At one time I worked for a company that had among many things 40 or 50 Wendys restaurants. Eventually Wendys came and bought them back from the company but taking a page out of Harry and Ray's book they kept the land that each Wendys was on. So not only did they make money from selling the stores back to Wendys, now Wendys pays them rent.
@@BlaneNostalgiaSo many people out there not believing the most believable stories… I mean, okay, people lie sometimes. But anonymously? For likes in a random comment section on RUclips? Not much to be gained there if you’re not an insecure attention-seeking teenager with a lack of self-confidence and a broken ego. It’s like the skeptics and doubters never go out and live. Because there are two things you learn by doing so: 1. It does not take much time for Life to hand down to you the most unbelievable situations. Life itself creates stories a good imagination couldn’t have made up. There’s nothing crazier than reality. 2. If you really think about it, the most unbelievable story of them all, is the fact that we exist and are alive: One chance in billions of trillions. Yet here we are, the living proof that pretty much anything can happen in this universe. And some people still don’t believe something that not only is very probable, but is sometimes the everyday business of hundreds of thousands of people out there… Come on now. Go out, talk to strangers, be curious, try new things, move to the next town or country, go out in the street, enter a bar alone, do something you’ve never done. Say yes to random shit. You’ll be the one living these crazy stories in no time.
And that is how franchises work. A ton of upfront money. Sold a big dream. All you end up with is a thankless job hoping to end up with enough money after all expenses to consider it an ok job. A friend of mine owned a subway restaurant. Busy as heck. Never made a dime. All of it went to product costs and franchisee fees and labor. He ended up making sandwiches to cut labor costs and made $25k a year working 60 hours a week as an owner of a subway. Sad.
Subway is a horrible franchise and a horrible business model. People buy THAT franchise because it is cheap compared to real franchises. Its like $25,000 compared to like a million for McDonalds. And the chain doesn't work on behalf of the franchisee. There are no prohibitions on the part of Subway to build another Subway across the street from your store. Moreover, subs are lunch. Is there anyone even IN a Subway after 2PM on any day? Burgers? All three meals possibly. McDonalds is packed at breakfast time. And 11PM. The best Subway franchises are the ones that are "blended" with other franchises. That is, you can get a Subway sandwich or a Arby's or an A&W or whatever. If there are 3 different franchises there (and one is Subway) then okay, you will get some serious traffic. But your friend who "worked" 60 hours a week? I'm thinking that if he only made $25,000 a year, he was just at an empty restaurant putting in hours.
Spot on. 25k was 100% his base pay, He was either a shitty manager and missed tons of profit that he should’ve made money on, or it was dead as hell and he was chillin’ in his failed startup. Probably both. I know people that are owner/operators making 100k+ for sonic of all places. Subway is truly the worst way to go if you wanna get into franchising or being an owner/operator for a particular brand
@@kingshark3503 Even worse, no rights to the name, reputation (takes on reputation of Subway, pro and con) the product, hell probably doesn't even own the cash register and tables. Hahah.
Really depressing. You know Chick-fil-A is a $10K franchise? Franchises are tough to get and you don't own the building or the land and I think C-f-A picks the site (not on top of another C-f-A), but the average income of a franchisee is around $250K. They typically pick (I heard) franchisees that are hands-on. They don't typically issue to corporations. They want franchisees that are "in the trenches". That way, they believe, customer service will remain high and any problems that arise can be handled expeditiously.
This movie was almost entirely set up for this scene, where Sonneborn is the true hero to almost singlehandedly change the course of the flawed homeric hero, Ray Kroc. A man who seemed to be beset by setbacks and barriers at every juncture. This is where his life goes from mounting failure out of control to turning around to mounting exponential success.
@@amazingpeopleamazingstorie29 - why do you think it's possible that large profitable organizations are built any other way? Please explain with examples.
@@amazingpeopleamazingstorie29 - I see that you didn’t say that. I guess the tone in which I read it lead me to that assumption. A shortcoming of written comments. You are correct - I’ve seen some of that. It’s partly the moral man problem. A moral man will have a set of options to pursue any particular goal. The immoral man will always have the same options available to them, but they also have all the immoral options as well.
@@boxer12350both in real life and the movie, Kroc was a traveling salesman up against incredible odds and faced many many challenges along the way--hence homeric hero. Also, Kroc is not the bad guy he is portrayed as in the film. In real life, the mcdonald brothers were kinda the villains, and Kroc eventually bought them out.
