The Business Relationship Between OSI Group and McDonalds

OSI Group McDonalds is an American owned company of meat processors with its headquarters in Aurora, Illinois. The company services the retail and food service industries, and it has more than 65 facilities in 17 countries with 20,000 employees. Among the food items, OSI Group McDonalds concentrates on producing protein items, sold around the world to supermarkets. They provide at top restaurants globally a lot of other items. Under the leadership of CEO Sheldon Lavin and President David McDonald, OSI Group McDonalds is always looking for global growth.At the start of the postwar fiscal expansion, a business agreement formed by two small, comparatively incomprehensible family businesses. Ray Kroc in 1955 opened the first McDonald’s restaurant.

The Des Plaines restaurant was the initial step in expanding McDonald’s using the franchising model. Before Kroc had launched the original McDonald’s, he had an informal agreement with Arthur and Harry, who are the sons of Otto Kolschowsky. The deal was that Kroc was to supply ground beef to McDonalds.After a few years, Kroc would acquire the McDonalds and become the chief executive officer of the current McDonald’s corporation. They established the blueprint for the modern franchise model, and Otto & Sons joined it. Therefore Otto & Son’s primary task was to supply the ever-growing number of regional McDonald’s restaurants.The change from Otto & Sons to OSI Group McDonalds transpired over the next 20 years. One of the main elements of the franchising model was to supply each restaurant and each customer with a consistent product.

Through many years, hamburgers have become synonymous with McDonald’s.The 1960s saw a major step ahead regarding how restaurant supplies work, hence made this task easier and Otto & Sons and McDonald’s grew closer regarding their relationship. Flash freezing process created a fresh opportunity for product growth and cost decline in the food industry.Due to ties that span many years when it comes to McDonald’s and the fact that Harry Kolschowsky and Kroc and Arthur were close, Otto & Sons took over the role of the biggest food suppliers to strengthen the supply chain.1973 was the year in which Otto & Sons built its first plant in Illinois. The role of the plant was to focus on the product line of McDonald’s. It included machinery for flash freezing hamburger patties. The other aspects of McDonald as a business adopted the Glenmark brand, and its role was to serve local restaurants the retail markets.