East Balt Commissary: McDonald’s and wheat prices

Source: Food and Drink Exec

Date :19/12/2007 04:55:58

Mark Kuchuris explains to Food&Drink Exec how East Balt - a family bakery business from Chicago - has enjoyed a 50 year customer-supplier relationship with McDonalds; customer demand and wheat prices.

Written by Ian Armitage and Produced by Pat Harlow

East Balt Commissary is a dedicated supplier of bread products to McDonald’s, one of the world’s largest fast-food chains, as well as other leading QSR brands. Headquartered in Chicago, the company was founded on a fortuitous meeting between Ray Kroc, the man who made McDonald’s what it is today, and Louis Kuchuris, a local baker and East Balt’s founder. On a simple handshake, the two agreed upon a customer-supplier relationship that still stands today.

East Balt has grown with McDonald’s for the past 50 years and during that time has learned to anticipate and respond to its largest customer’s needs. In recent years however, a few things have changed. McDonald’s has altered its direction. It doesn’t want to carry all the risks associated with a single-tier supplier system and is looking for suppliers to diversify customer profiles.

“We are dedicated to serving McDonald’s and about 95 percent of everything we produce worldwide is for them,” explains Mark Kuchuris, Strategy Senior Vice President. “McDonald’s wants us to diversify and my goal is to be 50 percent McDonald’s within the next five years.”

Commitment to McDonald’s

East Balt will be broadening its customer portfolio while continuing its commitment to McDonald’s growth and success. But how will it attract potential new customers? Well, that’s a clear strategic vision. Mr. Kuchuris believes new customers will be attracted, amongst other things, to the fact East Balt offers brand protection and has served McDonald’s passionately for the last five decades: “The QSR industry has realise…

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