The Shocking True Story of McDonald's

The Shocking True Story of McDonald’s

Welcome to WatchMojo, and today we’re discussing the Shocking True Story of McDonald’s.

For this video, we’ll be exploring how McDonald’s evolved from a humble barbecue joint to the largest fast-food chain in the world.

Do you get psyched whenever the McRib returns? Do you hope the McPizza makes a comeback? Share your McDonald’s memories in the comments!

Today, McDonald’s is a universally recognizable brand with almost 40,000 locations worldwide and over $21 billion in revenue. Although we all recognize the Golden Arches logo, you might not be familiar with the ones behind the “M.” Of course, there’s some debate over who the true “founder” was. In any case, it all started with the McDonald Brothers, Richard and Maurice - or Dick and Mac. The sons of Irish immigrants Patrick and Margarete McDonald, the brothers were raised in Manchester, New Hampshire during the early 20th century. Growing up with little money, the brothers were motivated to make their own fortune, especially when their father got laid off from G.P. Krafts Shoe after 42 loyal years. A victim of ageism, their father didn’t even receive a pension.

Margarete = Marguerite, I guess? I really cannot find it…

When the brothers moved to California, they didn’t immediately go into the food industry. Rather, the allure of Hollywood brought them to Columbia Pictures where they worked behind the scenes for $25 weekly. Although they never made the leap to directing and producing as they hoped, the McDonalds saved enough to purchase the Mission theater, renaming it the Beacon. 1930 wasn’t the ideal time to own a theater, however, as the Great Depression was underway. Drawing from a profitable root beer stand called Wiley’s, the brothers sold the theater in 1937 to enter the restaurant business. That same year, they opened a food stand in Monrovia named “The Airdrome” near the airport.

Monrovia https://youtu.be/c3Kl4l5S5vE?t=14

Selling hot dogs, burgers, and all-you-can-drink orange juice, the stand proved successful enough for the McDonalds to pursue greater horizons. Cutting their old stand in half, the brothers transported it to San Bernardino where they opened McDonald’s Barbeque in 1940. While you’ll be familiar with some items, the original menu emphasized on barbecue. Within 8 years, the menu reduced from 25 items to nine, focusing on ¢15 burgers and other hot sellers. After temporarily shutting down, McDonald’s reopened with a self-service model. Patrons were initially confused and angered to drive up without any carhops to take orders. The brothers were onto something revolutionary, however. While White Castle is often credited as the first fast-food hamburger franchise, the McDonalds innovated the “Speedee Service System.”

Drawing upon Henry Ford’s moving assembly line, the system guaranteed fast food with a well-oiled team of 12 workers. The system inspired the chain’s original mascot, Speedee. Despite some initial hiccups, the reinvented restaurant eventually started attracting lines of hungry and eager customers. McDonalds entered the franchise game in 1953 with Neil Fox opening a location in Phoenix, Arizona. This was also the first location to possess the Golden Arches logo designed by architect Stanley Clark Meston. Today, that location is an Asian grill named Yoshi’s. The oldest existing McDonald’s can be found in Downey, California, which Bud Landon and Roger Williams (Fox’s brother-in-law) opened in 1953. McDonald’s had opened several locations when Ray Kroc entered the equation in 1954.

Ray Kroc = crock https://youtu.be/t1O8h0jhLyA?t=115

A down-on-his-luck milkshake mixer salesman, Kroc could see that the brothers had struck gold and he wanted in. By 1955, Kroc opened a location in Des Plaines, Illinois, making $366.12 on the first day. While this location was demolished in 1985, a replica was later made called McDonald’s #1 Store Museum - despite not being the first. Having met Walt Disney during World War I, Kroc attempted to open a McDonald’s in Disneyland, which was opening later that year. While this didn’t materialize, Disney and McDonald’s would eventually enter a partnership, resulting in the nickname “McDisney.” Kroc, meanwhile, still found immense success as a franchisor. In 1959, the 100th McDonald’s location opened in Chicago.


While Kroc always wanted to go bigger, he didn’t see eye to eye with Dick and Mac. Although the brothers started the original restaurant, Kroc founded McDonald’s Systems, Inc., now The McDonald’s Corporation. Through the McDonald’s Franchise Realty Corp and the help of businessman Harry J. Sonneborn, Kroc firmly established himself as the face of McDonald’s. The brothers finally relented in 1961, selling to Kroc for $2.7 million, about $25 million today. While not an insubstantial sum, it’s only a fraction of the $56 million McDonald’s was making annually by 1960, not to mention what the company’s worth now. Kroc made a handshake deal that promised the brothers a half-percent of future sales, but the McDonalds and their heirs have yet to see any royalties.


Kroc wasn’t done clashing with the brothers, who tried breaking back into fast food with a new restaurant called The Big M. In retaliation, Kroc opened a McDonald’s a block away, driving the brothers out of business. Identifying as the founder of McDonald’s, Kroc continued to grow the company with Hamburger University launching in 1961. Kroc would do away with the original golden arch design in favor of the now-iconic “M” logo. Speedy was also ditched to pave the way for a far more recognizable mascot. In 1963, the same year that McDonald’s sold its billionth burger, the world was introduced to a clown named Ronald.

Originally limited to the Washington, D.C. franchise, Ronald McDonald was portrayed by future “Today Show” weatherman Willard Scott, who also had experience playing Bozo. Scott takes credit for creating Ronald, although he’d eventually be replaced with several other actors. Ronald and his friends resided in a magical world known as McDonaldland, which debuted in the early 70s. However, puppeteers Sid and Marty Krofft couldn’t help but notice that McDonaldland shared a striking resemblance to their show, “H.R. Pufnstuf.” Mayor McCheese, in particular, had more than a few things in common with their titular character. The court ultimately sided with the Kroffts while McDonaldland was eventually phased out. In recent years, Ronald McDonald has taken on a reduced role due in part to the 2016 clown sightings. Yet, he remains an iconic figure with Ronald McDonald House Charities still reaching out to children in need.

While corporate mascots can live on for generations, the same can’t be said about founders. Kroc retired in 1973, serving as the owner of the San Diego Padres for almost ten years until his death in 1984 - the same year McDonald’s sold its fifty billionth hamburger. October 5, Kroc’s birthday, is still regarded as the company’s Founder’s Day. However, it took decades for Dick and Mac to also become regarded as founders of McDonald’s. Around the same time Dick moved back to New Hampshire, Mac passed away from heart failure. Dick died in 1998, leaving behind an estate of just under $2 million.

The experience with Kroc took an especially heavy toll on Mac while Dick rarely wanted to talk about his old business partner. According to his grandson, Jason McDonald French, Dick wasn’t bitter about the way things went down. As such, the descendants of the McDonald Brothers also choose not to dwell on the countless dollars lost. After all, the brothers set out to become millionaires before turning 50, and they ultimately made a respectable fortune. Their name ended up being worth so much more, however.