Harry J. Sonneborn

{{Short description|American businessman and first president and CEO of McDonald's Corporation}}

{{Infobox person

| name = Harry J. Sonneborn

| image =

| caption =

| birth_name = Harold Morris Joseph

| birth_date = {{birth date|1916|6|12}}

| birth_place = Evansville, Indiana, U.S.

| death_date = {{death date and age|1992|9|21|1916|6|12}}

| death_place = Theodore, Alabama, U.S.

| death_cause =

| education =

| occupation = Business executive, President of Finances, Tastee-Freez, President McDonald's (1955–1967)

| yearsactive = 1939–1992

| title =

| spouse = June Kepler
(m. 1938-1964)
Aloyis Lee
(m. 1964)

| parents =

| children = 2

| website =

}}

Harry J. Sonneborn (June 12, 1916 – September 21, 1992) was an American businessman, best known for being the first president and chief executive of McDonald's Corporation.

Early life

Sonneborn was born Harold Morris Joseph on June 12, 1916 in Evansville, Indiana, the son of Minnie Greenbaum and Mark Harry Joseph.{{cite news | url=https://www.newspapers.com/image/137804270/?match=1&terms=New%20Babies | title=New Babies | newspaper=Evansville Press | date=June 14, 1916 | page=5}} In 1921, when he was 5 years old, his mother{{cite news | url=https://www.newspapers.com/image/764360589/?article=429262e5-0464-43b0-97f7-6e060b67fe0c&terms=%22Mark%20Joseph%22 | title=Mrs. Mark Joseph Dies in Hospital | newspaper=Evansville Press | date=January 17, 1921 | page=1}} and father died of tuberculosis.{{cite news | url=https://www.newspapers.com/image/772428598/?article=a3f622a8-6b2f-4b59-adcb-5b0ab94ee77a&terms=%22Mark%20Joseph%22 | title=Death Takes Mark Joseph| newspaper=Evansville Press | date=September 11, 1921 | page=1}} Harry was adopted by his paternal aunt, Jeanette (Joseph), and her husband, Louis Sonneborn, and raised in New York City.{{cite web|url=https://books.google.com/books?id=HVVVAAAAMAAJ&q=%22My+uncle+Louis+married+Jeanette+Joseph.%22|title=Sonneborn: a celebration of generations|first=Charles Behrend|last=Sonneborn|date=14 February 1994|publisher=C.B. Sonneborn|via=Google Books}} His family was orthodox Jewish.{{Cite web|url=https://forward.com/culture/360991/the-secret-jewish-history-of-mcdonalds/|title = The Secret Jewish History of McDonald's| first=Seth | last=Rogovoy | website=forward | publisher=Forward | date=24 January 2017}}

Career

=Work with McDonald's=

A former vice president of finances at Tastee-Freez, Sonneborn approached Ray Kroc with the concept of Kroc owning the land that McDonald outlets were to be built on and then leasing that land to the franchisee. This business model led to the explosive growth of McDonald's; the real estate deals were handled through a specially formed corporation named "McDonald's Franchise Realty Corp."{{Cite web|url=https://www.entrepreneur.com/article/288611|title='The Founder' Reveals the Real Ray Kroc -- But Not the Rest of the McDonald's Story|last=Madhusoodanan|first=Sriram|date=2017-02-02|website=Entrepreneur|language=en|access-date=2019-09-30}}{{Cite web|url=https://www.wiley.com/legacy/products/subject/business/forbes/kroc.html|title=Ray Kroc and the Fast Food Industry|website=www.wiley.com|access-date=2019-09-30}} The "Sonneborn model" persists to this day within the corporation, and might have been the most important financial decision in the company's history. McDonald's present-day real estate holdings represent $37.7Bn on its balance sheet, about 99% of the company's assets and about 35% of its global revenue.{{Cite web|url=https://www.fool.com/investing/general/2016/03/06/mcdonalds-corporation-a-real-estate-empire-finance.aspx|title=McDonalds Corporation - A real estate empire|last=Brownlee|first=Adam|date=Sep 21, 2018|website=Motley Fool}}

