Page 39 - Everything I Know About Business I Learned

Honesty and Integrity

That leap of faith was not limited to vendors. Consider the
would-be franchisees who vie to invest hundreds of thousands
of dollars of their savings to become an owner/operator. They
must first devote a significant amount of hours over the course
of as much as two years in training—without knowing for sure
that they will ultimately be awarded a restaurant. There are no
guarantees, and yet each year an estimated 7,000 prospects
inquire about the chance to become owner/operators, despite
the rigorous training requirements. It is a grueling process to get
certified. Only about 1 percent eventually make it to becoming
owner/operators with their first store.
And while the franchisees do have contractual agreements, it
is their faith that the company will do right by them that largely
drives their success. Former McDonald’s U.S. and global presi-
dent Mike Roberts said that faith dates back to the beginning
of McDonald’s history. “The early operator base remembered
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the days when Ray stayed in their homes and the company had
very little money, and it was all based on ‘we have to help each
other,’” Mike told me. “Those early operators, I think, are still
the reason today that the company is doing well, because that
solid support was based on commitments that individuals make,
not based on a licensing agreement. You can’t force people to
act based on a licensing agreement.” Operators from day one
knew that the company had their best interests at heart, and
knew that Ray wasn’t out to hurt them, Mike added.
That integrity—the promise to do right by the operator in
order to best serve the customer—was a given within the com-
pany. “It was all about obligations and keeping the focus of
everybody’s attention on the restaurant,” Mike pointed out.
Everyone in the system shares the same interest: supporting the
restaurant as it pertains to the customer. Mike reminded me that
those in the purchasing department are known to phone the
folks in the field eager to know how to help with the customer