In Case It’s Too Late: The Ray Kroc McDonald’s Story

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There are dreams you have, and as time goes on, achieving them seems unrealistic. Then, you reach a point in life where maybe you can make it happen, but it’s too late. You have a job to clock into, plates to fill with hot food or more silvery hairs popping up. In summary, you’re either too busy or too old. But it’s never too late to do more, as proven by Ray Kroc, the first McDonald’s franchise owner.

A McDonald’s Origin Story

In 1917, Ray Kroc dropped out of high school at the age of 15 in hopes of earning a living. At this time, he found work as an ambulance driving trainee with the Red Cross. Although he lied about his age, World War I was fully underway which allowed him to get the job without too much scrutiny.

Until 1922, Kroc’s life had been a blur of short-term jobs, many within completely different fields. He searched for himself and a career as a jazz pianist and musician. When those didn’t work, he took up a job as a soda fountain attendant. His stability and success came when he got a job as a paper cup salesman for the Lily-Tulip Cup Company.

As a paper cup salesman, Kroc had the opportunity to engage with many companies within the food industry. He gained inside exposure to the operations of diners and some of the earliest restaurants, including “McDonald’s Famous Barbecue” which later became McDonald’s.

Bored with selling paper cups and wanting greater success, Kroc left the paper cup business to focus on selling the Prince Castle Multimixer (the milkshake machine). This was a major business move for him, since he had managed to gain the exclusive rights to sell the machine nationwide. However, in 1954 and at the age of 52 years old that Kroc would make the business deal that would eventually change his life and the course of fast food.

Ray Kroc Meets the McDonald’s Brothers

During one of his cross country sales missions, Ray Kroc came across McDonald brothers’ restaurant. In the beginning, Kroc attempted to sell milkshake machines to the McDonald’s brothers Richard and Maurice McDonald. He was wildly successful, with the brothers’ ordering eight machines, an unusually large number.

But Kroc had other ideas. He had taken notice of McDonald’s “Speedee Service System.” Its quickness and efficiency made Kroc want to become a partner, and so he did. Kroc took the opportunity to be the first McDonald’s franchise owner, but he wanted more.

A Bigger Vision

By 1961, Ray Kroc was fully invested in his McDonald’s franchise, but he wanted more. However, the McDonald brothers didn’t share his vision of expansion. They were content with where they were. So, Kroc got an idea.

Instead of debating with the brothers about the best moves for the future of the company, Kroc decided to buy them out. What they wanted and what he wanted to give conflicted.

The McDonald brothers demanded $2.7 million for the business, including the name and logo. They wanted this number so that they each could have a million dollars after taxes. To Kroc, this was a ridiculous price, and he didn’t want to pay it. But he found the financing and gave the brothers what they wanted, with a secret contingency.

The brothers had been getting a 0.5 percent royalty, and they wanted this to continue in perpetuity after selling the restaurant. Kroc’s lawyer refused to put this in their contract. So, Kroc offered the brothers a handshake deal and allegedly refused to honor it after the deal was settled. Supposedly, he did this to get back at them for forcing him to pay such a steep price for the company.

The Takeaway

In the end, Ray Kroc, the 52-year-old struggling salesman wanted more and started to build one of the largest companies in the world. Kroc had spent most of his life traveling state to state, trying to sell the products he lugged with him. He didn’t give up. He didn’t see himself as too old or the world as having passed him by.

Instead, Kroc saw an opportunity and took it. When he was challenged, he doubled down. Some people find success in a year. Some find it within a decade, while others still longer. If you learn nothing from Ray Kroc’s story, learn that you are the author of your story, and it goes how you write it.

FOLLOW the author Jermaine Reed, MFA on X @Jermaine Reed, MFA for his controversial but real hot takes.