Has Brown found the vision thing?

Fresh from being likened to Stalin, Gordon Brown sought to establish his credentials as a new and li

As part of his preparations for this year's Budget, Gordon Brown decided to spend more time with his family to keep himself in touch with the new priorities in his life. So it was in the past few weeks that his two young sons, John and Fraser, were allowed to come and play at their father's feet in the Treasury while he finalised the figures. Not quite the actions of an ordinary working man, but being Chancellor of the Exchequer is no ordinary job. All the same, this was quite something for a man proud of his Stakhanovite capacity for hard work (Soviet pun intended).

Brown's confidants have argued for some time that the Chancellor is a changed man, that his attitude to life and work has been transformed by fatherhood. This is why Lord Turnbull's comments about his Stalinist-Macavity tendencies hit such a raw nerve. Turnbull was calling him a bully and a coward, a particularly unattractive combination. Whatever the truth, the former head of the civil service was describing the old Gordon. Turnbull left the Treasury before John Brown was born. Yet the timing of the comments could not have been worse.

This was always going to be a big Budget for Brown and not just in the way economists use the term (a significant fiscal intervention). This is not just Brown's last Budget as Chancellor. It is the first he will have to work within as a prime minister. Whether, when the dust settles, it is interpreted as a tax-cutting Budget, a Budget for the poor, his green Budget, his education Budget, a Budget for business or all of the above, it is, more than anything else, his legacy to himself.

For this reason, it should be perused as the first statement of intent as leader of the country.

Brown was determined to leave No 11 with a bang rather than a whimper. His spectacular flourish at the end of his budget speech - a cut of 2p in the basic rate of income tax - certainly achieved that. The surprise element was reinforced by the abolition of the 10p rate in order to target tax credits at pensioners, as well as at the poorest children and families. This may turn out to be genuinely redistributive. The deal with major retailers to create 100,000 extra jobs is a more typical Brown touch. In an appeal to business that had appeared to be cooling on him, the Chancellor announced a cut in corporation tax of 2 per cent, which, he was keen to note, left Britain with a rate below that of his beloved, entrepreneurial US.

And yet, in some ways, Budget 2007 bears a resemblance to Budget 2006. A hike in road tax on gas guzzlers and an increase in tax credits for the poorest families were also fixtures last year. The commitment to raising spending in state schools to match levels in the independent sector were also announced last March. The mood music, too, is eerily familiar. A resurgent Conservative Party, the cash-for-honours inquiry, doubts over the Brown premiership: these were themes of last year's coverage, too.

There are, however, three significant differences. Last year, Cameron's Tories were already media darlings, but had no traction in the polls. Now they are 10 points ahead, or 15 when Brown is factored in as Labour leader. Secondly, a surprise rise in inflation to 4.6 per cent, according to some indicators, has raised questions about the long-term health of the economy. Thirdly, the unprecedented attack from Turnbull. There has been a tendency in Brown's circle to be dismissive of criticism, but in this case they cannot afford to ignore it. There is now a growing number of people who have worked with Brown willing to criticise his style in government. The Chancellor is a man who famously doesn't suffer fools gladly. But when cabinet ministers and top civil servants think they've been treated as fools, then powerful enemies lie in wait.

Willing participant

It is no coincidence that the first report from the government's six-month policy review was published in the same week as the Budget, and these two announcements should be seen as interwoven. If Blair's policy review was ever intended to lock Brown into the Prime Minister's legacy, then he has been a willing participant in this process.

Education is at the heart of the Budget, but it is a vision of schools, colleges and universities entirely consistent with the new Labour vision of the future forged by the Blair-Brown alliance. The very financing of the rise in education spending (£76bn to £90bn by 2011) is partly dependent on selling off a slice of the £6bn student debt. This would simply not have been possible on such a scale without reforms to higher education funding and a huge rise in student numbers that have happened under Labour.

It is a sign of Brown's determination to prioritise education that he has been prepared to announce the cash pledge to schools earlier than the long-term settlements for other government departments. They will have to wait for the Comprehensive Spending Review. The boost to city academies is consistent with this approach. It is fanciful to believe the Chancellor was ever opposed to private sector involvement in education or to giving schools greater autonomy. But it is noticeable that there is no mention of the new independent "trust schools", whose introduction caused a major backbench rebellion last year. The silence in this area suggests this particular addition to educational diversity is unlikely to see the light of day under a Brown government.

Vision thing

So does Brown's last Budget give an inkling of what "Brownism" might turn out to be? Has he finally discovered the "vision thing"?

