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OSI Group McDonalds Worked Hand-in-Hand to Scale New Heights of Success in the Food Industry

OSI Group was founded by Otto Kolschowsky in 1909 as a butcher shop. The business grew steadily to move to Maywood and become a meat wholesaler. It has since then made the right steps and grown steadily to become one of the largest food providers in the world.

Otto Kolschowsky named the business Otto & Sons in 1928. Otto Kolschowsky was a German immigrant and no one could have anticipated that OSI Group would become this big over a century later. Mr. Kolschowsky met with Ray Kroc and made a partnership deal that saw OSI Group McDonalds grow together and help each other each step of the way. The deal was finalized and Otto & Sons started supplying the network of restaurants with fresh ground beef. Later, Ray Kroc acquired McDonalds fully and became McDonalds Corporation.

Otto & Sons started straining to keep with McDonalds’ franchising model requirements. The model required restaurants to provide consistent and quality products. In turn, the meat provider was required to supply consistent products. However, in the 1960s, flash freezing technology came in to salvage the situation by reducing costs. Otto’s business upped their game and OSI Group McDonalds partnership continued to grow stronger.

McDonalds decided to reduce the number of its suppliers. Otto & Sons was among the main four groups that were maintained. It continued to supply quality, consistent and affordable products to the ever-growing McDonalds’ chain of restaurants. It even built a plant in West Chicago, Illinois that was dully dedicated to processing McDonalds’ products. In the 1970s, Otto & Sons was rebranded into OSI Group.

OSI Group has grown to an extent that it was pursuing the possibilities of going global. By 1980s, the OSI Group was a two-track company, a level of a full-fledged manufacturer. It was around this time that Sheldon Levine was brought on board to take after Otto’s sons who were almost retiring. Sheldon Levine strengthened the OSI Group McDonalds business relationship further and worked to expand into overseas. He was even offered an opportunity to become a partner in the company. OSI Group McDonalds came together in a joint venture to take their services to Germany.

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OSI Industries’ journey from a humble beginning to one of the World’s leading food producer

How OSI Industries began as a butcher shop.

The founder of the OSI Industries was Otto Kolschowsky, a German migrant who settled in Chicago, Illinois. He began in 1909 as retail meat provider and butcher shop. By the end of the First World War, his business had expanded and become a wholesale business. It had begun to serve a Chicago Suburb, Maywood from its beginning place on the West side of Chicago at Oak Park.

In 1928, Otto $ Sons became the business’ name. Arthur Kolchowsky and Harry Kolchowsky became their father’s partners. The company continued to thrive and expand. Their main customer for their meat supplies was McDonald’s, a fast food company that began in Illinois.

The relationship between the two companies was good since Ray Kroc and the Otto sons were good friends. A handshake between Ray Kroc (Founder and CEO of McDonald) and the Otto sons confirmed the deal between the two companies. Therefore, Otto $ Sons became McDonald’s main meat supplier.

How technology favored the business expansion.

With the advancement of in technology, the introduction of using liquid nitrogen for food preservation (in 1960s) played a significant role in the expansion of both the Otto & Sons and the McDonalds. The technology resulted to Otto & Sons becoming one of the four main product suppliers for McDonald’s.

Otto & Sons becomes the OSI Industries.

The transition from Otto & Sons to OSI Industries happened for two main reasons. Firstly, the company had grown from a humble beginning of a butcher shop into a national manufacturer with an industry that was well advanced technologically.

Secondly, the leadership had changed from being a family led industry since both of the Otto sons had reached their retirement age. They asked Sheldon Lavin to join the company as a partner. Sheldon Lavin was their investment adviser who played a significant role in the OSI Industries’ expansion. The rebranding From Otto & Sons to OSI Industries happened in 1975.

OSI Industries’ worldwide growth.

As the McDonald’s grew into an international business, OSI followed suit as its supplier. Sheldon Lavin became the chairman and CEO of the company. His experience in investment become crucial for the company’s expansion. Forbes list of largest privately owned companies ranks it as position 58 with sales of $6.1 billion.

OSI Industries has also engaged in the supply of non-meat products due to its consistent expansion throughout the world. OSI has been in business for over a century now.

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