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- 75 McDonald's
hamburgers served per second.
2
00:00:04,917 --> 00:00:07,177
4,000 Burger King
Whoppers a minute.
3
00:00:09,444 --> 00:00:13,494
Generating more than $22
billion in revenue a year.
4
00:00:13,622 --> 00:00:17,192
- If you asked anybody who
was not a native-born American
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00:00:17,321 --> 00:00:18,671
what the American food is,
6
00:00:18,801 --> 00:00:20,761
they would say, without
batting an eye,
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00:00:20,890 --> 00:00:22,410
the hamburger.
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00:00:23,762 --> 00:00:25,632
- The two main competitors
in the fast food war
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00:00:25,764 --> 00:00:27,724
have always been
McDonald's and Burger King.
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00:00:27,853 --> 00:00:29,683
- But
just 60 years ago,
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00:00:29,812 --> 00:00:33,212
upstart McDonald's is
the only game in town.
12
00:00:33,337 --> 00:00:35,597
But now, a new challenger
is gunning for them.
13
00:00:35,731 --> 00:00:38,081
- You wanna beat McDonald's?
14
00:00:38,212 --> 00:00:39,432
You have to think like them.
15
00:00:39,561 --> 00:00:41,431
- Igniting
a bitter rivalry.
16
00:00:41,563 --> 00:00:44,173
- If one of my
competitors were drowning,
17
00:00:44,305 --> 00:00:45,735
I'd toss 'em an anchor.
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00:00:45,871 --> 00:00:47,661
- Their battle
for supremacy will create
19
00:00:47,786 --> 00:00:50,566
some of the most iconic
foods in American history.
20
00:00:52,617 --> 00:00:53,917
- Burger King
develops the Whopper.
21
00:00:54,054 --> 00:00:56,364
- That's as good as it gets.
22
00:00:56,491 --> 00:00:59,841
- McDonald's develops
the Big Mac sandwich.
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00:00:59,972 --> 00:01:01,062
- Now we're talking.
24
00:01:02,758 --> 00:01:05,018
- The Whopper or the
Big Mac is a question
25
00:01:05,152 --> 00:01:07,202
that I don't think has
quite been settled.
26
00:01:07,328 --> 00:01:08,848
- Their
innovations transformed
27
00:01:08,981 --> 00:01:10,551
the way Americans eat
28
00:01:10,679 --> 00:01:13,939
and revolutionized fast
food around the world.
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00:01:15,205 --> 00:01:16,025
- Whoa, whoa!
30
00:01:16,163 --> 00:01:18,253
Whoa, whoa, whoa, whoa!
31
00:01:40,056 --> 00:01:43,316
- It's the 1950s,
and a thriving postwar economy
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00:01:43,451 --> 00:01:48,411
brings employment levels to
a record high of over 80%.
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00:01:48,543 --> 00:01:51,633
With demand for a quick
meal on the go soaring,
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00:01:51,763 --> 00:01:53,293
fast food is one
of the country's
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00:01:53,417 --> 00:01:55,507
fastest growing new industries.
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00:01:55,637 --> 00:01:58,377
- There was a race
going on at the time,
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00:01:58,509 --> 00:02:00,379
but there were a whole
lot of entrepreneurs
38
00:02:00,511 --> 00:02:01,601
who were trying to figure out
39
00:02:01,730 --> 00:02:03,910
the way to take their
fast-food business
40
00:02:04,036 --> 00:02:07,166
and replicate it in a
number of different places.
41
00:02:08,519 --> 00:02:10,129
- White Castle
is growing in the Midwest,
42
00:02:10,260 --> 00:02:13,920
Hardee's in the East, and
Dairy Queen in the South.
43
00:02:14,046 --> 00:02:15,266
- So, you had a lot,
44
00:02:15,396 --> 00:02:18,086
a lot of these local
regional companies.
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00:02:18,225 --> 00:02:20,875
You really didn't have
any national brands.
46
00:02:21,010 --> 00:02:22,490
- But
one fast-food chain
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00:02:22,620 --> 00:02:26,890
is leading the charge toward
McDonald's.
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00:02:27,016 --> 00:02:28,626
- For basically any company,
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00:02:28,757 --> 00:02:30,627
McDonald's is the gold
standard at this point
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00:02:30,759 --> 00:02:33,759
because to create something
that goes national
51
00:02:33,892 --> 00:02:35,892
is the ultimate dream.
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00:02:36,025 --> 00:02:38,935
Smaller companies see
how they're expanding
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00:02:39,071 --> 00:02:41,121
and they all want a piece of it.
54
00:02:41,248 --> 00:02:43,728
- The man behind
McDonald's growing empire
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00:02:43,859 --> 00:02:44,989
is a brilliant entrepreneur
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00:02:45,121 --> 00:02:46,991
who bought out the
original founders,
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00:02:47,123 --> 00:02:50,523
the McDonald brothers,
for just $2.7 million.
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00:02:51,649 --> 00:02:53,169
- Congratulations, gentlemen.
59
00:02:54,826 --> 00:02:57,346
The American people will never
forget the name McDonald's.
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00:02:59,309 --> 00:03:01,959
- A cunning
visionary named Ray Kroc.
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00:03:02,094 --> 00:03:04,624
- I think it's kind of amazing
62
00:03:04,749 --> 00:03:09,449
that two brothers lost their
own name and the Speedee System
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00:03:09,580 --> 00:03:11,970
to a man with the
last name of Kroc.
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00:03:12,104 --> 00:03:16,674
He then takes this notion
of same taste all the time
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00:03:16,805 --> 00:03:19,585
and applies it nationwide.
66
00:03:19,721 --> 00:03:23,381
- He understood that
you need a small menu.
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00:03:23,507 --> 00:03:28,427
You need a menu based on seven
items that you can put out,
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00:03:29,383 --> 00:03:30,433
many with the same ingredients,
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00:03:30,558 --> 00:03:33,298
at a fast pace, and
you streamline it.
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00:03:33,430 --> 00:03:35,610
- Starting in 1955,
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00:03:35,737 --> 00:03:38,827
Kroc opens 34 locations
in just three years
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00:03:38,957 --> 00:03:43,217
across the Midwest, using
McDonald's Speedee System.
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00:03:43,353 --> 00:03:47,363
- That Speedee System let
them mass produce good food
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00:03:47,488 --> 00:03:49,008
in a very quick way.
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00:03:49,141 --> 00:03:51,321
People were waiting
just so they can see,
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00:03:51,448 --> 00:03:53,188
"Oh my gosh, I can
get a hamburger
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00:03:53,320 --> 00:03:54,930
in a matter of moments?"
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00:03:56,192 --> 00:03:57,852
- But most
important to Kroc
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00:03:57,976 --> 00:04:00,536
is replicating the McDonald's
experience perfectly
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00:04:00,675 --> 00:04:02,545
at every restaurant.
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00:04:02,677 --> 00:04:04,807
- Fast food is all
about consistency.
82
00:04:04,940 --> 00:04:07,600
And in order to create
a consistent product
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00:04:07,725 --> 00:04:10,815
for all its consumers, you need
a strong culture of training
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00:04:10,946 --> 00:04:13,246
committed to quality,
service, and value.
85
00:04:14,558 --> 00:04:15,818
- Ray Kroc doesn't want anyone
86
00:04:15,951 --> 00:04:17,951
who's gonna veer from
the franchise script
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00:04:18,083 --> 00:04:19,653
that he's meticulously created.
88
00:04:21,348 --> 00:04:23,518
- To make sure every
location is up to standards,
89
00:04:23,654 --> 00:04:26,274
Ray Kroc crisscrosses
the country himself,
90
00:04:27,223 --> 00:04:29,093
conducting random inspections.
91
00:04:36,319 --> 00:04:37,019
- Get over here!
92
00:04:37,146 --> 00:04:37,926
Get over here.
93
00:04:38,060 --> 00:04:39,890
What the hell is this?!
94
00:04:40,018 --> 00:04:41,058
Enchiladas?!
95
00:04:41,193 --> 00:04:42,673
Burritos?!
96
00:04:42,804 --> 00:04:44,984
McDonald's menu is supposed
to be the same everywhere;
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00:04:45,110 --> 00:04:47,240
the whole point of the concept!
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00:04:47,374 --> 00:04:48,984
Get this stuff off
the board, now!
99
00:04:52,248 --> 00:04:54,208
- Ray Kroc was driven.
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00:04:54,337 --> 00:04:56,557
He was not what
anyone would call
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00:04:56,687 --> 00:04:58,647
a really warm and cuddly guy.
102
00:05:00,430 --> 00:05:03,780
He had very high standards
and he could be almost cruel
103
00:05:03,912 --> 00:05:07,312
to people who didn't live
up to what he expected.
104
00:05:07,437 --> 00:05:08,477
- Christ's sake.
