🍟 The Happy Meal: A Delicious McMystery | 1

Summary

The Best Idea Yet: Episode 1 – 🍟 The Happy Meal: A Delicious McMystery

Release Date: October 15, 2024

Introduction

In the premiere episode of Wondery’s The Best Idea Yet, hosts Nick Martell and Jack Kravitz Kramer delve deep into the fascinating and somewhat contested origin story of one of the most iconic fast-food products in history—the McDonald's Happy Meal. This episode not only uncovers the untold narratives behind the Happy Meal but also explores the innovative strategies and bold risk-takers who propelled it to global fame.

Setting the Scene: Family Road Trips and the Birth of an Icon

The episode opens with a nostalgic recount of family road trips, highlighting the universal dilemma families face when deciding where to stop for a meal. Martell and Kravitz Kramer use this relatable scenario to segue into the introduction of the Happy Meal, emphasizing its role as a universal solution for satisfying both children and adults alike.

The Genesis of the Happy Meal: Yolanda Fernandez de Cofino’s Vision

At [06:45], Martell introduces the central figure of the Happy Meal’s creation—Yolanda Fernandez de Cofino, affectionately known as Dona Yoli—a pioneering mom and franchise owner in Guatemala. On [06:53], the hosts paint a vivid picture of Dona Yoli’s endeavors:

Nick Martell: “In June 19, 1974, Guatemala City's historic district, Yolanda Fernandez de Cofino is grinning from ear to ear. Because it's opening day for the very first McDonald's franchise located in Guatemala.” [06:45]

Dona Yoli, juggling the responsibilities of raising five children and managing a new franchise, identifies a crucial gap in McDonald's offerings—the need to cater specifically to children. Her firsthand observations at her restaurant, where parents struggled with oversized meals for their kids, lead her to conceptualize a meal tailored just for children.

Framing the Strategy: The Window of Loyalty

A pivotal concept discussed at [17:21] is the "window of loyalty." Martell explains:

Jack Kravitz Kramer: “Right. Yetis. This is a big reason why brands target kids when they're young and impressionable. Because unlike grownups, kids remember the experience with that brand using all five senses. And once that memory is formed, it sticks for life.” [17:21]

This strategy underscores the importance of creating memorable experiences for children, thereby fostering lifelong loyalty to the brand.

Contested Origins: Bob Bernstein and Burger Chef’s Influence

While Dona Yoli’s contribution is significant, the episode introduces alternative claims to the Happy Meal's invention. Bob Bernstein, a marketing executive in Kansas City, contends that he independently developed the Happy Meal without influence from Dona Yoli. Additionally, the narrative reveals that Burger Chef, a rival chain, had a similar offering called "fun meals" as early as 1973. This leads to a heated debate over who truly deserves credit for the Happy Meal’s inception.

Corporate Dynamics and the Rollout of the Happy Meal

Despite the conflicting origin stories, both Dona Yoli’s and Bob Bernstein’s efforts align in 1977, leading to the nationwide launch of the Happy Meal in 1979. The episode highlights how McDonald's leveraged cross-promotions with blockbuster movies like Star Trek to catapult the Happy Meal into a cultural phenomenon. These strategic partnerships introduced themed toys that not only delighted children but also encouraged repeat visits, solidifying the meal’s popularity.

Global Adaptations and Continued Innovation

As McDonald's expanded internationally, the Happy Meal evolved to suit diverse markets. The hosts share intriguing variations, such as Japan's "Okasama Lunch," which includes items like fried shrimp and sweet pudding, and unique packaging like tray-shaped trains with dry ice effects. These adaptations demonstrate McDonald's commitment to maintaining the Happy Meal's relevance and appeal across different cultures.

Challenges and Adaptations: Navigating Public Perception

The episode doesn't shy away from the challenges McDonald's faced, including criticism from documentaries like Super Size Me that spotlighted unhealthy eating habits associated with fast food. In response, McDonald's revamped the Happy Meal menu in the 2000s to include healthier options like smaller fries and apples, reinforcing brand trust with health-conscious parents.

Legacy and Lasting Impact

Dona Yoli's legacy is celebrated as she became president of McDonald's Guatemala and received the prestigious Ronald Award for her contributions. The Happy Meal's success is quantified with staggering numbers:

Jack Kravitz Kramer: “By Raw Fast estimates, there have been more than 35 billion Happy Meals sold.” [40:31]

This statistic underscores the Happy Meal's enduring impact on both McDonald's and global fast-food culture.

Key Takeaways

1. Window of Loyalty: Establishing early, positive experiences with children fosters lifelong brand loyalty, a strategy effectively utilized by McDonald's through the Happy Meal.

2. Innovation Through Observation: Dona Yoli's keen observation of her customers' needs led to the creation of a product that addressed specific market gaps, highlighting the importance of understanding local consumer behavior.

3. Strategic Partnerships: Collaborations with popular media franchises amplified the Happy Meal's appeal, demonstrating the power of cross-promotional marketing in product success.

4. Adaptability: McDonald's ability to adapt the Happy Meal to different cultures and respond to health critiques showcases the importance of flexibility in maintaining product relevance.

Notable Quotes

• Nick Martell: “She didn't just create the Happy Meal, she changed the most iconic brand in the world. And she changed restaurant culture worldwide.” [40:10]

• Jack Kravitz Kramer: “The collect them all drive is real and it's spectacular. This was Pokémon before Pikachu.” [33:46]

• Nick Martell: “Some of the biggest opportunities out there are hiding in the blind spots of business.” [39:07]

Conclusion

The first episode of The Best Idea Yet masterfully uncovers the multifaceted story behind the Happy Meal, intertwining personal narratives, corporate strategies, and global influences. By highlighting the contributions and challenges faced by key individuals like Dona Yoli and Bob Bernstein, the episode illustrates how a simple idea can evolve into a worldwide phenomenon through innovation, strategic thinking, and adaptability.

For listeners eager to explore more origin stories of beloved products, the hosts tease the next episode focused on the Super Mario Brothers, promising another deep dive into the creativity and challenges that shape the products we cherish today.

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Transcript

[Nick Martel]

Wondery plus subscribers can listen to the best idea yet, early and ad free right now.

[Jack Kravitz Kramer]

Join Wonder plus in the Wonder app or on Apple Podcasts.