@@Triggy6825 Harry's given the blueprint but it takes a certain set of skills to execute the blueprint - acquiring/deploying capital which Ray can't learn in a matter of months.
Because he's a brain and has Evan better ideas to make the company grow to billions now. Hello ,that's why he's in his position and your in your positions for 40 years working for someone like him
So what was Harry Sonneborn selling? What was the deal that he was trying to close. As many on here already know, Harry was the first president of McDonalds. So in effect he was selling himself to Ray
Both....himself and the control of the franchise! Basically, this deal gave Kroc total control of McDonalds and both men became very wealthy. Sadly, the McDonald brother did not see what was coming or they just ignored it, didn't care. They did not have the vision of expansion or growth, they just wanted a simple hometown burger joint. They did have a awesome foundation....and America loved it. The deal....partnership and a takeover of McDonalds. They stole it from the brothers.....the brothers were blind.
For a slick lawyer he forgot to take in the account of how long beef amd potatoes need to grow before its just i simple orders of a cheeseburger and fries
It wasn't Kroc who was the ruthless one or the instigator. He was a desperate man in his 50s about to lose everything. It was Harry, the financial expert. It was capitalism. It's the nature of it. Sink or swim.
If Ray Kroc was the flawed tragic hero (in this depiction of history) Sonneborn was his genie in the bottle, his Merlin, his Gandalf, his magical benefactor who would change the course of his life in an instant. The way he also disappears quietly with a smile (as depicted in the movie) without a word adds to the mythos of his role in the story. He's able to leave with his dignity, seemingly on his terms, while Kroc ends up being rich but comes out lacking something.
A good businessman??? 🤣🤣🤣🤣 He was a crooked businessman with no scruples or integrity. If you have no conscious, honesty or integrity…then you have nothing.
@@matthewmorrison8611 But he build McDonald, so what are you talking about? Helped the brothers make million, what they wanted and that's it. They have no integrity.
The sound in this video is not there, which is a little offensive when you have the capitalized subtitles. It's like you want all the credit for these scenes.
Most importantly, speak incredibly quietly. Do everything - everything - in almost perfect silence. Mumble whenever possible. Never, ever learn how to optimize audio. You don't want your competitors or RUclips audience to overhear your brilliant ideas.
Yet again more people watching this movie seeing it as an example of successful hustle, without realising it’s an indictment of shameful opportunism and greed. Male power fantasy never ceases to be misinterpreted by wannabes.
Croc could've, but he didn't have the know how to implement the idea. Nobody on Croc's team at the time did either: otherwise they'd have done it already, and he wouldn't have had a reason for going to the bank. There's nothing wrong with playing all your cards as long as you read the room before you do - which Sonneborn did.
You can play all of your cards if you can read your opponent, or in this case, read your potential partner. Ray didn't know a thing outside of the restaurant biz, and certainly not in real estate or financial stuff. Sonnenboom and Kroc teaming up was the true bringer of power to the name McDonalds.
There was blame on both ends. The brothers were definitely too draconian, but they did maintain quality and consistency. That non-dairy milkshake powder was a bullshit idea that I was happy to see them shoot down.
This scene assumes someone who has a multimillion (billion) dollar product doesn't understand the complexities of their situation and needs someone else. I've found the upper 1% of producers on any metric understand their dimensions better than just about anyone else and they use their knowledge to get people to compete for their skills/services/whatever and they take the best deal for themselves. As they should. My point is - I dont think there are many pigeons who are sitting on a goldmine (landmine now that is different!).
So if i were to do this the real creators and owners of McDonald's (including all the franchise buyers) would effectively be...... Under my thumb, under my control, neutered, powerless figureheads with no authority, part of MY new empire of real estate, and totally bought out and shelved legally. (smile)
My view, Ray Croc was able to do this brilliant shift because he established the brand first (without gaining any Money). So he could afford at a certain point to impose the franchisors the new business model
Rejected for a business loan base on the P&L, approved for second mortgages on the balance sheet properties he had already bought. The mortgages were drags on the P&L, reducing the book value of the business; the land equity was an asset suitable for financing, and probably at a lower rate than the business loan.
