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Healthy Business Relationship Between OSI Industries and McDonald’s


Otto Kolschowsky immigrated from Germany and decided to settle in the United States. Otto launched a retail butchery to earn himself an income. He was very dedicated and gave the best to Otto Kolschowsky ‘s business with time the market started doing well. In 1917 he expanded the company to a commercial enterprise that specialized with meat processing. The retail business developed into two more stores in Maywood and Chicago Suburb. Otto’s sons joined it a family line business, and they rebranded its name to Otto & Sons in 1928. The reputation of this business spread to various regions as they were offering high-quality meats.

In 1955, Ray Kroc was managing the McDonalds restaurants through franchising. Otto & Sons were the meat supplier for this restaurant. With time Otto & Sons together with McDonald agreed. They decided that Otto and sons could serve only the McDonalds restaurants which were evolving rapidly. In 1975 they changed the name to OSI Industries.

There were many benefits attained from the new OSI industries. Otto’s business had adopted the latest technologies, patty forming machines as well as the liquid nitrogen freezing tunnels. They shared their devices with the McDonald hence improving the services. McDonald had a wide range of market and clients unlike Otto’s business. OSI industries had promising growth with the joint forces and resources.

With time OSI Group focused on expanding its services throughout the world. They purchased Baho food as well as the Tyson plant in Chicago worth $7.4 million. OSI Group and the McDonalds shares the necessary resources that enable both companies to expand. Both companies have a common goal which is to provide the best products to all their clients and serve a wide range of customers. The companies create job opportunities for thousands of people hence raising their living standards.

Sheldon Lavin became a partner for the OSI after serving many years at Otto and Sons. He set principles and policies that govern the company even the current CEO David McDonald reviews them to ensure a smooth running of the business. Both McDonald and OSI companies strive to be the top food processing companies.

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