Are you looking for the net worth of Ray Kroc? If yes, you have come to the right place.
Let’s take a close look at Ray Kroc and how he becomes so rich today.
Ray Kroc Net Worth 2022
- Net Worth: $600 Million
- Date of Birth: Oct 5, 1902 – Jan 14, 1984
- Gender: Male
- Profession: Businessman; franchisor
- Nationality: United States of America
At the time of his death in 1984, Ray Kroc had a net worth of $600 million. After adjusting for inflation, that’s equal to $1.4 billion now.
On January 14, 1984, Ray Kroc died from heart failure at the age of 81. Joan Kroc, his widow, was worth $3 billion at the time of her death in 2003. She donated nearly all of her fortune to charity. McDonald’s current stock price would have made the Kroc fortune worth $18 billion if it hadn’t been donated to charity.
Ray Kroc’s Early Life
Ray was born on October 5, 1902, to Austria/Hungarian parents in Oak Park, near Chicago. Rumour has it that when he was still a child, his father took him to see a Phrenologist (someone who specializes in the study of bumps on the outside of the skull; they usually claim to be able to tell someone’s character or future from these readings), who revealed that Kroc will have a future in the food-service industry.
Ray, like many other entrepreneurs, began working at a very early age; he owned a lemonade stand in front of their apartment and worked in different grocery stores.
When he was 15, he lied about his age to enlist as a Red Cross ambulance driver during World War 2, but he never got a chance to serve because the war ended shortly after.
By the time he got back, he no longer had the patience for school so he dropped out to take a job as a salesperson for Lily-Tulip Cup Co. He was a natural; young, ambitious and willing to work for long hours, he quickly rose to become the company’s top salesperson.
During those years he also tried his hands in a number of trades. It was while selling cups that he met Earl Prince, the man who invented milk the shake-mixing machine called the Multimixer.
Ray Kroc’s Career
By 1935 Ray left selling cups and obtained exclusive marketing rights to the Multimixer. For the next thirteen years Ray will transverse the length and breadth of the country marketing and selling Multimixers.
It was while selling Multimixers that he met two brothers, Richard and Maurice MacDonald. The brothers had ordered for eight of his machines at a time when sales were going down and no one seemed interested in buying Multimixers again. Ray was intrigued by the order so he travelled to California to see what the buyer needed eight of his machines for.
The MacDonald’s restaurant was unlike any Ray had ever seen before, aside from the fact the restaurant had a short menu, it was self-serving, had no indoor seating and meals were produced in an assembly line fashion that enabled customers to place their orders and receive their meals in less than a minute.
Ray was highly fascinated by this method and offered to be the franchising agent for the brothers. They agreed. And gave him exclusive rights to sell the MacDonald’s method all across the country.
Ray opened his first MacDonald in April 1955 and used it as a base for selling MacDonald’s franchise to scores of eager franchises. Ray’s new venture was successful. But there were problems, and this is where Ray Kroc’s story overlaps with that of Sam Walton’s.
The brothers were satisfied with the money they were making and didn’t feel any need to expand or perform any changes in their original formula. Ray became frustrated with the brother’s attitude and decided he wanted the company for himself.
So in 1961, Ray bought out the brothers for $2.7 million. But their transaction wasn’t without hitch. Ray felt the brothers dealt him a bad hand and promised to get back at them, which he did by opening a MacDonald’s restaurant near The Big M (the brothers’ newly named restaurant) and forcing them out of business.
With the brothers out of the way, Ray was now free to run the company as he liked. By 1963, barely two years after he took full ownership Ray had sold three billion burgers and opened his 500th store.
By 1965, he owned more than 700 restaurants in 44 states. In April of 1965, the company went public, it was the very first fast-food company to do so; shares were $22 at the opening but rose quickly to $49. He opened his 1,000 restaurants in 1968, and in 1971 he moved into Europe. At the time of his death on January 14, 1984, a new MacDonald was opening on average every 17 hours.
Ray was known as a man of quality and standard who had great regard for customer satisfaction. He wanted the burger sold in London to taste exactly alike and be of exact quality to that made in any other MacDonald in any part of the world, so he developed a 75-page manual that detailed every aspect of running a MacDonald restaurant.
