McDonald's page 6

McDonald's page 6 by ric gustafson


Ray Kroc had a franchise formula that was different than anyone else. Kroc avoided multi store franchises and sold only single store franchises. Kroc also avoided the allure of easy money by selling large franchising territories. Territorial franchising was popular with both Burger King's largest licensee, Diversifoods Incorporated and Pillsbury Company.
Leo Moranz in 1948 helped start a company called Tastee Freez. Their idea was for a freezer that produced soft ice cream by pumping a liquid mix into a freezing barrel.
Kroc refused to sell products and equipment to the franchises which other fast food businesses were doing. One example was the story of Burger Chef. Burger Chef in the 1960's was the biggest competitor of McDonald's. A company called General Equipment built most of the equipment for the chain. By 1968, the chain had just about a thousand locations. Burger Chef was sold to General Foods. General Foods showcased the equipment of the stores and did not try to improve the stores look. In the early 1970's, General Foods took major financial losses because of Burger Chef and never recovered.
General Equipment was run by Frank Thomas and his brother Dave.


research help: ' McDonald's behind the Arches' by John F Love


Peace and God's blessings. Love Ric