The growth of OSI Group and the impact of McDonald’s partnership

OSI Group is by far the most developed food processing company in the world. It has a presence in 17 countries, employs over 20,000 workers and has constructed over 65 food production plants. The history of this company is interesting. It was started in 1912 by a German immigrant known as Otto Kolschowsky as meat shop in Chicago, Illinois. Later, the founder brought his two sons into the management and renamed the business to Otto &Sons.

Otto Kolschowsky did very well in a short time, and by 1928, it had developed into one of the notable wholesale businesses in Chicago. After the second world war, the American economy picked up aggressively, and Otto & Sons became one of the businesses that prospered during this time.

In the 1950s, the McDonalds opened doors with its first branch being in Illinois. Before they officially started the business, they had a deal with the sons of the founder of OSI Group that the meat business would become a supplier of beef products to the McDonald’s. Within a few years, McDonald’s business had gained significant ground that they demanded a lot from their suppliers. Otto & Sons became one of the primary suppliers through the McDonald’s thanks to the relationship that the owners of this to businesses had.

As the McDonald’s became bigger, it narrowed down the number of suppliers in order to have a more coordinated supply chain. OSI Group was picked as one of the four main suppliers who would supply meat products to McDonald’s.

In 1973, OSI Group built the first food processing plant that was dedicated to McDonald’s products line. At the time, they had also come up with technologies that allowed them to deliver product to far-flung areas where el McDonald’s had opened its operations.

By 1975, OSI Group, which was then known as OSI Industries, had transitioned from a small family meat shop to a technologically advanced business that had the capacity to make larger-scale supplies to the McDonald’s. They also added a new leader who was more experienced in the management of large businesses, Mr. Sheldon Lavin. Today, he is the chairman and CEO of the company.

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