In 1909, Otto Kolschowsky opened a meat market in Illinois after he arrived in the USA. In 1917, he expanded the food business into a wholesale and moved it to Maywood, Chicago. In 1928, the business adopted “Otto & Sons” as its name.Ray Kroc opened the first McDonald’s eatery in Illinois and made Otto & Sons. McDonald’s made Otto & Sons its sole fresh ground beef patties supplier. With the introduction of Cryogenic food processing, Otto & Sons became one of OSI Group McDonalds meat suppliers.In 1973, Otto & Sons established a special freezing and patty-forming facility. It also formed Glenmark, a unit for non-McDonald’s businesses. Come the year 1975, Otto & Sons changed the name to OSI Industries.
Before opening his first OSI Group McDonalds restaurant, Kroc had earlier entered into a handshake agreement with Kolschowsky’s sons—Harry and Arthur—to be supplying his firm with fresh ground beef. This agreement would later offer Kroc more benefits than he earlier anticipated. Within a short time, Kroc bought out the McDonald’s and became the CEO of the current McDonald’s corporation. As the company took off, Otto & Son’s symbiotically joined in to provide the McDonald’s high quality brand with beef patties.Because of OSI Group McDonalds rapid growth, OSI Group was forced to improve its manufacturing abilities In 1977, the firm opened its first meat processing meat outside Chicago. In the late 1970s and early 1980s, the company opened more unique food facilities in other areas of North America.
As McDonald’s became an international firm, OSI Group also became a multinational company. The two companies got into a joint venture in Germany in 1978 and Spain in 1980. OSI Group was not becoming a complicated and sprawling international firm. Over the years, OSI Group has opened a series of franchise stores and plants in several parts of the world. For instance, in 1990, the OSI Group McDonalds, together with Alaska Milk Corporation and General Milling Corporation, established GenOSI in the Philippines. In 2002, OSI Group established OSI China.The OSI Group and McDonald’s have a long history. The two shared superior relationships and embraced technological innovations and available growth opportunities. These two factors led to the growth of a small butcher shop and restaurant to two of the most recognised food processing brands in the world.