Harry J. Sonneborn
Harry J. Sonneborn | |
|---|---|
| Born | Harold J. Sonneborn June 12, 1916 Evansville, Indiana, U.S. |
| Died | September 21, 1992 (aged 76) Theodore, Alabama, U.S. |
| Occupation(s) | Business executive, President of Finances, Tastee-Freez, President McDonald's (1955–1967) |
| Years active | 1939–1992 |
| Spouse(s) | June Kepler (m. 1938-1964) Aloyis Lee (m. 1964) |
| Children | 2 |
Harry J. Sonneborn (June 12, 1916 – September 21, 1992) was an American businessman, best known for being the first president and chief executive of McDonald's Corporation.
Early life
[edit]Sonneborn was born in Evansville, Indiana, the son of Minnie (Greenbaum) and Mark Harry Joseph.[citation needed] He was adopted and raised by his paternal aunt, Jeanette (Joseph), and her husband, Louis Sonneborn, in New York City.[1] His family was Jewish.[2]
Career
[edit]Work with McDonald's
[edit]A former vice president of finances at Tastee-Freez, Sonneborn approached Ray Kroc with the concept of Kroc owning the land that McDonald outlets were to be built on and then leasing that land to the franchisee. This business model led to the explosive growth of McDonald's; the real estate deals were handled through a specially formed corporation named "McDonald's Franchise Realty Corp."[3][4] The "Sonneborn model" persists to this day within the corporation, and might have been the most important financial decision in the company's history. McDonald's present-day real estate holdings represent $37.7Bn on its balance sheet, about 99% of the company's assets and about 35% of its global revenue.[5]
Kroc appointed Sonneborn as McDonald's first president and chief executive officer in 1959. In 1967, he fell out with Kroc when Kroc insisted on continuing expansion whereas Sonneborn held the conservative view that the country was heading into a recession and they should stop building new stores. Sonneborn resigned from McDonald's on June 8, 1967.[6] Kroc took his title afterwards.[7][8]
Other interests
[edit]After leaving McDonald's, Sonneborn continued to be involved in the business world through the stock market, capital investments, and banking.[citation needed] He and his wife Aloyis founded several philanthropic foundations.[citation needed]
Sonneborn was a noted collector of historical documents.[9] His collection included an annotated copy of the US Constitution, copies of every US state's constitution, the document by Paul von Hindenburg declaring Adolph Hitler as dictator of Germany and a letter written by Vladimir Lenin denouncing anti-semitism in Russia.[9][10]
Personal life
[edit]Sonneborn married June Kepler on December 13, 1938.[11] They raised two children together, a son and a daughter.[12] A divorce was granted in 1964 in which June received a property settlement of $785,000 that included their home in Winnetka, Illinois, alimony, insurance, child support and $200,000 in payment for her half of their McDonald's stock.[12] Sonneborn married Aloyis Lee in 1964.
In 1969, June sued Sonneborn for more than $21 million. She claimed he had told her the stock was only worth $5 per share and bought her out before the divorce, then sold her shares six months afterwards for $22.50 per share.[6] A federal jury exonerated Harry Sonneborn and found against his ex-wife in 1971.[13]
Following his retirement in 1967, Sonneborn and his wife Aloyis moved to Mobile, Alabama.[14] They built an estate on the Fowl River that included a 14,500 square-foot house, a small golf course, a dock and a 630-acre wildlife preserve.[14]
Sonneborn died at his home in Theodore, Alabama on September 21, 1992.[9]
In popular culture
[edit]In the 2016 film The Founder, Sonneborn was portrayed by actor B. J. Novak, who spoke the famous line "You're not in the burger business; you're in the real estate business."[15]
Further reading
[edit]- Love, John F. (1995). McDonald's: Behind the Arches. New York: Bantam Books. ISBN 0-553-34759-4.
- Frederic P. Miller, Agnes F. Vandome, McBrewster John (November 11, 2010). ""Harry J. Sonneborn" (Book, 72 pages) VDM Publishing". Archived from the original on January 31, 2013.
{{cite web}}: CS1 maint: multiple names: authors list (link)
References
[edit]- ^ Sonneborn, Charles Behrend (14 February 1994). "Sonneborn: a celebration of generations". C.B. Sonneborn – via Google Books.
- ^ "The Secret Jewish History of McDonald's". 24 January 2017.
- ^ Madhusoodanan, Sriram (2017-02-02). "'The Founder' Reveals the Real Ray Kroc -- But Not the Rest of the McDonald's Story". Entrepreneur. Retrieved 2019-09-30.
- ^ "Ray Kroc and the Fast Food Industry". www.wiley.com. Retrieved 2019-09-30.
- ^ Brownlee, Adam (Sep 21, 2018). "McDonalds Corporation - A real estate empire". Motley Fool.
- ^ a b Unger, Rudolph (February 15, 1969). "Ex-Mate Sues Dine-in King for $21 Million". Chicago Tribune. p. 6.
- ^ Kroc, Ray (1977). Grinding It Out: The Making of McDonald's. Macmillan. p. 253. ISBN 978-1-250-12750-1.
- ^ Brownlee, Adam (2016-03-06). "McDonald's Corporation: A Real Estate Empire Financed by French Fries". The Motley Fool. Retrieved 2019-09-30.
- ^ a b c Helse, Kenan (October 6, 1992). "Ex-McDonald's Exec Harry J. Sonneborn, 77". Chicago Tribue. p. B8.
- ^ "Hitler Decree Found in U.S." Forth Worth Star-Telegram. June 10, 1974. p. 14-A.
- ^ Hinkle Steel, Mary (December 11, 1938). "Social". Evansville Press. p. C1.
- ^ a b "$785,000 Divorce Award". Chicago Tribune. October 24, 1964. p. 3.
- ^ "Ex-Wife Loses Action Against 'Burger' Chief". Chicago Tribune. June 3, 1971. p. B10.
- ^ a b Mitchell, Garry (September 22, 1985). "McDonald's Exec Giving Up Estate". The Anniston Star. p. 16A.
- ^ Archived at Ghostarchive and the Wayback Machine: "The Founder - Movie Clip: "You're In The Real Estate Business"". YouTube.