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Starting out with a hot dog stand, the McDonald brothers would go on to revolutionize the food service industry. Their most significant innovation was the Speedee Service System.
Their system was all about efficiency and streamlining the process from first principles.
However, the brothers’ obsession with quality made them unwilling to expand outside San Bernardino.
This left the door open for a chance encounter with Ray Kroc, who would take McDonald’s to new levels.
Ray Kroc was a failed milkshake salesman who saw McDonald’s potential the day he tried his first burger and fries. He thought it was a groundbreaking system that could be expanded worldwide.
However, his ambition came to a head with the McDonald’s brothers, who were happy with the status quo. They eventually gave in and let Kroc open up new stores as long as he provided the same quality they were used to.
Things got crazy, and Ray eventually bought out the McDonald’s brothers for one million dollars in 1961.
After that, McDonald’s franchisees exploded across North America. Ray also devised a strategy of buying all the real estate where the restaurants would be built.
He continued on his mission until he died in 1984.
Fred L. Turner inherited Ray Kroc’s empire in 1974. Becoming the new CEO.
Turner worked on building the golden arches in every town in America and started venturing to international markets.
Turner was known for high growth and sticking with Kroc’s expansion strategy.
He’s probably best known for bringing breakfast to the chain. Most famously launching the beloved Egg McMuffin.
Michael R. Quinlan came into power as CEO of McDonald’s (1987-1998) when it was a global juggernaut.
He’s best known for doubling down international markets during his tenure. The company built locations in Europe, Asia, and Latin America.
Quinlan’s most significant error was thinking McDonald’s would have a chance in the luxury burger market. In the mid-90s, he launched an upscale burger chain called “Arch Deluxe.” It failed.
Jack M. Greenberg was the next CEO between 1998 and 2002.
Trends were changing during this period. People wanted healthier options. Most fast-food joints needed to fit what the consumers were looking for. Yeah, the Egg McMuffin is not a hit with the salad crowd.
Greenburg pushed to add salads and healthier gourmet sandwiches. But these products fell flat. Most people didn’t want to go to McDonald’s for their salad fix.
This was a challenging period for McDonald’s. They were in an identity crisis. Fries or tofu?
By 2003, McDonald’s was in a nosedive financially. James R. Cantalupo became CEO at this point.
Competitors like Wendy’s and Burger King were outflanking them in the market. They were hemorrhaging customers fast.
Cantalupo moved fast. He tried to bring the firm back to the first principles that had made the company famous in the first place. He focused on operational efficiency.
The core menu items and family-friendly environment would take center stage during his tenure.
His turnaround strategy was called the “Plan to Win” turnaround strategy. They revived their marketing magic and successfully launched some premium new products like salads.
Sadly, he would never see the entire success of his plan as he died suddenly in 2004.
As McDonald’s was in mourning, Charlies Bell took over as Charlie Bell took over as President and CEO in 2004. Lucky for him, he inherited Cantalupo’s “Plan to Win”.
Bell had actually worked his way to the top, starting as a crew trainer and then becoming an actual ladder climber.
He was known to be obsessed with operation and customer service.
He focused on improving food quality and renovating all the restaurants to fit the 21st century. The workers loved it and were energized by all the changes.
However, the grim reapers struck again.
Bell was only in charge for 16 months after dying of colorectal cancer in 2005.
Jim Skinner took over in 2005. Skinner started out as a general manager before moving up the ranks.
McDonald’s was in a better place thanks to the previous two CEOs.
Skinner wanted to give McDonald’s a more modern look and give customers a great experience. He introduced innovations like wireless access and healthy menu options like Premium Salads. He even launched the very successful McCafé coffee line, which took on Starbucks.
The Starbucks execs were happy with the one-dollar coffee.
However, Skinner is best known for bringing the famous All-Day Breakfast nationwide.
Don Thompson would take over McDonald’s at a high point in 2012. However, this was an interesting time. Consumer tastes were changing again.
Thompson doubled down on premium burgers and chicken wraps.
But nobody cared. People still imagined McDonald’s as a cheap and classic fast food purveyor. Not a place for avocado toast and other healthy foods.
Also, the new modern look failed to attract the younger people that McDonald’s desperately needed.
He resigned in just a few years because McDonald’s was going through its worst slump in decades.
Steve Easterbrook was brought in as CEO as a change agent.
His big vision was called the “modern progressive burger company” and a doubling down on All-Day breakfast.
The vision focused on trendy ingredients like butter burgers and fresh beef. He also brought a hip menu with the kids and redesigned restaurants for the Instagram age. He also took a note from Starbucks and launched a mobile app for ordering.
Easterbrook is also the guy to thank for those digital kiosks you see when you walk in.
He finally made McDonald’s modern and hip again.
He would leave in 2019 when he was fired for a consensual relationship with an employee. This was against company policies.
Chris Kempczinski joined as McDonald’s new President and CEO in 2019.
As a company lifer, he saw many changes in McDonald’s over the years. He doubled down on making McDonald’s a technological innovator.
He introduced voice-ordering, a new and improved Dollar Menu, and a plant-based menu. The McPlant burger had arrived.
Kempczinski was a natural leader during the COVID-19 pandemic. They switched strategy to a “To-Go, only model.”
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