Life and Business Lessons Taught in the Movie "The Founder"

Keywords: The Founder, Ray Kroc, McDonald's Corporation, Business ethics, Franchising, Leadership, Entrepreneurship, Success strategies

What life and business lessons did you learn from the movie ‘The Founder?’

McDonalds revolutionalized the restaurant business. It was extraordinary, unique and original. Rated as the most successful fast food chain in history and listed amongst the 6 most recognizable brands, with over 35000 restaurants in over 126 countries, and feeding approximately 68 million people daily McDonald’s is a global phenomenon. The movie, ‘The Founder,’ takes us to back to1954, exploring the launch and rise of McDonalds and in subtle nuances pronounces life and business lessons which we shall hereunder investigate.

The same curiosity which some say killed the cat, is the very same that renders it worthy to eat on the tables of Kings. From the onset as Ray Kroc traced his way on Route 66 to the McDonalds establishment we are presented with a powerful lesson in the power and reward of curiosity. As a salesman confronted with dwindling sales, Ray was curious about an establishment that ordered 6, then 8, multi-mixers. Curiosity opened doors to new opportunities. The curiosity was so insatiable that Ray asked to take the McDonalds brothers to dinner and from there a relationship was born which was lo later richly reward him. Curiosity allows us to explore new possibilities and opportunities.

As Ray listened attentively to the narration by Dick and Mac of how they opened their shop they repeatedly reiterated the need for innovation in business. After piggybacking off other people’s ideas and facing failure, they constantly strived to establish something that was theirs. Originality, inventiveness and innovation were stressed to be paramount. Innovation is clearly demonstrated in the ‘speede system’ which Mac invented as it was unprecedented at the time. The packaging of their burgers and how they served customers was unique to them. Just because something has never been done before or nobody is doing it, it does not mean you should not be the pioneer. The McDonald’s brothers ditched the Drive-in/Drive through when it was still very popular. This was done to provide more efficient customer services thus delivering correct orders quicker.

Life in its dazzling kaleidoscope meanders through trials, challenges and uncertainty. ‘The Founder,’ schools us on the important lessons in flexibility and adaptability; one has to be willing to adapt to the changing market and also to meet the diverse needs of customers without sacrificing principles and values. Whereas some identified Ray Kroc with his history as a merchant of all manner of merchandise, he however was flexible enough to evolve and adapt to the arising opportunities. When Harry Sonneborn suggested a twitch in the business model to factor in real estate, the franchise was flexible enough to adopt the suggestion. This allowed McDonalds to be stringent in principle and quality but at the same time experimental. When presented with the proposition for dry mix milkshakes, the flexibility kicked in again in the hope of saving on overheads.

After a gruelling day we see Ray Kroc at one time listening to a recording which in mellow intonation transuded affirmations on positivity, determination and persistence. These are some of the most fundamental themes which are explored by ‘The Founder.’ Life and business alike require utmost discipline and perseverance. Persistence inculcates tenacity and fortitude which are all imperative for growth and success. Dick and Mac persisted through the failure of their initial ventures, as did Ray who despite the odds defied all the pessimism and established a reputable franchise. Persistence was the elixir of never ceasing energy and resilience in the face of adversity and failure. Business comes with its fair share of frustrations and difficulty. Despite the constant frustrations which came with the unsavoury contractual obligations between the McDonald’s brothers and Ray, the latter always found the persistence to endure.

Some of the greatest businesses were created by looking at challenges from a different and fresh perspective. This brings us to yet another vital lesson - the need to apply fresh perspectives. McDonalds did not invent the hamburger, perhaps theirs was not the most sumptuous but their fresh perspectives led to speedy service and their packaging made them easily distinguishable. Harry J. Sonneborn took a chance and presented a perspective that was new to Ray Kroc which consequently changed the fortune of McDonalds. This again is a lesson in humility. To grow we have to listen and respect the opinions of others, and from the information we are presented we can glean wisdom which will set us on paths of greatness.

Particular emphasis is paid to the significance of teamwork in business and life in general. Teamwork is pivoted on the inherent capacity to value relationships. The success of Ray Kroc’s franchisees was benchmarked on the importance of family, and family came with teamwork. At one time as Ray sat in bed pondering on his day, he mused and fervently marvelled at how the teamwork he had witnessed at a McDonalds franchisee was the much needed catalyst for success. Teamwork provides a support framework, which Ray also openly lamented to lacking in his marriage as highlighted in a conversation with Ethel. Teamwork was displayed in the conversations and travels between Ray Kroc, Fred Turner, June Martino and Harry J. Sonneborn. Even Mac and Dick displayed excellent teamwork with in turn birthed the first McDonalds store. Man is not an island, one needs a team of advisors and people to help carry and expand their visions. Always surround yourself with like-minded people as they will push you to achieve your full potential.

