The Business Relationship that Made OSI Group and McDonalds Stand the Taste of Time

OSI Group has been in the food business for over a century. No one would have thought that a neighborhood butcher shop started by a German immigrant would become one of the largest food providers in the world. The OSI Group McDonalds business relationship played a huge role in the success of the two companies. OSI Group’s humble beginnings dates back to 1909 when Otto Kolschowsky started it. The butcher shop expanded to become a meat wholesaler in just a decade based in Maywood. In 1928, the business had become stable and named itself Otto & Sons.

Otto & Sons partnered with McDonalds, what turned out be a fateful development. Ray Kroc partly owned McDonald’s. The Otto Kolschowsky’s business was tasked to supply McDonald’s restaurant with fresh ground beef. The OSI Group McDonalds business relationship grew stronger with time. At some point, Ray Kroc bought the business and became the sole owner. McDonalds rebranded to McDonald’s Corporation. Supplying meat products to ever-growing McDonald’s chain of restaurants became an uphill task for Otto & Sons because McDonalds franchising model required each of its restaurant to provide consistent, quality and affordable products.

In early 1960s, a technological breakthrough came as a relieve to Otto & Sons. The flash freezing technology also came along with a lot of opportunities for the business. It not only reduced Otto & Sons’ cost of production, but also enabled it to provide consistent and affordable products.

When McDonalds reduced the number of its suppliers, Otto & Sons remained among the four main suppliers. The company built a modern facility in West Chicago, Illinois which supplied meat products to McDonalds restaurants. That saw the OSI Group McDonalds relationship grow stronger with McDonald’s restaurants receiving constant supply of meat.

In 1984, the Otto & Sons became OSI Group. It had established itself to a level of a manufacturer, thanks to the OSI Group McDonalds partnership. It operated as a two-track company. Then, Mr. Kolschowsky’s sons reached retirement age and the company needed someone with top-notch experience and expertise to take the company global. The company hired Sheldon Lavin. After he came on board, the company expanded to West Jordan, Utah. OSI Group McDonalds partnered to expand to Germany. Currently, OSI Group is based in Aurora, Illinois with over 65 facilities spread all-over 17 countries.

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