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Vishu Bheda
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Medial • 1m
In 1954, Ray Kroc betrayed the McDonald brothers. He took their burger stand and built a $200B empire through greed and deception. Here’s how it all went down... McDonald’s started as a small drive-in restaurant, but the McDonald brothers had a genius idea that changed everything. They introduced the Speedee Service System, which made fast food faster and more efficient: A limited menu (just burgers, fries, and drinks) for quick preparation. Disposable packaging for convenience and speed. A custom kitchen layout for smooth workflow. Ray Kroc, a struggling milkshake machine salesman, saw McDonald’s as a huge opportunity. He believed it could be a franchise goldmine. To make it happen, he mortgaged his home and convinced the brothers to expand under his leadership. Kroc introduced strict rules to maintain quality, recruited passionate franchisees, and focused on a brilliant real estate strategy, which made McDonald’s unstoppable. But things turned ruthless. When the brothers resisted some changes, Kroc pushed them out. He bought the brand for $2.7M with a promise of 1% annual royalties—a deal he never honored. That handshake cost the brothers nearly $200M per year. Kroc even opened a McDonald’s near their original store, forcing them to rename it. The lesson? Innovate, expand wisely, and always protect your interests with written agreements. McDonald’s story is both inspiring and a warning about business battles.
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