105
00:05:10,092 --> 00:05:12,142
- Ray Kroc definitely
wrote the playbook
106
00:05:12,268 --> 00:05:16,048
on expanding restaurants,
especially restaurant chains.
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00:05:16,185 --> 00:05:17,875
I think a lot of
restaurants emulate
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00:05:18,013 --> 00:05:19,623
what he and his company did
109
00:05:19,754 --> 00:05:22,804
to take that one store
to many locations.
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00:05:22,931 --> 00:05:24,801
- Kroc oversees
his growing empire
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00:05:24,933 --> 00:05:26,633
with an iron fist.
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00:05:26,761 --> 00:05:30,941
And by 1959, he opens
his 100th restaurant.
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00:05:31,069 --> 00:05:33,119
And despite a slew of imitators,
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00:05:33,245 --> 00:05:36,545
there's no real challenger
to McDonald's, for now.
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00:05:42,994 --> 00:05:45,824
In one of the few states that
McDonald's hasn't yet reached,
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00:05:45,954 --> 00:05:47,834
an ambitious former
restaurant worker
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00:05:47,956 --> 00:05:50,826
is looking to forge his
own path in fast food.
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00:05:51,916 --> 00:05:53,956
His name is Dave Edgerton,
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00:05:54,092 --> 00:05:55,962
and he's just poured
his life savings
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00:05:56,094 --> 00:05:58,314
into buying two
little-known burger joints
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00:05:58,445 --> 00:05:59,875
call Insta Burger King.
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00:06:01,361 --> 00:06:03,801
- David Edgerton
bought Insta Burger
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00:06:03,928 --> 00:06:07,188
from the original founders,
the Kramers and Burns,
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00:06:07,323 --> 00:06:10,373
who had been inspired when
they had gone to a McDonald's
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00:06:10,500 --> 00:06:12,110
out in California.
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00:06:12,241 --> 00:06:14,591
- Dave Edgerton is
this ultimate tinkerer
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00:06:14,722 --> 00:06:15,772
in that American sense.
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00:06:15,897 --> 00:06:16,807
He's the kinda
guy who's obsessed
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00:06:16,941 --> 00:06:19,551
with assembly lines and speed,
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00:06:19,683 --> 00:06:22,863
and he fed into the tech
fascination at the time.
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00:06:24,079 --> 00:06:25,209
- After
a year in business,
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00:06:25,341 --> 00:06:28,001
Edgerton is struggling
to stay afloat
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00:06:28,126 --> 00:06:29,476
and he's looking for investors
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00:06:29,606 --> 00:06:31,516
to inject much-needed capital.
135
00:06:34,306 --> 00:06:35,696
- So, that's where the
customers place their order.
136
00:06:35,830 --> 00:06:38,350
Sometimes the line snakes
all the way back that way,
137
00:06:38,485 --> 00:06:39,395
but it moves quick.
138
00:06:40,487 --> 00:06:41,917
- Guess sometimes not, huh?
139
00:06:43,577 --> 00:06:45,797
- One potential fit
is a shrewd Cornell graduate
140
00:06:45,927 --> 00:06:50,147
with dreams of becoming the
James McLamore.
141
00:06:50,279 --> 00:06:52,849
- James McLamore was,
without question,
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00:06:52,977 --> 00:06:54,757
the guy with the business savvy.
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00:06:54,892 --> 00:06:58,722
He was a restaurateur and he
was deeply entrepreneurial.
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00:06:58,853 --> 00:07:00,593
- We have got everything
down to a science.
145
00:07:00,724 --> 00:07:03,214
Drinks take four seconds,
shakes take about six.
146
00:07:03,335 --> 00:07:04,945
- And fries?
- They cook in batches
147
00:07:05,076 --> 00:07:06,596
on two-minute cycles.
148
00:07:06,730 --> 00:07:08,560
- McLamore looks up to Ray Kroc
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00:07:08,689 --> 00:07:10,469
and it influences
everything he does.
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00:07:10,604 --> 00:07:12,784
McDonald's didn't
exist yet in Florida.
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00:07:13,781 --> 00:07:14,431
- This...
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00:07:17,306 --> 00:07:18,736
This is our secret weapon.
153
00:07:20,570 --> 00:07:22,750
The world's first
fully-automated
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00:07:22,877 --> 00:07:24,877
burger-making machine.
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00:07:26,533 --> 00:07:27,453
- Huh.
- Mm-hmm.
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00:07:28,665 --> 00:07:30,005
- Called
the Insta-Broiler,
157
00:07:30,145 --> 00:07:31,925
Edgerton's answer to
the Speedee System
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00:07:32,060 --> 00:07:34,110
can churn out 100
more burgers an hour
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00:07:34,236 --> 00:07:36,456
than a team of
McDonald's employees.
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00:07:37,979 --> 00:07:39,759
A chain drive moves
the hamburger patties
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00:07:39,894 --> 00:07:41,464
through a broiler.
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00:07:41,591 --> 00:07:44,771
A second level toasts
buns and even adds sauces
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00:07:44,899 --> 00:07:47,469
before the burgers are
assembled and served.
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00:07:47,597 --> 00:07:50,507
- She can cook 400
burgers in an hour,
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00:07:50,644 --> 00:07:52,564
and that's something you're
not gonna find anywhere else;
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00:07:52,689 --> 00:07:55,949
not at White Castle,
not at the local dives,
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00:07:56,084 --> 00:07:57,174
not even at McDonald's.
168
00:08:00,349 --> 00:08:03,129
We're making a 28%
profit on every sale.
169
00:08:05,615 --> 00:08:07,615
- Before
he agrees to invest,
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00:08:07,748 --> 00:08:10,268
McLamore combs through
Insta Burger King's finances
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00:08:10,402 --> 00:08:11,492
for the last year.
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00:08:13,667 --> 00:08:15,667
- How much did you say
you were making in profit?
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00:08:15,799 --> 00:08:17,799
- About 28% on sales.
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00:08:17,932 --> 00:08:19,192
That's just an estimate.
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00:08:20,717 --> 00:08:25,107
- I'm showing a 56% loss,
per order.
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00:08:25,243 --> 00:08:26,113
- What?
177
00:08:26,244 --> 00:08:27,384
No, that can't be right.
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00:08:30,161 --> 00:08:33,471
- These sales figures, I mean,
it's a hundred orders a day?
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00:08:33,600 --> 00:08:35,730
That's nothing; that's...
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00:08:35,863 --> 00:08:36,653
Bad.
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00:08:38,126 --> 00:08:39,996
- Yeah, Insta Broiler can
make that many burgers
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00:08:40,128 --> 00:08:41,388
in about 15 minutes.
183
00:08:41,521 --> 00:08:43,831
- No, it's not the concept;
it's a good concept.
184
00:08:46,003 --> 00:08:47,403
Just, I think it's the market.
185
00:08:49,964 --> 00:08:51,574
People aren't used to this,
186
00:08:51,705 --> 00:08:54,525
you know, fast-serve
kinda place.
187
00:08:54,664 --> 00:08:56,754
You know, getting outta
their car to order,
188
00:08:56,884 --> 00:08:58,844
paying before they eat.
189
00:08:58,973 --> 00:09:00,193
- It'll catch on.
190
00:09:00,322 --> 00:09:03,062
- Yeah, but not before
you're outta business.
191
00:09:03,194 --> 00:09:04,024
No.
192
00:09:15,163 --> 00:09:18,253
If I'm gonna do this,
we'll need more locations.
193
00:09:19,428 --> 00:09:20,908
- More locations?
194
00:09:21,038 --> 00:09:23,648
But you just said this location
isn't even making any money.
195
00:09:23,780 --> 00:09:25,300
- No, exactly.
196
00:09:25,434 --> 00:09:27,964
Because people don't
know what it is.
197
00:09:28,089 --> 00:09:30,659
But they will if
there's more of 'em.
198
00:09:30,787 --> 00:09:33,217
Look, you wanna beat McDonald's?
199
00:09:33,355 --> 00:09:35,005
You have to think like them.
200
00:09:35,139 --> 00:09:36,399
- I think it's a little crazy
201
00:09:36,532 --> 00:09:40,142
that McLamore was trying
to open more franchises
202
00:09:40,275 --> 00:09:42,015
before the first
one was flourishing.
203
00:09:42,146 --> 00:09:45,886
I doubt there is a restaurateur
in the 21st century
204
00:09:46,020 --> 00:09:47,760
that would do that.
205
00:09:47,891 --> 00:09:50,551
- But McLamore wants
to build something that's
206
00:09:50,677 --> 00:09:53,767
bigger and bolder, brasher,
enormous than McDonald's.
207
00:09:56,160 --> 00:09:57,420
- Welcome to Insta Burger.
