OSI is known as one of the largest food providers in the world and is still growing today. Otto Kolschowsky started his small business in Chicago, Illinois as a local retail and meat market in 1909. After almost 20 years, Kolschowsky rebranded his business as Otto & Sons and later as OSI. The OSI group McDonalds relationship did not begin until 1955.
Before the first McDonald’s was opened in 1955, Ray Kroc— a franchise agent for Richard and Maurice McDonald— made an agreement with Ottos & Sons for them to be their first supplier of ground beef. Within a few years, supplying McDonalds became OSI’s primary task.
Over the next couple of decades, the OSI group McDonalds became even bigger, especially once the process of flash freezing was discovered. (Flash freezing is the process of freezing cryogenic food quickly with liquid nitrogen.) This process created even more opportunities for product expansion and also cost reduction. As the success of OSI group McDonalds continued to grow, OSI went from being 1 of 100 of McDonalds meat suppliers to 1 of their top 4 suppliers.
In 1973, a facility was built by OSI specifically for McDonalds. It wasn’t until 1975 when the company went from Otto & Sons to OSI Industries. As McDonalds continued to expand, OSI continued to build facilities throughout North America and also internationally. Over the past few decades OSI group McDonalds has continued grow rapidly.
In conclusion, both OSI and McDonalds started out being small local businesses. With the support of each other, they were able to build not only a long lasting partnership, but also a relationship. Because of the longevity of their relationship they were able to build strong foundation, explore new opportunities together, and take both companies global. Today, both companies are still at the top.