The Best Idea Yet - 🍟 The Happy Meal: A Delicious McMystery | 1

Episode Date: October 15, 2024

The Happy Meal is the most successful meal in human history. With over 35 billion units sold, or about four for every person on Earth, McDonald’s iconic “Food and Fun in a Box” has also made the company a bigger toy distributor than Hasbro or Mattel (and maybe even Santa). But few know the Happy Meal’s contested origin story. Was the creator a mom of five in Guatemala, an ad man from Kansas City, or a forgotten franchise called “Burger Chef”? Spoiler, it wasn’t Grimace. Hear how McDonald’s perfected a strategy called the “window of loyalty,” and visit a little place called “Hamburger University.” Listen to find out why The Happy Meal is the best idea yet!Follow The Best Idea Yet on the Wondery App or wherever you get your podcasts. You can listen to new episodes early and ad-free on Wondery+. Join Wondery+ in the Wondery App, Apple Podcasts or Spotify. Start your free trial by visiting www.wondery.com/links/the-best-idea-yet/ now. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wondery Plus subscribers can listen to the best idea yet early and ad-free right now. Join Wondery Plus in the Wondery app or on Apple Podcasts. All right, Jack, so your mom hands you a Capri Sun. I don't know the flavor, but... Something tropical. Oh, and you've got a Gap sweatshirt on. G-A-P. I know the one you're talking about. Yeah, 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. I think you're describing 10-year-old me in my minivan on a family road trip. Is that the scene you're painting? Boom, baby. It's 1998. You've been in the car 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. Oh, yeah. Yeah. Where are we going to eat? Oh, where are we going to eat? Oh, and then, Jack, remember, this is the B.C. era. Like, B.C. before Chipotle. Like, you can't just pop off the road, man.

So, my brother Nick probably wanted Taco Bell. My brother Tuck probably wanted Wendy's. Teddy wanted Burger King, and I was going for the Chicken McNuggets. 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. Besties, whether you're barreling down the East Coast on I-95 or taking the scenic route down the PCH, chances are you're going to 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. So where can you go where everyone can find something that makes them happy? No way. So where can you go where everyone can find something that makes them happy? 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.

Your kids will love McDonald's Happy Meal. 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. Absolutely. Talk to me, man. This was my Power Rangers era.

If I got the Green Ranger, Tommy, it made my year. Oh, Jack, I was ahead of my time. I was going Pink Ranger on that thing, you know? That is ahead of your time. It was. 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 business news show, over 1,000 episodes and

counting, 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. 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 challenges 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 way. And that is why Jack and I think this first product is just the perfect place to start. McDonald's has sold over 35 billion Happy Meals since they first launched it. Jack, can you sprinkle on a little more salty context, please? The 2016 study found that McDonald's was selling 3.2 million Happy Meals every day. Don't even tell me the calories, Jack. That's enough food to feed every single person in Iowa. But Jelan, I'm loving these geography analogies. What else you got, man? Nick, line up that many Happy Meals and they reach from Paris to Amsterdam. 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. Think about it. McDonald's sells more toys than Hasbro or Mattel. Yeah, that's right. The Happy Meal is a bigger toy franchise than Barbie. The Happy Meal is the most popular, profitable, and iconic dish in commercial history.

Yes, it is. And it smells like it was cooked up in some R&D lab at McDonald's headquarters like every other fast food dish. 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 by a pioneering mom in Central America. That's right.

The entire Happy Meal industry starts with a working mom in Guatemala. Or was it a Missouri dad who happens to be an ad exec? Or Jack, pause the part. Was it Grimace the entire time? Classic Grimace. There's actually a hot dispute at the center of this story, and we're gonna get into all of it. We're gonna 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. The Window of Loyalty. Not to be confused with the drive-thru window where you snag that six-piece McNuggets and find out the McFlurry machine is still broken.

You don't need mom's permission for this episode, but you're gonna want to tell her about it right afterwards. Because this is the untold story of the McDonald's Happy Meal. The most important meal in history. At least according to your inner six-year-old. Stick around to hear why the Happy Meal is the best idea yet. From Wonder and T-Boy, I'm Nick Martel. And I'm Jack Kravici-Kramer.