208
00:10:02,123 --> 00:10:04,433
- McLamore invests
his entire life savings
209
00:10:04,560 --> 00:10:08,390
of $20,000 into his new
strategy of expansion.
210
00:10:08,520 --> 00:10:10,040
- Love it, I love it.
211
00:10:10,174 --> 00:10:11,524
- And he
and Edgerton take out
212
00:10:11,654 --> 00:10:13,744
tens of thousands more in loans.
213
00:10:15,092 --> 00:10:16,352
- Having one store is one thing.
214
00:10:16,485 --> 00:10:17,655
But when you're opening
multiple locations,
215
00:10:17,791 --> 00:10:19,101
that takes a lotta capital.
216
00:10:20,489 --> 00:10:22,529
You're really just
using your own sales,
217
00:10:22,665 --> 00:10:25,275
putting everything
back into the business.
218
00:10:25,407 --> 00:10:28,147
I think you have to be a
little insane to do that.
219
00:10:30,673 --> 00:10:33,463
But insanity is not
necessarily a bad thing.
220
00:10:33,589 --> 00:10:34,939
- Over
the next four years,
221
00:10:35,069 --> 00:10:37,899
they open five new Insta
Burger Kings in Florida,
222
00:10:38,028 --> 00:10:39,808
bringing their total to seven.
223
00:10:41,553 --> 00:10:43,643
But their gamble
isn't paying off,
224
00:10:43,773 --> 00:10:46,343
and sales at every
location are dismal.
225
00:10:52,913 --> 00:10:54,613
- Hey, is anybody
paying attention here?
226
00:10:54,741 --> 00:10:55,661
This is raw!
227
00:10:56,699 --> 00:10:58,179
Hey, who's spot-checking these?
228
00:10:59,528 --> 00:11:00,308
No one?
229
00:11:05,490 --> 00:11:07,670
Oh, oh, you have
gotta be kidding me.
230
00:11:10,582 --> 00:11:11,282
Ow!
231
00:11:11,409 --> 00:11:12,369
Dammit, agh!
232
00:11:14,064 --> 00:11:14,854
- What's going on?
233
00:11:16,414 --> 00:11:17,684
This thing crap out again?
234
00:11:20,810 --> 00:11:21,900
- The problem with
the Insta Broiler
235
00:11:22,029 --> 00:11:24,509
was that it broke
down too often.
236
00:11:24,640 --> 00:11:26,690
When you are building a concept
237
00:11:26,816 --> 00:11:29,686
that's all centered on
speed, it has to work
238
00:11:29,819 --> 00:11:32,869
or else the line backs
up and the concept fails.
239
00:11:35,129 --> 00:11:37,349
The fact that the Insta
Broiler was something
240
00:11:37,479 --> 00:11:40,479
that kept breaking down
over and over again,
241
00:11:40,612 --> 00:11:41,882
it's like a ticking clock.
242
00:11:50,274 --> 00:11:51,454
- Whoa, whoa.
243
00:11:51,580 --> 00:11:52,710
Whoa, whoa, hey!
244
00:11:52,842 --> 00:11:54,502
Whoa, whoa, whoa, whoa!
245
00:11:59,022 --> 00:12:02,372
- By the late-1950s,
fueled by the baby boom,
246
00:12:02,504 --> 00:12:06,464
the American population
explodes, with annual birthrates
247
00:12:06,595 --> 00:12:09,205
surging past a record
four million a year.
248
00:12:12,035 --> 00:12:14,295
- People get married,
they're starting families.
249
00:12:14,429 --> 00:12:16,819
There's this huge
increase in our population
250
00:12:16,953 --> 00:12:19,263
and the economy is doing well.
251
00:12:19,390 --> 00:12:22,350
- The boom, for Americans,
is going to be revolutionary
252
00:12:22,480 --> 00:12:24,350
in a very different way.
253
00:12:24,482 --> 00:12:27,182
You'll see the explosion of
a number of entrepreneurs
254
00:12:27,311 --> 00:12:29,571
and businesspersons
bringing items to market
255
00:12:29,705 --> 00:12:32,965
which aren't necessarily
staples or essentials,
256
00:12:33,100 --> 00:12:35,580
but will have high
demand just the same.
257
00:12:37,234 --> 00:12:38,324
- In the Southeast,
258
00:12:38,453 --> 00:12:40,983
job growth has
transformed Florida
259
00:12:41,108 --> 00:12:43,368
from the South's
least populous state
260
00:12:43,501 --> 00:12:45,981
to one of the most
inhabited in the country,
261
00:12:46,113 --> 00:12:48,123
with a population of
over three million.
262
00:12:49,246 --> 00:12:51,066
And a booming tourism industry
263
00:12:51,205 --> 00:12:53,635
draws an additional four
million visitors a year.
264
00:12:59,256 --> 00:13:02,606
Jim McLamore and Dave Edgerton
hope to seize the opportunity
265
00:13:02,738 --> 00:13:04,568
and dominate Florida
before McDonald's
266
00:13:04,696 --> 00:13:05,786
can move into the state,
267
00:13:07,395 --> 00:13:10,265
but their vaunted Insta
Broiler has failed them.
268
00:13:10,398 --> 00:13:12,748
- Rather than just
walk away or fix it,
269
00:13:12,879 --> 00:13:14,789
Edgerton took a hatchet
270
00:13:14,924 --> 00:13:17,544
and he sunk it right
into the Insta Broiler.
271
00:13:17,666 --> 00:13:20,146
That's a huge moment,
where you acknowledge
272
00:13:20,277 --> 00:13:22,797
that something is fundamentally
broken in your business.
273
00:13:22,932 --> 00:13:25,372
- Edgerton and
McLamore resort to closing down
274
00:13:25,500 --> 00:13:28,630
all seven of their Insta
Burger King locations
275
00:13:28,764 --> 00:13:30,334
until they can fix the problem.
276
00:13:36,380 --> 00:13:38,430
Edgerton works to
simplify the design
277
00:13:38,556 --> 00:13:42,516
and maximize reliability
without sacrificing capacity.
278
00:13:43,997 --> 00:13:47,127
- He actually built a
conveyor-belt grill,
279
00:13:47,261 --> 00:13:50,091
so deeply efficient,
could grill the burgers
280
00:13:50,220 --> 00:13:51,960
and quite literally
move them down
281
00:13:52,092 --> 00:13:54,832
and keep the service speedy.
282
00:13:54,964 --> 00:13:56,844
- She can
even broil patties.
283
00:13:58,185 --> 00:13:59,265
- A jet of
flame gives it a kiss
284
00:13:59,403 --> 00:14:01,753
of fresh-off-the-grill flavor,
285
00:14:01,884 --> 00:14:04,714
so Edgerton names it
the flame-broiler.
286
00:14:08,369 --> 00:14:09,199
- Yeah?
287
00:14:10,371 --> 00:14:11,201
- Yeah.
288
00:14:14,462 --> 00:14:17,122
- The flame-broiler gives
Burger King this edge
289
00:14:17,247 --> 00:14:18,637
in a lot of ways
290
00:14:18,770 --> 00:14:21,340
because McDonald's burgers
are made on flat griddles.
291
00:14:21,469 --> 00:14:24,729
They don't taste like something
that has flame behind it.
292
00:14:26,909 --> 00:14:30,349
The flame-broiler has
this backyard taste.
293
00:14:32,001 --> 00:14:34,311
- Armed with
their new flame-broiler,
294
00:14:34,438 --> 00:14:37,218
Edgerton and McLamore reopen
their seven restaurants,
295
00:14:38,399 --> 00:14:39,839
unleashing a weapon
that will soon
296
00:14:39,966 --> 00:14:41,746
start a war with McDonald's.
297
00:14:49,149 --> 00:14:51,799
In Chicago, Ray Kroc
works relentlessly
298
00:14:51,934 --> 00:14:54,634
to dominate the fast-food market
299
00:14:54,763 --> 00:14:56,723
by creating the same
customer experience
300
00:14:56,852 --> 00:14:59,202
at every one of
his 100 restaurants
301
00:14:59,333 --> 00:15:00,773
spread across the country.
302
00:15:03,163 --> 00:15:04,823
- Louie, talk to me.
303
00:15:04,947 --> 00:15:07,207
Don't give me that.
304
00:15:08,951 --> 00:15:11,391
Look, all I'm hearing
is excuses from you.
305
00:15:11,519 --> 00:15:13,519
- And while
he standardized the menu,
306
00:15:13,651 --> 00:15:16,701
ingredients still vary
wildly from region to region.
307
00:15:16,828 --> 00:15:18,698
- Yeah; no, it's not our fryers.
308
00:15:18,830 --> 00:15:19,920
It's the potatoes.
309
00:15:21,398 --> 00:15:22,438
That's what I thought.