[Nick Martel]

Wondery. All right, Jack, so your mom hands you a Capri Sun.

[Jack Kravitz Kramer]

I don't know the flavor, but something tropical.

[Nick Martel]

Oh, and you've got a Gap sweatshirt.

[Jack Kravitz Kramer]

On G, A, P. I know the one you're talking about. Yeah.

[Nick Martel]

Size Husky. Oh, and then Alanis Morissette, she's playing in the background. You know, it's like a little bit of hand in my pocket. Maybe a little bit of ironic.

[Jack Kravitz Kramer]

I think you're describing 10 year old me in my minivan on a family road trip. Is that the scene you're painting?

[Nick Martel]

Boom, baby, it's 1998. You've been in the cart for hours, man. You're hungry, you're getting cranky. Oh, and someone has to go to the bathroom. And finally your mom decides to turn off an exit. And I know you know what the next question is.

[Jack Kravitz Kramer]

Oh, yeah, yeah. Where are we going to eat?

[Nick Martel]

Oh, where are we going to eat? Oh, and then, Jack, remember this is the BC era. Like BC before Chipotle. Like you can't just pop off the road, man.

[Jack Kravitz Kramer]

So my brother Nick probably wanted Taco Bell. My brother Tuck probably wanted Wendy's. Teddy wanted Burger King.

[Nick Martel]

And I like it.

[Jack Kravitz Kramer]

I was going for the Chicken McNuggets.

[Nick Martel]

This is a Michelin starred crowd. Well, every family has faced that decision. Literally millions. And there's probably a family right now in their car listening to this pod going through exactly this.

[Jack Kravitz Kramer]

Besties. Whether you're barreling down the East coast on I95 or taking the scenic route down the PCH, chances are you're gonna stop for some grub at one of the 200,000 fast food restaurants in the United States. And if you've got your family with you, no way. You're making multiple stops.

[Nick Martel]

No way.

[Jack Kravitz Kramer]

So where can you go where everyone can find something that makes them happy?

[Nick Martel]

Happy? Well, that answer comes in a cardboard box. It costs about six bucks and it is literally the most sold meal in history. We're talking about the Happy Meal.

[Jack Kravitz Kramer]

Your kids will love McDonald's Happy Meal.

[Nick Martel]

It's food and fun in a box. Nobody can do it like McDonald's can. Well, Jack, did you have a favorite Happy Meal toy? Let's dig it back up, man.

[Jack Kravitz Kramer]

Absolutely.

[Nick Martel]

Talk to me, man.

[Jack Kravitz Kramer]

This was my Power Rangers era. If I got the Green Ranger, Tommy, it made my year.

[Nick Martel]

Oh, Jack, I was ahead of my time. I was going Pink Ranger on that thing. You know, that is ahead of your time.

[Jack Kravitz Kramer]

It was.

[Nick Martel]

Now, since this is our first episode, we want to take a second to tell you what this is all about. If you know us from our other show, the best one yet, our daily.

[Jack Kravitz Kramer]

Business News show, over 1,000 episodes and counting.

[Nick Martel]

Well, Yetis and besties, you've heard us break down the most important pop biz news stories in business today. But on the best idea yet, we're going deep on the surprising, the unexpected, the unknown origin stories of your favorite products.

[Jack Kravitz Kramer]

Right. We found the products that are the most loved with the biggest cult followings. But then we discovered the unexpected ways they actually came to life. Yeah, we're digging into who had that first spark, what shocking challenge almost stopped them in their tracks, and how they got over the hump to bring these iconic products to market and to you. And Yetis, you know, we're going to give you the business insights along the.

[Nick Martel]

Way, and that is why Jack and I think this first product is just the perfect place to start.

[Jack Kravitz Kramer]

McDonald's has sold over 35 billion Happy Meals since they first launched it.

[Nick Martel]

Jack, can you sprinkle on a little more salty Context, please?

[Jack Kravitz Kramer]

The 2016 study found that McDonald's was selling 3.2 million Happy Meals every day.

[Nick Martel]

Don't even tell me the cow.

[Jack Kravitz Kramer]

That's enough food to feed every single person in Iowa. Magellan.

[Nick Martel]

I am loving these geography analogies. What else you got, man?

[Jack Kravitz Kramer]

Nick, line up that many Happy Meals and they reach from Paris to Amsterdam.

[Nick Martel]

Oui, oui. And with a toy in every single box, this makes McDonald's one of the largest toy distributors in the world, adding up to 1.5 billion toys annually.

[Jack Kravitz Kramer]

Think about it. McDonald's sells more toys than Hasbro or Mattel.

[Nick Martel]

Yeah, that's right. The Happy Meal is a bigger toy franchise than Barbie.

[Jack Kravitz Kramer]

The Happy Meal is the most popular, profitable, and iconic dish in commercial history.

[Nick Martel]

Yes, it is.

[Jack Kravitz Kramer]

And it smells like it was cooked up in some R and D lab at McDonald's headquarters like every other fast food dish.

[Nick Martel]

Except it wasn't. The Happy Meal was actually the opposite of that. Few know the Happy Meal's secretive, surprising, and contested origin, because the most iconic meal in a box since the invention of the lunch pail was actually invented.

[Jack Kravitz Kramer]

By a pioneering mom in Central America.

[Nick Martel]

That's right. The entire Happy Meal industry starts with a working mom in Guatemala.

[Jack Kravitz Kramer]

Or was it a Missouri dad who happens to be an ad exec?

[Nick Martel]

Or Jack paused the pot. Was it grimaced the entire time? Classic grimace.

[Jack Kravitz Kramer]

There's actually a hot dispute at the center of this story. And we're going to get into all of it. We're going to take you to McDonald's University real thing. Find the first breakthrough toy made in China and learn how the Happy Meal creates lifelong customers with a strategy called the window of loyalty.

[Nick Martel]

The window of loyalty. Not to be confused with the drive through window where you snag that six piece McNuggets and find out the McFlurry.

[Jack Kravitz Kramer]

Machine is still broken.

[Nick Martel]

You don't need mom's permission for this episode, but you're gonna wanna tell her about it right afterwards.

[Jack Kravitz Kramer]

Because this is the untold story of the McDonald's Happy Meal. The most important meal in history. At least according to your inner 6 year old.