Even the method of preparing a hamburger and its weight was listed (Hamburgers were to be exactly 1.6 ounces, served with a quarter ounce of onion, a teaspoon of mustard and a tablespoon of ketchup). Everything was in so much detail no additional interpretation was needed. There are more than 25,000 Mcdonald’s in operation worldwide.
Ray Kroc’s Salary
Ray Kroc is rich, so you can assume that his salary is higher than that of an average person.
But he has not publicly disclosed his salary for privacy reasons. Therefore, we cannot give an accurate estimate of his salary.
Ray Kroc’s Income
Ray Kroc might have many sources of income such as investments, business and salary. His income fluctuates every year and depends on many economic factors.
We have tried to research, but we cannot find any verified information about his income.
Ray Kroc’s Assets
Given Ray Kroc’s estimated net worth, he should own some houses, cars, and stocks, but Ray Kroc has not publicly disclosed all of his assets. So we cannot get an accurate figure on his assets.
3 Success Lessons From Ray Kroc
1. There is nothing wrong with drifting
Ray tried out his hands in a lot of ventures; he was a paper cup salesman, a pianist, a jazz musician, a band member, a radio DJ, and a Multimixer sales man.
He never discovered his niche of success until he was 50! Many people, particularly young people, find themselves in similar scenarios, drifting from one career to another, or from trade to another, not really sure where they want to pitch their tent. I have also done my fair share of drifting.
There is nothing wrong in drifting as long as you learn one or two things from your travels. It was during his drifting that Ray learnt so much, not only about catering management, but about business generally.
So immediately he saw the MacDonald’s method he instantly recognized its money-making potential.
That was why it took him less than a year, after he took full ownership, to transform the company into a major player in the fast food business; Ray simply knew what he was doing. There is nothing wrong in drifting for a while, as long as you are learning a thing or two from your travels.
2. Pay attention to your customers
Many businesses, both startups and experienced, make the grievous mistake of neglecting their customers and paying too much attention to the competition.
This is an extreme waste of effort that would cost you more than it will benefit you. Ray, just like Walton and Dell, paid strict attention to customer service standards, and made mandates such as ‘money can be refunded to clients whose orders were not correct or to customers who had to wait for more than five minutes for their food’.
Also, Ray ensured that the meals offered were affordable enough that even a low income earner could buy at MacDonald. A wise business individual will know that customers are the lifeline of his business, and toying with customer satisfaction is tantamount to making holes in your boat while at sea.
3. How can I be different
When Ray began working and eventually took over MacDonald there were other fast-food restaurants, convenience stores, hot dog stands in existence, but it was Ray that had the shrewdness of delivering the service to the customers in a most unique way.
Although he inherited part of his method from the MacDonald’s brothers, he was able to rebrand it in a way that made it practicable in not just one stand, but all across the globe.
Ray Kroc Quotes
“I put the hamburger on the assembly line.”
“We’re not in the hamburger business. We’re in show business.”
“McDonald’s is a people business, and that smile on that counter girl’s face when she takes your order is a vital part of our image.”
“The success of additions such as the Filet-O-Fish, the Big Mac, Hot Apple Pie, and Egg McMuffin … each evolved from an idea of one of our operators. So the company has benefited from the ingenuity of its small businessmen.”
“I didn’t invent the hamburger. I just took it more seriously than anyone else.”
“I believe in God, family, and McDonald’s. And in the office, that order is reversed.”
“I like to get people fired up, fill them with zeal for McDonald’s, and watch the results in their work.”
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How To Become Rich Like Ray Kroc?
Ray Kroc did not become rich by luck. To become as rich as Ray Kroc, you have to work smart.
Successful people become rich because they take advantage of the opportunities that come their way. They are in the right place at the right time and take the right action.
Thanks to the Internet, the world has changed massively in recent years. Nowadays it has become much easier to make money online.
Instead of looking for a 9-5 job and staying in your comfort zone, it’s better if you become your own boss as soon as possible.
You can learn how to build a digital asset that generates cash flow for you while you sleep to grow your wealth quickly.
If you seize this golden opportunity in time, you can become as successful as Ray Kroc one day.