310
00:15:26,360 --> 00:15:28,880
- In 1960,
McDonald's uses a staggering
311
00:15:29,015 --> 00:15:31,575
175 varieties of potato,
312
00:15:32,714 --> 00:15:34,064
with local farmers supplying
313
00:15:34,194 --> 00:15:37,024
almost exclusively
for local markets.
314
00:15:37,153 --> 00:15:40,593
- A potato in California
and a potato in Idaho
315
00:15:40,722 --> 00:15:43,162
will inherently
not taste the same.
316
00:15:43,290 --> 00:15:45,210
- So, what Ray Kroc had
to do was choose potatoes
317
00:15:45,335 --> 00:15:47,595
that would track and would scale
318
00:15:47,729 --> 00:15:49,119
in all different
corners of the country
319
00:15:49,252 --> 00:15:50,782
where McDonald's was coming up.
320
00:15:53,256 --> 00:15:55,606
- Kroc inspects
some of his bestselling fries
321
00:15:55,737 --> 00:15:56,957
from across the country.
322
00:16:14,277 --> 00:16:14,967
- This is it.
323
00:16:17,237 --> 00:16:18,717
- In an
unprecedented move,
324
00:16:18,847 --> 00:16:22,107
Ray Kroc chooses one
potato, the Idaho russet,
325
00:16:22,242 --> 00:16:24,512
to make all of
McDonald's french fries.
326
00:16:28,900 --> 00:16:30,820
- Buying potatoes
from the same place
327
00:16:30,946 --> 00:16:32,896
so all the potatoes
taste the same.
328
00:16:33,035 --> 00:16:35,945
You help create that
one flavor profile
329
00:16:36,082 --> 00:16:38,612
that makes McDonald's
something familiar.
330
00:16:38,736 --> 00:16:41,606
It's sort of like America's
neighborhood restaurant,
331
00:16:41,739 --> 00:16:44,569
and I think therein
lay Ray Kroc's genius.
332
00:16:45,917 --> 00:16:47,267
- And Kroc's
demand for uniformity
333
00:16:47,397 --> 00:16:49,397
goes beyond the flavor alone.
334
00:16:50,661 --> 00:16:52,971
- McDonald's wants a
certain size french fry.
335
00:16:53,099 --> 00:16:55,839
Ray Kroc helped first
develop french fries
336
00:16:55,971 --> 00:16:59,021
that were .28 inches
over and over again.
337
00:16:59,148 --> 00:17:02,018
Don't mess with the
McDonald's details.
338
00:17:02,151 --> 00:17:03,811
- Most Idaho
potatoes are harvested
339
00:17:03,935 --> 00:17:06,325
between September and October.
340
00:17:06,460 --> 00:17:07,850
- This is the
actual freezing facility.
341
00:17:07,983 --> 00:17:09,383
Generator's gonna be over here.
342
00:17:09,506 --> 00:17:11,636
- To supply
his franchises year-round,
343
00:17:11,769 --> 00:17:15,509
Kroc commissions a $3-million
flash-freezing warehouse
344
00:17:15,643 --> 00:17:18,433
and orders six million
pounds of Idaho potatoes,
345
00:17:19,473 --> 00:17:20,823
almost single-handedly
transforming
346
00:17:20,952 --> 00:17:22,562
the way they're farmed.
347
00:17:22,693 --> 00:17:24,523
- Ray Kroc wanted
all the potatoes
348
00:17:24,652 --> 00:17:26,352
to come from one vendor.
349
00:17:28,090 --> 00:17:31,350
So, instead of what
was fresh on the farm
350
00:17:31,485 --> 00:17:33,745
dictating what you
served on the menu,
351
00:17:33,878 --> 00:17:36,058
now what you served on the menu
352
00:17:36,185 --> 00:17:39,005
dictated what you grew
and raised on your farm.
353
00:17:39,145 --> 00:17:41,055
Kroc actually controlled
354
00:17:41,190 --> 00:17:44,060
what came outta the
ground at origin,
355
00:17:44,193 --> 00:17:45,673
and it was really the beginning
356
00:17:45,803 --> 00:17:47,943
of what we now refer
to as factory farming.
357
00:17:51,896 --> 00:17:56,466
- By the early-1960s, McDonald's
grows to over 300 locations
358
00:17:56,597 --> 00:17:59,377
and Ray Kroc rolls out
uniform french fries
359
00:17:59,513 --> 00:18:01,083
in every single one of them.
360
00:18:02,472 --> 00:18:03,562
- The McDonald's
fries are so iconic
361
00:18:03,691 --> 00:18:06,301
because they have scaled
to a huge proportion.
362
00:18:07,303 --> 00:18:09,613
- Not only is it hot and tasty,
363
00:18:09,740 --> 00:18:11,390
a little extra salt on it,
364
00:18:11,525 --> 00:18:14,045
but it's the same thing
you get wherever you go.
365
00:18:14,180 --> 00:18:17,750
You can rely on those french
fries from McDonald's.
366
00:18:19,228 --> 00:18:21,448
- McDonald's is
now a national juggernaut,
367
00:18:21,578 --> 00:18:23,578
with franchises in every state.
368
00:18:31,197 --> 00:18:33,897
Meanwhile, Dave Edgerton
and Jim McLamore
369
00:18:34,025 --> 00:18:37,585
have reopened their seven
Insta Burger King locations,
370
00:18:37,725 --> 00:18:39,935
each equipped with
their new flame-broiler.
371
00:18:42,077 --> 00:18:44,777
But with McDonald's now
operating in Florida,
372
00:18:44,906 --> 00:18:47,996
it's even harder for Insta
Burger King to draw customers
373
00:18:48,953 --> 00:18:50,263
and they're bleeding money.
374
00:18:51,260 --> 00:18:52,000
- Lunch break.
375
00:18:56,091 --> 00:18:59,051
Picked these up at a little
nothin' spot along the highway.
376
00:18:59,181 --> 00:19:00,971
You shoulda seen the
line at this place.
377
00:19:01,096 --> 00:19:02,656
- Uh-huh,
I'll get to it later.
378
00:19:02,793 --> 00:19:04,143
- Just look at it.
379
00:19:15,197 --> 00:19:15,937
- My god, there must be
380
00:19:16,067 --> 00:19:17,287
a quarter-pound of beef on this.
381
00:19:17,417 --> 00:19:18,287
- I know.
382
00:19:24,424 --> 00:19:29,344
- Imagine what we can
do with something like this.
383
00:19:30,473 --> 00:19:31,783
- So, for Edgerton and McLamore,
384
00:19:31,909 --> 00:19:34,349
to create an item that could
compete with McDonald's
385
00:19:34,477 --> 00:19:35,607
is the ultimate challenge.
386
00:19:35,739 --> 00:19:37,789
It's the ultimate possibility.
387
00:19:37,915 --> 00:19:39,125
-
McLamore and Edgerton
388
00:19:39,265 --> 00:19:41,085
immediately begin working
on a bigger burger
389
00:19:41,223 --> 00:19:43,053
they can cook with
their flame-broiler,
390
00:19:44,487 --> 00:19:46,837
allowing them to stand
out from the competition.
391
00:19:46,968 --> 00:19:49,968
- In the 1950s, they were
used to a smaller burger
392
00:19:50,101 --> 00:19:52,151
than we would consider today.
393
00:19:52,278 --> 00:19:54,578
Whether it's the
White Castle slider
394
00:19:54,715 --> 00:19:58,105
or the McDonald's burger, it
was pretty modest in size.
395
00:19:58,240 --> 00:19:59,980
- All right, so
what do you think?
396
00:20:00,111 --> 00:20:02,111
One patty, two patties?
397
00:20:02,244 --> 00:20:03,854
- Hey, I think it's gotta be one
398
00:20:03,985 --> 00:20:06,335
or the price is gonna be
higher than people wanna pay.
399
00:20:06,466 --> 00:20:08,286
Nah, get rid of that,
it's not big enough.
400
00:20:08,424 --> 00:20:09,124
Try...
401
00:20:09,251 --> 00:20:10,031
- Let's go-
- We gotta go
402
00:20:10,165 --> 00:20:11,205
much, much bigger bun,
403
00:20:11,340 --> 00:20:12,520
like this right here.
- There we go.
404
00:20:12,646 --> 00:20:14,516
- So, let's
try a little crunch.
405
00:20:14,648 --> 00:20:16,518
- Edgerton
and McLamore experiment
406
00:20:16,650 --> 00:20:19,350
by adding different toppings
to their bigger patty.
407
00:20:19,479 --> 00:20:20,739
- It's almost there.
408
00:20:23,700 --> 00:20:25,050
- What if we put a layer of mayo
409
00:20:25,180 --> 00:20:28,010
right on the bottom?
- Yeah, perfect; perfect.
410
00:20:28,139 --> 00:20:31,009
- Until they hit
the perfect combination.