[Nick Martel]

Stick around to hear why the Happy Meal is the best idea yet.

[Jack Kravitz Kramer]

This episode is sponsored by Abbott. Let's talk about a small thing that can make a big difference if you have diabetes. The Freestyle Libre 3 sensor. It's amazing how the sensor gives you real time glucose readings so you can see the impact of every meal and every activity to make better choices. The Freestyle Libre 3 sensor can help you live life with diabetes on your terms. You can try it free at FreestyleLibre US offer available for people who qualify. Visit MyFreestyle US to see all terms and conditions. Certain exclusions apply for prescript safety info found @freestylelibre us.

[Nick Martel]

From Wonder and T Boy. I'm Nick Martel.

[Jack Kravitz Kramer]

And I'm Jack Crevici Kramer. And this is the best idea yet.

[Nick Martel]

The untold origin stories of the products you're obsessed with and the bold risk takers who brought them to life.

[Jack Kravitz Kramer]

I got that feeling again Something familiar, but new. We got it coming to you got that feeling again they changed the game in one move. Here's how they broke all the rules.

[Nick Martel]

It's June 19, 1974, Guatemala City's historic district. And Yolanda Fernandez de Cofino is grinning from ear to ear. Because it's opening day for the very first McDonald's franchise located in Guatemala. And she and her husband, they own it. She's turning 40 next month and she's feeling excited for this new chapter in her life. Life. Because it's been months of work to get this thing ready, to bring in the supplies, to hire and then to train 30, 40 employees, all while raising 5 kids of their own. That's a lot.

[Jack Kravitz Kramer]

Now, quick side note, McDonald's Corporation, they don't actually own most of the restaurants.

[Nick Martel]

Great point, Jack.

[Jack Kravitz Kramer]

That would be the franchisees. So Yolanda and her husband are small business Owners and they put up their own money to build the first Guatemalan McDonald's location.

[Nick Martel]

Basically they're paying McD's a licensing fee in exchange for the rights to use the McDonald's brand, the logo and all those salty sweet recipes.

[Jack Kravitz Kramer]

El Mac Mas Grande, did they call that actually?

[Nick Martel]

Maybe fact check that. But this is a system that's been in place since even before Ray Kroc, who is the cutthroat entrepreneur and eventually the Mickey D CEO that muscled the McDonald's brothers out of their own company back in 1961.

[Jack Kravitz Kramer]

For that story, you can curl up on the couch and watch a movie called the Founder.

[Nick Martel]

It's a good airplane movie. I watched that on a flight the other day. But Yeti's, McDonald's, they started expanding to international markets in the late 60s. But as of 1974, McDonald's hasn't made a huge dent in Latin America. So as Guatemala's first McDonald's franchisee, Yolanda, or Dona Yoli as she's known locally, is ready to introduce this fast, this affordable, this fantastic new food to her community. Now the Cofino Fernandez family, they may own the franchise together, but it's Dona Yoli who really takes charge. She is the fast food trailblazer. Or as McDonald's employees like to say, she's got ketchup in her veins.

[Jack Kravitz Kramer]

What a great expression. Although that can't be good for the blood pressure.

[Nick Martel]

I mean you may want to see a doctor at a certain point, Jack. But still, Dona Yoli, she wants their location in Guatemala to feel like a family owned restaurant. She does not want this to feel like a chain. But there are a lot of hidden steps that go into creating this kind of environment.

[Jack Kravitz Kramer]

Like all the details you have to nail the soda fountains, the hiring standards, the daily signage, ensure the sesame seed bun is the same density in Guatemala. Yeah. As it is in Grand Rapids. Yeah, it is.

[Nick Martel]

You are literally running a business when you're franchisee. But since it's a business you didn't found, you gotta do everything according to the corporate standards. And this is why Dona Yoli ventures 2,700 miles from her home to Elk Grove Village, Illinois. That's right. Dona Yoli is going to Hamburger University.

[Jack Kravitz Kramer]

Hu, Nick, I have some questions about this university.

[Nick Martel]

Oh Jack, you may need to apply. But let's get into it, baby. Hamburger University, which by the way should absolutely be a D1 school, is the brainchild of a guy named Fred Turner. Now Fred, he actually started as a grill man at one of the very first McDonald's franchise locations. But this university he dreams up, it's actually a training program for franchise owners. The very first type of training program like this in the entire world. Jack. This is the Harvard for hamburgers. This is the Stanford for fries, man.

[Jack Kravitz Kramer]

The Cambridge for Quarter Pounders.

[Nick Martel]

And it all starts in the basement of a McDonald's in Elk Grove Village, a suburb not that far from Chicago's O'Hare Airport. Now, the students at Hamburger University, they earn a bachelor's of Hamburgerology with, like, a minor in French fries. Jack, would you hang that on your wall? I feel like that's a good diploma to brag about.

[Jack Kravitz Kramer]

On my wall. No, but on my brand new McDonald's location.

[Nick Martel]

Exactly. Because despite what you may think, Hamburger University students there are learning everything from supply chain logistics to management to leadership skills. And actually, it is really hard to get into Hamburger University. You ready for some stats, man?

[Jack Kravitz Kramer]

Hit me.

[Nick Martel]

Okay. Today, the Shanghai campus of Hamburger university has a 1% acceptance rate that's actually lower than Harvard.

[Jack Kravitz Kramer]

So I take it back. I will put that diploma on my wall.

[Nick Martel]

Yeah, get it, Frame Jack. Now, when Dona Yoli attends Hamburger University, she's absorbing everything. But there is one thing that Yolanda learns at Hamburger University that really gets her fired up. McDonald's is naturally all about delivering a uniform experience for their customers. That was one of the keys to.

[Jack Kravitz Kramer]

McDonald's explosive growth in the 1950s.

[Nick Martel]

Exactly, Jack. But the company's leaders, they don't want to quash the entrepreneurial instincts of their franchise. Dona Yoli, for example, she knows her community better than corporate does, especially being nearly 3,000 miles away in Central America.

[Jack Kravitz Kramer]

So while corporate wants the fries always fried at a certain temperature and the patties all to be the same weight, they also want a franchise owner to pay attention to their customers, right?

[Nick Martel]

Yeah.

[Jack Kravitz Kramer]

And if they get a great idea, they want the franchisee to take initiative.