On green issues, he is a late convert and yet to prove his credentials. As he showed in recent jousts with the Tories over a tax on air travel, Brown is not convinced that taxation is the best way of changing behaviour. His decision to hit the most polluting gas guzzlers with a hike in road tax rising to £400 shows he is shamelessly prepared to raise green taxes from people unlikely to ever vote Labour. Such is the Chancellor's dim view of humanity that he believes wealthy people will be perfectly prepared to pay for the privilege of behaving badly. Instead, he believes good behaviour should be rewarded, which is why he has brought in tax breaks for people who generate their own electricity through wind turbines or solar panels.

In his final outing before he plays the starring role, Gordon Brown gave a studied demonstration in the arts of political charm. His last lines, in which he delivered his income tax cut, wrong- footed his many opponents, particularly David Cameron. They were also designed to reassure those on Labour's benches that he can lead the party from the front, with a mix of radicalism, guile and personality.

This was the essence of Brown, for whom the demolition of his adversaries has been the driving force of his political life. With this Budget, he will hope he has given himself a new platform for the tougher mission ahead.

He has only rarely disappointed at these set-piece occasions, and this time in particular he rose to the occasion. But as prime minister, the challenges will be of a different order, relentless and day to day - and the lines will be altogether harder to rehearse.

Wikimedia Commons
Show Hide image

The secret anti-capitalist history of McDonald’s

As a new film focuses on the real founder of McDonald’s, his grandson reveals the unlikely story behind his family’s long-lost restaurant.

One afternoon in about the year 1988, an 11-year-old boy was eating at McDonald’s with his family in the city of Manchester, New Hampshire. During the meal, he noticed a plaque on the wall bearing a man’s face and declaring him the founder of McDonald’s. These plaques were prevalent in McDonald’s restaurants across the US at the time. The face – gleaming with pride – belonged to Ray Kroc, a businessman and former travelling salesman long hailed as the creator of the fast food franchise.

Flickr/Phillip Pessar

But this wasn’t the man the young boy munching on fries expected to see. That man was in the restaurant alongside him. “I looked at my grandfather and said, ‘But I thought you were the founder?’” he recalls. “And that’s when, in the late Eighties, early Nineties, my grandfather went back on the [McDonald’s] Corporation to set the history straight.”

Jason McDonald French, now a 40-year-old registered nurse with four children, is the grandson of Dick McDonald – the real founder of McDonald’s. When he turned to his grandfather as a confused child all those years ago, he spurred him on to correct decades of misinformation about the mysterious McDonald’s history. A story now being brought to mainstream attention by a new film, The Founder.


Jason McDonald French

“They [McDonald’s Corporation] seemed to forget where the name actually did come from,” says McDonald French, speaking on the phone from his home just outside Springfield, Massachusetts.

His grandfather Dick was one half of the McDonald brothers, an entrepreneurial duo of restaurateurs who started out with a standard drive-in hotdog stand in California, 1937.

Dick's father, an Irish immigrant, worked in a shoe factory in New Hampshire. He and his brother made their success from scratch. They founded a unique burger restaurant in San Bernardino, around 50 miles east of where they had been flogging hotdogs. It would become the first McDonald’s restaurant.

Most takeout restaurants back then were drive-ins, where you would park, order food from your car, and wait for a “carhop” server to bring you your meal on a plate, with cutlery. The McDonald brothers noticed that this was a slow, disorganised process with pointless costly overheads.

So they invented fast food.

***

In 1948, they built what came to be known as the “speedy system” for a fast food kitchen from scratch. Dick was the inventor out of the two brothers - as well as the bespoke kitchen design, he came up with both the iconic giant yellow “M” and its nickname, the “Golden Arches”.

“My grandfather was an innovator, a man ahead of his time,” McDonald French tells me. “For someone who was [only] high school-educated to come up with the ideas and have the foresight to see where the food service business was going, is pretty remarkable.”


The McDonald brothers with a milkshake machine.

McDonald French is still amazed at his grandfather’s contraptions. “He was inventing machines to do this automated system, just off-the-cuff,” he recalls. “They were using heat lamps to keep food warm beforehand, before anyone had ever thought of such a thing. They customised their grills to whip the grease away to cook the burgers more efficiently. It was six-feet-long, which was just unheard of.”

Dick even custom-made ketchup and mustard dispensers – like metal fireplace bellows – to speed up the process of garnishing each burger. The brothers’ system, which also cut out waiting staff and the cost of buying and washing crockery and cutlery, brought customers hamburgers from grill to counter in 30 seconds.


The McDonald brothers as depicted in The Founder. Photo: The Founder

McDonald French recounts a story of the McDonald brothers working late into the night, drafting and redrafting a blueprint for the perfect speedy kitchen in chalk on their tennis court for hours. By 3am, when they finally had it all mapped out, they went to bed – deciding to put it all to paper the next day. The dry, desert climate of San Bernardino meant it hadn’t rained in months.

