McDonalds WIPED OUT this small town diner!

Mike Andes compares a family-run diner open since 1955 to McDonald's to explain why one stayed small and the other scaled to thousands of locations. Ray Kroc had the ambition to think big, but what really mattered was building repeatable systems. The diner serves $10 to $12 burgers and runs fine as is, but it was never designed to become a chain.
Questions this video answers
July 6, 2022
1955
1955
1954
$10–$12
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Hey, everyone, it's Mike Andes. And today I'm next to this roadside diner instead of my studio because I wanted to make a point about how big your business can become and really what determines the size of your company. Now, this little roadside diner here does burgers, fries, shakes, soda, etc. And I was down here Saturday. It's right next to this main kind of highway down at one of these locations, kind of in a rural area for Augusta Lawn Care. I was down here last weekend, and the place was packed. You know, there's people lined up here. You can walk up to the front here, order whatever you want in terms of burgers, fries, food. And supposedly, it's really, really good food. You pay 10, $12 for a burger, and it's a really, really good deal. Now, what was really intriguing to me is this sign here. It says, since 1955. Now, I was intrigued, and I ended up looking up, when was McDonald's started? Sure enough, 1955. Burger King started 1954. So a lot of times people will say, well, timing is what it's all about, and it's all about being lucky in terms of when the market is needing a certain product or service. But ultimately, this little roadside diner here, the net was started in the same year as McDonald's, and yet it's remained this one location, whereas McDonald's has become tens of thousands of locations, created billions and billions of dollars worth of value, and has made a lot of people millionaires. And so the question is, well, first and foremost, let me be very clear. It's no better to say that you should have a massive business or that you need to create the next McDonald's. Potentially. The owners of this place have had it for a very long time, passed it on from generation to generation. Their kids and their grandkids have continued to run it, and they're very happy with this one location. But when you look at the net net value of what an entity like McDonald's has done in terms of creating jobs, creating wealth for franchisees, and ultimately satisfying the customers. And a lot of people would say immediately, well, you know, forget McDonald's. They make horrible burgers and their marketing is horrible. And I would never feed that. It's like, look, ultimately, in free market and capitalism, we as the customer have chosen that we like McDonald's over the net. Okay? As much as people might enjoy the net here, at this one location, the capitalist society that we live in rewards whoever takes care of the customer the most. And we as customers have voted that we like the $1 value menu. We like the fries, we like cheap food. And so I don't eat at McDonald's. I don't like McDonald's. I don't think McDonald's is a good, healthy option for you to eat at. However, when it comes to your business, you have to ask yourself, do you want to be the next net which might have better food, better service, better locations, like literally like what, 20ft from the main road here? Or are you wanting to be a McDonald's and there's no right or wrong here. It's what do you want for your business? Potentially you might just want one location. You might be very satisfied to pass it off to generations and just have one small little business. But the potential, the thing is, you got to remember is the fact that there's opportunity to grow a massive business. The difference, the difference between a McDonald's and the net, there's two major differences. Number one is the thought process of thinking big. The thought process, the idea is big enough. You took a Ray Kroc that had a vision to make a massive chain of restaurants all across the country and create one of the largest real estate empires using McDonald's. And that idea, that large, massive think, that massive scale of ideology and that goal of creating something so big is what created McDonald's. The second thing that McDonald's has that the net doesn't is systems. When you come up, when I showed up here on Saturday, drove by, there was no uniforms, there was no branded sort of napkins or paper bags that people were getting their food in. It was very much just, you know, brown paper bags. Everything said Pepsi on it in terms of the drinks and the cups that they were in. It's very, very much of a small town diner. And there's nothing wrong with that. There's nothing wrong with keeping your business small. But ultimately, if you're going to have a big business, you can't have the same ideologies and the same sort of think that this tiny little diner had. You have to be the person that is the same year 1955, Ray Kroc comes along, creates a massive conglomerate, a company that becomes worth billions and billions of dollars. And then yet this location stays small. So when people say that, it's, oh, it's all about just timing. And if I could have just bought real estate in 2008, if I could have just, you know, bought stocks in March 2020 when Covid hit. Everyone always talks about timing. What they fail to realize is that it takes that big think and it takes systems and procedures and action behind that think and that big idea to actually make it a reality and make it something super valuable. So whether you want to make a small town diner, that doesn't really change. Looks like it's still stuck back in 1955. That sign is probably not changed for 40 or 50 years. That's fine if that's what you aspire to do. But if you want to grow a big business, if you want to create thousands of jobs, if you want to create more value for your community, you've got to think bigger and you've got to create systems and procedures around that goal. How do you create systems and procedures to make that massive think that massive goal and idea a possibility? That's what Ray Kroc accomplished, and I hope that's what you can do for your business.










