OSI Industries is among the leading food provider across the globe. It has around 20,000 employees who work at 65 facilities distributed in 17 countries. OSI Industries has risen from a humble beginning. Its conception is linked to American immigrant experience. Otto Kolschowsky was among the first Germans immigrants who were settling in Chicago, Illinois. The city served the nation as the point of entry for new immigrants who were interested in farming on the plains and also served as industrial center.
Two years after Kolschowsky arriving in America, he decided to establish a small retail business in his community to provide meat to his people. The business thrived, and within ten years at the end of the First World War, the business had grown to a wholesale. After another decade the business had expanded to become a family business. In 1928 it was rebranded as Otto and Sons. And after some years of its operation, Otto & Sons continued growing as local business, it was a small business but very essential in America at that time.
In 1955, Ray Kroc managed to open the first McDonald’s restaurant in Illinois. By doing so, Kroc was still operating as a franchise agent for a San Bernardino who back in 1940 began a family business-restaurant. Before starting to run that original McDonald’s restaurant, Kroc had entered into an agreement with Arthur and Harry who represented sons of Otto Kolschowsky. The agreement allowed Otto & Sons to be the franchise’s first supplier of flesh meat. With this deal, Otto & Sons business was poised for success.
A few years later, Kroc was lucky to purchase the McDonalds and to work as the Chief Executive Officer of the new McDonald’s company. The Otto & Sons being the main meat supplier for the franchise, McDonald’s restaurant became the priority.
The expansion from a local supplier to a global corporation and transition from Otto& Sons to an OSI Industries transpired over the next 20 years. One of the key element of Kroc’s franchising strategy was ensuring that every restaurant gets consistent product. The OSI Industries have gon to the extent of making acquisitions.
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