Kroc Restaurant Case Study

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In 1940 Dick and Maurice (Mac) McDonald opened the first McDonald’s Bar-B-Q restaurant in San Bernardino, California, USA. Initially, the restaurant featured an extensive menu like any other traditional American restaurant. However, soon after opening, the brothers discovered that almost all their profits were coming from selling hamburgers. They also realized that their customers were finishing meals fast. Therefore, they decided to move away from the traditional restaurant concept. McDonald brothers streamlined operations by reducing the menu to a limited number of items – hamburgers, fries and milkshakes – which allowed them to focus on quality and quick service. The brothers came up with the “Speedee Service System” concept - each restaurant crew member specialized in specific…show more content…
Kroc saw an enormous potential to expand the restaurant across USA. He wanted to build a franchise system that “would be famous for providing food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama“ (Our History Timeline, n.d.). Kroc refined standardized operating processes into easily replicable ones. He took Henry Ford’s idea of mass production of cars and applied it to making hamburgers. He came up with the specifications for a burger patty and even developed a method to perfect french fries. Kroc also came up with a 100% outsourced supply chain which doesn’t force franchised restaurants to buy goods from the company and gives them the freedom to establish their own supplier relationships instead. McDonald’s success comes not from supplying franchisees with formulas on how to build the perfect cheeseburger, but from selling the branded service. Customers are assured consistency in service levels and taste, no matter where they buy McDonald’s hamburgers (Ray Kroc and The Fast Food Industry,

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