The OSI Group McDonalds relationship is as old as McDonald’s. Technically, OSI Group didn’t exist until 1975; it officially began in 1909. OSI Group McDonalds continues their partnership today, OSI still dealing with McDonald’s separate of their other clients. Understandably, McDonald’s isn’t a plain client.
When Ray Kroc approached the Kolschowsky sons about partnering with his restaurant, no one knew how successful they’d become. Kroc believed his idea would succeed, but he didn’t know if anyone would be able to supply his restaurants with enough fresh ground beef. OSI Group McDonalds wouldn’t have happened if Otto & Sons didn’t invest in flash freezing.
The long history between both companies started when Otto Kolschowsky opened his butcher shop in Chicago over 100 years ago. After growing his business into a regional success and renaming it Otto & Sons, he passed the company on to his sons.
They continued growing the business regionally; unaware that Ray Kroc set his sights on their products. When he first proposed a partnership, they thought he was just another client. Shortly after the first McDonald’s opened its doors in 1955, they realized that Kroc was a genius. Immediately, the brothers began producing more beef, but it still wasn’t enough for Kroc.
McDonald’s prides itself on its burgers, and Kroc wanted every burger to make every customer feel special. He needed high-grade fresh ground beef, and many of his original suppliers couldn’t keep up with demand. After Otto & Sons implemented cryogenic freezing technology into their process, they began producing high-quality frozen ground beef patties.
With Otto & Sons as its primary supplier, McDonald’s continue growing across the nation. Alongside the restaurant giant, Otto & Sons went from a small family business to a large industrial corporation. In 1975, they renamed their company OSI Industries and named Sheldon Lavin the new CEO.