Over and above the before mentioned teamwork, another lesson brought to our attention is the need to surround one’s self with likeminded people. Ray Kroc franchisee’s recruited shrewdly, and the shrewdness permeated into his personal life. From desiring a companion that supported and thought as he did to expecting the same of his associates, we see Ray Kroc avoid the club and resultantly cancel his membership. He kept negativity and negative influences at bay. His franchisees and employees were people that had the same belief system, hope and vision as he did. The early franchisees failed because the sponsors had a different set of beliefs. This was, according to the movie, a primary reason for Ray Kroc’s divorce.

In business one should never neglect the fine print. This is a lesson that Ray Kroc learnt the hard way. For most, contractual stipulations cannot be wished away and broken like hearts without punitive damages and litigation. Contracts ought to be carefully scrutinized, and where a legal opinion is necessary, it should be sought. They should be read and negotiated with the utmost diligence. Ray was not the only one that fell shot; the McDonalds brothers lost the rights to their McDonalds name and trademark. They further denied themselves an opportunity to receive royalties which by 2016 at the time of release of ‘The Founder’ would have been valued at US$100 million annually. Well negotiated contracts are mutually beneficial.

Greatness calls men of vision to rise above mediocrity to achieve success. Thinking big and stretching the boundaries of imagination enable one to tap into a fountain of untamed creativity, untiringly work hard and earnestly strive for excellence. The McDonalds franchise model was tied to Ray Kroc’s odd defying vision which allowed him to succeed where others had failed. Even though Mac and Dick came up with the concept of McDonald’s, history does not remember them as the founders because of their mindset of limitation and mediocrity.

What propelled the main character and McDonalds to be an International brand?

The fuel which propelled the growth and globalization of McDonalds is the development and refinement of better cutting edge business system. Firstly, by admission of the McDonald’s brothers, Mac and Dick, theirs was not a better hamburger, but superiority lay in the innovation in automation in hamburger preparation. The preparation system was so synchronized and thorough it resembled ‘choreographed burger ballet’ and had such attention to detail that it was “symphony of efficiency, not a waste of motion.” Furthermore, it was meticulous, guided by strict adherence to the menu and ingredients and delivered a meal in 30 seconds. Secondly, innovation and inventiveness ensured the creation of better business methods, systems and controls hence lowered costs and ultimately resulted in cheaper products. This allowed growth, increased revenue and profitability. The system further capacitated McDonalds to be more efficient, more productive, and, therefore more competitive, which made it internationally successful.

The vision, desire and ambition exuded by Ray Kroc set him on a trajectory to drive McDonalds to iconic status. The McDonald brothers had the right ingredients for success, Ray Kroc was the man with the big vision to drive and expand the business; he had the cunning ability to grasp all the nitty-gritties of the fast food business model, shrewdness and ruthless execution of business decisions. He had the fundamental understanding that an empire is not built by acting like a timid little mouse. From the onset Ray Kroc announced a vision: “There should be a McDonalds everywhere. Coast to coast. Sea to shining sea” He declared in passionate rapture that McDonalds can be the new American church, and true to that declaration, a recent survey suggested the golden arches are now more recognizable than the cross. Desire for achievement propels one to reach unprecedented heights. Ethel Kroc once asked, “When’s enough going to be enough for you?” to which Ray responded “Probably never.” When other men were not settling, Ray Kroc refused to do otherwise. Thus a stage was set for Ray to drive McDonalds from being a local restaurant to be a global franchise.

McDonald’s growth was a result of franchising. The franchising model provided revenue through many ways. Franchisees leased their outlets from McDonalds since it owned the land upon which they operated. This provided reliable revenue and capital base to finance expansion. The royalties on revenue paid by the franchisees provided more capital to fuel the McDonalds juggernaut.

