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Story of McDonald’s

In the 40s of the 20th century, two brothers Mac and Dick McDonalds opened a small restaurant of a standard type in San Bernardino (California). The restaurant’s income of 200 thousand dollars was enough for some time but soon it started falling down as restaurants were many nearby.

To improve the situation the brothers decided to change the restaurant’s style. In 1948 they introduced self-service system, narrowed the assortment of dishes, changed the kitchen for mass service. It allowed to reduce price for hamburgers twice. There were only 10 dishes on the menu and people instead of being ushered to the tables waited for the meal at a steel counter and then searched for vacant tables themselves. People were interested in the idea and surprised by available prices. Soon the brothers with their new income of 350 thousand per year were spoken about outside the state.

One of their suppliers, Ray Kroc, an entrepreneur, saw the novelties in the restaurant and got the idea that soon this system would rule all over the world. In 1955 Ray opened the first restaurant of McDonald’s in Des-Plaines (Illinois) and started a franchise company McDonald’s System Inc that sold franchise to restaurants for 950 for 20 years period.

In 1960 the company was renamed into McDonald’s Corporation.
In 1961 Kroc purchased the company from the brothers for $2,7 mln dollars.
In 1965 there were above 700 restaurants in the USA. McDonald’s corporation issued shares for 22,5 dollars each. Some weeks later the cost of shares twice doubled.
In 1966 McDonald’s listed in New York stock like no one else before among fats foods.

McDonald’s in Advertising

Food is the main product of McDonalds and it does not differ from other food. So creatives decided to advertise not food but the mood. All ads of McDonald’s are full of joy!

Directors in commercials created the atmosphere of a holiday. Entering McDonald’s you know for sure that you will see a smile and hear laughter.

Another trick in McDonald’s commercials - very detailed and slow showing of cooking process. The look of fried meat, green salad leaves, red tomatoes and softest bun inspires appetite with even inveterate assailant of fast foods.

Another secret of McDonald’s is that it shows available food that is known to all people. Showing oysters in the same way would not gain the same effect because they are far from available.

McDonald’s spends more that 1bln dollars per year for advertising and marketing.

Red umbrellas, silver cold tables outside, a funny yellow-red clown at the entrance, long queues inside at any time of the day 7 days a week – this is success of McDonald’s.