[Nick Martel]

Well, that's exactly what Doua Yoli does. She heads back to O'Hare, passes through the same terminal as the McAllister family, and then spends the whole flight to Guatemala City thinking. And she is more energized than ever, because when she lands, she thinks she's got it. But she has no idea that her brainstorm on that plane is about to make fast food history. So after completing her hamburgerology training back in the U.S. dona Yoli is now back in Guatemala. And she is fired up because she is armed with new tools to make her family's restaurant feel more homey, to feel more inviting. And she does what she's learned at hamburger university. Specifically, she observes customers behavior. This is key yetis. Imagine this. You got Dona Yoli. She's sitting at that table like right, right over there. And the lighting isn't quite as good over there. But she's watching intently as a family of four pushes through the door of her rest restaurant. The dad, he orders first. And the mom, she's carrying this sleepy 2 year old and is just like barely keeping their 4 year old entertained who's just sprinting around the tables. This is just chaos. Now soon that family, they make their way to a booth on the right side of the restaurant over there. And Yoli, she keeps on watching. Suddenly, that two year old quits eating. He's full. Fine, no big deal. But this four year old also stops eating. She can't even finish her burger. She's just playing with the bun. The sesame seeds are getting everywhere. This is just not a pretty situation. So Donio Yoli, she looks around that dining area, specifically at the other children and all them, they have food left on their trays. That mom, she doesn't look too happy. And the dad, he is given stress. Vi, is it possible that McDonald's Guatemala City, her restaurant, is not in fact a great place for kids?

[Jack Kravitz Kramer]

It's literally got a clown for a mascot. What is going on here?

[Nick Martel]

Well, eventually Doni Yoli figures out what's wrong. Remember, this is the first Mickey D's in the country. This menu, this thing is new to most folks. So parents, they're buying meals that end up being way too big for their kids. Have you ever seen a kindergartner take down a McDouble?

[Jack Kravitz Kramer]

A kindergartner needs a McCaff, not a McDouble.

[Nick Martel]

Now, on its own, this shouldn't be a problem. Dona is selling that Big Mac. Either way, she should be happy. But Dona Yoli is the mother of five and she knows that parents will not waste money on a restaurant where the kids won't eat. And if the parents stop coming, then.

[Jack Kravitz Kramer]

She'S basically done besties. This is what we call the group order dilemma. And it's a real challenge in a lot of different industries. It's the concept that one person in a group can affect where the entire group spends their money.

[Nick Martel]

Totally.

[Jack Kravitz Kramer]

Like the last time you had brunch with your gluten free buddy. Timmy. Timmy, your crew of five probably didn't end up at the croissant bakery. You changed your decision as a group. Yes. Because of the one buddy who couldn't eat there.

[Nick Martel]

Jack, that's like why that pizza restaurant down the street? They offer salads too. It's all for that one person in the group who's counting the calories. And that's why big cruise ships, they offer bingo and shuffleboard for Nana and the playrooms with the blocks and bluey videos for the grandkids.

[Jack Kravitz Kramer]

For families looking for dinner, it's the same story. If the menu neglects one person, then the entire family takes their business elsewhere.

[Nick Martel]

Well, Yoli realizes what she needs to do. She needs to appeal to the kids. But her real target customer is the parents. She needs to separate the user from the customer.

[Jack Kravitz Kramer]

Right? The kids eat the food, but mom and dad decide where to buy that food.

[Nick Martel]

And then finally, she cracks it. Wouldn't it be great if the kids had a menu item just their size with just the things that they like the best? So in 1977, Donio Yoli adds a new kids combo to the menu. And it comes with a hamburger, small fries, and a sundae served on a tray or in a paper bag. Boom. That eliminates the decision fatigue of the parents. Easy to order the kids meal. But there is one more special touch, one tiny change that is out there outside the box, figuratively, but inside the box, literally. Because Yolanda includes a toy with each and every meal. A small figurine she purchased from the local market herself. And she calls that meal the. The Ronald's menu. You know, we're gonna whiteboard this thing a bit.

[Jack Kravitz Kramer]

Maybe the Spanish translation sounds better.

[Nick Martel]

Yeah, yeah, it didn't roll off the tongue, but the idea, it works brilliantly. The parents of Guatemala City, they love it because their kids really love it. The burger, the fries, the treat, and the toy. Yes, please. Suddenly, McDonald's is an exciting destination for the entire family. Oh, and Jack, there's this warm and fuzzy feeling that kids get when they're first experiencing something they love. Right, man?

[Jack Kravitz Kramer]

Right. Yetis. This is a big reason why brands target kids when they're young and impressionable. Because unlike grownups, kids remember the experience with that brand using all five senses. And once that memory is formed, it sticks for life. It's a memory burner. And it's called the window of loyalty. And for brands, it's gold.

[Nick Martel]

Exactly. The window of loyalty. It opens up when you're old enough to walk to school by yourself and last until you're old enough to slam the door in your parents face and say, you don't understand me.

[Jack Kravitz Kramer]

Yes, you are super impressionable when you're under 12 years old and the things you decide you like at that time, they're going to stick with you for the long haul. We see the window of loyalty in sports marketing all the time. It's why the New York Yankees do so many kids day promotions. Or if you're Team Jiff instead of Team Skippy, it's probably because you formed a bond with one of those peanut butter brands during your window of loyalty as a kid.

[Nick Martel]

Jack, full disclosure. Team Skippy over here. It's a classic. So yetis with her Ronald menu, Dona Yoli is making lifelong customers out of kids for the price of a few centavos worth of the ROI is incredible.

[Jack Kravitz Kramer]

The toy vestment pays for itself within a few meals.

[Nick Martel]

Donjayoli sales are increasing so rapidly that her tiny franchise in Guatemala is capturing the eyeballs of McDonald's corporate back in Illinois. So get this. A group of executives from Corporate even fly down to Guatemala to visit her tiny restaurant. They see the families, they see the kids. They're playing with the little cars on the seats and they see the Ronald menu. And then they invite Dona Yoli to present that concept, her concept, at the biggest food marketing event in the world. Is it intimidating, Jack?

[Jack Kravitz Kramer]

Sure.

[Nick Martel]

Is she one of the only women there? Yep. Does she check her jacket for ketchup stains 18 times in a row?