Já vím, chcete mě okrást a já vám říkám, že okradete lidi, se kterejma děláte... To vám ale nevadí... Jste takový, cikáni... Že chcete okrást mě, to chápu... Ale že klidně okradete i lidi, se kterejma děláte, mě nepřekvapuje, takhle poznáš pravýho cikána :D Tak to těm.pernikarum můžete rovnou říct, k kolik je okradete... Ale pak z něho můžete udělat milionáře :D :D :D
can some one explain to me how did he managed to get capital to purchase the land? he had no finance which is one of the reasons how he was in the bank no?
@@fredysanmiguel4488 he can sell equity in business and also a better business plan that has a clear revenue stream could get a loan at a bank. If a bank wouldn't take that risk someone personally could loan money
In simplistic terms, when you go to get a loan from the bank, they ask you "what will you give us if you don't pay us back?" This is called "collateral" The collateral has to be enough to make the risk of the loan worth it. I can't say "I need 1.2 million in a loan, and I'll give you my 10-year-old car if I don't pay you back." I have no "collateral", no assets that can back up my promise to pay the loan back. Ray Kroc had no collateral to offer to secure these huge loans he was asking for before Harry showed up and basically told him "you need to concentrate on the land and the lease, not the hamburgers and french fries". The added bonus being he could operate outside of the purview of the McDonald's brothers as they had no contract whatsoever with Kroc regarding the land and leases (Just the restaurant operations.) This is how he was able to cut them out/go around them. Call it "evil", call it "cunning", business-wise it was an absolutory brilliant move. The bank can take over the land if he doesn't fulfill his loan. He has collateral with the land ("skin in the game"). Previously, he had a fancy title as head of franchising, he was selling his vision like crazy....but he had nothing to give the bank as collateral if he didn't pay his loan. WHat could the bank take as collateral? His title? The piddly % cut if each hamburger sold? Of course not. He needed something big to offer in order to get the big loans....he needed land/real estate.
I have to ask if Harry came up with the solution on the spot in real life. Or, if he slept on the facts and somehow found the loophole. Or, if that is the business model his business used.
Well, deciding to invest in the land doesn't take a genius. Land is a major asset class, so a known way to make money. Review of the books (which I'm sure this movie abstracts) showed that Ray wasn't making money on the stores, because of the fees he paid to the brothers and because he was drowning the ordinary problems of running a multi-unit business. For a finance guy, it's natural to acquire about the asset missing from the ledgers, and to understand that any land purchases would come without entailments. The investment strategy only works, however, if you can bank on the base business expanding. Harry's distinctive insight was that the McDonalds had a chance to grow much faster than anyone else had imagined, including Ray. The food back hen was pretty good - and potential of the franchise model as a driver of growth was such that someone was going to end up making a ton of profit. All they had to do is commit to a basic strategy that would channel some of those profits to them.
@@jeffrey.p.thornton I agree investing in land is a winning play. The question I had is, could he have figured out that fast how to make that play? I could talk about, buy land, buy land. But I'd need at least a couple hours, if not overnight, to figure out a complete strategy of what to do with it.
@@broadstreet21 So, I looked this up - and the answer is no. Sonneborn joined the company in 1955; they started the real estate subsidiary in 1956, it didn't start paying off until the sixties. You should give mre credit to application than to talent here.
@@jeffrey.p.thornton Now that sounds far more realistic. A detailed plan like this usually needs months, if not years. Anything but mere minutes to one hour.
Thanks for summarising what the writers have presented and pretending that it somehow is a framework for anyone else to follow. Typical motivational speaker/sales bullshit.
Anyone who thinks Ray Kroc is a Crook needs to rethink what he did. The Mcdonalds sons could never have DREAMED of doing what Ray did. And not only did Ray make them more money than they ever would have on their own, Ray and his wife donated A BILLION dollars to the salvation army and other charities. Think about how many people benefited from what Ray did with Mcdonalds? The pros and good deeds he was able to do with that fortune he made far out way the cons. If Dick and Mac had any sense, they would have hopped on the Ray train early on. Instead they constantly gave him pushback, held him back and basically forced him into figuring out a way to build the Mcdonalds empire without them. He never started out wanting to steal their business. He wanted to bring it to the world and praise Dic and Mac. He learned early on Dic and Mack were small town thinkers with very little drive and ambition.
He has a WEAK Sales Pitch. This Ray Kroc. He can learn a thing or two from my stockbroker friend: Jordan Belford. I am sure Ray will have a REAL Hankering. My friend can sell garbage as if it was Gold to Billionaires.
