Twenty-five years before Ray Kroc opened his first McDonald’s store, he was a struggling “paper cup” salesman in Chicago. It was 1930; the country was in the midst of the prohibition era and soda fountains were rapidly expanding as an alternative to bars. Walgreen’s was leading the way, opening new stores and soda fountains at a feverish pace.
Kroc lived just a few miles from Walgreen’s headquarters and saw an opportunity for his paper cups. So, he arranged a meeting with the VP of Food Service where he proposed that Walgreen’s offer “take-out drinks” from their soda counters.
“Are you crazy?” the VP blasted back! “Why should I pay you 1½ cents for a cup? That will cut my profits. No way!”
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