[Jack Kravitz Kramer]

Oh, she's not telling.

[Nick Martel]

But she shows no fear as she lays out her idea to corporate and her enthusiasm for her idea, it is palpable. They were so impressed that they immediately took the idea and ran trials in a few choice markets. And less than a year and a half later in 1979, they roll it out across the entire United States.

[Jack Kravitz Kramer]

So, Nick, it feels, it sounds, it seems pretty straightforward, right? Man, yeah, it does. Dona Yoli came up with the Happy Meal and changed the world forever, right?

[Nick Martel]

Wrong. Pause the paw, Jack, because there is one advertising man over in Kansas City who begs to differ. This guy thinks it's his idea and he is going to go to all kind of lengths to prove it. This episode is sponsored by Abbott. Let's talk about a small thing that can make a big difference if you have diabetes. The Freestyle Libre 3 Plus sensor. It's amazing to see how the sensor gives you real time glucose readings so you can see the impact of every meal and activity to make better choices. The Freestyle Libre 3 Plus sensor can help you live life with diabetes on your terms. You can try it for free at FreestyleLibre US offer available for people who qualify. Visit MyFreestyle US to see all terms and conditions. Certain exclusions apply for prescription only. Safety info found at FreestyleLibre US.

[Jack Kravitz Kramer]

Yetis.

[Nick Martel]

It's 1975, and while Dona Yoli is studying her customers at that table 2,000 miles away, a guy named Bob Bernstein is in his tiny Kansas City office. This guy is in his 30s with a marketing and advertising firm that he co owns and he's been working with McDonald's for about a decade now. He's known for designing fun giveaways and promotions that appeal to kids. Like Jack the Sippy Dipper Straw. You remember this thing? Can you picture what I'm describing right now?

[Jack Kravitz Kramer]

Man, why can't we normalize sippy dipping? These straws for adults, it's those cool.

[Nick Martel]

Funky straws that were like in wacky shapes. You twist them around your nose and your mouth. But right now, Bob's got a major challenge on his hands. Even with the play places, the ball pits, the slides, McDonald's has been losing ground with the under 12 demographics. Their signature red and white checkerboard buildings, they're now dingy brown bricks and worse. Apparently, the King kids like the Burger King mascot more than Ronald McDonald.

[Jack Kravitz Kramer]

What? Who cares about the Burger King?

[Nick Martel]

Well, Jack, have you seen that original Ronald clown? By the way, if you Google it, you're gonna have a Nightmare or two. McDonald's, they need something to get them back in favor with kids and to get a win over Burger King. So it's Bob's job to figure out that something. He doesn't have it yet until one more morning when he sits down to breakfast. Bob is sipping his coffee as he watches his 10 year old son Steve right before school. Now, little Steve's eating a bowl of Froot Loops and he's happily reading the back of that cereal box. The same cereal box as he read yesterday. Now sure, like there might be jokes on there, maybe a word search or two, but that box, it didn't change in the last 20, 24 hours. For some reason, this hits Bob differently this morning. So Bob turns and asks his son, hey, why do you do that? Well, Steve, he just shrugs and he says, I don't know, it's just something to do. And then it's like an actual light bulb goes off on Bob's head. Of course, kids love to be entertained while they eat.

[Jack Kravitz Kramer]

Nowadays we're used to fast food places being geared towards kids with cartoons, playgrounds and toys. But back then, kids were just supposed to sit there like little tiny adults.

[Nick Martel]

Oh, Jack, very French.

[Jack Kravitz Kramer]

But did we expect our kids to be like angels?

[Nick Martel]

So yeah, even if this seems obvious now for Bob, back in 1975, this is a major breakthrough. If McDonald's packages kids food with games and entertainment, he is sure that families will be more likely to eat at their restaurants. Take that Burger King and besties.

[Jack Kravitz Kramer]

Remember, the battle for loyalty happens young. During that window we talked about if you can make a kid, a McDonald's kid instead of a Burger King kid, that change often sticks for life.

[Nick Martel]

So the stakes, they are sky high. For Bob to get this right, he thinks about that box of Fruit Loops. How can we capture that magic? What was Toucan Sam doing that the Hamburglar can't do? Jack Sebastie's. After hitting upon his big idea, Bob spends the next two years in development. He's arranging partnerships with companies like Keebler for cookies and toys to to go inside this new ready to grab kids meal. As for the outside, he hires a children's book illustrator and graphic designers to craft the design.

[Jack Kravitz Kramer]

Remember, this has to be practical while also capturing true back of cereal box vibes.

[Nick Martel]

So what they come up with is a neat little box shaped like a circus wagon. It's got games, fun character designs, and it has handles, of course, in the shape of the golden arches. Easy for those little hands to grip. Jack.

[Jack Kravitz Kramer]

Daddy.

[Nick Martel]

This box, this thing is vital to the success of the Happy Meal, right?

[Jack Kravitz Kramer]

We love to say that packaging is the product. I mean, think of that blue box from Tiffany's Classic or the Apple iPhone box you've had stored in your closet for years because you can't get yourself to throw it away. We see you.

[Nick Martel]

But Yetis for the Happy Meal, the surprise and delight factor of the package, that's actually a huge part of its appeal to kids. Plenty of restaurants, they've got a kid's menu, but how many of them have this fantastic 3D box with puzzles and games and a handle that you can carry yourself as a kid?

[Jack Kravitz Kramer]

Yetis. Now this invention just needs a name. A name that brands the feeling of this wonderful invention.

[Nick Martel]

And as an ad man, Bob has a nose for names that stick. So he goes back to a jingle that McDonald's used back in the 60s. It's such a heavy place. Hep, hep, hep. Heavy. That's it. That's it. The Happy Meal Chef's kiss.

[Jack Kravitz Kramer]

Yetis. The idea seems so simple now, but simple can be hard to get right. And you have to get the name right.

[Nick Martel]

Exactly, Jack. Like, would Nike have gone anywhere if Phil Knight had gotten his way and like called The Shoe Company Dimension 6?

[Jack Kravitz Kramer]

Spoiler. We're doing that episode on Air Jordan Soon.

[Nick Martel]

Yeah. Yeah, we are. So back in 1977, the same year that Dona Yoli pitches her idea to the McDonald's marketing conference, Bob starts running Happy Meal promos in three test markets. Kansas City, Phoenix and Denver. So two different origin stories for one earth changing product in the same exact year. Holy hamburglar, Jack.