Another factor which immensely contributed to the rise of McDonalds is the symbiotic relationship between the corporation and the franchisees. The franchise system adopted an economic model which allowed the franchisee to operate viably and profitably. Ray inspired his franchisees, he got them fired up, filled with zeal for McDonalds and the results showed in expansion. He built a new legacy of emotional attachment through the value of symbolism and powerful branding. McDonalds came to signify and symbolize family, belonging and community hence became much more than an outlet for delicious hamburgers. Moreover, Ray managed to identify the most passionate and dedicated franchisees with a spirit for growth, discipline, persistence and the determination to succeed. In recruitment of franchisees he looked for “… scrappers, hustlers, guys who are willing to roll up their sleeves.” Further he presented McDonalds as an opportunity, “Opportunity to things, to move forward, to move up, to advance, to succeed, to win, to step up...” Having portrayed the business in such light, it was posed for unprecedented growth.

Identifying and focusing on the business’ core competencies were a huge catalyst driving McDonalds to be an international brand. McDonalds eliminated things which either encouraged loitering or brought unproductive traffic. Juke boxes and vending machines we removed from restaurants. This however did not deter Ray from experimentation and taking calculated risks. To lower costs he once approved the use of dry mix milkshakes to lower overheads in ice cream storage. Such an approach allowed him to be abreast with changes, be more adaptable and identify new opportunities. Particular emphasis was paid to sanitation. Ray was never too proud to grab a mop that humility was another important pillar in growth because it transcended Ray and came to be the culture driving the employees and franchisees.

In addition McDonalds made their branding exceptional. They established a strong brand presence through their golden arches, which in turn helped build familiarity and credibility. The marketing and branding success of McDonalds was based on consistency, uniformity and standardization. Each and every restaurant, in spite of geographic location, offered the same great atmosphere and experience, hence expectations were always met. Customer service, quality food and sanitation were paramount in attracting and retaining a customer base. The 1000th burger was equally as tasteful as the 1st one, a feat achieved through strict adherence to set standards of quality – meticulous attention to detail: “same measure of ketchup, mustard, onion and number of pickles.”

Applying fresh perspectives, new ideas, emphasizing the value of teamwork, nurturing of loyal and dedicated employees all propelled McDonalds to be the distinguished brand it is today. Had it not been for the application of the insight by Harry J. Sonneborn when he said “You don’t seem to realize what business you’re in. You’re not in the burger business; you’re in the real estate business. You build an empire by owning the land,” McDonalds would not have been quickly catapulted to international stardom. Ray Kroc’s ability to spot and nurture talent was also pivotal in the growth story. Currently 40% of McDonald’s executives began as hourly employees, a precedence started with the hiring and promotion of Harry Sonneborn, June Martino and Fred Turner

Discipline and Persistence were key cornerstones to Ray Kroc and McDonalds. The former believed that it was sheer hard-work and unrelenting persistence that leads to success. He noted that nothing in the world can take the place of persistence and determination. Not talent, not genius nor education. Persistence and determination alone are all powerful. O ne needs an unceasing flow of energy to build an international brand, and Ray Kroc oozed with it.

What principles did the main character employ in his quest for success

Principles are the inherent force emanating as gravity from a man, upon which dreams, values and behaviors are anchored. They are the rules and laws which dictate the characteristics of a man. Ray Kroc was a man of principle, and those principles influenced his quest for success.

When contemplating the character of Ray Kroc he strikes us as a man of unquenchable thirst for achievement and unsurpassable vision. All these traits are courtesy of the quality of perseverance and principle of persistence. That principle allowed him to be disciplined and consistent. It is not for some unfathomable reason that Ray Kroc weathered the lonely nights, braved negativity and pessimism and survived a ledger bled by diminishing sales of multi-mixers. The people to whom he had pitched before remembered his face, that in itself further amplifies the persistence and relentlessness with which he drove himself. Persistence empowered him to forge a way through seeming impossibilities. Without capital at his disposal he mortgaged his home without even the knowledge of his wife

When other men were not settling Ray Kroc also chose to defy convention by refusing to compromise and say enough is enough. Unwavering determination and diligence were principles he wore as armour. He was fortified against frustrations and failure. Diligence was constantly displayed in Ray’s frugality. This principle helped the main character uphold quality assurance through excellent products and exceptional customer care. Ray Kroc did not tolerate compromise on standards: quality food, cleanliness, friendly staff, and speedy service. Uniformity among all the franchisees and an honest pursuit of excellence ranked high on his list.