And this is the best idea yet. The untold origin stories of the products you're obsessed with and the bold risk takers who brought them to life. It's June 19th, 1974. Guatemala City's historic district. And Yolanda Fernandez de Covino 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 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 five kids of their own. That's a lot. Now, quick side note, McDonald's Corporation, they don't actually own most of the restaurants. Great point, Jack. 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. Basically, they're paying McD's a licensing fee in exchange for the rights to use the McDonald'salan McDonald's location. 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. El Mac Mas Grande. Did they call that actually? May want to 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's CEO that muscled the McDonald's brothers out of their own company back in 1961. For that story, you can curl up on the couch and watch a movie called The Founder. It's a good airplane movie. I watched that on a flight the other day. But yet he's McDonald's. They started expanding to international markets in the late 60s. But as of 1974, McDonald's has made a huge dent in Latin America. So as Guatemala's first McDonald's franchisee, Yolanda, or Doña Yoli as she's known locally, is ready to introduce this fast, this affordable, this fantastic new food to her community. Now, the Cofinho Fernandez family, they may own the franchise together, but it's Doña 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. What a great expression. Although that can't be good for the blood pressure. I mean, you may want to see a doctor at a certain point, Jack. But still, Doña 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. Like all the details. So many 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 as it is in Grand Rapids. Yeah, it is. You are literally running a business when you're a franchisee. But since it's a business you didn't found, you got to do everything according to the corporate standards. And this is why Doña Yoli ventures 2,700 miles from her home to Elk Grove Village, Illinois. That's right. Doña Yoli is going to Hamburger University. H-U? Nick, I have some questions about this university. 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 of, 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. It's the Cambridge for quarter pounders. 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. On my wall? Yeah. No, but on my brand new McDonald's location. 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? Hit me. Okay. Today, the Shanghai campus of Hamburger University has a 1% acceptance rate. That's actually lower than Harvard. So I take it back. I will put that diploma on my wall. Yeah, get it framed, Jack. Now, when Doña 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 McDonald's explosive growth in the 1950s. Exactly, Jack. But the company's leaders, they don't want to quash the entrepreneurial instincts of their franchisees. Donya Yoli, for example, she knows her community better than corporate does, especially being nearly 3,000 miles away in Central America. 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? Yeah.

And if they get a great idea, they want the franchisee to take initiative. Well, that's exactly what Doña 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., Doña 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 Donya Yoli. She's sitting at that table, like 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 restaurant. The dad, he orders first, and the mom, she's carrying the sleepy two-year-old

and is just like barely keeping their four-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 don'ta Yoli, she looks around that dining area,

specifically at the other children. And all of them, they have food left on their trays. That mom, she doesn't look too happy. And the dad, he is giving stress vibes. Is it possible that McDonald's Guatemala City, her restaurant, is not, in fact, a great place for kids. It's literally got a clown for a mascot. What is going on here? Well, eventually, Don 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? A kindergartner needs a McHalf, not a McDouble. Now, on its own, this shouldn't be a problem. Doña is selling that Big Mac either way. She should be happy, but Doña 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...

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

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

Donioli 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 a meal. But there is one more special touch. One tiny change that is 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 going to whiteboard this thing a bit. Maybe the Spanish translation sounds better. Yeah, 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? 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. Exactly. The window of loyalty. It opens up when you're old enough to walk to school by yourself until you're old enough to slam the door in your parents' face and say, you don't understand me. 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 Jif 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. Jack, full disclosure, Team Skippy over here is a classic.

So, yetis, with her Ronald menu, Doña Yoli is making lifelong customers out of kids for the price of a few centavos worth of toys. The ROI is incredible. The toy investment pays for itself within a few meals. Doña Yoli's 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 Donya Yoli to present that concept, her concept, at the biggest food marketing event in the world. Is it intimidating, Jack? Sure. Is she one of the only women there? Yep. Does she check her jacket for ketchup stains 18 times in a row? Oh, she's not telling. 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. So Nick, it feels, it sounds, it seems pretty straightforward, right man? Yeah, it does. Don Yoli came up with the Happy Meal and changed the world forever, right? Wrong! Pause the podjack 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 kinds of lengths to prove it. Yetis, it's 1975, and while Donya 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, man? Why can't we normalize sippy-dippy straws for adults? It's those cool, funky straws that are 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 playplaces, the ball pits, the slides, McDonald's has been losing ground with the under-12 demographic. Their signature red and white checkerboard buildings,

they're now dingy brown bricks. And worse, apparently the kids like the Burger King mascot more than Ronald McDonald. What? Who cares about the Burger King? Well, Jack, have you seen that original Ronald Clown, by the way? If you Google it, you're going to 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

