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The World's Greatest Milkshake Machine Salesman



by Glenn Shepard

January 13, 2015

Category:  Epic Achievers



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In 1930, brothers Dick and Mac moved to Hollywood to work in the movie business.

They didn't succeed, so they opened a drive in restaurant in 1937.

By 1940, they were splitting $50,000 a year in profit (a very high income back then).

In 1948, they streamlined the menu to reduce costs and increase speed of service. It worked, and by 1950 they were splitting $100,000 a year in profit (a fortune back then).

Their efficiency in the kitchen and with food systems was sheer genius.

People from all over visited to see how their operation worked and study their management methods. They also received 300 calls and letters per month.

You've probably never heard of Dick and Mac, but you know their last name - McDonald.

What you probably don't know is how they failed when they tried to franchise their fast food restaurants.

In 1952, Dick and Mac McDonald started marketing the McDonald's concept but sold only 15 franchises,10 of which never opened.

While they were great managers, they were not great leaders.

In 1954, a milkshake machine salesman heard that the McDonald brothers’ hamburger stand was running eight of his milkshake “Multimixers” at one time. He had already mortgaged his home and invested his entire life savings to become the exclusive distributor of the Multimixer, and saw an opportunity.

He packed up his car and headed to California like the Beverly Hillbillies, but without money.

His name was Ray Croc and he figured that if he could get Dick and Mac to open more restaurants, he could sell eight Multimixers to each.

When Dick asked who they could get to open them, Ray answered, "What about me?"

He opened his first one in the Chicago area in 1955, and his first day's revenue was $366. He then opened 100 new McDonald’s over the next 4 years, and opened 500 over the following 4 years. He eventually bought all rights to the McDonald’s name for $2.7 million.

Today McDonald's has over 35,000 locations in 119 countries, serving 68,000,000 customers a day.

So what allowed Ray Croc to do what the McDonald brothers couldn't?

They were great managers, but he was a great leader, great salesman, and great marketer.


To Your Success in 2015,




Glenn Shepard



P.S. While the press loves to beat up on McDonald's, I'm their biggest fan. And YES, I love their food. They're one of the best managed companies in the world and continue to be cutting edge with innovative ideas to improve every aspect of their operations.


P.P.S. In the interest of disclosure, I must state that many McDonald's managers and franchisees have attended my seminars and bought my products. However, my comment in the P.S. would be the same even if they hadn't.



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