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OSI Group And McDonalds; Evolving Together In Catering Business


OSI Group McDonalds is one of the world’s leading food providers. The beginning of the OSI group was largely influenced by the American immigration history. Otto Kolschowsky, a German immigrant opened his butcher shop and a retail meat market mostly to serve the German immigrant community. The business picked up well and after around a decade, he expanded his business into a wholesale one. The expansion prompted him to move his operations into a suburb in Chicago.

The business was later rebranded as Otto and Sons and continued as a stable local business. Although the business was small, it was a vital part of the American business community. The post-war economic growth brought a stroke of luck with it. Otto and sons entered an agreement with the first McDonalds restaurant business to be the first suppliers for their freshly ground beef. After a few years, Mr. Krock who signed the agreement to allow Otto and sons to supply McDonalds became the CEO for the modern McDonalds Corporation. This was a great chance for the growth of Otto and sons as it began to supply fully for the fast growing number of OSI Group McDonalds restaurants regionally. This collaboration with McDonalds brought Otto and sons to the limelight as a fast growing business.

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Soon Otto and Sons transformed into the OSI Group McDonalds as it was able to come up with different but consistent products for restaurant chains worldwide. The introduction of flash freezing in the 1960”s, where food is frozen with the use of liquid nitrogen established a closer bond between OSI group and McDonalds since it meant they could supply their product worldwide.

Over time, OSI group became one of the four main suppliers for McDonalds. This was mainly due to the friendship that had been established between the owners of the two franchises. To solidify the business relationship, Otto and sons even went to the extent of building a factory that was mainly dedicated to creating products for the OSI Group McDonalds business.

The continued growth of the McDonalds business has seen the ramping up of business at OSI. This growth that led the McDonald group to venture into the international markets opened opportunities for the OSI group to go global.

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