Today OSI Group McDonald is a world leader in the food industry. It boasts of having over 20,000 employees working in sixty-five facilities in seventeen countries around the globe. Its remarkable rise from a family-owned meat market and butcher shop to a leading global supplier of custom value-added food products is the perfect economic success story of the century. It is ranked number sixty-three by Forbes among America’s largest privately-owned companies with an income of sixty-one billion dollars.
In 1909, Otto Kolschowsky, a German immigrant opened a retail meat market and butcher shop in Chicago. He ran a good business serving the nearby community and in 1917 he had grown his business into a wholesale meat company. As part of the expansion, he moved his business to Maywood in Chicago. The company was later rebranded and named Otto and Sons in 1928. Over the next years, it continued to thrive and earned a reputation as a local supplier of quality meat.
The first OSI Group McDonalds restaurant was opened in 1955 by Ray Kroc- a franchise agent at the time for Maurice and Richard McDonald who were running a family restaurant. Prior to opening this first OSI Group McDonalds restaurant in Des Plaines, Mr. Kroc had made a verbal agreement with Otto’s sons. The arrangement was that Otto and sons would be the supplier of ground beef to the McDonalds franchise. This was the beginning of what would later turn out to be one of the most fruitful economic partnerships of the century.
Mr Kroc went on to acquire McDonald’s and install himself as its Chief Executive Officer. Tasked with supplying the rapidly expanding OSI Group McDonalds franchise, Otto and Sons made McDonald’s their primary focus. Technological advancement in 1960 in the form of flash freezing process enabled Otto and Sons to keep up with the pressure of supplying the growing network of McDonald restaurants.
Otto and Sons constructed its first plant exclusively for the OSI Group McDonalds franchise in the year 1973. This facility had cutting-edge machinery to be used in flash freezing hamburger patties. Concurrently, all the business non- related to McDonald’s was put under a separate company called Glenmark that focused on other local restaurants.
In 1975 Otto and Sons became known as OSI Industries. ISO industries manufacturing capacity increased with McDonald’s continuous growth. Both companies entered the international scene and the rest is history.