Ray Kroc part 2

As a milk-shake machine salesman, Raymond Kroc routinely paid visits to clients. Anything but routine when he visited 2 of his biggest client in southern California, Maurice and Richard McDonald.
While most restaurant than bought 1 or 2 Prince Castle multi-mixers, which could mix 5 shakes at once, the Mc purchased 8, and Kroc was curious to witness what sort of operation required the capacity to churn 40 milkshakes at one time. What he saw changed his life, he watched the male crew, clad in white paper hats and white uniforms, hustle about the squeaky clean restaurant dishing out burgers, fries, and shakes to the working class families that drove up. The McDonald brothers brought efficiency to a slap-dash business. They offered a 9 item menu- burgers, fries, shakes and pies, eliminated seating and used paper and plastic utensils instead of glass and china. The Mc had devised the rudiments of a hamburger assembly line so that they could deliver orders in less than 60 seconds. The prices were remarkably low!
Raymond persuaded and cut a deal with the brothers: Kroc would sell McDonald’s franchises for the price of $950; in exchange he will get to keep 1.4% of all sales and channel 0.5% back to them. Because franchisees kicked back such a meager percentage of total sales, just 1.9 percent, the corporate parent made very little money.
This arrangement was far more advantageous to the Mc’s than to Kroc, for that small slice of revenues would have account for Kroc’s overhead and marketing costs and profits. But it was the act of a desperate man. Kroc made 12k a year from mulit-mixer sales and it was marked for extinction due to heavy competition from another brand. Too old to start again from scratch, the middle-aged salesman believed the comfortable existence he and his wife, Ethel, would vanish if this venture failed. “If I lost out on McDonald’s, I will have no place to go,” He said.