Food was real back then and portions were smaller. He could have eaten that everyday and maintained a somewhat healthy lifestyle. Cigarettes are what aged the hell out of everybody back then.
What a horrible written and directed garbage movie. Nobody in financial straights treats people offering financial solutions like this. Certainly nobody successful.
From a paper salesman to a junkie to a business consultant. Ryan's had quite a journey
To podcaster/vigilante!
He went to business school at night
Didn’t he also kill Hitler ?
It still doesnt show him closing the sale. Which means Ryan STILL has never made a sale. Oh, and, RYAN STARTED THE FIRE!
Ryan''s selling skills have come good
Love it 😂!
Well, he worked under the best salesman in the world. Michael Scott 😎
Yeah, but you seem to have forgotten something…RYAN STARTED THE FIRE!!! 🔥
That MBA is starting to pay off
Working for $60K a year in the bowling alley gave him his edge!
At one time I worked for a company that had among many things 40 or 50 Wendys restaurants. Eventually Wendys came and bought them back from the company but taking a page out of Harry and Ray's book they kept the land that each Wendys was on. So not only did they make money from selling the stores back to Wendys, now Wendys pays them rent.
Beautiful
I remember when that never happened
@@Disillusioned2022 I remember when you were never salty.
@@BlaneNostalgiaSo many people out there not believing the most believable stories…
I mean, okay, people lie sometimes. But anonymously? For likes in a random comment section on RUclips? Not much to be gained there if you’re not an insecure attention-seeking teenager with a lack of self-confidence and a broken ego.
It’s like the skeptics and doubters never go out and live.
Because there are two things you learn by doing so:
1. It does not take much time for Life to hand down to you the most unbelievable situations.
Life itself creates stories a good imagination couldn’t have made up.
There’s nothing crazier than reality.
2. If you really think about it, the most unbelievable story of them all, is the fact that we exist and are alive:
One chance in billions of trillions.
Yet here we are, the living proof that pretty much anything can happen in this universe.
And some people still don’t believe something that not only is very probable, but is sometimes the everyday business of hundreds of thousands of people out there…
Come on now. Go out, talk to strangers, be curious, try new things, move to the next town or country, go out in the street, enter a bar alone, do something you’ve never done. Say yes to random shit.
You’ll be the one living these crazy stories in no time.
"You're not in the burger business. You're in the empire business." - Breaking McD's
"This isn't ketchup" *throws down a packet and suddenly, all the windows blow out from the inside
Legendary reference.
And that is how franchises work. A ton of upfront money. Sold a big dream. All you end up with is a thankless job hoping to end up with enough money after all expenses to consider it an ok job. A friend of mine owned a subway restaurant. Busy as heck. Never made a dime. All of it went to product costs and franchisee fees and labor. He ended up making sandwiches to cut labor costs and made $25k a year working 60 hours a week as an owner of a subway.
Sad.
Cold, and has no rights to the physical property. Ouch.
Subway is a horrible franchise and a horrible business model. People buy THAT franchise because it is cheap compared to real franchises. Its like $25,000 compared to like a million for McDonalds. And the chain doesn't work on behalf of the franchisee. There are no prohibitions on the part of Subway to build another Subway across the street from your store. Moreover, subs are lunch. Is there anyone even IN a Subway after 2PM on any day? Burgers? All three meals possibly. McDonalds is packed at breakfast time. And 11PM.
The best Subway franchises are the ones that are "blended" with other franchises. That is, you can get a Subway sandwich or a Arby's or an A&W or whatever. If there are 3 different franchises there (and one is Subway) then okay, you will get some serious traffic. But your friend who "worked" 60 hours a week? I'm thinking that if he only made $25,000 a year, he was just at an empty restaurant putting in hours.
Spot on. 25k was 100% his base pay, He was either a shitty manager and missed tons of profit that he should’ve made money on, or it was dead as hell and he was chillin’ in his failed startup. Probably both.
I know people that are owner/operators making 100k+ for sonic of all places. Subway is truly the worst way to go if you wanna get into franchising or being an owner/operator for a particular brand
@@kingshark3503 Even worse, no rights to the name, reputation (takes on reputation of Subway, pro and con) the product, hell probably doesn't even own the cash register and tables. Hahah.
