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Fast Food Nation Chapter 1: The American Way

Fast Food Nation Chapter 1: The American Way. Carl N. Karcher. Fast-food pioneer Started his career with a hot-dog stand in California Bought a restaurant in 1945 Drive-in barbeque . Richard and Maurice McDonald. Burger Bar Drive-In (1937)

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Fast Food Nation Chapter 1: The American Way

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  1. Fast Food NationChapter 1: The American Way

  2. Carl N. Karcher • Fast-food pioneer • Started his career with a hot-dog stand in California • Bought a restaurant in 1945 • Drive-in barbeque

  3. Richard and Maurice McDonald • Burger Bar Drive-In (1937) • In the 1940s, the wanted a new way to prepare the food • Created the first assembly line in a kitchen • *Condiments: ketchup, onions, mustard, and two pickles. (They allowed no substitutions). • Only hired men to work because they thought the females would attract male teens, which would drive customers away. • Created the new design of the two golden arches to form the “M”

  4. “Founding Fathers” • William Rosenberg • Dropped out at fourteen • Delivered telegrams for Western Union • Drove an ice-Cream truck • Sold sandwiches and coffee in Boston • In 1948, opened a small doughnut shop • Later became Dunkin’ Doughnuts • Glen W. Bell, Jr. • WWII Veteran • Ate at the McDonald’s and wanted to use the idea with Mexican Food • Founded Taco Bell

  5. “Founding Fathers” continued • Keith G. Cramer • Owned Keith’s Drive-In Restaurants • Ate at McDonalds, then returned back to Florida • With father-in-law, Matthew Burns, opened the first Insta-Burger-King in 1953 • Dave Thomas • Began working in a restaurant at 12, dropped out of school at 15 • Was a busboy and cook • Opened his own restaurant in Columbus, Ohio • Wendy’s Old-Fashioned Hamburgers

  6. “Founding Fathers” cont. • Thomas S. Monaghan • Spent childhood in orphanages and foster homes • Barely graduated from high school • Joined the Marines • He and his brother bought a pizzeria for $75. • His brother quit shortly after • The business later became Dominos

  7. “Founding Fathers” cont. • Harland Sanders • Left school at 12 • Worked as a farm hand, mule tender, and railway fireman • Worked as a lawyer and obstetrician • Didn’t have a law degree or medical degree • Sold insurance and tires and operated a gas station in Corbin, Kentucky • In the back of gas station, he sold home cooked food • He later opened a popular restaurant and hotel • He eventually sold them to pay off debts. • At 65, he became a traveling salesman, offering to sell his “secret recipe.”

  8. “Founding Fathers” cont. • Harland Sanders (cont.) • Opened the first Kentucky Fried Chicken in 1952 • Near Salt Lake City, Utah • Dressed up as a Kentucky colonel to promote the KFC chain • By the 1960s, KFC was the largest fast food chain

  9. Other Venues • Not all restaurants survived • Those with homey names • Sandy’s, Carrol’s, Henry’s • Chains with “futuristic” names • Satellite Hamburger System, Kelly’s Jet System • Chains named after their main dish • Burger Chefs, Burger Queens, Yumy Burgers, Twitty Burgers

  10. Technological Advances • Remote control ordering systems • Rail system food delivery to cars • “Miracle Insta Machines” (Burger King) • Milkshakes • Cook burgers

  11. Oil Embargo • Gave a scare to the fast food industry. • Stock in the fast food fell • When crisis was over, industry received a boom • Wall Street began to invest in industry • Corporate managers enter the scene, rather than small owners running restaurants.

  12. Carl Karcher Enterprises • 1976, the new headquarters opened • 35 years after buying his first hotdog stand • He now owned more than one hundred restaurants • Friends with many notable Americans • Ronald Reagan, Gene Autry, former president Richard Nixon

  13. CKE (cont.) • In 1980s went public, they expanded too fast • The value of the stock fell • 1988: Carl and family charged with insider trading by the SEC • Early 1990s: many investments went bankrupt • He soon became involved in more than two dozen lawsuits • He owed more than $70 million to various banks

  14. CKE • When Carl’s brother died, the new president tried to increase sales • March 1, 1993: • After failed attempt to remove board members • Carl was removed from the board on a 5 to 2 vote • Carl and his son were the only opposed • After 50 years, he was no longer able to enter the business he had created

  15. William P. Foley II • Financier who financed Carl’s takeover of the company. • The new management turned the company around • In 1997, CKE purchased Hardee’s for $327 million • Carl always refused to declare bankruptcy • He was $8 million in debt • Last life goal was to pay off all of his debts.

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