[Jack Kravitz Kramer]

We're going to need a master's in hamburgerology to figure out the true founder.

[Nick Martel]

Whether these are interconnected events or not. But it's still somewhat disputed. According to Newsweek, Bob was asked by corporate to develop the Happy Meal because of Dona Yoli's Ronald menu. While Bob himself claims he developed the idea on his own, which would make this more of a coincidence. But either way, this is when Bob's story dovetails with Dona Yolis. Because the trial promotions, they do well at McDonald's, they roll out the Happy Meal nationwide in 1979. Great.

[Jack Kravitz Kramer]

Hakuna matata. Case closed.

[Nick Martel]

Well, not so fast, Jack. Pause the pod. Because there's actually a third claim to the title of Happy Meal inventor. And this time it's coming from outside the company. So, Jack, we've heard the Dona Yoli version, we've heard the Bob Bernstein version, but there's another entry. In this battle for the Happy Meal creator title, besties were pretty familiar with Mickey D's main rivals. He got Burger King. He got Wendy's, he got Carl's Jr.

[Jack Kravitz Kramer]

What about Burger if you're in Texas, in n out. Burger if you're out west.

[Nick Martel]

But did you know that the golden arches almost lost big to Burger Chef? Burger chef before McDonald's, before Burger King, there was a chain simply called Burger Chef.

[Jack Kravitz Kramer]

It does sound kind of like A Kirkland branded McDonald's, but go on.

[Nick Martel]

Well, we need to turn the clock back again for the story, because it turns out Burger Chef was doing a version of the Happy meal back in 191973 before Dona Yoli or Bob Bernstein ever even entered the picture. They called them fun meals and they even came with toys. But here's the tee, Jack. McDonald's former chief marketing officer has since come right out and said that Mickey D's straight up stole the Burger Chef idea.

[Jack Kravitz Kramer]

I think Ray Kroc would be proud.

[Nick Martel]

Of that because he kind of stole.

[Jack Kravitz Kramer]

The McDonald's thing from the McDonald's brothers.

[Nick Martel]

That is a fair point, Jack. Well, the way they stole it is via another ad man from Missouri named Dick Brahms. Brahms. He's a regional ad manager for McDonald's based in St. Louis. And he clocks what Burger Chef is doing according to this loose Lipped executive Brahms then contacts Bob Bernstein's agency and suggests McDonald's do what burger Chef is doing now. Bob, he denies this. He maintains that he came up with a Happy Meal, full stop. End a story. But that didn't stop a 2009 touring exhibit of Happy Meal memorabilia to credit Brahms as the father of the Happy Meal. Anyway.

[Jack Kravitz Kramer]

That is some tea right there. Now, could it be just that sometimes a great idea is in the air? Like when there were two Fyre fest documentaries happening at the same time.

[Nick Martel]

Or Jack wasn't there. The Seinfeld episode. These ideas, they're just in the air.

[Jack Kravitz Kramer]

Because in business, it's rarely who had the idea first. It's who got to the market.

[Nick Martel]

Best.

[Jack Kravitz Kramer]

First come, but best served.

[Nick Martel]

So McDonald's corporation eventually puts the whole who invented the Happy Meal matter to bed. Well, actually, kind of. Because in 1982, McD's presents Dona Yoli with the Ronald Award for the idea of the Happy Meal. But then they also celebrated Dick Brahms as the father of the Happy Meal after his death in 1988. And then in the 1986 history, McDonald's called McDonald's behind the Arches.

[Jack Kravitz Kramer]

Great name.

[Nick Martel]

Bob Bernstein and his ad firm get the credit. Period. No mention of Dona Yoli. No mention of Dick Brahms.

[Jack Kravitz Kramer]

I mean, Nick, let me add it all up here.

[Nick Martel]

Please, Jack.

[Jack Kravitz Kramer]

Those two guys admit that they stole the idea from Froot Loops and from Burgers Chef. Only Douglio Yoli claims to have originally come up with the idea. And it was inspired by her instinct to make families happy.

[Nick Martel]

Honestly, Jack, when you add it up like that, it seems pretty clear she deserves the most credit. Plus, she'd go on to innovate. Another major kid friendly attraction. The McDonald's birthday party.

[Jack Kravitz Kramer]

Okay, she's definitely most deserving after that.

[Nick Martel]

Yeah, that was a class.

[Jack Kravitz Kramer]

That's real. McDonald's birthdays were always the best birthdays.

[Nick Martel]

Yeah.

[Jack Kravitz Kramer]

Forget Bat Mitzvah, Mick Mitzvah. So, Team Donagoli. All the way.

[Nick Martel]

All the way. So it's 1979, the Happy Meal. It's now out in the world. But here's the twist. The Happy Meal almost flops right out of the gate. The Happy Meal, it almost dies in obscurity years before you and I ever dunked our first McNugget. That is, until the Happy Meal hits a critical inflection point that will rocket it to success with the help of a futuristic telephone from stardate seven four double one. Okay, Yetis, it's the summer of 1979, and Happy Meals, they are rolling out across the U.S. kids can choose a hamburger or a cheeseburger. Plus the fries, soft drink, and some Keebler cookies. And a toy. All for about $1.10. But check those toys. Woof, man, Woof.

[Jack Kravitz Kramer]

What kind of toys are we talking? Back in 1979, I mean, honestly, they.

[Nick Martel]

Were pretty mid like stencils, tops, a grimace shaped eraser. Can you picture what I'm talking about here, man? Not gonna cause a stampede.

[Jack Kravitz Kramer]

Feels more like a back to school list from fourth grade.

[Nick Martel]

The kind of toys you're like, I'd like to speak to a manager. Well, meanwhile, these toys, they're kind of a pain in the bun for the franchisees too, because the box is complicated. The toys, they take up storage space.

[Jack Kravitz Kramer]

Remember, the fast food industry is built on efficiency. And the Happy Meals, they're just a real drag on that efficiency.

[Nick Martel]

Yeah.

[Jack Kravitz Kramer]

For this product to be worth it, Happy Meals need to perform better than just fine. Happy Meals need to be a force.

