees. This decision became financially significant in McDonald's history and contributed to its growth into a massive restaurant chain.

Fred Turner, a natural leader, joined McDonald's after his family group's franchise plan fell through. He excelled in operations and food purchasing, shaping the company's growth. Meanwhile, Ray and Harry faced challenges but shared the dream of making McDonald's huge.

Ray wanted to bring in new ideas to grow McDonald's, but needed approval from the McDonald brothers due to his contract. He sent Fred Turner to check on California stores, which revealed quality issues with extra menu items like pizza and burritos at some locations. The brothers brushed off Ray's concerns, leaving him frustrated.

In 1961, Ray Kroc met Joni Smith at a McDonald's location in Minneapolis. Despite being married, he fell in love with her and spent time with her under the pretext of visiting the restaurant. They bonded over music and long phone conversations about Ray's dreams for McDonald's.

Ray decides to divorce Ethel and give her the house, car, insurance, and $30,000 a year for life. He keeps his share of McDonald's but sells Prince Castle Sales for $150 thousand to cover legal fees. Ray is willing to make sacrifices in order to marry Joan.

After marrying Joan, Ray focused all his time on McDonald's. With Mac McDonald's health declining and Dick McDonald wanting to retire, Ray was determined to buy them out completely for $2.7 million in cash only. He sought financing from various institutions and successfully acquired the money.

Ray Kroc took ownership of the McDonald's brand and enforced a name change for the original restaurant to 'The Big M.' He introduced new changes, including replacing the mascot with a new logo featuring golden arches. Ray also implemented strict franchisee rules and ensured fair supply prices.

In Cincinnati, a McDonald's franchisee faced low sales on Fridays due to the large Catholic population who couldn't eat meat. A competing restaurant had a fish sandwich that was popular on Fridays. The franchisee suggested serving a fish sandwich at McDonald's, and after some hesitation from Ray Kroc, it was approved with added cheese. This led to the creation of the Filet-O-Fish.

Ray Marries Jane Green, 1963

In 1963, the new McDonald's mascot, Ronald McDonald, was introduced as a clown with bright red hair and wearing a yellow jumpsuit. His early TV commercials featured him interacting with kids and promoting visits to McDonald's. The character was initially played by Willard Scott who had previously portrayed Bozo the Clown on television.

In April 1965, McDonald's went public to fund its expansion into the suburbs of large cities. The company sold shares at $22.50 each and switched from cutting potatoes to using frozen fries. By the end of 1965, there were 700 restaurants in 44 states.

The period from 1967 to 2021 has seen significant advancements in technology, communication, and globalization. It marks the rise of the digital age and the widespread use of internet-connected devices.

There was a rift between Ray Kroc and Harry Sonneborn, dividing the office into two teams. After several meetings, it escalated to blows, leading to Sonneborn's resignation and stock sell-off. Following this, Ray Kroc took over as president and chairman of the board.

In January 1967, the price of hamburgers was raised from 15 cents to 18 cents. It was during this time that Jim Delligatti, a franchisee from Pittsburgh, Pennsylvania created one of history's most famous sandwiches - the Big Mac. The iconic burger consists of two beef patties with special sauce, lettuce, pickles, American cheese and onions sandwiched between three sesame seed buns. Originally sold for 45 cents under different names like 'Aristocrat' and 'Blue Ribbon Burger', it was eventually named 'Big Mac' by a young advertising secretary named Esther Rose.

Ray Kroc introduced the Big Mac as a meal disguised as a sandwich, leading to debates about who the true founder of McDonald's is. Despite not creating the original concept or food preparation, he founded the McDonald's corporation and shaped it into what it is today.

The McDonald brothers lost business to Ray Kroc, who put up a McDonald's nearby. They eventually sold the business and quit the food industry. Neither of them had children, and they moved on with their lives after leaving the company.

After leaving the presidency of McDonald's, Ray Kroc became chairman of the board and focused on developing new restaurant ideas. He met Joan Smith again at a convention in San Diego, where they spent time together before she left.

Jones is ready to divorce his wife, Jane. Joanie advises Ray to be gentle with her during the divorce process. Jane gets the house in Beverly Hills after the divorce.

In 1968, Ray Kroc was searching for a dessert item for the McDonald's menu. After trying out different options, he came across a franchisee in Knoxville, Tennessee who had his mom's apple pie recipe. The tiny size fried turnover styled apple pies with crisp and golden texture caught Ray's attention.