Really depressing. You know Chick-fil-A is a $10K franchise? Franchises are tough to get and you don't own the building or the land and I think C-f-A picks the site (not on top of another C-f-A), but the average income of a franchisee is around $250K. They typically pick (I heard) franchisees that are hands-on. They don't typically issue to corporations. They want franchisees that are "in the trenches". That way, they believe, customer service will remain high and any problems that arise can be handled expeditiously.
This movie was almost entirely set up for this scene, where Sonneborn is the true hero to almost singlehandedly change the course of the flawed homeric hero, Ray Kroc. A man who seemed to be beset by setbacks and barriers at every juncture. This is where his life goes from mounting failure out of control to turning around to mounting exponential success.
@@amazingpeopleamazingstorie29 - why do you think it's possible that large profitable organizations are built any other way? Please explain with examples.
@@amazingpeopleamazingstorie29 - I see that you didn’t say that. I guess the tone in which I read it lead me to that assumption. A shortcoming of written comments. You are correct - I’ve seen some of that. It’s partly the moral man problem. A moral man will have a set of options to pursue any particular goal. The immoral man will always have the same options available to them, but they also have all the immoral options as well.
Help me understand how he is a homeric hero? I seriously am interested in knowing.
@@boxer12350both in real life and the movie, Kroc was a traveling salesman up against incredible odds and faced many many challenges along the way--hence homeric hero. Also, Kroc is not the bad guy he is portrayed as in the film. In real life, the mcdonald brothers were kinda the villains, and Kroc eventually bought them out.
@@johnhurseyjr in real life they were kinda villains how?
Seen the movie a couple of times. Certainly remember this scene and its significance. But I've never quite seen it broken down this way. Well done.
Whats great is how he uses Ray’s classic closing line “so, what do you say?” Except this time it finally works. Great juxtaposition.
From that moment, Kroc was given the ultimate cheat code.
I don't care if Ryan killed his entire family, he's like a son to me.
I need to watch this again. It's so good. Michael Keaton is the best.
Helluva deal!
You make that deal Utevitch?
I'd make that deal.
*cutting the golden arches into a forehead*
Damn good deal.
Didn't he give him priceless, bespoke, and expert analysis at no cost?
thats what im saying. He gave away everything for free. How is that closing a deal?
@@Triggy6825 Harry's given the blueprint but it takes a certain set of skills to execute the blueprint - acquiring/deploying capital which Ray can't learn in a matter of months.
Because he's a brain and has Evan better ideas to make the company grow to billions now. Hello ,that's why he's in his position and your in your positions for 40 years working for someone like him
Yea what I thought. What was to stop Ray Kroc from saying, thanks for the information, then *slam* close the door on him.
@@johnnyboyboxing-yy4twfound the clown leech
Great salesmanship
Michael would be proud!
The best salesman finds a deal where there was none originally.
Harry is the Sean Parker of McDonald’s.
Liked him here way better than his office role
So what was Harry Sonneborn selling? What was the deal that he was trying to close. As many on here already know, Harry was the first president of McDonalds. So in effect he was selling himself to Ray
Both....himself and the control of the franchise! Basically, this deal gave Kroc total control of McDonalds and both men became very wealthy. Sadly, the McDonald brother did not see what was coming or they just ignored it, didn't care. They did not have the vision of expansion or growth, they just wanted a simple hometown burger joint. They did have a awesome foundation....and America loved it.
The deal....partnership and a takeover of McDonalds. They stole it from the brothers.....the brothers were blind.
His bussy you mean.
He (Henry) Sold a Salesman (Kroc) 😁😁😁😁 fking awesome. I bet he (he's dead now) / his family glad that he bought what Henry was offering him.
Beautiful.
he's in very good physical shape for someone who's eating mcdonalds twice a week.
He's most likely lying to gain his favor but to be fair, McDonald's food was very different back then and not lab created sugar filled crap.
Smaller portions back then.
@@damonappelblatt8974not necessarily, look up shrinflation. 70s Big Macs are like 3 modern ones.
@@damonappelblatt8974 And REAL food.
I’m a pretty big guy and I have eaten at McDonalds twice in the last year.
wow if i am ever a financial adviser in a movie i will certainly use these tips
you have to be as good-looking as this guy, though, otherwise it doesn't work.
@@scottmatheson3346 no no no.,,, all you have be is honest,, good looks are for wives.