Kroc appointed Sonneborn as McDonald's first president and chief executive officer in 1959. In 1967, he fell out with Kroc when he insisted on continuing expansion whereas Sonneborn held the conservative view that the country was heading into a recession and they should stop building new stores. Sonneborn resigned from McDonald's on June 8, 1967. Kroc took his title afterwards.{{Cite book|title=Grinding It Out: The Making of McDonald's|last=Kroc|first=Ray|year=1977|isbn=978-1-250-12750-1|pages=253|publisher=Macmillan }}{{Cite web|url=https://www.fool.com/investing/general/2016/03/06/mcdonalds-corporation-a-real-estate-empire-finance.aspx|title=McDonald's Corporation: A Real Estate Empire Financed by French Fries|last=Brownlee|first=Adam|date=2016-03-06|website=The Motley Fool|language=en|access-date=2019-09-30}}

=Other interests=

After leaving McDonald's, Sonneborn continued to be involved in the business world through the stock market, capital investments, and banking.{{citation needed|date=September 2017}} He and his wife Aloyis founded several philanthropic foundations.{{citation needed|date=September 2017}}

Sonneborn was a noted collector of historical documents. His collection included an annotated copy of the US Constitution, copies of every US state's constitution, the document by Paul von Hindenburg declaring Adolf Hitler as dictator of Germany and a letter written by Vladimir Lenin denouncing anti-semitism in Russia.{{cite news | url=https://www.newspapers.com/image/637285963/?match=1&terms=Harry%20J.%20Sonneborn%22 | title=Hitler Decree Found in U.S. | newspaper=Forth Worth Star-Telegram | date=June 10, 1974 | page=14-A}}

Personal life

Sonneborn married June Kepler on December 13, 1938.{{cite news | url=https://www.newspapers.com/image/764721054/?match=1&terms=Sonneborn%20Kepler | title=Social | first=Mary | last=Hinkle Steel | newspaper=Evansville Press | page=C1 | date=December 11, 1938}} They raised two children together, a son and a daughter.{{cite news | url=https://www.newspapers.com/image/376455355/?match=1&terms=%22June%20Sonneborn%22 | title=$785,000 Divorce Award | newspaper=Chicago Tribune | date=October 24, 1964 | page=3}} A divorce was granted in 1964 in which June received a property settlement of $785,000 that included their home in Winnetka, Illinois, alimony, insurance, child support and $200,000 in payment for her half of their McDonald's stock. Sonneborn married Aloyis Lee in 1964.

In 1969, June sued Sonneborn for more than $21 million. She claimed he had told her the stock was only worth $5 per share and bought her out before the divorce, then sold her shares six months afterwards for $22.50 per share.{{cite news | url=https://www.newspapers.com/image/376590774/?match=1&terms=June%20Sonneborn | title=Ex-Mate Sues Dine-in King for $21 Million | newspaper=Chicago Tribune | date=February 15, 1969 | first=Rudolph | last=Unger | page=6}} A federal jury exonerated Harry Sonneborn and found against his ex-wife in 1971.{{cite news | url=https://www.newspapers.com/image/376922016/?match=1&terms=June%20Sonneborn | title=Ex-Wife Loses Action Against 'Burger' Chief | newspaper=Chicago Tribune | date=June 3, 1971 | page=B10}}

Following his retirement in 1967, Sonneborn and his wife Aloyis moved to Mobile, Alabama. They built an estate on the Fowl River that included a 14,500 square-foot house, a small golf course, a dock and a 630-acre wildlife preserve.{{cite news | url=https://www.newspapers.com/image/106720101/?match=1&terms=Harry%20J.%20Sonneborn%20Aloyis | title=McDonald's Exec Giving Up Estate | newspaper=The Anniston Star | first=Garry | last=Mitchell | date=September 22, 1985 | page=16A}}

Sonneborn died at his home in Theodore, Alabama on September 21, 1992.{{cite news | url=https://www.newspapers.com/image/389763738/?match=1&terms=Harry%20J.%20Sonneborn%22 | title=Ex-McDonald's Exec Harry J. Sonneborn, 77 | first=Kenan | last=Helse | newspaper=Chicago Tribue | date=October 6, 1992 | page=B8}}

In popular culture

In the 2016 film The Founder, Sonneborn was portrayed by actor B. J. Novak, who spoke the famous line "You're not in the burger business; you're in the real estate business."Archived at [https://ghostarchive.org/varchive/youtube/20211205/cdjaeGH1bdc Ghostarchive]{{cbignore}} and the [https://web.archive.org/web/20191115213339/https://www.youtube.com/watch?v=cdjaeGH1bdc&gl=US&hl=en Wayback Machine]{{cbignore}}: {{cite web| url = https://www.youtube.com/watch?v=cdjaeGH1bdc| title = The Founder - Movie Clip: "You're In The Real Estate Business" | website=YouTube}}{{cbignore}}