In 1969, Ray Kroc and Joan Smith got married. Their union would later inspire the creation of a menu item that became popular across the entire United States by the 1970s.

In June 1969, all McDonald's locations in Southern California underwent a remodeling to the brick and mansard roof look. This provided expanded indoor seating, setting a new standard for fast food restaurants. Ray Kroc emphasized high-quality food with no soybean filler and ensured quick service or money back.

In 1970, McDonald's introduced the Shamrock Shake to celebrate St. Patrick's Day in the US, Canada, and Ireland. It is a mint-flavored shake with a green look that was available during March. The creation story has two conflicting versions: one involving franchisee Hal Rosen in 1966 and another attributing it to Rogers Merchandising in Chicago.

In 1980, the Shamrock Sunday was introduced for St. Patrick's Day but discontinued due to poor sales. By 1970, Shamrock Shakes were being sold at McDonald's. The advertising group created McDonaldland with live action characters and upbeat music to appeal to kids.

McDonald's, originally known as Big M, was sold by the McDonald brothers in 1968. The first Australian location opened in 1971 and is locally called 'Maccas.' In the same year, Japan saw its first Asian McDonald's opening followed by the Netherlands hosting Europe's inaugural branch. This marked a significant expansion for McDonald’s globally.

Al Bernardin, a franchisee in Fremont, California, created the quarter pounder to add a burger with more meat to McDonald's menu. By 1972, it was available at every McDonald's in the United States and contributed to their billion-dollar yearly sales.

McDonald's became popular for on-the-go food. A franchise operator in Santa Barbara created the Egg McMuffin, consisting of Canadian bacon, griddle-fried egg, American cheese on a toasted English muffin. This inspired Ray Kroc to enter the breakfast food market with McDonald's.

In 1972, Ray Kroc served the first Egg McMuffin at a McDonald's in New Jersey. He showed interest in buying the Chicago Cubs but it didn't work out. In 1973, he opened the first Swedish McDonald's restaurant and later looked into buying the San Diego Padres baseball team due to its beauty.

Ronald McDonald House is born out of love and the desire to create a home away from home for families in need. The first Ronald McDonald House opens in Philadelphia, Pennsylvania, marking the beginning of a meaningful journey.

The First Drive-Thru Window Wendy's claimed to have the first modern drive-through window in 1971, but McDonald's actually opened its first drive-thru in 1975. Their goal was to serve orders within 50 seconds or less.

Expansion and Nutrition Focus In 1976, the 4000th McDonald's opened in Montreal, Canada. Chef Renee Arend was hired to make McDonald's food more nutritious and create new menu items. Ray Kroc reassigned himself as senior chairman and wrote his autobiography 'Grinding It Out: The Making of McDonald’s.'

McDonald's Breakfast Menu Introduction In 1977, McDonald's introduced their breakfast menu with hot cakes, toasted English muffins, scrambled eggs, sausage, hash browns and the iconic Egg McMuffin.

Milestone: 5000th Restaurant Opening The 5000th McDonald's restaurant opened in Kanagawa Japan in 1978.

In the mid-1970s, Yolanda Coffinio created 'Menu Ronald' at a McDonald's in Guatemala, consisting of a hamburger, small fries, and a small sundae. The aim was to help moms easily order for their kids. McDonald's management loved the idea and developed it into what is now known as the Happy Meal with its iconic packaging and surprise gifts.

Introduction of braille menus and other accessible items at McDonald's in 1979, followed by the introduction of the 6000th McDonald's restaurant in 1980.

In 1980, McDonald's introduced the McChicken in response to changing consumer tastes for healthier alternatives. However, it sold poorly and was discontinued shortly after its launch.

In 1981, after the failure of the McChicken sandwich, Chicken McNuggets were introduced as part of the dollar menu. The recipe was created in 1979 by McDonald's executive chef Renee Arend and involves boneless chicken meat fried in batter and flash frozen. Due to high demand, other franchises wanted McNuggets but there wasn't enough supply initially. However, a few years later, the chicken supply issue was fixed and Chicken McNuggets made their national US debut in 1983.

Renee Arend created the McRib as a new menu item due to a McNugget shortage. It's a rib-shaped pork patty with barbecue sauce, onions, and pickles served on a 5.5-inch roll. Test marketed in the Midwest, it initially did well but later sales were poor leading to its removal from the menu by 1985.