[Nick Martel]

But then McDonald's gets a chance to step up its toy game with the Release of a certain 70s sci fi movie set in a far off space. No, not that one, Luke. Sorry, not that one. It's actually the other one. Travel forward with us. 300 years into the future. We are aboard a huge starship called the Enterprise. This is the return of Captain Kirk.

[Jack Kravitz Kramer]

That's right.

[Nick Martel]

It's Star Trek the motion picture. It's coming out as a big holiday movie. And the marketing folks over at McDonald's, they see an opportunity, so they arrange the company's first ever cross promotion with a Hollywood film. And suddenly the happiness gets a major toy upgrade. Like it's Christmas for you parents who don't speak Klingoniz. He's saying, people of Earth, unite. And bring your kids to McDonald's for a star Trek meal. Not even Santa could have delivered better toy numbers after that ad, Jack.

[Jack Kravitz Kramer]

Right. Mickey D's goes all out on the Star Trek themed toys. A special ring, a board game, and a mini version of the USS Enterprise.

[Nick Martel]

Jack. Even a little plastic video communicator that's a toy with a screen. And it displays a Star Trek comic strip in the Happy Meal.

[Jack Kravitz Kramer]

It's like a make believe walkie talkie that works in outer space.

[Nick Martel]

Well, all of this besties, it drives demand even further. And it's not a one and done thing like kids keep wanting to go back until eventually they collect all the toys.

[Jack Kravitz Kramer]

The collect them all drive is real and it's spectacular.

[Nick Martel]

Yes, it is.

[Jack Kravitz Kramer]

This was Pokemon before Pikachu.

[Nick Martel]

Oh, yeah.

[Jack Kravitz Kramer]

McDonald's would use this tactic again and again, including with their legendary McDonald's Monopoly promotions that have been going on and off for the last three decades.

[Nick Martel]

Ladies, this is how the Happy Meal toy craze takes off. It's a major inflection point for the product and for the Entire company. So McDonald's will start partnering with every toy company from Mattel and Hasbro to Lego and GI Joe. A Hot Wheels promo from 1983. It's so popular among franchisees that McDonald's purchases 44 million of those little cars. Jack, could you sprinkle a little toy context for us over there?

[Jack Kravitz Kramer]

That's a third of Mattel's entire worldwide Hot Wheels supply.

[Nick Martel]

Now, eventually, McDonald's does score a Star wars tie in also so E.T. the Power Rangers, Teenage Mutant Ninja Turtles. And then in 1987, less than a decade after the Happy meals nationwide rollout, McDonald's debuts its first ever Disney Happy Meal.

[Jack Kravitz Kramer]

Oh, that's huge.

[Nick Martel]

That's huge.

[Jack Kravitz Kramer]

And Nick, didn't Ray Kroc and Walt Disney know each other?

[Nick Martel]

Yeah, they did, Jack. Like they met in training during World War I driving ambulances. And just like Ray and Walt, McDonald's and Disney proved to be a great pair. The Disney Happy Meal campaign has become so successful, it renders McDonald's one of the largest toy distributors in America. Now, Jack and I should point out that the movie promo strategy, it doesn't always go so seamlessly. For instance, in 1992, McDonald's partners up with the latest Tim Burton movie, Batman Returns. And that film, it's rated PG13, but the toys are cute and benign. Here's a picture. Let's throw one up. Jack.

[Jack Kravitz Kramer]

Yeah, pretty simple. Batman in a Batmobile. The Joker in a Joker mobile. Catwoman looks fine.

[Nick Martel]

All right, so, Jack, here's the problem. The film itself, Batman Returns, it's kind of dark. There's violence and death. A little bit of nose biting in a couple scenes. Well, a bunch of parents, they're seeing all these Happy Meal toys. They think it's fine to bring their kids to the movie. But yikes, again, the nose biting.

[Jack Kravitz Kramer]

They left five minutes into the movie.

[Nick Martel]

Yeah, didn't even get through the popcorn. Yeti's. The good news is McDonald's learns their lesson. Throughout the rest of the 90s, McD's only partners with kid friendly movies and brands to restore brand trust with the parents.

[Jack Kravitz Kramer]

Considering brand safety is always important when weighing a collab, especially when your target customers are parents. But if you do mess up, apologize fast. Apologize Totally. Then you can move on.

[Nick Martel]

But Jack, that Happy Meal, it's really overcome a lot of challenges lately. Cause remember that little film film, Super Size Me?

[Jack Kravitz Kramer]

It's about a man who eats nothing but McDonald's for a month, only to develop liver problems and gain £25.

[Nick Martel]

It drives a whole lot of press cycles, man. And while the film's scientific findings eventually come under fire for not being entirely scientific, McDonald's acknowledges it might be time for some healthier options. So they revamp the Happy Meal menu in the 2000s to reduce the grease and empty calorie factor. Smaller fries, apples instead of a cookie. You can kind of picture this, right, Jack?

[Jack Kravitz Kramer]

Kind of a fun police situation.

[Nick Martel]

Well, apples, they may be less fun than cookies. But McDonald's willingness to address criticism reinforces that brand trust with the parents. So from 2018 to 2022, Mickey D's sells 5.7 billion Happy Meals that meet all their new health criteria.

[Jack Kravitz Kramer]

Line up that many Happy Meals end to end. Yes, J. And you can wrap them around the earth 23 and a half times.

[Nick Martel]

That is McDonald's. They've also realized that the kids who got hooked on Happy meals in the 80s and the 90s, they're adults now. So time for that window of loyalty to pay some dividends. And that's why in 2022, McDonald's unveils the Adult Happy Meal.

[Jack Kravitz Kramer]

The adult Happy Meal. It was only a matter of time.

[Nick Martel]

McDonald's goes full supreme on this thing. They partner up with the streetwear brand Cactus Plant flea market to offer a super sized Happy Meal for adults completely with a grown up toy.

[Jack Kravitz Kramer]

Can you please elaborate on grown up toy, Nick? Yeah. Keep in mind this is a family friendly show.

[Nick Martel]

Great point, Jack. We are talking G rated toys here. Little figurines of the original McDonaldland characters with like an adult swim looking redesign. Now these things, they are so popular that McDonald's sells half its supply in just four days. They've also been taking this addle Happy Meal concept into cross promos with millennial and Gen Z friendly stars like Travis.