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 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. 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. Oh, Jack, very French. But did we expect our kids to be like angels? So, yetis, 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, remember, the battle for loyalty happens young. Yeah. 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. So the stakes, they are sky high for Bob to get this right. He thinks about that box of Froot Loops. How can we capture that magic? What was Toucan Sam doing that the Hamburglar

can't do, Jack? So Basties, after hating 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 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. Remember, this has to be practical while also capturing true back-of-cereal-box vibes. So what they come up with is a neat little box shaped like a circus wagon. This has to be practical while also capturing true back of cereal box vibes. 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. This box, this thing is vital to the success of the Happy Meal. Right. 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. But yet, 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? Yetis, now this invention just needs a name. A name that brands the feeling of this wonderful invention. 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. That's it. That's it. The happy meal. Chef's kiss. Yetis, the idea seems so simple now, but simple can be hard to get right, and you have to get the name right. Exactly, Jack. Like, would Nike have gone anywhere if Phil Knight had gotten his way and, like, called the shoe company Dimension 6? Spoiler, we're doing that episode on Air Jordan soon. Yeah, yeah, we are.

So, back in 1977, the same year that Doña 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. We're going to need a master's in hamburgerology to figure out the true factor. Whether these are interconnected events or not, it's still somewhat disputed.

According to Newsweek, Bob was asked by corporate to develop the Happy Meal because of Donya Yoli's Ronald menu. While Bob himself claims he developed the idea on his own, which would make this more of a coincidence. 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 Yoli's because the trial promotions, they do well. And McDonald's, they roll out the Happy Meal nationwide in 1979. Great. Hakuna Matata, case closed. 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 Don Yoli version. We've heard the Bob Bernstein version.

But there's another entry in this battle for the Happy Meal creator title. Besties, we're pretty familiar with Mickey D's main rivals. He got Burger King. He got Wendy's, he got Carl's Jr. What a burger if you're in Texas. In-N-Out burger if you're out West. 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.

It does sound kind of like a Kirkland-branded McDonald's, but go on. 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 1973, before Doña Yoli or Bob Bernstein ever even entered the picture. They called them Fun Meals, and they even came with toys. But here's the T-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. I think Ray Kroc would be proud of that, because he kind of stole the McDonald's thing from the McDonald's brothers. 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 the Happy Meal full stop, end of 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. Hoo, hoo, hoo, hoo! 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? Or Jack, wasn't there the Seinfeld episode? These ideas, they're just in the air. Because in business, it's rarely who had the idea first. It's who got to the market best. Yes. First come, but best served.

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 Donaioli 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 of McDonald's called McDonald's Behind the Arches. Great name. Bob Bernstein and his ad firm get the credit, period. No mention of Don Yoli, no mention of Dick Brahms. I mean, Nick, let me add it all up here. Please, Jack. Those two guys admit that they stole the idea from Fruit Loops and from Burger Chef. Only Doña Yoli claims to have originally come up with the idea,

and it was inspired by her instinct to make families happy. 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. Okay, she's definitely on to innovate another major kid-friendly attraction, the McDonald's birthday party. Okay, she's definitely most deserving after that. Yeah, that was a classic. That's real. McDonald's birthdays were always the best birthdays.

Yeah, forget bat mitzvah, mik mitzvah. So team Donioli all the way. 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, 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 7411. 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 a dollar and ten cents. But Jack, those toys? Woof, man, woof. What kind of toys are we talking back in 1979? I mean, honestly, they were pretty mid, like stencils, tops, a grimace-shaped eraser.

Can you picture what I'm talking about here, man? Not going to cause a stampede. Feels more like a back-to-school list from fourth grade. 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. Remember, the fast food industry is built on efficiency,

and the Happy Meals, they're just a real drag on that efficiency. For this product to be worth it, Happy Meals need to perform better than just fine. Happy Meals need to be a force. 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. No, not that one. 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. That's right. 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 Happy Meal gets a major toy upgrade like it's Christmas. No more McDonald's. For you parents who don't speak Klingonese, 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, 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. 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. It's like a make-believe walkie-talkie that works in outer space. 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. The collect them all drive is real and it's spectacular.

Yes, it is. This was Pokemon before Pikachu. Oh, yeah. 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. 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 G.I. Joe. A Hot Wheels promo from 1983, It's so popular among franchisees that McDonald's purchases 44 million of those little cars. Jack, can.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. Oh, that's huge. That's huge. And Nick, didn't Ray Kroc and Walt Disney know each other? 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 campaigns 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 PG-13, but the toys are cute and benign. Here's a picture. Let's throw one up, Jack.