Ray Kroc, the founder of McDonald's, passed away due to heart failure in San Diego. Despite being confined to a wheelchair in his final years, he continued working at the McDonald's office almost every day. His wife Joan donated a significant portion of his fortune and left 1.6 billion dollars in her will.

McDonald's Philanthropy In the late 1980s and early 1990s, McDonald's made significant donations to charitable organizations. This included a donation to the Salvation Army and $225 million to National Public Radio in November 1984. Additionally, they opened the 100th Ronald McDonald House in 1987.

Global Expansion In this period, McDonald's expanded globally with notable milestones such as opening its first restaurant in Africa and the Arab world in Casablanca, Morocco. The company also ran its first promotional Monopoly game during this time.

The first McCafe opened in 1993 at the first McDonald's location in the Middle East, which was in Israel. In Melbourne, Australia, McCafe was introduced as a sub-city area of McDonald's to create an atmosphere and foot traffic at the entrance due to the long distance between the entrance and main restaurant.

In 1992, Stella Liebeck sued McDonald's after suffering third-degree burns from spilled coffee. The lawsuit claimed that McDonald's served excessively hot coffee compared to industry standards. Despite the controversy, the jury awarded Liebeck $64,000 in damages.

In 1996, McDonald's introduced the Arch Deluxe to target adult customers with a sophisticated taste. It was a quarter pound beef sandwich on a special bun with bacon, lettuce, tomato, cheese, onions and secret sauce. Despite an expensive advertising campaign and unique commercials style, it failed due to high calories and price.

McDonald's spent over 300 million dollars in research, production, and marketing to introduce the McFlurry in 1997. It was invented by a franchisee in Canada two years earlier and first test marketed in Hawaii before becoming an international sensation. The McFlurry is whipped vanilla McDonald's soft-serve ice cream mixed with candies, cookies, or toppings.

Dick McDonald passes away, leaving behind a $1.8 million estate in 1998. He looked back fondly on his life and considered Ray Kroc a friend, not regretting missing out on the fortune Ray made.

In 2002, McDonald's experienced its first quarterly loss in history at $344 million. This prompted the company to explore new ideas for revamping the brand.

In October, McDonald's opened two corporate stores in Lincoln, Nebraska to test the three-in-one concept. It combined a sandwich and platter dining area, a bakery and ice cream area with gourmet coffees, and a traditional McDonald's restaurant. Despite offering unique items like meatloaf and turkey with gravy along with cinnamon rolls and sundaes, most customers preferred the regular McDonald's section for big macs and fries.

McDonald's introduced premium salads, McGriddles, and Chicken Selects to promote a healthier and higher quality image after the New Menu Items restaurant concept was discontinued.

The Impact of 'Super Size Me' In 2004, McDonald's introduced the slogan 'I'm loving it,' but this was followed by a documentary called Super Size Me, where Morgan Spurlock ate only McDonald's food for 30 days to demonstrate its effects on his body. As a result of the film, McDonald's removed super size options from their menu.

McDonald’s Health Initiatives and Innovations Following the release of Super Size Me in 2004, Ronald McDonald got a more athletic appearance. In subsequent years, Wi-Fi service for Nintendo DS was launched at McDonald’s outlets. Additionally, McDelivery service began in Singapore with round-the-clock delivery available.

In the late 90s, McDonald's urged franchisees to paint brown roofs red and yellow as a temporary fix. By 2006, a complete renovation was needed to keep up with the times. The 'Forever Young' redesign aimed to make McDonald's look more like standalone Starbucks coffee shops.

In 2009, McDonald's introduces three new Angus burgers: the Angus Deluxe, the Angus

New Menu Items McDonald's introduces new menu items like bacon and cheese, angus mushroom and swiss, fruit and maple oatmeal.

Menu Changes In 2012, McDonald's starts displaying calorie information on menus. In 2015, all-day breakfast is introduced in the United States.

The Grand Mac, a new sandwich, was introduced in 2018 to celebrate the 50th anniversary of the Big Mac.

The McHive, a larger version of the Big Mac with one-third pound of beef, was created in 2019. McDonald's opened the world's smallest McDonald's called 'Mick Hive' in Sweden to raise awareness about saving bees. The Mick Hive was built to exact specifications for bees and symbolized efforts by Swedish McDonald's restaurants to save bees through rooftop hives and wildflowers.

McDonald's has transformed from a small barbecue stand in California to a global powerhouse, offering familiar and delicious food. The company has overcome financial challenges and is set to bring even tastier offerings in the future.