411
00:20:31,142 --> 00:20:32,712
- They used a bigger
piece of meat,
412
00:20:32,840 --> 00:20:35,710
had a lot of lettuce, it had
the tomato, it had the pickle.
413
00:20:36,713 --> 00:20:38,063
It was a much bigger hamburger
414
00:20:38,193 --> 00:20:41,203
than had ever been sold before
in a fast-food restaurant.
415
00:20:50,814 --> 00:20:52,254
- And to
make their new creation
416
00:20:52,381 --> 00:20:55,731
even more unique, they make
the groundbreaking decision
417
00:20:55,863 --> 00:20:58,083
to give their burger a name.
418
00:20:58,213 --> 00:21:01,263
- Back then, burgers didn't
have their own special name.
419
00:21:01,390 --> 00:21:02,260
It was new.
420
00:21:03,610 --> 00:21:04,920
- McLamore
and Edgerton introduce
421
00:21:05,046 --> 00:21:08,266
the first signature burger
in fast-food history.
422
00:21:10,051 --> 00:21:11,971
It's called the Whopper.
423
00:21:14,185 --> 00:21:16,835
- The Whopper was
deeply revolutionary
424
00:21:16,971 --> 00:21:19,061
'cause it was the
first large burger
425
00:21:19,190 --> 00:21:22,500
with fixings from a franchise.
426
00:21:22,629 --> 00:21:25,279
People were getting
a bigger meal,
427
00:21:25,414 --> 00:21:28,244
a meal that tasted like it
came off their barbecue.
428
00:21:28,374 --> 00:21:30,464
And for Insta Burger King,
429
00:21:30,593 --> 00:21:32,993
it could be an immediately
recognizable product
430
00:21:33,117 --> 00:21:35,817
that would put them on the map.
431
00:21:37,383 --> 00:21:38,783
- Edgerton and
McLamore finally have a weapon
432
00:21:38,906 --> 00:21:40,116
that McDonald's doesn't,
433
00:21:41,604 --> 00:21:44,094
and they're ready to make
a name for themselves.
434
00:22:01,015 --> 00:22:03,625
- Dave Edgerton and
JJim McLamore have spent years
435
00:22:03,757 --> 00:22:06,367
trying to put Insta
Burger King on the map.
436
00:22:06,499 --> 00:22:09,199
- Hey, I got six Whoppers all
day that just got ordered.
437
00:22:09,328 --> 00:22:10,678
- Six.
438
00:22:10,807 --> 00:22:11,807
- And with
the launch of their new
439
00:22:11,939 --> 00:22:14,249
revolutionary flame-broiled Whopper
440
00:22:14,376 --> 00:22:16,466
in all seven of their
Florida locations-
441
00:22:16,596 --> 00:22:18,416
- I mean, look at this line!
442
00:22:18,554 --> 00:22:21,784
- Sales are
up 40% within weeks.
443
00:22:21,905 --> 00:22:22,685
- Keep it up!
444
00:22:22,819 --> 00:22:23,909
- When the Whopper's introduced,
445
00:22:24,038 --> 00:22:26,428
very quickly, it becomes
insanely popular.
446
00:22:26,562 --> 00:22:27,822
It takes off.
447
00:22:27,955 --> 00:22:30,905
- Insta Burger King was
talking about their restaurant
448
00:22:31,045 --> 00:22:33,655
as a place for people
with big appetites,
449
00:22:33,787 --> 00:22:35,657
a place where you can get
something like the Whopper
450
00:22:35,789 --> 00:22:37,699
that takes two hands to eat.
451
00:22:39,488 --> 00:22:40,708
- And after
years of operating
452
00:22:40,837 --> 00:22:42,317
under they name they inherited,
453
00:22:42,448 --> 00:22:45,668
Edgerton and McLamore decide
to make a pivotal change
454
00:22:47,191 --> 00:22:49,891
to something shorter
and punchier.
455
00:22:50,020 --> 00:22:51,110
- They wanna brand themselves
456
00:22:51,239 --> 00:22:53,459
as the best that
there possibly is.
457
00:22:53,589 --> 00:22:55,939
It's different from
just being fast.
458
00:22:56,070 --> 00:22:57,160
It's being best.
459
00:22:58,464 --> 00:23:01,034
- Their new
name is Burger King,
460
00:23:02,555 --> 00:23:04,905
and the dub themselves
the "Home of the Whopper."
461
00:23:07,298 --> 00:23:08,598
- Compared to Burger King,
462
00:23:08,735 --> 00:23:12,955
Insta Burger King is um,
is a stupid name.
463
00:23:13,087 --> 00:23:14,387
It's a bad name.
464
00:23:14,523 --> 00:23:17,923
And I'm glad they changed
it, for them if nothing else.
465
00:23:21,661 --> 00:23:24,051
Driven by the Whopper's
resounding success,
466
00:23:24,185 --> 00:23:26,795
McLamore and Edgerton
begin to expand further,
467
00:23:26,927 --> 00:23:29,797
with dreams of becoming
a national chain.
468
00:23:29,930 --> 00:23:33,890
- 'Cause all the traffic
basically flows from
469
00:23:34,021 --> 00:23:35,591
southwest up-
- Yeah, I think you're right.
470
00:23:35,718 --> 00:23:37,108
That's our money spot.
471
00:23:37,241 --> 00:23:40,111
- They identify
key cities to target,
472
00:23:40,244 --> 00:23:43,944
including Wilmington, Delaware,
New Orleans, and Chicago.
473
00:23:48,122 --> 00:23:50,302
But before staking a
claim in the Windy City,
474
00:23:52,866 --> 00:23:55,426
McLamore makes an
unscheduled pit stop.
475
00:23:56,696 --> 00:23:57,646
- Can I help you?
476
00:23:57,784 --> 00:23:58,744
- Hi.
477
00:23:58,872 --> 00:24:00,132
I'm looking for Ray Kroc.
478
00:24:01,091 --> 00:24:02,571
- Is he expecting you?
479
00:24:02,702 --> 00:24:04,572
- No, I don't think so.
480
00:24:05,792 --> 00:24:07,052
- What's your name?
481
00:24:07,184 --> 00:24:08,324
- Jim McLamore.
482
00:24:09,448 --> 00:24:10,268
- Jim!
483
00:24:11,188 --> 00:24:11,968
Hey!
484
00:24:17,630 --> 00:24:19,810
Remind me, how do
we know each other?
485
00:24:19,936 --> 00:24:21,496
- We don't, actually.
486
00:24:21,634 --> 00:24:23,814
I own and operate a small
number of burger joints
487
00:24:23,940 --> 00:24:25,160
outta Miami.
488
00:24:25,289 --> 00:24:27,289
- The
competition, huh?
489
00:24:27,422 --> 00:24:28,772
- Well, no, not yet.
490
00:24:30,469 --> 00:24:32,989
But I'd be lyin' if I said that
wasn't the dream.
491
00:24:33,123 --> 00:24:34,303
- In any good mythology,
492
00:24:34,429 --> 00:24:37,869
there is a meeting
of mortal enemies,
493
00:24:37,998 --> 00:24:40,828
and that exists in
American fast food.
494
00:24:42,089 --> 00:24:43,959
McLamore wanted
exactly what Kroc had.
495
00:24:45,614 --> 00:24:47,144
- Say, listen,
you got any advice
496
00:24:47,268 --> 00:24:49,528
for an aspiring franchiser?
497
00:24:51,141 --> 00:24:53,931
- Well, if you work just for
money, you'll never make it.
498
00:24:54,057 --> 00:24:57,097
But love what you do and
always put the customer first,
499
00:24:57,234 --> 00:24:59,154
you'll be just fine.
- Oh, come on.
500
00:24:59,280 --> 00:25:01,330
I mean, don't give me
the fairytale version.
501
00:25:02,979 --> 00:25:03,679
- All right.
502
00:25:06,330 --> 00:25:07,680
It's a dog-eat-dog world.
503
00:25:08,942 --> 00:25:10,992
Someone's always
trying to cut you down.
504
00:25:12,423 --> 00:25:15,513
I've crushed everyone
that's ever come for me.
505
00:25:15,644 --> 00:25:17,654
It's called survival
of the fittest, Jim.
506
00:25:20,388 --> 00:25:22,218
If one of my competitors
were drowning,
507
00:25:23,609 --> 00:25:24,829
I'd toss 'em an anchor.
508
00:25:26,263 --> 00:25:27,183
Would you?
509
00:25:29,179 --> 00:25:31,529
That's what it'll take to
succeed in this business.
510
00:25:33,488 --> 00:25:34,528
Been nice meeting you.
511
00:25:37,840 --> 00:25:40,360
Oh, what was the name
of your chain again?
512
00:25:41,670 --> 00:25:42,540
- Burger King.
