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Ann Nolan

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The Evolution Through the Century, the OSI Group

With an early history, founded in 1909, the OSI Group is a meat processing retailing company located in Aurora Illinois. It has 65 branches in 17 countries. American immigrant Otto Kolschowsky started OSI group, he was German. He started a small meat retail store to serve his community which later on went to be the huge business it is today through the century.Forward a couple more years later, Ray Kroc started the first McDonald’s restaurant in Illinois, this was in 1955. This was the base to the huge McDonald’s franchise known today. However, the base of the company was a business concept model for the future restaurant.Upon opening the OSI Group McDonalds restaurant, Kroc has to made contracts with suppliers to facilitate the raw materials needed for his food business. He enlisted the help of the Kolschowsky brothers, Arthur and Harry, sons of Otto Kolschowsky. The agreement gave the duo the role of the first hand supplier of beef to the restaurant.

This ended up being a beneficial agreement as Kroc bought out McDonald’s and became its leading CEO. OSI Group McDonalds took off to be the business it is today, and he carried along with it the Otto & Sons Group in the process.The OSI Group McDonalds had to adjust to the growing numbers, as McDonald’s was branching out regionally. Being a small company helping the rise of a much bigger company, was a huge task in the road to it being the most recognized meat retail company in the world.The metamorphosis from being simply Otto & Sons to being the current widely acclaimed OSI Group happened over the next 20 years. Kroc’s model involved providing each customer with a consistent product. The main product being hamburgers, whose main ingredient is the patty or meat in the middle. The race was on for Otto & Sons to evolve, to provide for the growing fast food chain’s demand.

The company had to be consistent in providing affordable and consumer friendly products. Technology made things more comfortable for the company, with the 1960’s breakthrough evolution in technology meat could be processed and delivered faster to the McDonald’s chain stores.In 1973, Otto & Sons built its first ever large-scale meat processing plant, wholly dedicated to McDonald’s in West Chicago. The plant included freezers and machinery to fasten the production process. In 1975, Otto & Sons became the OSI Group, and it also invited investing consultant Sheldon Lavin as a partner.With McDonald opening paths to the international market, OSI Group McDonalds followed suit. Ramping up production, expanding its plants from the US to other demanding countries worldwide. In 2016, it topped at #58 on Forbes list of the largest private companies with $6.1 billion in sales. The growth of this company has surpassed its former state from a small meat shop to Chicago to actual plants in market leading company countries such as China.

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