Harry J. Sonneborn

Ray's difficulties taught him and his team to innovate around problems.

For instance, when he was cash-strapped, his financial advisor, Harry Sonneborn, devised a brilliant strategy.

McDonald's wouldn't just be a burger business, it would be a real estate business.

The company would own or control the land and leases under the new restaurants.

So it's kind of brilliant.

Yeah, I think it was Harry Sonneborn.

He was the one that told Ray Kroc that you're not in the hamburger business.

You're in the real estate business.

Complete ownership didn't solve the immediate cash flow crisis for Ray Kroc.

The breakthrough arrived via financial expert Harry Sonneborn, who introduced Kroc to a real estate model that would become the true engine of McDonald's dominance.

Instead of merely collecting meager hamburger royalties, the corporation began purchasing and leasing prime commercial real estate plots, constructing the restaurants, and then leasing them back to the franchisees at a markup.

McDonald's locations follow a pattern, being situated in high-traffic areas, often near highway exits, busy streets, and other attractions.