The Roots of Quality

Date: 2015-10-07; view: 461.

Rewarding Innovation

A Unique Philosophy

Ray Kroc wanted to build a restaurant system that would be famous for food of consistently high quality and uniform methods of preparation. He wanted to serve burgers, buns, fries and beverages that tasted just the same in Alaska as they did in Alabama.

To achieve this, he chose a unique path: persuading both franchisees and suppliers to buy into his vision, working not for McDonald's, but for themselves, together with McDonald's. He promoted the slogan, "In business for yourself, but not by yourself." His philosophy was based on the simple principle of a 3-legged stool: one leg was McDonald's, the second, the franchisees, and the third, McDonald's suppliers. The stool was only as strong as the 3 legs.

Ray Kroc believed in the entrepreneurial spirit, and rewarded his franchisees for individual creativity. Many of McDonald's most famous menu items—like the Big Mac, Filet-O-Fish and the Egg McMuffin— were created by franchisees. At the same time, the McDonald's operating system insisted franchisees follow the core McDonald's principles of quality, service, cleanliness and value.

McDonald's passion for quality meant that every single ingredient was tested, tasted and perfected to fit the operating system. As restaurants boomed, the massive volume of orders caught the attention of suppliers, who began taking McDonald's standards as seriously as McDonald's did. As other quick service restaurants began to follow, McDonald's high standards rippled through the meat, produce and dairy industries.

Again, Ray Kroc was looking for a partnership—this time with McDonald's suppliers—and he managed to create the most integrated, efficient and innovative supply system in the food service industry. These supplier relationships have flourished over the decades: in fact, many McDonald's suppliers operating today first started business with a handshake from Ray Kroc.