Reading Reflection #1 - Grinding it Out by: Ray Kroc

In his work, Grinding it Out, Ray Kroc, the founder of McDonald’s Corporation describes his life and struggle through entrepreneurship before creating this international empire that we all know today. 

From a young age, Kroc seemed to demonstrate a lot of qualities that many help entrepreneurs thrive. He was not very motivated by school, as it seemed abstract and not very important to the “real world”, leading him to drop out of school early in search of work experience. He was inspired by money, but seemed to follow many “get rich quick” ideas and he changed jobs almost with the tides. Through this, he gathered a wide breadth of knowledge that ultimately landed him in sales. I admired his creativity and the priority he placed on customer relations, exhibited during his work with the paper cup manufacturer Lily Cup. Kroc worked as a salesman for this company all across the country, but predominantly in his hometown of Chicago. Kroc’s ability to fit his customer’s specific needs allowed him to become a wealth of knowledge for them and increase his sales dramatically. He gives many examples of the specific product he could sell to clients, ie. special sizes for desserts and pastries versus lined cups for milkshakes. This adaptability really struck me as he seemed to know his product inside and out.

Although he was clearly revered by many and wildly talented, I struggled to get past Kroc’s overwhelming arrogance. One instance in particular that bothered me to learn about arose during the Great Depression. At this time, Kroc was working for Lily Cup and they, as all were at that time, suffering greatly financially. Kroc was called into a meeting with his supervisor where his supervisor reluctantly informed him of a 20% pay cut that would impact the entire company. Kroc was wildly animated and told the supervisor that he refused this pay cut and would leave the company if he was unable to maintain his pay. Although some may view this as persistent, this demonstration of his character revealed to me that Kroc was not loyal to a company that had supported him for many years. I value company loyalty and this outburst made me dislike Kroc even more. 

Ray Kroc experienced failure a number of times, including during the housing bubble of Fort Lauderdale in the 1920’s. At this time, Florida was on the rise in popularity and Kroc was desperate to get in on the action. He moved his family to Fort Lauderdale for approximately six months until this industry dried up and investors ceased spending. He was left with nothing and was forced to head back to Chicago. When these setbacks happened, Kroc was resilient and always quick to find something else.

Kroc had many attributes that made him widely successful. He was savvy with his per diem, explaining that if he could sleep at cheaper hostel-style hotels and eat food at the YMCA, he could pocket the difference of his stipend. He was also clearly charismatic, as he was willing to convince the McDonald’s brothers to agree for him to franchise their business within a single conversation. He also was well-liked by his employees as many came to the McDonald’s corporation before he was able to pay them legitimate salaries. He was also ambitious and restless; he always had his eyes on the next business venture and this in many ways kept him ahead of the curve. 

I was confused why he included information about his personal life in this memoir. He continued to describe how this job took him away from his wife and daughter, to the point that they ultimately separated. From the narrative that he provided, he seemed to have abandoned these people in order to get ahead in his career. While this is wildly personal information, I am curious and confused as to why he would include this in his own book given that it makes him look a bit neglectful. 

If I could ask Ray Kroc anything, I would ask him to describe further how he vetted employees and operators of McDonald’s locations. I have recently read Truett Cathy’s memoir on the founding of Chick-Fil-A and in this book he described in detail this selection process and how he decided which applicants would be successful operators, and thus who he should accept. I would be curious to know what process Ray Kroc used. Additionally, I would like to ask Ray Kroc if he would have been interested in taking on the McDonald’s brother’s franchising had they demonstrated more enthusiasm about this process. From the first conversation with the McDonald’s brothers, it seemed that they were happy with their current business model, a single store and a few other restaurant locations. When Ray asked about franchising, they both seemed to think this was more hassle than it was worth. Ray then countered this by offering to franchise for them, at which point they agreed. Ultimately, Ray seemed to avoid involving the McDonald’s brother’s as much as possible, leading me to wonder if he preferred them as more “silent partners” in his venture. 

I believe Ray Kroc would argue that hard work is the only way to survive in a “dog eat dog” world. While I agree with this a bit, I reject the way he seemed to value being scrappy, rather than honoring those in business who helped him along the way. He provided an anecdote that his secretary was working so hard she had missed every birthday and graduation of her two young sons, but in the same sentence declared that she probably thought it was worth it because she was wealthy today. Although hard work is important, I reject that he felt everything, including doing right by people, was expendable in order to achieve success.