 “And, of course, it rained that night in San Bernardino – washed it all away. And they had to redo it all over again,” chuckles McDonald French.

In another hiccup when starting out, a swarm of flies attracted by the light descended on an evening event they put on to drum up interest in their restaurant, driving customers away.


An original McDonald's restaurant, as depicted in The Founder. Photo: The Founder

***

These turned out to be the least of their setbacks. As depicted in painful detail in John Lee Hancock’s film, Ray Kroc – then a milkshake machine salesman – took interest in their restaurant after they purchased six of his “multi-mixers”. It was then that the three men drew up a fateful contract. This signed Kroc as the franchising agent for McDonald’s, who was tasked with rolling out other McDonald’s restaurants (the McDonalds already had a handful of restaurants in their franchise). 

Kroc soon became frustrated at having little influence. He was bound by the McDonalds’ inflexibility and stubborn standards (they wouldn’t allow him to cut costs by purchasing powdered milkshake, for example). The film also suggests he was fed up with the lack of money he was making from the deal. In the end, he wriggled his way around the contract by setting up the property company “McDonald’s Corporation” and buying up the land on which the franchises were built.


Ray Kroc, as depicted in The Founder. Photo: The Founder

Kroc ended up buying McDonald’s in 1961, for $2.7m. He gave the brothers $1m each and agreeing to an annual royalty of half a per cent, which the McDonald family says they never received.

“My father told us about the handshake deal [for a stake in the company] and how Kroc had gone back on his word. That was very upsetting to my grandfather, and he never publicly spoke about it,” McDonald French says. “It’s probably billions of dollars. But if my grandfather was never upset about it enough to go after the Corporation, why would we?”

They lost the rights to their own name, and had to rebrand their original restaurant “The Big M”. It was soon put out of business by a McDonald’s that sprang up close by.


An original McDonald restaurant in Arizona. Photo: Flickr/George

Soon after that meal when the 11-year-old Jason saw Kroc smiling down from the plaque for the first time, he learned the true story of what had happened to his grandfather. “It’s upsetting to hear that your family member was kind of duped,” he says. “But my grandfather always had a great respect for the McDonald’s Corporation as a whole. He never badmouthed the Corporation publicly, because he just wasn’t that type of man.”

Today, McDonalds' corporate website acknowledges the McDonalds brothers as the founders of the original restaurant, and credits Kroc with expanding the franchise. The McDonald’s Corporation was not involved with the making of The Founder, which outlines this story. I have contacted it for a response to this story, but it does not wish to comment.

***

Dick McDonald’s principles jar with the modern connotations of McDonald’s – now a garish symbol of global capitalism. The film shows Dick’s attention to the quality of the food, and commitment to ethics. In one scene, he refuses a lucrative deal to advertise Coca Cola in stores. “It’s a concept that goes beyond our core beliefs,” he rants. “It’s distasteful . . . crass commercialism.”

Kroc, enraged, curses going into business with “a beatnik”.


Photo: The Founder

Dick’s grandson agrees that McDonald’s has strayed from his family’s values. He talks of his grandfather’s generosity and desire to share his wealth – the McDonald brothers gave their restaurant to its employees, and when Dick returned to New Hampshire after the sale, he used some of the money to buy new Cadillacs with air conditioning for his old friends back home.

“[McDonald’s] is definitely a symbol of capitalism, and it definitely sometimes has a negative connotation in society,” McDonald French says. “If it was still under what my grandfather had started, I imagine it would be more like In'N'Out Burger [a fast food chain in the US known for its ethical standards] is now, where they pay their employees very well, where they stick to the simple menu and the quality.”

He adds: “I don’t think it would’ve ever blossomed into this, doing salads and everything else. It would’ve stayed simple, had quality products that were great all the time.

“I believe that he [my grandfather] wasn’t too unhappy that he wasn’t involved with it anymore.”


The McDonald’s Museum, Ray Kroc’s first franchised restaurant in the chain. Photo: Wikimedia Commons

Despite his history, Dick still took his children and grandchildren to eat at McDonald’s together – “all the time” – as does Jason McDonald French with his own children now. He’s a cheeseburger enthusiast, while his seven-year-old youngest child loves the chicken nuggets. But there was always a supersize elephant in the room.

“My grandfather never really spoke of Ray Kroc,” he says. “That was always kind of a touchy subject. It wasn’t until years later that my father told us about how Kroc was not a very nice man. And it was the only one time I ever remember my grandfather talking about Kroc, when he said: ‘Boy, that guy really got me.’”

The Founder is in UK cinemas from today.

Anoosh Chakelian is senior writer at the New Statesman.