In 1995, Ray Kroc took the first significant step towards the McDonald franchise by setting up the first outlet in Des Plaines, Illinois. Even before opening that McDonald’s, Ray had entered into an agreement with Harry and Arthur, who were brothers and sons of Otto Kolschowsky. Otto is the founder of OSI Group. When he started the company its name was Otto & Sons.The agreement between his sons and Ray Kroc required Otto & Sons to supply the McDonalds franchise with fresh ground beef. It was a deal that would define the relationship of OSI Group McDonalds. Up to today, the two companies have a strong business association built on decades of doing business together.
Otto & Sons
Otto Kolschowsky set up his company after arriving in the US as an immigrant. At 20th Century’s turn, Otto had become part of the German-immigrant community residing in Chicago. Chicago was an immigrant entry point and an emerging industrial center. After settling, Otto set up a retail meat market and a butcher shop with the aim of serving his community. He named this establishment Otto & Sons.Over time, Otto’s business picked up. The establishment expanded to have a wholesale arm that supplied meat around Chicago and neighboring suburbs. Eventually, Otto & Sons became America community’s small but vital fragment. The company established itself even before OSI Group McDonald business deal.
McDonald came up when the USA was experiencing postwar economic expansion. When Ray Kroc set up the first McDonalds in Illinois, he was acting as an agent for Maurice and Richard McDonalds. The two McDonald brothers were starting the company as a family restaurant and had no idea how big it would become.Later, Ray, the OSI Group McDonalds deal maker, purchased the company. He took over as CEO and begun implementing his franchise model blueprint. The OSI Group McDonalds agreement made sure that McDonald’s and Otto & Sons had a symbiotic relationship.McDonald’s transitioned to become the world’s most recognized brand. Otto & Sons transformed into OSI group, and the company continues to be a vital McDonald’s partner. The demands of the OSI Group McDonalds deal have contributed to OSI innovation efforts. Currently, OSI Group is a global corporation that runs different operations worldwide.