Who are the McDonald brothers now?
The story of the McDonald brothers and Ray Kroc is indeed dramatic. In the end, Ray Kroc wins hugely, and the McDonald brothers lose—primarily due to their lack of business acumen, which is so important, is it not? Here’s a more nuanced look at their financial situation and the aftermath of their business dealings with Ray Kroc:
The Financial Outcome for the McDonald Brothers
Initial Sale to Ray Kroc
- Deal Terms: In 1961, Ray Kroc bought the rights to the McDonald's name and the operation of existing restaurants from Richard and Maurice McDonald for $2.7 million. This transaction gave Kroc full control over the McDonald’s brand and its future expansion.
- Payment: The McDonald brothers received a significant cash payment, which was a substantial sum at the time. This money was intended to compensate them for the value of their business and the brand.
Post-Sale Life
- Financial Status: The McDonald brothers were not left penniless. They used the proceeds from the sale to retire comfortably and continue operating their original McDonald’s restaurant in San Bernardino.
- Financial Security: The McDonald brothers lived out their lives with financial security, and they continued to enjoy their involvement in the original restaurant. They did not face financial ruin as a result of their deal with Kroc.
Legacy and Impact
- Retirement: After selling the franchise rights, the McDonald brothers were able to retire and live relatively comfortable lives. They did not participate in the explosive growth and international expansion of the McDonald’s franchise, but their original restaurant remained a local landmark.
- Cultural Impact: The McDonald brothers' original concept and their role in the fast-food industry have been recognized and celebrated, even if they were not part of the massive growth that followed the sale.
Kroc’s Role and Financial Success
- Expansion: Ray Kroc’s aggressive expansion and the establishment of McDonald’s as a global brand made him immensely wealthy. His business strategies and vision led to the creation of one of the most recognizable brands in the world.
Conclusion
While the McDonald brothers did not experience the same level of financial success as Ray Kroc, they were not left penniless. They were rewarded with a modest payout, lived a comfortable life, drove Benzes and went to country clubs, and even took all-inclusive vacations from time to time! We are happy for them; there is nothing wrong with living comfortably. But Ray Kroc is our hero, and we idolize him here at Rupiani's!
All of that being said, we thank the McDonald brothers’ for their contribution to the fast-food industry and their lessons in "The Gerber Method"—many lessons of which we use here at Rupiani's today.