513
00:25:42,671 --> 00:25:44,851
- Best of luck, pal.
514
00:25:58,078 --> 00:25:59,208
- More
determined than ever
515
00:25:59,340 --> 00:26:00,910
to compete with McDonald's,
516
00:26:01,037 --> 00:26:05,087
McLamore spearheads an
aggressive expansion campaign.
517
00:26:05,215 --> 00:26:07,825
- I had one other, I
had one other thought, right?
518
00:26:07,957 --> 00:26:09,047
Because-
519
00:26:09,176 --> 00:26:10,786
- And by 1962,
520
00:26:10,917 --> 00:26:13,877
just eight years after opening,
the Home of the Whopper
521
00:26:14,007 --> 00:26:17,747
is in 23 different cities
across the country.
522
00:26:17,880 --> 00:26:20,620
Within the next year, their
profits more than double,
523
00:26:20,753 --> 00:26:23,633
soaring to over $150,000,
524
00:26:23,756 --> 00:26:26,446
the modern-day equivalent
of $1.2 million.
525
00:26:28,325 --> 00:26:31,415
And McLamore and Edgerton
decide to innovate further,
526
00:26:34,680 --> 00:26:36,770
television advertising.
527
00:26:36,899 --> 00:26:40,949
- Television is this gigantic
leap in food advertising.
528
00:26:41,077 --> 00:26:44,727
Before this, all you could
see is perhaps a drawing
529
00:26:44,864 --> 00:26:47,134
or a photograph as an ad.
530
00:26:47,257 --> 00:26:49,557
All of a sudden, you
could actually see someone
531
00:26:49,695 --> 00:26:51,255
take a bite of the product.
532
00:26:53,524 --> 00:26:55,274
- Burger King
becomes the first company ever
533
00:26:55,396 --> 00:26:57,746
to air a commercial for
a signature sandwich
534
00:26:57,877 --> 00:26:59,877
on national television,
535
00:27:00,488 --> 00:27:02,138
taking aim at every competitor
536
00:27:02,272 --> 00:27:06,322
that doesn't have a trademark
burger, including McDonald's.
537
00:27:07,930 --> 00:27:11,020
- Burger King was very
bold and very aggressive.
538
00:27:11,151 --> 00:27:13,461
And in fact, Burger King
was one of the first
539
00:27:13,588 --> 00:27:16,768
fast-food restaurants to
actually call out a competitor
540
00:27:16,896 --> 00:27:18,766
by name in its commercials.
541
00:27:18,898 --> 00:27:20,938
- Burger
King's sales explode.
542
00:27:22,118 --> 00:27:25,638
And in 1964, profits
rise by over 50%
543
00:27:25,774 --> 00:27:29,134
across all 72 of
their locations.
544
00:27:29,256 --> 00:27:31,906
- The Whopper,
the wall-to-wall hamburger,
545
00:27:32,041 --> 00:27:35,391
so big that just
one is a whole meal.
546
00:27:35,523 --> 00:27:36,443
- And the
extraordinary rate
547
00:27:36,567 --> 00:27:39,697
of their growth
has caught Ray Kroc's eye.
548
00:27:39,832 --> 00:27:41,222
♪ The bigger the burger,
the better the burger ♪
549
00:27:41,355 --> 00:27:45,315
♪ The burgers are
bigger at Burger King ♪
550
00:27:45,446 --> 00:27:47,536
- And he's
about to strike back.
551
00:27:56,936 --> 00:27:58,676
- For years, Ray
Kroc's McDonald's
552
00:27:58,807 --> 00:28:00,587
has dominated the competition,
553
00:28:00,722 --> 00:28:03,512
building an empire
400 locations strong,
554
00:28:05,814 --> 00:28:08,514
worth the modern
equivalent of $8 billion.
555
00:28:12,516 --> 00:28:15,346
Now, Burger King has
launched an all-out assault
556
00:28:15,476 --> 00:28:18,696
with their groundbreaking
signature burger, the Whopper.
557
00:28:56,343 --> 00:28:59,003
- I think the Whopper
shocked Ray Kroc.
558
00:28:59,128 --> 00:29:00,298
They were bigger.
559
00:29:00,434 --> 00:29:03,704
They were a noticeably
thicker sandwich.
560
00:29:03,829 --> 00:29:07,529
And when you compared what
McDonald's was selling,
561
00:29:07,658 --> 00:29:10,098
which was this pretty small
hamburger, to a Whopper,
562
00:29:10,226 --> 00:29:11,576
you really noticed it.
563
00:29:12,794 --> 00:29:15,064
- The Whopper had
the name recognition.
564
00:29:17,016 --> 00:29:19,576
It was distinct to Burger
King and it was delicious.
565
00:29:22,630 --> 00:29:25,810
People loved that
flame-broiled taste.
566
00:29:35,121 --> 00:29:36,691
- All right, come on, let's go.
567
00:29:36,818 --> 00:29:38,208
Meeting started
five minutes ago.
568
00:29:38,341 --> 00:29:39,261
Come on, guys.
569
00:29:40,953 --> 00:29:43,263
- To maintain their
stranglehold on the market,
570
00:29:43,390 --> 00:29:45,610
McDonald's needs a
way to fight back.
571
00:29:47,394 --> 00:29:49,274
- What we need is a
signature product.
572
00:29:53,226 --> 00:29:54,656
Burger King has the Whopper.
573
00:29:55,794 --> 00:29:58,454
McDonald's is home of the what?
574
00:30:01,016 --> 00:30:02,796
Let's reach out to our
franchise operators
575
00:30:02,931 --> 00:30:04,801
and see what they come up with.
576
00:30:04,933 --> 00:30:07,463
- I think that a
brand like Burger King
577
00:30:07,588 --> 00:30:09,758
keeps a brand like
McDonald's on their toes
578
00:30:09,895 --> 00:30:13,855
because having that kinda
competition from Burger King
579
00:30:13,986 --> 00:30:16,766
is what forces
McDonald's to innovate,
580
00:30:16,902 --> 00:30:19,822
forces them to think
outside the box.
581
00:30:20,949 --> 00:30:22,339
- Meeting's over, get to work.
582
00:30:36,617 --> 00:30:37,837
- Great, keep it up.
583
00:30:37,966 --> 00:30:39,136
Keep it up!
584
00:30:39,272 --> 00:30:41,492
- In Miami,
Edgerton and McLamore
585
00:30:41,622 --> 00:30:44,672
invest all their profits
into rapid expansion,
586
00:30:44,799 --> 00:30:48,109
even taking out loans
to speed up the process.
587
00:30:48,237 --> 00:30:52,147
And by 1965, they have
over 120 locations,
588
00:30:52,285 --> 00:30:55,375
with the same rate of
growth as McDonald's.
589
00:30:55,505 --> 00:30:56,855
- What about regional ad spend?
590
00:30:56,985 --> 00:30:58,545
We can certainly
trim from there.
591
00:30:59,814 --> 00:31:01,864
- I don't wanna touch marketing.
592
00:31:01,990 --> 00:31:03,430
- Maybe we raise franchise fees;
593
00:31:03,557 --> 00:31:07,337
nothing huge, just some.
- Absolutely not.
594
00:31:07,474 --> 00:31:09,304
No, growth is too important.
595
00:31:09,432 --> 00:31:12,522
I won't risk it.
596
00:31:12,653 --> 00:31:14,523
- When we're thinking
about expansion,
597
00:31:14,655 --> 00:31:15,785
it's never really about,
598
00:31:15,917 --> 00:31:17,437
"How much money did
we make this year?"
599
00:31:17,571 --> 00:31:18,831
It's really more about,
600
00:31:18,964 --> 00:31:21,624
"Well, where do people
want us right now?"
601
00:31:21,749 --> 00:31:23,749
But as a business, you
always have to care
602
00:31:23,882 --> 00:31:25,232
about your bottom line.
603
00:31:26,493 --> 00:31:28,893
- Jim McLamore, he
had overextended them
604
00:31:29,017 --> 00:31:31,107
by opening too many franchises.
605
00:31:31,237 --> 00:31:34,017
- I mean, we gotta
keep feeding the machine!
606
00:31:34,153 --> 00:31:35,373
- For how long?
607
00:31:35,502 --> 00:31:37,772
- I mean, for
as long as it takes!
608
00:31:38,853 --> 00:31:40,553
Look, we can't lose momentum.
609
00:31:42,291 --> 00:31:43,031
Trust me on this.
610
00:31:47,079 --> 00:31:50,519
- Burger King being the largest
threat in the burger land
611
00:31:50,647 --> 00:31:52,687
is the only brand that
could really compete
612
00:31:52,823 --> 00:31:54,263
with McDonald's supremacy.
