The history of the OSI Group, the largest food producer in the world, goes back to 1909. Over 100 years have passed since this company started its operations. It the beginning, it was just a butcher shop which offered meat products to people in Chicago. Just like in any other business person, the founder had dreams of making his business larger.
A few decades later, the business had recorded significant growth to a point where the business had changed its location to meet the high demand for its products. In 1928, it became a family owned business after the founder brought his two children into the business.
Otto & Sons was born as a family-owned business. The two sons of the founder, Harry and Arthur made it possible for the company to stand even without the presence of their father. They are the ones who made a deal that saw the company become a regional supplier of meat products.
The emergence of McDonald’s
If there is one deal that the company associates with its success, it is this one that involved the newly created McDonald’s. Otto & Sons was operating in Illinois when McDonald opened its first restaurant in the area. As one of the established meat business in the region, Otto & Sons was contracted by McDonald’s as a supplier of hamburgers. However, the deal did not just come out of the blues. Arthur and Harry were good friends with the managing director of McDonald’s at the time, who later became the owner of the chain restaurants. The deal between the two was born out of this friendship.
To the surprise of many, McDonald’s idea of chain restaurants became very popular in a short time. The demand for meat products from its suppliers became too much. OSI Group is one of the supplies had to increase the production capacity to meet the demands of its client. The increased demand led to realignment operations in the company. Otto & Sons was left as the entity handling McDonald’s supplies while another branch was created to handle supplies to other customers.
Since the deal between OSI Group (the Otto & Sons) and McDonald, business has never been the same for this company. It has been one achievement after another. The company moved from a regional to a global supplier. McDonald’s paved the way for international growth after it ventured into the international market with OSI Group as one of its suppliers.
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