Beginning Of Business Relationship Between OSI Industries And McDonalds

Established over five years ago by a German immigrant, Otto Kolchowsky, OSI Group McDonalds has come quite a long way from the mere meat market to now, a food processing behemoth. Its success, however, has not been on a silver platter but due to years of smart strategies and hard decisions made by its visionary leaders, OSI Group was born.

OSI Group McDonalds was established in 1909 in Illinois Chicago. The location was ideal as it was the national industrial center and additionally, the entry point of German immigrants who were on their way to the plains for farming purposes. This made OSI thrive easily as a meat market, and soon, it was one of the most prominent local businesses within Illinois. During the end of the First World War, Otto moved his business to Maywood, expanded it into a wholesale business, and invited his two sons on board to change its name to Otto & Sons 1928.

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Relationship with OSI and McDonald

OSI Group McDonalds got its big break when Ray Kroc, an entrepreneur in Illinois opened the first McDonald restaurant in 1955 and appointed Otto & Sons as its sole supplier of fresh beef. Back then, McDonald’s was still a franchise under its original owners, Richard and Maurice McDonald, and it was still a new, yet warmly received concept in America. This caused an influx in demand for its products and services, and this automatically meant that Otto & Sons had to ensure a quality and consistent supply of fresh ground beef to McDonald’s. In a bid to meet this demand, OSI opened a separate plant in West Chicago which was explicitly dedicated to McDonald.

To further carve its place in this competitive market, Otto & Sons changed its name to OSI industries, and this marked the start of a business relationship that would last many years to come, and one that is still going strong regardless of good and bad market conditions. Additionally, the two companies had earlier signed an official partnership which meant that they would now be part and parcel of each other’s success because McDonald relied on OSI to serve its client base, while McDonald’s relied on the latter as its sole client.

In respect to that, when McDonald’s broke into the international market, OSI followed suit, and since then, they have been expanding into new markets with each dawn, and it’s a relationship that will continue long into the future especially now that David McDonalds is the current COO of OSI Group McDonalds.

Source: http://www.ceocfointerviews.com/interviews/DavidMcDonald-OSIGroup17.htm

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