OSI Group and McDonalds: A Winning Partnership

Two businesses with humble origins that grew together into massive corporations are OSI Group and McDonalds. OSI Group started in the early Twentieth Century when German immigrant Otto Kolschowsky started a butcher shop in Chicago to serve the local community. The shop was a success, and he expanded into the meat distribution business, gave the business the name Otto and Sons and moved to the suburbs where the local company thrived for decades.

Early Partnership

By the 1950’s, Kolschowky’s sons were running the business, and they entered into a handshake agreement with Ray Kroc, who was in the early stages of turning the small franchise restaurant McDonalds into the giant corporation it would be by the 1970’s. Otto and Sons provided Kroc with the beef he needed for his hamburger restaurants, Otto and Sons was renamed OSI Group, and OSI Group McDonalds formed a mutually beneficial business arrangement as both companies expanded.

Because part of Ray Kroc’s vision was to provide customers with a consistent product, he wanted his beef to come from the same source, and OSI was able to come through for him. OSI Group was aided by the development of the flash-freezing process in the 1960’s, which allowed them to ship their hamburger patties to McDonalds restaurants around the world. The Kolschowsky brothers became trusted friends of Kroc as well as business partners, and OSI Group was one of McDonald’s four primary food sources. To know more about the company click here.

OSI Group McDonalds Today

Not only are OSI Group McDonalds still working together, but OSI has expanded into other types of meat production and is supplying companies around the world with their products. It has sales of roughly six billion dollars a year, and China’s entry into the World Trade Organization has given it an enormous new market in Asia. In conclusion, both OSI Group McDonalds have been pioneers in food production and distribution for the past century, and they have long represented innovation, excellence and collaboration.

Learn more: http://www.osigroup.com/about-us/company-timeline/