Brilliant film
This idea was brilliant
Ryan started the fire
Imagine referring to a group of McDonalds customers as a fantastic crowd nowadays heh
1950s and 1960s are not what they were today.
That was nothing shy of beautiful.
I hope Ryan considered a variable pricing model here. He got in trouble last time using a fixed pricing model.
Variable costing - under reasonably elastic conditions, pricing will always be variable.
Looks like Ryan learned a thing or two while in prison.
With great wealth comes a great crime.
You got me to subscribe by minute 1 already. Excellent breakdown
My favorite scene wish I was in this business
In one scene he went from protagonist to antagonist
The fire guy
For a slick lawyer he forgot to take in the account of how long beef amd potatoes need to grow before its just i simple orders of a cheeseburger and fries
That's the farmer's problem. Besides these were long-established crops with mature markets. It's not like they were starting from Cow and Potato One.
Don't go chasing waaterfalls
It wasn't Kroc who was the ruthless one or the instigator. He was a desperate man in his 50s about to lose everything. It was Harry, the financial expert. It was capitalism. It's the nature of it. Sink or swim.
Harry was the financial brains behind McDonald's. Without him, they wouldn't have survived.
I wonder why he left after 12 years and never spoke of McDonadls again
@@Thunderduck1 money…equity…control
@@Thunderduck1 Because Ray Kroc was a malicious dictator
If Ray Kroc was the flawed tragic hero (in this depiction of history) Sonneborn was his genie in the bottle, his Merlin, his Gandalf, his magical benefactor who would change the course of his life in an instant. The way he also disappears quietly with a smile (as depicted in the movie) without a word adds to the mythos of his role in the story. He's able to leave with his dignity, seemingly on his terms, while Kroc ends up being rich but comes out lacking something.
McDonald's would been a forgotten diner if this didn't happen.
Ray croc may have been a crook, but damn was he a good businessman
A good businessman??? 🤣🤣🤣🤣
He was a crooked businessman with no scruples or integrity. If you have no conscious, honesty or integrity…then you have nothing.
@@matthewmorrison8611 But he build McDonald, so what are you talking about? Helped the brothers make million, what they wanted and that's it.
They have no integrity.
@@aurelianspodarec2629 *He stole the business and bought the brothers out
@@tubber2947 There was no 'business' if he didn't make it.
literally the same thing.
Just blew my mind hearing Waukegan the place Ive lived next to my entire life
'Little Man' got right to it.
Michael thought him well
He did the brothers dirty.
The brothers sold food, Kroc redefined the service and sold an industry.
Fired guy
Smart intern 👌
BJ Novak is underrated
I remember this part
Ray: If I were to do this, errr the brothers they errr effectively would be......
Ryan: YES
that blank word would be "fucked"
Not here to sell you ice cream😂
He was exactly right. It’s the same reason that Starbucks isn’t in the coffee business. They’re in the milk business.
The sound in this video is not there, which is a little offensive when you have the capitalized subtitles. It's like you want all the credit for these scenes.
This never happened.They knew each other when Ray was selling the shake mixers.
land, Katie Scarlet, land -- it's the only thing that lasts
Michael Scott would be proud
Good advice: have someone clever eavesdrop on your conversation
Most importantly, speak incredibly quietly. Do everything - everything - in almost perfect silence. Mumble whenever possible. Never, ever learn how to optimize audio. You don't want your competitors or RUclips audience to overhear your brilliant ideas.
I'm sorry, what?
Hollywood: “where’s the super jew that really is behind McDonald’s?”
Good scene...except in real life no business man will open up his confidential financial records to someone he just met on the street.
ABC! Always Be Closing!
Yet again more people watching this movie seeing it as an example of successful hustle, without realising it’s an indictment of shameful opportunism and greed. Male power fantasy never ceases to be misinterpreted by wannabes.
Are they going to do a movie when Ray Kroc buys the Padres?
🥶
Youngest VP in Dundler Mifflin's history
Lately he worked at a bowling alley
Oh dang! What happens next? I guess I'll never know.
What's to stop Croc from just stealing the idea? The guy played all his cards didn't he?
Croc could've, but he didn't have the know how to implement the idea. Nobody on Croc's team at the time did either: otherwise they'd have done it already, and he wouldn't have had a reason for going to the bank. There's nothing wrong with playing all your cards as long as you read the room before you do - which Sonneborn did.
Harry just told him about the spell, Croc still needed a wizard to cast it.
