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The OSI Group and Mcdonald’s Partnership That Has Lasted for Six Decades

Published / by UpToMe / Leave a Comment

Long lasting partnerships between companies is not only influenced by their business interaction. They work together for an extended period of time because they have a similar approach in business, have similar ethics and business culture. An example is the OSI Group McDonalds business partnership, that has lasted for decades. It viewed as the most dynamic collaboration in the worlds’ food industry.

OSI group is famous for its influence in the food processing market. Its operations have gone beyond the borders of the US to other 16 countries. Its partner, McDonald’s is the world’s famous restaurant chain that offers food service in over 100 countries. OSI Group McDonalds business relationship has lasted for over 60 years now and it began before either of them had started operating internationally. Ray Kroc opened his first McDonalds restaurant in 1955. At this point, he was just an agent. In this time, OSI Group was operating under the name Otto & Sons, and it was a local meat market owned by a family that had emigrated from Germany.

Ray Kroc met the owners of the of the meat market and agreed to establish the OSI Group McDonalds venture that would be mutually benefiting to the two companies. They agreed the OSI Group would be supplying McDonald’s with meat products. After some years of doing business, the founders of McDonald’s accepted Kroy’s proposal of buying the business from them. He became the CEO of the franchise and OSI Group continued with the supply of meat products to his business.

The success of both companies over the years has allowed them to expand their operations to other nations. At the beginning of OSI Group McDonalds, there were setbacks especially for OSI Group to meet McDonald’s request for fresh and high-quality meat products. They had to improvise preservation methods to help them deliver products that were up to the standards of the restaurant chain. However, all these problems were over after the technological breakthrough of the 1960s.

The improvement in technology helped OSI Group to begin practicing flash freezing. Their products could now be delivered over longer distances and even they could sell at a more affordable price. The OSI Group McDonalds venture has also engaged in supporting initiatives of environmental sustainability, social responsibility among others.

For details: gazetteday.com/2018/04/century-innovation-osi-group/