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These are the user uploaded subtitles that are being translated: 1 00:00:02,132 --> 00:00:04,792 - 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 5 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, 7 00:00:20,890 --> 00:00:22,410 the hamburger. 8 00:00:23,762 --> 00:00:25,632 - The two main competitors in the fast food war 9 00:00:25,764 --> 00:00:27,724 have always been McDonald's and Burger King. 10 00:00:27,853 --> 00:00:29,683 - But just 60 years ago, 11 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. 18 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. 23 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. 29 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 32 00:01:43,451 --> 00:01:48,411 brings employment levels to a record high of over 80%. 33 00:01:48,543 --> 00:01:51,633 With demand for a quick meal on the go soaring, 34 00:01:51,763 --> 00:01:53,293 fast food is one of the country's 35 00:01:53,417 --> 00:01:55,507 fastest growing new industries. 36 00:01:55,637 --> 00:01:58,377 - There was a race going on at the time, 37 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. 45 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 47 00:02:22,620 --> 00:02:26,890 is leading the charge toward McDonald's. 48 00:02:27,016 --> 00:02:28,626 - For basically any company, 49 00:02:28,757 --> 00:02:30,627 McDonald's is the gold standard at this point 50 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. 52 00:02:36,025 --> 00:02:38,935 Smaller companies see how they're expanding 53 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 55 00:02:43,859 --> 00:02:44,989 is a brilliant entrepreneur 56 00:02:45,121 --> 00:02:46,991 who bought out the original founders, 57 00:02:47,123 --> 00:02:50,523 the McDonald brothers, for just $2.7 million. 58 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. 60 00:02:59,309 --> 00:03:01,959 - A cunning visionary named Ray Kroc. 61 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 63 00:03:09,580 --> 00:03:11,970 to a man with the last name of Kroc. 64 00:03:12,104 --> 00:03:16,674 He then takes this notion of same taste all the time 65 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. 67 00:03:23,507 --> 00:03:28,427 You need a menu based on seven items that you can put out, 68 00:03:29,383 --> 00:03:30,433 many with the same ingredients, 69 00:03:30,558 --> 00:03:33,298 at a fast pace, and you streamline it. 70 00:03:33,430 --> 00:03:35,610 - Starting in 1955, 71 00:03:35,737 --> 00:03:38,827 Kroc opens 34 locations in just three years 72 00:03:38,957 --> 00:03:43,217 across the Midwest, using McDonald's Speedee System. 73 00:03:43,353 --> 00:03:47,363 - That Speedee System let them mass produce good food 74 00:03:47,488 --> 00:03:49,008 in a very quick way. 75 00:03:49,141 --> 00:03:51,321 People were waiting just so they can see, 76 00:03:51,448 --> 00:03:53,188 "Oh my gosh, I can get a hamburger 77 00:03:53,320 --> 00:03:54,930 in a matter of moments?" 78 00:03:56,192 --> 00:03:57,852 - But most important to Kroc 79 00:03:57,976 --> 00:04:00,536 is replicating the McDonald's experience perfectly 80 00:04:00,675 --> 00:04:02,545 at every restaurant. 81 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 83 00:04:07,725 --> 00:04:10,815 for all its consumers, you need a strong culture of training 84 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 87 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; 97 00:04:45,110 --> 00:04:47,240 the whole point of the concept! 98 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. 100 00:04:54,337 --> 00:04:56,557 He was not what anyone would call 101 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. 107 00:05:16,185 --> 00:05:17,875 I think a lot of restaurants emulate 108 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. 