Dick and Mac Mcdonald were two brothers who started the McDonald's brand in California after moving their hotdog stand to San Bernadino from Monrovia Airport. After realizing that hamburgers were their most popular product, the brothers reinvented their restaurant using their Speedee Service System in 1948. It was a concept that created a production line of hamburgers that were made before being ordered. This concept pioneered the fast food industry and was in complete contrast to most restaurants that only prepared food after the customer had placed their order.
A history was created by McDonald's system that helped them to undercut competitors by as much as 50%. The growing volumes helped them to reduce more costs from the economies of scale. This was an advantage that is a success for McDonald's till now.
The entry of Ray Kroc into the business was a significant development in the history of McDonald's. He brought the rights that helped McDonald's to expand their concept outside California and Arizona. A restaurant chain was quickly built and more than 100 restaurants were in operation by 1959.
Ray Kroc bought the McDonald brothers in 1961. However the negotiations did not went well and McDonald brothers lost all the royalties and rights to the brand they had started. The separation ways between Kroc and the McDonald brothers was not very pleasant. This resulted in Kroc building and then managing the opening of a new outlet of McDonald's near the last remaining store of McDonald brothers.
The historians and biographers had perceived this move as incredibly insignificant. They compared it with kicking a man when he is already down. Any malicious behavior on the part of Kroc was denied by the McDonald's Corporation. They preferred to strike out McDonald brothers from the corporate history. Family members of McDonald have written about the deal between the brothers and Kroc. They appeared on talk shows for promoting their side of story.