[Jack Kravitz Kramer]

Scott, Saweetie B, McDonald's and K Pop together at last.

[Nick Martel]

Okay, Jack, now that you've heard the Happy Meals happy origin story, what's your big takeaway?

[Jack Kravitz Kramer]

For me, it's got to be the window of loyalty. Brands that bond with kids young, bond with them for life.

[Nick Martel]

And not only will they keep coming back, they'll pay extra for that nostalgia factor as they grow up. Totally.

[Jack Kravitz Kramer]

And Nick, this pays dividends in the long term. We saw that since McDonald's got you. When you were young, they were able to launch the adult Happy Meal and you bought it. Oh, and now you're taking your kids to McDonald's. And now little Johnny is falling in love with the Happy Meal in his window of loyalty. So windows of loyalty generate generations of loyalty. The cycle continues. Nick, what's your takeaway?

[Nick Martel]

So, Jack, my takeaway is this. Some of the biggest opportunities out there are hiding in the blind spots of business. So we've got the happiness female. And it's because of Dona Yoli's unique perspective as a mom of five, and because she was a franchise owner in a newer market, she could see something on the ground level that the mostly male executives back at corporate, they just couldn't, or at least they didn't see at that moment.

[Jack Kravitz Kramer]

So McDonald's blind spot was kids and families.

[Nick Martel]

Yeah.

[Jack Kravitz Kramer]

And Donioli's like, hey, there's kids and families who could use some food over here.

[Nick Martel]

Yeah.

[Jack Kravitz Kramer]

Like maybe something designed just for them.

[Nick Martel]

Yeah, let's do that.

[Jack Kravitz Kramer]

And finally, we should mention that Yolanda Fernandez de Cofinho, or Dona Yoli, became president of McDonald's in Guatemala and was celebrated for her contributions to the Happy Meal for the rest of her career, including winning the so called Golden Arches Award, the company's highest honor. She would live to age 87 and is remembered with love to this day.

[Nick Martel]

She didn't just create the Happy Meal, she changed the most iconic brand in the world. And. And she changed restaurant culture worldwide.

[Jack Kravitz Kramer]

Yeah. Today we have kids, menus, toys, even the crayons that waiters and waitresses hand out at a restaurant. That's all part of her legacy.

[Nick Martel]

And his current parents and former kids. We're thankful, actually. We're happy. And now we've come to what's honestly my favorite part of the show. Jack. The best facts yet. Hit em off, Jack. What do you got?

[Jack Kravitz Kramer]

By Raw Fast estimates, there have been.

[Nick Martel]

More than 35 billion Happy Meals sold. Yes.

[Jack Kravitz Kramer]

Or about four for every man, woman and child on the planet.

[Nick Martel]

Which makes the Happy Meal one of the most sold commercial meals in history. For its famous fries, McDonald's uses the Russet potato for its long shape. And that optimizes the number of fries that can come out of each spud.

[Jack Kravitz Kramer]

Nick, what do the Chicken Mc Nugget, the Egg McMuffin and the McDonald's drive thru window all have in common?

[Nick Martel]

Other than the letter m and like 600 calories, I'm not entirely sure. What do you got, Jack?

[Jack Kravitz Kramer]

They were all dreamed up by Fred Turner, the guy who founded HU Hamburger University.

[Nick Martel]

Boom. Get this guy into Phi Beta Kappa, baby.

[Jack Kravitz Kramer]

Fred rose from the ranks of fry cook all the way up to company CEO. Fred, thank you for your service. Here's another one. With McDonald's franchises operating in a hundred countries on six continents, the happy Meal looks really different all over the world.

[Nick Martel]

All right, Jack, can you take us over to Japan maybe?

[Jack Kravitz Kramer]

The Happy Meal in Japan is called the Okasama Lunch and it has things like fried shrimp and sweet pudding.

[Nick Martel]

I mean, seafood and dessert. I can work with this, baby.

[Jack Kravitz Kramer]

You can even get your Happy Meal in a tray shaped like a train with real dry ice coming out of the smokestack.

[Nick Martel]

Jack, that's not a food. That's an experience. And that is why the Happy Meal really is the Best Idea Yet. Now Yeti's coming up on the next episode of the Best Idea Yet. Jack, It's a me, a Mario. That's right. The next episode of the Best Idea yet is Super Mario Brothers.

[Jack Kravitz Kramer]

Mario. Mario. Either way, you're gonna love this episode. Follow the Best Idea yet on the Wondry app, Amazon Music, or wherever you get your podcast. You can listen to every episode of the Best Idea yet early and ad free right now by joining Wondery plus in the Wondery app or on Apple Podcasts.

[Nick Martel]

Before you go, tell us about yourself by filling out a short [e-mail] survey. The best idea yet is a production of Wondery hosted by me, Nick Martel.

[Jack Kravitz Kramer]

And me, Jack Kravitz Kramer. Hey, if there's a product you're obsessed with and you wish you knew its story, let us know. Drop us a comment with your idea and we'll look into it.

[Nick Martel]

Our senior producer is Matt Beagle and our producer is Matt Wise from Wandering.

[Jack Kravitz Kramer]

Our senior managing producer is Nick Ryan and Taylor Sniffin is our coordinating producer.

[Nick Martel]

Our associate producer is H. Conley.

[Jack Kravitz Kramer]

Research by Samuel Fatzinger.

[Nick Martel]

This episode was written by Katie Clark Gray and Alex Burns. We use many sources in our research and a few that were particularly helpful here.

[Jack Kravitz Kramer]

Nathaniel myerson's piece for CNN, the Happy Meal invention says McDonald's didn't want it.

[Nick Martel]

At first and the book McDonald's behind the Arches by John F. Love Sound.

[Jack Kravitz Kramer]

Design and mixing by Kelly Kramarek Fact.

[Nick Martel]

Checking by Erica Janik. Our music supervisor is Scott Velasquez and Jolina Garcia for Friesen Sink.

[Jack Kravitz Kramer]

Our theme song is Got that Feeling Again by Blacklac.

[Nick Martel]

Executive producers are me, Nick Martel and.

[Jack Kravitz Kramer]

Me, Jack Crevici Kramer from Nick and.

[Nick Martel]

Jack Studios and Dave Easton, Jenny Lauer Beckman, Erin O'Flaherty and Marsha Louie for wandering.