613
00:31:56,044 --> 00:31:56,924
- Even
though the company
614
00:31:57,045 --> 00:31:59,785
is growing by leaps and bounds,
615
00:31:59,918 --> 00:32:02,748
they're barely keeping pace
with their considerable debt.
616
00:32:10,754 --> 00:32:11,584
- Hello?
617
00:32:12,931 --> 00:32:13,931
You're speaking to him.
618
00:32:15,585 --> 00:32:17,065
Sure.
619
00:32:17,196 --> 00:32:19,676
We'd be open to
hearing a proposal.
620
00:32:19,807 --> 00:32:21,457
- Who's that?
621
00:32:21,591 --> 00:32:22,461
- Absolutely.
622
00:32:27,075 --> 00:32:28,595
That was a guy from Pillsbury.
623
00:32:29,730 --> 00:32:31,120
- And?
624
00:32:31,253 --> 00:32:32,783
- They wanna make us an offer.
625
00:32:34,735 --> 00:32:36,075
I think they wanna buy us.
626
00:32:55,799 --> 00:32:57,979
- It's 1966,
627
00:32:58,106 --> 00:32:59,756
and after nearly a decade
of relentless growth
628
00:32:59,890 --> 00:33:03,680
and compounding debt, Jim
McLamore and Dave Edgerton
629
00:33:03,807 --> 00:33:07,457
receive an offer from massive
food conglomerate Pillsbury
630
00:33:07,594 --> 00:33:09,294
to buy Burger King outright,
631
00:33:09,422 --> 00:33:11,642
leaving the future of
the company in doubt.
632
00:33:12,947 --> 00:33:15,247
- We're not seriously
considering this.
633
00:33:15,384 --> 00:33:16,304
It's too soon.
634
00:33:17,473 --> 00:33:18,473
- This wipes our debt.
635
00:33:19,475 --> 00:33:20,645
Guarantees our cashflow.
636
00:33:22,043 --> 00:33:24,003
- The
offer is $18 million,
637
00:33:25,307 --> 00:33:28,307
the equivalent of over
$140 million today.
638
00:33:30,704 --> 00:33:32,584
- This is how we
beat McDonald's,
639
00:33:32,706 --> 00:33:34,006
with Pillsbury's backing,
640
00:33:34,142 --> 00:33:36,062
with their deep pockets.
641
00:33:36,188 --> 00:33:39,448
We keep expanding, but
they take on all the risk.
642
00:33:40,757 --> 00:33:43,237
- Burger King could
use the influx of cash
643
00:33:43,369 --> 00:33:45,239
and the broad range
of the Pillsbury brand
644
00:33:45,371 --> 00:33:48,421
to allow them to compete against
the much-larger juggernaut
645
00:33:48,548 --> 00:33:50,678
of Ray Kroc's McDonald's.
646
00:33:50,811 --> 00:33:51,901
- I don't trust them.
647
00:33:53,683 --> 00:33:54,733
- We need the money.
648
00:33:56,077 --> 00:33:58,337
- McLamore would give
up control of his baby
649
00:33:58,471 --> 00:34:00,041
to compete with McDonald's,
650
00:34:00,168 --> 00:34:02,648
but Edgerton was a
little more suspicious
651
00:34:02,779 --> 00:34:04,089
of what would happen
to Burger King
652
00:34:04,216 --> 00:34:06,346
when Pillsbury
got into the game.
653
00:34:06,479 --> 00:34:08,129
- McLamore
knows this deal could be
654
00:34:08,263 --> 00:34:11,223
his last shot to
overtake McDonald's.
655
00:34:14,878 --> 00:34:17,838
But right now, Ray Kroc
is traveling the country,
656
00:34:17,968 --> 00:34:19,928
looking for a new
weapon of his own.
657
00:34:20,058 --> 00:34:21,968
He's meeting with
his franchisees,
658
00:34:22,103 --> 00:34:24,193
hoping that one of
them has a new product
659
00:34:24,323 --> 00:34:26,193
that could top the Whopper.
660
00:34:26,325 --> 00:34:29,455
- Ray Kroc would exert
real quality control
661
00:34:29,589 --> 00:34:31,719
and make sure that
menu items are uniform
662
00:34:31,852 --> 00:34:34,202
from one location of
McDonald's to the next.
663
00:34:34,333 --> 00:34:37,993
So, it's kind of crazy
that now McDonald's
664
00:34:38,119 --> 00:34:40,899
was allowing menu
diversification
665
00:34:41,035 --> 00:34:44,555
and trying to beat Burger
King with the next big thing.
666
00:34:47,041 --> 00:34:49,481
- Kroc finds
himself in an Ohio town,
667
00:34:51,089 --> 00:34:53,739
meeting with a franchisee who
has one solitary location.
668
00:34:56,050 --> 00:34:57,970
- Here's what I've
been tinkering with.
669
00:35:01,055 --> 00:35:03,925
It's a filet of cod,
breaded and fried,
670
00:35:04,058 --> 00:35:05,968
with a dollop of
homemade tartar sauce.
671
00:35:08,236 --> 00:35:09,926
- Lou Groen's store is located
672
00:35:10,064 --> 00:35:12,944
in Monfort Heights, Cincinnati,
which is 87% Catholic.
673
00:35:13,067 --> 00:35:16,847
And on Fridays, Catholics at
that time didn't eat beef,
674
00:35:16,984 --> 00:35:19,424
so he would see his
sales routinely drop
675
00:35:19,552 --> 00:35:20,862
every single week.
676
00:35:20,988 --> 00:35:23,338
So, he reached out
to Ray Kroc and said,
677
00:35:23,469 --> 00:35:25,469
"I have this idea
for a fish sandwich."
678
00:35:35,002 --> 00:35:36,442
- Cheese on fish?
679
00:35:38,266 --> 00:35:39,266
- Yeah, you're right.
680
00:35:51,410 --> 00:35:52,110
Now we're talking.
681
00:35:55,022 --> 00:35:56,682
- Fish was already
a frozen product
682
00:35:56,806 --> 00:35:58,156
that was easily available,
683
00:35:58,286 --> 00:36:01,156
so they're able to provide
a lightly-breaded fish filet
684
00:36:01,289 --> 00:36:05,859
on a roll that would be already
developed and ready to sell.
685
00:36:09,384 --> 00:36:12,474
- Ray Kroc rolls out
the Filet-O-Fish nationwide.
686
00:36:12,605 --> 00:36:15,865
- Let the fish that
catches people catch you!
687
00:36:19,351 --> 00:36:20,661
- But
it's still not enough
688
00:36:20,787 --> 00:36:22,307
to compete with the Whopper.
689
00:36:23,790 --> 00:36:25,840
- Part of the menu expansion
that Kroc is undertaking
690
00:36:25,966 --> 00:36:29,666
is trying to find something
that is a signature item.
691
00:36:29,796 --> 00:36:32,756
And he's finding all of these
different smaller options
692
00:36:32,886 --> 00:36:35,846
that kind of have
their own iconic nature
693
00:36:35,976 --> 00:36:37,926
but don't hold a
candle to the Whopper,
694
00:36:38,065 --> 00:36:40,495
which is its own holy
grail of burgers.
695
00:36:42,852 --> 00:36:44,032
- In Miami,
696
00:36:44,158 --> 00:36:46,548
after agonizing over
Pillsbury's buyout offer,
697
00:36:48,118 --> 00:36:50,688
McLamore has convinced
Edgerton to unite with him.
698
00:37:00,392 --> 00:37:03,532
They accept a deal valued
at the modern equivalent
699
00:37:03,656 --> 00:37:05,916
of more than $140 million.
700
00:37:10,053 --> 00:37:11,933
- Pleasure doing
business with ya.
701
00:37:12,055 --> 00:37:14,315
- At that point, Edgerton
steps outta the picture.
702
00:37:14,449 --> 00:37:16,059
He cashes out.
703
00:37:16,190 --> 00:37:18,800
McLamore, he's now
part of Pillsbury,
704
00:37:18,932 --> 00:37:21,242
and he remains
faithfully devoted
705
00:37:21,369 --> 00:37:23,889
to the idea of Burger
King becoming huge
706
00:37:24,024 --> 00:37:26,774
and hoping that Pillsbury
will make it happen.
707
00:37:28,289 --> 00:37:29,859
- Pleasure
doing business with you.
708
00:37:29,986 --> 00:37:31,856
Thank you, sir.
709
00:37:31,988 --> 00:37:34,158
- But far
from Miami or Chicago,
710
00:37:35,122 --> 00:37:37,262
in a small town in Pennsylvania,
711
00:37:38,908 --> 00:37:41,908
a McDonald's franchise owner
is working on something new.
712
00:37:45,263 --> 00:37:48,353
And it's about to blow
the burger wars wide open.
