“We’ll win when we become New Labour”

The reforming Tories around David Cameron and George Osborne are determined to pick up where Tony Bl

If the party chatter at Labour conference was all politics - would Gordon survive or would Miliband the Elder step aside for the much-favoured Miliband the Younger? - the Tories are in full wonk mode. "What should we do about the Educational Maintenance Allowance?" is the kind of question they'll be asking over the canapés in Manchester. Or: "How will the pupil premium work?"

Economic policy is at the fore, and it is frankly the area in which the Conservatives have the most work to do. But public service reform runs a close second. The reforming Tories clustered around David Cameron and George Osborne are determined to pick up where Tony Blair left off. Many of these bright young things are undisguised admirers of Blair, but they think he was too slow in seeing that real reform in the public sector means giving power away, rather than setting targets from the centre. The reason Blair had "scars on his back" from trying to reshape the public services is that he fell into the trap of attempting to run schools and hospitals from his sofa in Downing Street. So his first parliamentary term was wasted.

Heirs to Blair

The new Conservative/old Blairite mission is to use consumer choice to produce better, fairer public services. The idea is to create what the New Labour academic Julian Le Grand has called "quasi-markets" - but then rig these markets in favour of the poor. Labour made a start in both health and education, with foundation hospitals and academy schools. But then Blair ran out of road. Michael Gove, the shadow education secretary, wants to give choice to parents over which school to send their children to, with money following the pupil wherever he or she goes. But crucially, he also plans to weight the choice in favour of the least advantaged by giving them a "pupil premium". Parents will also be able to use the money to set up their own schools, although few are expected to do so. The National Curriculum will be slimmed down. Head teachers will get much more power over pay and rations.

Tory education policy is an example of undiluted Blairism. It chimes perfectly with Cameron's calls for a "radical redistribution of power" and with the call in Leading from the Front, a new pamphlet from Demos, for more discretion and power to be given to front-line public servants. Conservative plans to give local councils greater authority are another part of the drive for more diversity, competition and accountability.

Three years ago, one of Cameron's inner circle said to me: "We'll win when we become New Labour, and Labour ceases to be New Labour." On education, both demands have been met. Labour still talks the language of reform here, but is back to tinkering from the centre. On these pages, the Schools Secretary, Ed Balls, has said he doesn't need think tanks to work out that there is a "false choice between heavy-handed statism which does not respect individual choices and a so-called progressive liberalism that sees the state as the enemy of individual freedom". But this is the minister who made cooking classes mandatory in every school, and even gave his own recipe suggestions (shepherd's pie and apple crumble); the minister who, in July, made home-school agreements compulsory; the minister who wants state checks on parents giving the neighbours' kids a lift to Scout meetings.

The Tories have ring-fenced spending on the National Health Service - instead of education, which would make more sense - and have opposed many Labour reforms aimed at giving more power to patients. They appear willing to give up some of Labour's hard-won ground to GPs on out-
of-hours working.

Luddite on health

The politics of this are obvious. As part of the detoxification of the Tory brand, it was vital to be seen as a friend of the NHS. Tory high command knows the media would love to run "Tories to privatise health service" stories. The Tories know, too, that they will have to fight the teachers' unions to get their education reforms through, and have calculated that they can't afford to fight the health unions at the same time. They don't want a war on two fronts.

But they are now in danger of losing some political credibility. While Lansley blows kisses at the doctors, the Health Secretary, Andy Burnham, is pushing ahead with reform. As well as giving patients the right to choose their own GP, he is driving individual budgets for social care and shifting resources into preventative health.

It is a reflection of the weird, refractive nature of current politics that the Conservatives are Blairite on education and Luddite on health, while Labour is regressing on schools reform but still heroically wrestling with the NHS.

When the Tories win next year, they will need a true moderniser in health care: someone with impeccable reformist credentials, a reputation for strong departmental management and a willingness to fight the trade unions. How about Peter Mandelson?

Richard Reeves is director of Demos

This article first appeared in the 05 October 2009 issue of the New Statesman, The tories/the people

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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.