The Power Of Branding — McDonald’s

A GEM FOR ENTREPRENEURS — The Founder is a movie revolving around the inspiring story of Ray Kroc and the McDonald brothers. It gets to the brutal nature of business and shows how a real entrepreneur operates. There’s a lesson in every moment. We created a list of values we can take away from McDonald’s story.

BEING AN OPPORTUNIST — Ray Kroc was a 52-year old travelling salesperson at the time working for the food equipment manufacturer Prince Castle selling multi-mixers. As we know it today, he had driven 3,404 km, from Illinois to California, just to check out what kind of operations McDonald’s was running because he saw a business opportunity. WOULD YOU DO THE SAME?

DO YOU KNOW WHO INVENTED FAST FOOD?

McDonald brothers were no less when it comes to innovation. They invented “fast food” in general. They saw the problems and solved them:

• They swapped steel utensils into disposables.
• They introduced self-service instead of food-to-car service to deliver food efficiently.

SPEEDEE SERVICE SYSTEM

The McDonald brothers were ahead of their time in a way that they understood the value of time and efficiency. They invented the way fast food is made and delivered today. The reason you don’t have to wait an hour for your food today might just be because of Maurice and Richard McDonald.

REJECTION TAKES YOU A STEP CLOSER

Throughout the story of McDonald’s empire, Ray Kroc has shown the deepest levels of will and persistence to get what he wants. McDonald brothers rejected Ray Kroc’s plea to let him franchise their brand not once, not twice but 3 times. He was persistent till he got what he wanted.

WHY DID THE BROTHERS LOSE MCDONALD’S?

McDonald brothers made a total of $2.7 million when they HAD TO sell the brand to Ray Kroc in 1960. Why, you ask? THEY FELL IN LOVE WITH THEIR PRODUCT. This is one of the basic mistakes most entrepreneurs make, which Ray Kroc didn’t and that’s what it takes to build an empire. Fall in love with the business instead.

WHY DID RAY KROC TARGET MCDONALD’S?

Ray Kroc already knew tons of things about how McDonald’s worked.

• He knew every detail about the Speedee Service System.
• He knew their menu well.

He could have easily started a brand of his own with the same system.

THE BRAND POWER

At the court while settlement, Richard McDonald asked Ray,” Why us? Why McDonald’s?”.

Ray replied,” You still don’t get it. It’s not just a system! It’s the name. The glorious name: McDonald’s. It can be anything that you want it to be. It’s limitless, it’s wide open. It sounds like…. America”.

That, right there is the power of branding. Some realize it, some don’t.

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