THE FOUNDER (2016) | FULL MOVIE EXPLAINED\DECODED

Summary

In 1954, Ray Kroc, a struggling salesman, discovers McDonald's, a small but efficient restaurant in San Bernardino, California. Fascinated by its fast service and innovative business model, Kroc convinces the McDonald brothers to franchise their concept. As Kroc grows the brand, he faces challenges with quality control, financial troubles, and personal conflicts, ultimately leading him to take control of the company. By manipulating contracts and exploiting legal loopholes, Kroc buys out the McDonald brothers, turning the brand into an international success while leaving them with little to show for their groundbreaking vision.

Takeaways

• 😀 Ray Kroc starts as a struggling milkshake machine salesman but eventually builds McDonald's into a global empire.
• 😀 The McDonald brothers, Mac and Dick, created a revolutionary fast-food system with a simple menu and fast service.
• 😀 Ray Kroc sees the potential in franchising McDonald's, although the brothers initially resist the idea due to concerns about maintaining quality standards.
• 😀 Ray convinces the brothers to sign a contract, giving him the rights to franchise their business, though with strict control over decisions.
• 😀 Ray faces financial struggles while expanding McDonald's and eventually mortgages his home without telling his wife.
• 😀 Ray's plan to put Coca-Cola's name on McDonald's menu boards for sponsorship is rejected by Dick McDonald, who is protective of the brand's integrity.
• 😀 Ray's idea to appeal to working-class Americans to find new franchisees helps McDonald's grow rapidly.
• 😀 Ray's financial troubles are solved when he discovers the value of owning the land on which McDonald's locations are built, giving him control over franchisees.
• 😀 Ray divorces his wife Ethel, prioritizing his business and personal ambitions over family life.
• 😀 In the end, Ray successfully buys out the McDonald brothers, leaving them with a small percentage of profits while he takes full control of the company.
• 😀 Despite being a genius in business, Ray’s tactics raise ethical questions, as his actions rely heavily on manipulation and deceit to achieve his goals.

Q & A

What challenges did Ray Kroc face when trying to sell MultiMixers?

Ray Kroc struggled to sell MultiMixers to small drive-in businesses across the country. His efforts often failed as many of these places couldn't afford the machines or had inefficient food-serving systems, leading to slow service and incorrect orders.

How did Ray Kroc first encounter McDonald's?

Ray Kroc learned about McDonald's after his secretary informed him that a restaurant in San Bernardino had ordered six of his machines. When he visited the restaurant, he was surprised by the efficiency and speed of their service, which led to his interest in franchising the restaurant.

What made McDonald's different from other fast-food restaurants at the time?

McDonald's stood out due to its focus on just three items—hamburgers, fries, and milkshakes. They eliminated distractions like teenagers hanging out, and their disposable packaging cut down on costs. They also perfected a highly efficient food preparation system, which included a unique layout designed for speed.

Why did the McDonald brothers initially hesitate to franchise their restaurant?

The McDonald brothers were skeptical about franchising because they had tried it before but faced challenges maintaining consistent quality standards across locations. They were concerned that the integrity of their restaurant would be compromised outside their direct control.

What proposal did Ray Kroc make to the McDonald brothers to help them grow?

Ray Kroc proposed franchising McDonald's locations, offering to manage the expansion and uphold the brothers' strict operational standards. He eventually convinced the brothers by assuring them that he would maintain the quality of their brand.

How did Ray Kroc handle the financial struggles of opening his first franchise?

Ray Kroc faced financial difficulties when opening the first McDonald's franchise in Des Plaines, Illinois. He struggled to secure funding and eventually had to mortgage his home without telling his wife, Ethel, about it.

How did Ray Kroc's approach to expanding the McDonald's franchise differ from the McDonald brothers' original model?

Ray Kroc pushed for aggressive expansion and introduced several changes, such as securing sponsorship deals with Coca-Cola, which the McDonald brothers disapproved of. He also expanded beyond the Midwest, which caused tension between him and the brothers, who were focused on maintaining quality control.

What was Ray Kroc's key business insight that led to more successful McDonald's franchises?

Ray Kroc's key business insight was to buy the land where McDonald's franchises were located. This gave him control over the properties and allowed him to collect rent from franchisees, ensuring better adherence to quality control and generating a steady revenue stream.

What role did Harry Sonnenborn play in Ray Kroc's business strategy?

Harry Sonnenborn, a financial expert, helped Ray Kroc improve the McDonald's business model by proposing that Kroc buy the land on which franchises would be built. This strategy not only provided Kroc with a steady income but also allowed him to ensure franchisees maintained McDonald's standards.

How did Ray Kroc's personal life impact his business decisions?

Ray Kroc's personal life played a significant role in his business decisions. His growing infatuation with Joan, the wife of a franchisee, led him to divorce his wife Ethel. This also seemed to fuel his aggressive pursuit of business success, including renegotiating his contract with the McDonald brothers and ultimately buying them out.