713
00:37:53,923 --> 00:37:56,323
- It's 1967, and Ray
Kroc's decade-long hunt
714
00:37:56,448 --> 00:38:00,708
for a signature burger to pit
against the Whopper is over.
715
00:38:00,843 --> 00:38:02,633
- From franchise
owner Jim Delligatti
716
00:38:02,758 --> 00:38:04,498
out of Uniontown, Pennsylvania,
717
00:38:04,630 --> 00:38:06,630
consisting entirely of
ingredients already found
718
00:38:06,762 --> 00:38:09,462
in every McDonald's
719
00:38:09,591 --> 00:38:12,861
slice of cheddar-blend cheese,
crispy iceberg lettuce,
720
00:38:12,986 --> 00:38:15,816
little secret sauce,
crunchy dill pickle,
721
00:38:15,945 --> 00:38:19,555
toasted club slice, and not
one but two hamburger patties
722
00:38:19,688 --> 00:38:22,648
under a lightly-toasted
sesame seed crown.
723
00:38:22,778 --> 00:38:25,518
- And now,
all it needs is a name.
724
00:38:25,651 --> 00:38:28,961
- I call it
the Aristocrat.
725
00:38:34,877 --> 00:38:38,007
Or perhaps
the Blue Ribbon Burger.
726
00:38:40,970 --> 00:38:41,840
What?
727
00:38:43,538 --> 00:38:44,628
- It's a bit...
728
00:38:45,584 --> 00:38:46,504
- It's a bit what?
729
00:38:49,501 --> 00:38:51,941
- Ray Kroc wanted it to be
called the Blue Ribbon Burger,
730
00:38:52,068 --> 00:38:55,198
which speaks to his
own ego a little bit,
731
00:38:55,333 --> 00:38:57,993
but also to the fact that he
wanted a really great burger
732
00:38:58,118 --> 00:38:59,768
to compete with the Whopper.
733
00:38:59,902 --> 00:39:02,472
- How about
the Big Mac?
734
00:39:13,829 --> 00:39:15,219
- Someone just earned a raise.
735
00:39:16,832 --> 00:39:18,492
- The
soon-to-be-legendary Big Mac
736
00:39:18,617 --> 00:39:20,877
gets its name from a
21-year-old secretary
737
00:39:21,010 --> 00:39:22,710
named Esther Glickstein.
738
00:39:24,536 --> 00:39:27,626
In 1967, armed with
his new weapon,
739
00:39:27,756 --> 00:39:30,666
Ray Kroc unleashes an
unparalleled assault
740
00:39:30,803 --> 00:39:33,243
on Burger King.
741
00:39:33,371 --> 00:39:37,031
He introduces the Big Mac
at all 800-plus locations
742
00:39:37,157 --> 00:39:40,377
and launches one of the
most aggressive ad campaigns
743
00:39:40,508 --> 00:39:41,858
in company history.
744
00:39:44,686 --> 00:39:46,036
- The creation of the Big Mac
745
00:39:46,166 --> 00:39:49,206
is like throwing a match into
a flame-broiled tinderbox
746
00:39:49,343 --> 00:39:51,173
and the whole thing explodes.
747
00:39:51,301 --> 00:39:53,521
- They were really
spending a lot of money
748
00:39:53,652 --> 00:39:56,092
on competitive advertising.
749
00:39:56,219 --> 00:39:57,869
Those ads were everywhere.
750
00:39:58,004 --> 00:39:59,444
The idea behind the Big Mac
751
00:39:59,571 --> 00:40:02,051
was to counter the
size of the Whopper.
752
00:40:02,182 --> 00:40:04,792
There was a fun commercial
that listed the ingredients.
753
00:40:04,924 --> 00:40:06,364
- Two all-beef
patties, special sauce,
754
00:40:06,491 --> 00:40:08,971
lettuce, cheese, pickles,
onions on a sesame seed bun.
755
00:40:09,102 --> 00:40:11,062
- Big Mac.
- And people loved it.
756
00:40:12,975 --> 00:40:16,935
- I always appreciated
the flavor of the burger
757
00:40:17,066 --> 00:40:19,766
in the Whopper, but I
always felt the Big Mac
758
00:40:19,895 --> 00:40:21,935
had the toppings
game down better.
759
00:40:22,071 --> 00:40:25,421
It was like a much more
pleasurable bite through.
760
00:40:25,553 --> 00:40:27,903
- The Burger King Whopper
had a bigger patty,
761
00:40:28,034 --> 00:40:29,644
but McDonald's gave you two.
762
00:40:29,775 --> 00:40:31,725
So, by keeping the
patties the same size,
763
00:40:31,864 --> 00:40:33,954
they were able to stay
within their framework
764
00:40:34,083 --> 00:40:36,483
and still compete
with the Whopper.
765
00:40:36,608 --> 00:40:40,048
- Within a year,
the Big Mac accounts for 19%
766
00:40:40,176 --> 00:40:44,656
of all McDonald's sales,
reaching over $400 million,
767
00:40:44,790 --> 00:40:48,180
an unprecedented attack on
the Whopper's dominance.
768
00:40:53,842 --> 00:40:57,412
- Jim McLamore is desperate to
counter McDonald's offensive,
769
00:40:57,542 --> 00:40:59,982
but he's now under
Pillsbury's management,
770
00:41:00,109 --> 00:41:03,329
and they're not interested
in a costly battle.
771
00:41:03,461 --> 00:41:06,641
- When Burger King made
the deal with Pillsbury,
772
00:41:06,768 --> 00:41:09,248
in their perspective, they
thought that they would have
773
00:41:09,379 --> 00:41:11,819
financial resources
to draw from.
774
00:41:11,947 --> 00:41:15,517
- But Burger King is one
column in their ledger,
775
00:41:15,647 --> 00:41:18,297
and so he's now part of
a corporate structure
776
00:41:18,432 --> 00:41:22,092
that he no longer
calls all the shots.
777
00:41:22,218 --> 00:41:25,608
And all of McLamore's
hopes for expansion
778
00:41:25,744 --> 00:41:28,664
and rapid growth hit a snag.
779
00:41:28,790 --> 00:41:31,140
McLamore's obviously crushed.
780
00:41:31,271 --> 00:41:34,061
- While
McLamore's hands are tied,
781
00:41:34,187 --> 00:41:36,667
McDonald's triples
their rate of expansion,
782
00:41:36,798 --> 00:41:39,498
leaving Burger King in the dust.
783
00:41:39,627 --> 00:41:42,667
- In the 1970s, McLamore
slowly begins to realize
784
00:41:42,804 --> 00:41:46,464
that his plans for world
domination are gonna be stifled.
785
00:41:46,591 --> 00:41:49,551
And he reaches this moment
where he says to himself,
786
00:41:49,681 --> 00:41:51,861
"Maybe it's time for me
to finally step away."
787
00:41:53,641 --> 00:41:55,511
And so, he steps away.
788
00:41:58,516 --> 00:41:59,906
- Though their
battle with Burger King
789
00:42:00,039 --> 00:42:01,819
will rage on for decades,
790
00:42:01,954 --> 00:42:04,094
Ray Kroc's legacy
has made McDonald's
791
00:42:04,217 --> 00:42:07,387
the largest burger
joint in the world.
792
00:42:07,525 --> 00:42:10,215
- But these are
ongoing rivalries
793
00:42:10,353 --> 00:42:12,363
that you see lasting for years.
794
00:42:13,661 --> 00:42:15,921
- Today,
there are over 36,000
795
00:42:16,055 --> 00:42:18,185
McDonald's
restaurants worldwide.
796
00:42:18,318 --> 00:42:20,888
Burger King has over 18,000.
797
00:42:22,191 --> 00:42:24,191
- McDonald's has
often set the tone
798
00:42:24,324 --> 00:42:26,374
and the pace of the
fast-food industry.
799
00:42:28,720 --> 00:42:31,900
They were one of the
first national brands
800
00:42:32,027 --> 00:42:35,467
to show that they could
be successful overseas.
801
00:42:35,596 --> 00:42:37,416
Brands like Burger
King followed suit.
802
00:42:38,686 --> 00:42:39,726
- Burger King's sales
803
00:42:39,861 --> 00:42:43,081
are over $76 million per year,
804
00:42:43,212 --> 00:42:47,612
a fraction of McDonald's
$100 billion annual sales.
805
00:42:47,739 --> 00:42:50,439
- McDonald's is number one
and Burger King is number two,
806
00:42:50,568 --> 00:42:53,088
but I love Burger King
because they set the table
807
00:42:53,222 --> 00:42:56,012
for American fast food
to become truly iconic.
808
00:42:57,313 --> 00:43:00,583
And on that table,
there weren't utensils,
809
00:43:00,708 --> 00:43:03,888
there weren't plates, there
was just an enormous hamburger,
810
00:43:04,016 --> 00:43:05,276
and that's all you needed.
58742
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