Yeah, pretty simple. Batman in a Batmobile. Yeah. The Joker in a Joker-mobile. Catwoman. Looks fine. All right, so Jack, here's the problem. The film itself, Batman Returns,

it's kind of dark. There's like violence and death, a little bit of nose-biting in a couple scenes. Well, a bunch of parents, they've seen all these Happy Meal toys, they think it's fine to bring their kids to the movie, but... Yikes. Again, the nose-biting. They left five minutes into the movie. Yeah, didn't even get to the popcorn.

Yet, 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. 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. But Jack, that Happy Meal, it's really overcome a lot of challenges lately. Because remember that little film, Super Size Me? It's about a man who eats nothing but McDonald's for a month, only to develop liver problems and gain 25 pounds. 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 the empty calorie factor. Smaller fries, apples instead of a cookie. You can kind of picture this, right, Jack? Kind of a fun police situation. 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. Line up that many Happy Meals end-to-end. Yes, Jack. And you can wrap them around the earth 23 and a half times. See what it 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. The adult Happy Meal. It was only a matter of time. McDonald's goes full supreme on this thing. They partner up with the

streetwear brand Cactus Plant Flea Market to offer a supersized Happy Meal for adults, complete with a grown-up toy. Can you please elaborate on grown-up toy, Nick? Keep in mind, this is a family-friendly show. Great point, Jack. We were 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 adult Happy Meal concept into cross promos

with millennial and Gen Z friendly stars like Travis Scott, Sweetie, BTS, McDonald's, and K-pop together at last. Okay, Jack, now that you've heard the Happy Meals, Happy Origins story, what's your big takeaway? For me, it's got to be the window of loyalty. Brands that bond with kids young, bond with them for life. And not only will they keep coming back, they'll pay extra for that nostalgia factor as they grow up.

Totally. 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. Yeah. In his window of loyalty. So windows of loyalty generate generations of loyalty. The cycle continues. Nick, what's your takeaway? 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 Happy Meal. And it's because of Donaioli'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. So McDonald's blind spot was kids and families. Yeah. And Donioli's like, hey, there's kids and families who could use some food over here. Yeah. Maybe something designed just for them. Yeah, let's do that. And finally, we should mention that Yolanda Fernandez de Covino, or Doña 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. She didn't just create the Happy Meal. She changed the most iconic brand in the world. And she changed restaurant culture worldwide. 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.

And as 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 him off, Jack. What do you got? By rough estimates, there have been more than 35 billion Happy Meals sold. Yes. Or about four for every man, woman, and child on the planet.

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. Nick, what do the Chicken McNugget, the Egg McMuffin, and the McDonald's drive-thru window all have in common? Other than the letter M and like 600 calories, I'm not entirely sure. What do you got, Jack? They were all dreamed up by Fred Turner.

Freddy! The guy who founded HU, Hamburger University. Boom! Get this guy into 5-Beta Kappa, baby! 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 100 countries on 6 continents, the Happy Meal looks really different all over the world.

Alright, Jack, can you take us over to Japan, maybe? The Happy Meal in Japan is called the Okasama Lunch, and it has things like fried shrimp and sweet pudding. I mean, seafood and dessert. I can work with this, baby. You can even get your Happy Meal in a tray shaped like a train with real dry ice coming out of the smokestack. 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, I'm Mario. That's right. The next episode of the best idea yet

is Super Mario Brothers. Mario, Mario, either way, you're going to love this episode. Follow the best idea yet on the Wondery app, Amazon Music, or wherever you get your podcasts. 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. Before you go, tell us about yourself by filling out a short survey at wondery.com slash survey. The Best Idea Yet is a production of Wondery

hosted by me, Nick Martell, and me, Jack Kravici-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. Our senior producer is Matt Beagle and our producer is Matt Wise from Wondery. Our senior managing producer is Nick Ryan and Taylor Sniffen is our coordinating producer. Our associate producer is H. Conley. Research by Samuel Fatzinger. 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. Nathaniel Meyerson's piece for CNN, The Happy Meal Inventor, says McDonald's didn't want it at first. And the book McDonald's, Behind the Arches by John F. Love. Sound design

and mixing by Kelly Kramarik. Fact checking by Erika Janik. Our music supervisor is Scott Velasquez and Jolina Garcia for Friesen Sync. Our theme song is Got That Feeling Again by Black Lack. Executive producers are me, Nick Martell. And me, Jack Kravici-Kramer from Nick and Jack Studios. And Dave Easton, Jenny Lauer-Be Beckman, Aaron O'Flaherty, and Marsha Louis for Wondery.