How McDonald’s Built a Global Empire

Before there was the Big Mac or the Happy Meal, there were two brothers with a dream. When Dick and Mac McDonald left their home in New England to enter the California restaurant industry, they had no way of knowing the phenomenon they were on the verge of creating. Now, with over 44,000 restaurants worldwide, McDonald’s holds strong as the world’s leading fast food chain — built on a firm foundation of hard work, innovation, and a belief in the potential for greatness.

The Early Days of McDonald’s

The McDonald brothers opened their first drive-through restaurant in San Bernardino, California in 1940. After eight years of success, the brothers saw an opportunity to stand out among other restaurants in the area, launching what they called the Speedee Service System: a brand-new self-service system unlike anything seen before.

With the addition of a self-service counter, restaurants were able to cut costs by removing the need for waiters and waitresses. Additionally, the menu was simplified, and food was able to be distributed quickly because the hamburgers were cooked in advance, wrapped, and kept warm underneath heat lamps.

The result? Food sold for half the price of competing restaurants, twice as quickly. The groundwork of fast food was being laid, and the results were undeniable. The McDonald brothers sold 14 franchises, 10 of which became operating restaurants.

Development and Expansion: The Impact of Ray Kroc

While the McDonald brothers may have opened the first McDonald’s restaurants, it was Ray Kroc who accelerated the company to the fast food giant it would later become.

A milkshake distributor, Kroc recognized the franchise’s potential and became a franchise agent. He opened his first franchise in 1955, and launched McDonald’s Systems, Inc. — which would later become McDonald’s Corporation — the same year.

In 1961, Kroc bought out the McDonald brothers for $2.7 million and began to standardize the company’s processes. He created strict systems for everything from food preparation to cleaning, and implemented counter staff to replace the prior self-serve model.

It was during this time that Kroc also began to establish the McDonald’s brand that’s known around the world today. The restaurant debuted the famous golden arches and introduced their beloved mascot, Ronald McDonald.

The Worldwide Growth of McDonald’s Franchises

In 1965, McDonald’s went public on the New York Stock Exchange, marking their entry as a household name once and for all. In the years that followed, Kroc took over as the business’s CEO, and McDonald’s began its international expansion, with its first franchise outside of the United States launching in British Columbia in 1965. From there, global franchises took off like wildfire, and locations began to open all across the world. Franchises opened their doors in Costa Rica, the Netherlands, Japan, Germany, and Australia within the next four years.

When he first began developing a vision for McDonald’s, Kroc wanted to open 1,000 franchises across the US. However, by 1976, there were 3,600 McDonald’s franchises in North America alone, with global locations continuing to pop up each year. In the years since, the restaurant’s growth has seemed unstoppable:

The Modern McDonald’s Empire

McDonald’s has continued to grow at a steady pace with each passing year, and that trend isn’t anticipated to change anytime soon. In 2023, the company announced that they planned to open an additional 10,000 locations globally by 2027, which would mark the fastest period of growth in McDonald’s history. If they succeed, it would mean 50,000 McDonald’s locations worldwide.

The company’s growth strategy, Accelerating the Arches, blends the enduring strengths of McDonald’s with innovation and evolution. Their mission statement is simple: “Making delicious feel-good moments easy for everyone.”

With 86 years of success pushing them forward, there is little doubt that McDonald’s momentum will lead anywhere but up.