As the quoted allegory by Ray Kroc in the movie goes, business is a dog eat dog, rat eat rat scenario. This brings us to one of Ray’s most unsavoury yet necessary principle of ruthlessness in execution of decisions. From cutting his marital bonds to Ethel by a caustic “I want a divorce” statement over dinner, to his not so subtle pursuit of Joan Smith, Ray proved ruthless, and decisive. True to his words, empires are not built by behaving like timid little mice. From incepting the Franchise Realty Corporation to the McDonalds Corporation without consulting the McDonalds brothers, as he cited such decisions lay beyond their purview, Ray’s ruthless principle continued to be brandished. “Contracts are like hearts, they are meant to be broken” that said in undisguised defiance to the McDonald brothers, after yet another incidence he had unilaterally approved the use of dry mix milkshake sachets, proved that legal provision could waiver Ray from his principles. Any competition was doomed to fail when faced with such a man, as Ray even said “If my enemy were drowning, I would go over to him and place a hose in his mouth!”

Where there is a will there is a way. To build his determination and help him endure, Ray Kroc employed the use of positive affirmations. Use of affirmation as a principle allowed him to succeed. In his recordings he listened to positive messages that allowed him to look past present limitations of education, talent and genius and reach for persistence and determination. He was inspired by the message: “A man is what he thinks in his heart all day long.” The affirmations sustained his dreams. He spruced his sales repertoire with other affirmations such as “…you’re a bright forward looking guy…,” these things made him a force to be reckoned with and face to be remembered.

A growth oriented principle allowed Ray Kroc to establish the right partnerships, build effective teams and recruit determined franchisees. Growth is a problem solving, solution driven principle. Solving problems ensured McDonalds was not encumbered by unnecessary traffic and it allowed Ray to reduce overheads for franchisees. Growth is also cultivated in successful symbiotic relationships. The boy Ray identified flipping burgers went on to succeed him as Senior Chairman, the same story of promotion is true for the bible salesman, June Martino and Harry J. Sonneborn.

This principle further allowed Ray to identify and nurture talent. Initially Ray Kroc approached wealthy and influential franchisees. He later realised that their work ethic, understanding of the business and adherence to standards were not what he had hoped for. He then targeted hard-working, ethical, and reliable franchisees that would adhere to his standards and expectations. This good partnership development was centred on a growth principle.

Empires are built through action. Action in itself is a principle which is to business, what faith is in religion. All the principles identified would have been redundant had Ray not been a doer. From following his impulse to courting the McDonald brothers, each scene was packed with actions which resultantly spelt business success. Ray Kroc was a man who believed in executing his vision, he was a hard worker able to effectively sell himself and efficiently market his products. He propounds the fact that age does not matter as his success came when he was well over 50 and he never quit. Ray Kroc was a go getter and was willing to do whatever it took to grow McDonald’s to the empire it is today. If we are to divorce the actions from Ray’s ability to think big, we would end up with fundamentally screwed principles. Ray was driven and had vision – these being independent principles in themselves. Ray Kroc thought big and with his persistence, he innovated and mastered the art of business expansion through franchisee model. Ray acted upon his vision.

The American dream long infused in the Declaration of Independence, as pursuit for happiness and individual liberties, influenced Ray in his quest for success. Through making McDonalds a family oriented business Ray was able to draw crowds whereas the burger places that existed served as hang outs for school teenagers and unsavoury members of society. Taking the institution of family, Ray incorporated American culture into the McDonalds franchise. Respecting and upholding family and community as standalone principles further allowed McDonalds to drive sales and be deeply entrenched in history. The essence of community involvement transcended Ray and permeated into Joan who was generous enough (paid forward) to donate $1.5 billion to the Salvation Army and hundreds of million dollars to NPR.

And what is life without a little risk? Risk taking was not Ray’s objective nor part of his values in business, he took risks by principle. Mortgaging his house was a risk, doing so without consulting Ethel was another risk, all in one day. Innovation, change and invention are risks. When one dares to do what has been done and met with failure, or something that has never been done before, these are monumental risks with which the history of great men such as Ray Kroc is told.

All being said humility grounded Ray Kroc to all his other principles and value system. As executive that could take a broom and sweep, and walk the talk was just the perfect topping on McDonald’s delectable servings.

In his quest for success, the movie ‘The Founder’ allows us to ponder upon many character traits and principles of Ray Kroc. As to whether the principles were moral, it remains debatable, but it is undeniable that they drove him successfully on a quest for business success.