Category Archives: Food Supplier

The Symbiotic Relationship Between OSI Group And McDonald’s

In the early 20th century, OSI Group was a local butcher shop owned by Otto Kolschowsky. Throughout the 20th century, OSI Group McDonalds experienced extensive growth. OSI Group benefited greatly from the partnership they had with the McDonalds fast foods company.

Background Information

As an entrepreneur, you should pursue your passion. Otto Kolschowsky pursued his desire to become a businessman by establishing a butcher shop in Chicago, Illinois. Ten years down the line, Otto Kolschowsky had grown his business entity from a retail shop to a wholesale business. After another decade, the business grew into a family-based corporation. The company was then named Otto & Sons.

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OSI Group & McDonalds Symbiotic Business Relationship

To experience growth in any business sector, you need to form alliances. Although Otto & Sons was still a small entity back then, the company had what it takes to grow into a large food processing company. McDonald’s was also a small corporation; nevertheless, the two companies formed a partnership whereby OSI McDonalds would be supplying meat products to the multiple McDonalds restaurants.
Ray Kroc established the first McDonalds restaurant in 1955 in Des Plaines, Illinois. Before launching the restaurant, McDonald’s agreed with Otto & Sons. The company would supply fresh ground beef to the McDonalds restaurants.

Ray Kroc made use of a modern franchising model to enhance the growth of the McDonalds restaurants. Since Otto & Sons were symbiotically attached to the McDonalds Corporation, both companies grew together.

OSI Group McDonalds Makes Use of Cutting-Edge Technology

Otto & Sons later became OSI Group McDonalds. Since the McDonalds entity valued consistency, OSI Group McDonalds had to deliver quality products that could be transported over long distances to the ever-growing McDonald’s restaurants.

OSI Group McDonalds embraced the use of cutting-edge technology that was developed in the 1960s to ensure that they were able to supply consumers with quality products consistently. The food processing company made use of flash freezing to ensure that the processed food would stay fresh in a frozen state. Flash freezing involved the use of liquid nitrogen. Afterward, the relationship between McDonalds and OSI Group grew profoundly. The two companies are now among the largest food companies in the U.S.


How Is OSI Group Sustaining Its Growth

In the food industry, time equals money. For those who own a business in this specific industry, then you know how important it is to receive your products on time. Though every company that specializes in logistics has a few hiccups here and there, consistent hiccups will surely go against the grain, especially when it comes to cost reduction. OSI Group is one of the top companies that provide top-of-the-line logistics. This company just so happens to specialize in food processing, and it must meet a large quota on a consistent basis. By possessing such a vast supply chain, OSI gives a food retailor the best shot for receiving its products on time.

OSI Group is an expert in the field of business thanks to its leaders. David McDonald and Sheldon Lavin has led this company straight to the top of its class via acquisitions. OSI has been able to successfully merge with other similar companies throughout the years to strengthen its foundation. In addition to that, the company has participated in a number of acquisitions with success. In 2016, OSI Group went on an acquisition bonanza to some degree. David McDonald, the company’s president, has played an important role in acquiring stake. OSI acquired two of Europe’s top food manufacturers in 2016. These food manufacturers were actually BAHO Food and Flagship Europe. By acquiring stake in these two juggernauts, OSI is now able to conduct business in many new markets throughout Europe.

The same process took place here in the US in 2016 as OSI acquired a 200,000-square-foot facility on Chicago’s South Side. This plant was formally owned by Tyson Foods, and OSI spent over $7 million for the purchase. Many of the management positions were retained as well as many of Tyson Foods’ employees. As you can see, this is just a few of the many ways that OSI Group is sustaining growth. The company also sustains itself by selling copious amounts of food products, and it sustains itself via custom-food solutions.

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OSI Group: How business growth happened

OSI Group is one of the companies that have a very rich history. For a company that was started over 100 years ago to be the largest producer of food products is an achievement that cannot be underestimated. The company has gone through various phases of growth under different leaders, but one thing has remained consistent-rapid growth.

OSI Industries was created from a family owned business known as Otto &Sons. Otto & Sons came from the founder of the business who was named Otto Kolschowsky and his two sons-Arthur and Harry who helped him to grow the business. The three built this business from a butcher shop into a prominent regional supplier. The company has headquarters in Aurora, Illinois.

Otto &Sons made a breakthrough in the 1950s when the McDonald’s restaurants were established. The sons of Otto established a good friendship with the managing director if the first outlet which was opened in Illinois. The friendship led to a business contract that Otto & Sons landed to supply hamburgers to the restaurant in Illinois. Luckily, the restaurants started multiplying. Many of them were opened in Illinois and other states. Business for Otto & Sons picked such that they were forced to split their business into two. One side remained with the name Otto & Sons and concentrated with supplying the McDonald’s only.

The demand that was coming from the McDonald’s was so much that they had to develop a food production plant to process food products for the McDonald’s. In the 1970s, the company developed interests to expand its operations to more places in the United States following the steps laid by the McDonald’s. It changed its name to OSI Industries to take up a new title of a company and not a family owned business. They at the same time added another partner in the business known as Sheldon Lavin who is the current CEO.

The leadership

OSI Industries has been doing magnificently well since Sheldon Lavin joined its leadership ranks. Under his leadership, the company has become a multinational that no longer depends on the McDonald’s for its growth. As the chairman and CEO of the company, there is a lot that he has contributed to the company. He has led a revolution of business operations such that OSI Industries is not only a leading business in the food industry but also a leading private business in the United States with a net worth of $6.1 billion.