110 00:05:22,931 --> 00:05:24,801 - Kroc oversees his growing empire 111 00:05:24,933 --> 00:05:26,633 with an iron fist. 112 00:05:26,761 --> 00:05:30,941 And by 1959, he opens his 100th restaurant. 113 00:05:31,069 --> 00:05:33,119 And despite a slew of imitators, 114 00:05:33,245 --> 00:05:36,545 there's no real challenger to McDonald's, for now. 115 00:05:42,994 --> 00:05:45,824 In one of the few states that McDonald's hasn't yet reached, 116 00:05:45,954 --> 00:05:47,834 an ambitious former restaurant worker 117 00:05:47,956 --> 00:05:50,826 is looking to forge his own path in fast food. 118 00:05:51,916 --> 00:05:53,956 His name is Dave Edgerton, 119 00:05:54,092 --> 00:05:55,962 and he's just poured his life savings 120 00:05:56,094 --> 00:05:58,314 into buying two little-known burger joints 121 00:05:58,445 --> 00:05:59,875 call Insta Burger King. 122 00:06:01,361 --> 00:06:03,801 - David Edgerton bought Insta Burger 123 00:06:03,928 --> 00:06:07,188 from the original founders, the Kramers and Burns, 124 00:06:07,323 --> 00:06:10,373 who had been inspired when they had gone to a McDonald's 125 00:06:10,500 --> 00:06:12,110 out in California. 126 00:06:12,241 --> 00:06:14,591 - Dave Edgerton is this ultimate tinkerer 127 00:06:14,722 --> 00:06:15,772 in that American sense. 128 00:06:15,897 --> 00:06:16,807 He's the kinda guy who's obsessed 129 00:06:16,941 --> 00:06:19,551 with assembly lines and speed, 130 00:06:19,683 --> 00:06:22,863 and he fed into the tech fascination at the time. 131 00:06:24,079 --> 00:06:25,209 - After a year in business, 132 00:06:25,341 --> 00:06:28,001 Edgerton is struggling to stay afloat 133 00:06:28,126 --> 00:06:29,476 and he's looking for investors 134 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, 142 00:06:52,977 --> 00:06:54,757 the guy with the business savvy. 143 00:06:54,892 --> 00:06:58,722 He was a restaurateur and he was deeply entrepreneurial. 144 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 149 00:07:08,689 --> 00:07:10,469 and it influences everything he does. 150 00:07:10,604 --> 00:07:12,784 McDonald's didn't exist yet in Florida. 151 00:07:13,781 --> 00:07:14,431 - This... 152 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 154 00:07:22,877 --> 00:07:24,877 burger-making machine. 155 00:07:26,533 --> 00:07:27,453 - Huh. - Mm-hmm. 156 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 158 00:07:32,060 --> 00:07:34,110 can churn out 100 more burgers an hour 159 00:07:34,236 --> 00:07:36,456 than a team of McDonald's employees. 160 00:07:37,979 --> 00:07:39,759 A chain drive moves the hamburger patties 161 00:07:39,894 --> 00:07:41,464 through a broiler. 162 00:07:41,591 --> 00:07:44,771 A second level toasts buns and even adds sauces 163 00:07:44,899 --> 00:07:47,469 before the burgers are assembled and served. 164 00:07:47,597 --> 00:07:50,507 - She can cook 400 burgers in an hour, 165 00:07:50,644 --> 00:07:52,564 and that's something you're not gonna find anywhere else; 166 00:07:52,689 --> 00:07:55,949 not at White Castle, not at the local dives, 167 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, 170 00:08:07,748 --> 00:08:10,268 McLamore combs through Insta Burger King's finances 171 00:08:10,402 --> 00:08:11,492 for the last year. 172 00:08:13,667 --> 00:08:15,667 - How much did you say you were making in profit? 173 00:08:15,799 --> 00:08:17,799 - About 28% on sales. 174 00:08:17,932 --> 00:08:19,192 That's just an estimate. 175 00:08:20,717 --> 00:08:25,107 - I'm showing a 56% loss, per order. 176 00:08:25,243 --> 00:08:26,113 - What? 177 00:08:26,244 --> 00:08:27,384 No, that can't be right. 178 00:08:30,161 --> 00:08:33,471 - These sales figures, I mean, it's a hundred orders a day? 179 00:08:33,600 --> 00:08:35,730 That's nothing; that's... 180 00:08:35,863 --> 00:08:36,653 Bad. 181 00:08:38,126 --> 00:08:39,996 - Yeah, Insta Broiler can make that many burgers 182 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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