You can play all of your cards if you can read your opponent, or in this case, read your potential partner.
Ray didn't know a thing outside of the restaurant biz, and certainly not in real estate or financial stuff.
Sonnenboom and Kroc teaming up was the true bringer of power to the name McDonalds.
He's come a long way from being an intern
I loved it when Kroc pulled the rug from under the two bureaucratic and micromanaging brothers.
There was blame on both ends. The brothers were definitely too draconian, but they did maintain quality and consistency. That non-dairy milkshake powder was a bullshit idea that I was happy to see them shoot down.
😎
Youre forgetting the most important part.
Its a movie
I like BJ Novak as much as the next guy, but in this movie he acts like Abed acting like Don Draper.
This scene assumes someone who has a multimillion (billion) dollar product doesn't understand the complexities of their situation and needs someone else. I've found the upper 1% of producers on any metric understand their dimensions better than just about anyone else and they use their knowledge to get people to compete for their skills/services/whatever and they take the best deal for themselves. As they should. My point is - I dont think there are many pigeons who are sitting on a goldmine (landmine now that is different!).
So if i were to do this the real creators and owners of McDonald's (including all the franchise buyers) would effectively be...... Under my thumb, under my control, neutered, powerless figureheads with no authority, part of MY new empire of real estate, and totally bought out and shelved legally. (smile)
...and all wealthy if they just follow the rules. 🤣
Not sure I can trust a guy who set fire to a pita in a toaster oven
My view, Ray Croc was able to do this brilliant shift because he established the brand first (without gaining any Money).
So he could afford at a certain point to impose the franchisors the new business model
Wow Ryan has grown so much from an intern.
A temp
+Asking open-ended questions
You wanna get to business? Let's go to business
He never made a sale and burned down the office kitchen
Imagine the overhead. Minimum wage was $0.75. Food was cheap. Zero competition. The dollar was strong. Dude shat on a Gold toilet.
No cash reserves, just got rejected on loan, but he told him to buy lands? 😂
Rejected for a business loan base on the P&L, approved for second mortgages on the balance sheet properties he had already bought. The mortgages were drags on the P&L, reducing the book value of the business; the land equity was an asset suitable for financing, and probably at a lower rate than the business loan.
Hi.. hi.. hi… hi
Já vím, chcete mě okrást a já vám říkám, že okradete lidi, se kterejma děláte...
To vám ale nevadí... Jste takový, cikáni...
Že chcete okrást mě, to chápu... Ale že klidně okradete i lidi, se kterejma děláte, mě nepřekvapuje, takhle poznáš pravýho cikána :D
Tak to těm.pernikarum můžete rovnou říct, k kolik je okradete...
Ale pak z něho můžete udělat milionáře :D :D :D
Didn't need the corny text my guy
can some one explain to me how did he managed to get capital to purchase the land? he had no finance which is one of the reasons how he was in the bank no?
Capital will flow to where there is money to be made could of got a loan elseehere or giving up a lil equity
@@James-fw5ew he was refused by the bank
@@fredysanmiguel4488 he can sell equity in business and also a better business plan that has a clear revenue stream could get a loan at a bank. If a bank wouldn't take that risk someone personally could loan money
In the movie I think they show that Harry has connections with some rich investers, who finance the idea they're talking about in this clip
In simplistic terms, when you go to get a loan from the bank, they ask you "what will you give us if you don't pay us back?" This is called "collateral" The collateral has to be enough to make the risk of the loan worth it. I can't say "I need 1.2 million in a loan, and I'll give you my 10-year-old car if I don't pay you back." I have no "collateral", no assets that can back up my promise to pay the loan back.
Ray Kroc had no collateral to offer to secure these huge loans he was asking for before Harry showed up and basically told him "you need to concentrate on the land and the lease, not the hamburgers and french fries". The added bonus being he could operate outside of the purview of the McDonald's brothers as they had no contract whatsoever with Kroc regarding the land and leases (Just the restaurant operations.) This is how he was able to cut them out/go around them. Call it "evil", call it "cunning", business-wise it was an absolutory brilliant move.
The bank can take over the land if he doesn't fulfill his loan. He has collateral with the land ("skin in the game").
Previously, he had a fancy title as head of franchising, he was selling his vision like crazy....but he had nothing to give the bank as collateral if he didn't pay his loan. WHat could the bank take as collateral? His title? The piddly % cut if each hamburger sold? Of course not. He needed something big to offer in order to get the big loans....he needed land/real estate.
