Origin and establishment of McDonald's Corporation.
| Business | Global Trade |
Updated By: History Editorial Network (HEN)
Published:
7 min read
On May 15, 1940, a pivotal moment in the history of fast food occurred with the opening of the first McDonald's restaurant by Richard and Maurice McDonald in San Bernardino, California. This establishment not only transformed American dining culture but also marked the beginning of what would become the global McDonald's Corporation, an iconic brand recognized around the world.
The McDonald brothers, Richard and Maurice, originally started a movie theater in the 1930s, but switched to the food service industry after noticing the profitability of the sector during the Great Depression. They initially opened a barbecue restaurant in 1940, which operated with a large staff and offered a diverse menu. However, by 1948, they recognized the efficiency of a reduced menu focusing primarily on hamburgers, fries, and beverages, which led to the birth of the "Speedee Service System." This innovative concept revolutionized the restaurant business by introducing the idea of fast food, emphasizing speed, lower prices, and consistent quality.
This streamlined approach, which they called “fast food,” was a radical departure from the conventional full-service dining experience. It utilized assembly line processes, which were inspired by Henry Ford’s automobile manufacturing techniques. The system was incredibly effective, allowing the McDonald brothers to significantly cut costs and service times. Their restaurant quickly became a local favorite, attracting attention for its simplicity and convenience.
The real transformation from a single restaurant to a multinational corporation began in 1954 when Ray Kroc, a Multimixer milkshake machine salesman, visited the McDonald brothers. Kroc was impressed by the efficiency of their operation and saw the potential for nationwide expansion. In 1955, with the brothers' agreement, he opened the first McDonald’s franchise in Des Plaines, Illinois, under the newly formed McDonald’s System, Inc., which later became the McDonald’s Corporation. Kroc focused on uniformity in service and quality across all branches, ensuring that a McDonald’s burger in one state tasted the same as one several states away.
Kroc eventually bought out the McDonald brothers in 1961 for $2.7 million, a move that allowed him to control the brand completely and push for rapid expansion both domestically and internationally. Under Kroc’s leadership, McDonald’s grew into one of the world’s most successful and recognized brands, pioneering not only the fast food industry but also innovative business practices like franchising and corporate standards for quality control.
Today, McDonald’s operates over 36,000 restaurants in more than 100 countries. The brand that began as a simple barbecue restaurant is now synonymous with fast food globally, serving millions of customers every day. The establishment of McDonald’s has had a lasting impact on global dining habits and business practices, making it a crucial chapter in the history of American entrepreneurship and global corporate success.
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Primary Reference: McDonald's: Burgers, Fries & More. Quality Ingredients.

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