Why is Ryan telling all of this to him? He should do it himself
I have to ask if Harry came up with the solution on the spot in real life. Or, if he slept on the facts and somehow found the loophole. Or, if that is the business model his business used.
Well, deciding to invest in the land doesn't take a genius. Land is a major asset class, so a known way to make money. Review of the books (which I'm sure this movie abstracts) showed that Ray wasn't making money on the stores, because of the fees he paid to the brothers and because he was drowning the ordinary problems of running a multi-unit business. For a finance guy, it's natural to acquire about the asset missing from the ledgers, and to understand that any land purchases would come without entailments.
The investment strategy only works, however, if you can bank on the base business expanding. Harry's distinctive insight was that the McDonalds had a chance to grow much faster than anyone else had imagined, including Ray. The food back hen was pretty good - and potential of the franchise model as a driver of growth was such that someone was going to end up making a ton of profit. All they had to do is commit to a basic strategy that would channel some of those profits to them.
@@jeffrey.p.thornton I agree investing in land is a winning play. The question I had is, could he have figured out that fast how to make that play? I could talk about, buy land, buy land. But I'd need at least a couple hours, if not overnight, to figure out a complete strategy of what to do with it.
@@broadstreet21 So, I looked this up - and the answer is no. Sonneborn joined the company in 1955; they started the real estate subsidiary in 1956, it didn't start paying off until the sixties. You should give mre credit to application than to talent here.
@@jeffrey.p.thornton Now that sounds far more realistic. A detailed plan like this usually needs months, if not years. Anything but mere minutes to one hour.
The brothers would be effectively what?
A trademark.
I love Mc donalds... eu fui funcionario e daria minha vida por essa empresa
Jesus .. what in the fuck ..
@@apachejano1872
Is it a “Coming To America” joke?
That’s a bit much..
Thanks for summarising what the writers have presented and pretending that it somehow is a framework for anyone else to follow. Typical motivational speaker/sales bullshit.
Ray Kroc is a genius like Steve Jobs and Joe Rogen.
Not cool. You need more subscribers.
This scene is fake because Ryan never made a sale
Opens with bankers, ends with real estate hustling dirt bags...now there's two groups of people that each deserve two in the back of the dome.
Anyone who thinks Ray Kroc is a Crook needs to rethink what he did. The Mcdonalds sons could never have DREAMED of doing what Ray did. And not only did Ray make them more money than they ever would have on their own, Ray and his wife donated A BILLION dollars to the salvation army and other charities. Think about how many people benefited from what Ray did with Mcdonalds? The pros and good deeds he was able to do with that fortune he made far out way the cons. If Dick and Mac had any sense, they would have hopped on the Ray train early on. Instead they constantly gave him pushback, held him back and basically forced him into figuring out a way to build the Mcdonalds empire without them. He never started out wanting to steal their business. He wanted to bring it to the world and praise Dic and Mac. He learned early on Dic and Mack were small town thinkers with very little drive and ambition.
if it wasn't for people like Crock we wouldn't need charities.
I don't like the lawyer's acting lol.
Looks so fake
Seems pretty genuine to me?
@@charlesg7926 fr his ass nailed it convinced tf out of me Lol
Harry wasn't a lawyer. He was a CPA. A lawyer wouldn't be able to go through your books like this guy did.
Oh nice I love the part of the story where the person who does nothing makes all the money and controls everyone.
Reminds me of modern day
But he did do something, McDonalds would never be what it was without Ray Kroc
This is BY FAR the most poignant scene of the entire movie, and I'm not sure people actually understand that.
He has a WEAK Sales Pitch. This Ray Kroc.
He can learn a thing or two from my stockbroker friend: Jordan Belford. I am sure Ray will have a REAL Hankering. My friend can sell garbage as if it was Gold to Billionaires.
Sure he can lol
How do you know jordan?
@@swagsukeuchiha7599 joking prob
the guy still looks pretty good for eating that crap twice a weeks. these people are not heroes
Food was real back then and portions were smaller.
He could have eaten that everyday and maintained a somewhat healthy lifestyle.
Cigarettes are what aged the hell out of everybody back then.
What a horrible written and directed garbage movie. Nobody in financial straights treats people offering financial solutions like this. Certainly nobody successful.