Browse Tag: food plant processing of poultry

OSI Group: Assessing the Foundational Growth Factors that Sparked International Expansion

When it comes to honoring some of the world’s leading fast-food franchises with the recognition and credibility of having exceptional consistency in premier customer service, it is generally the case that consumers remain inattentive to the numerous subordinate companies that have contributed to the overwhelming success of these franchises. Nevertheless, as a result of neither promoting nor emphasizing the business details that underlie franchise development, companies like the OSI Group have been able to achieve substantial growth and manifest international establishments without even capturing the attention of the public eye. Certainly, for several decades McDonald’s has reigned as the number one fast-food franchise in the world and has upheld its title by remaining to be a generational constituent via consumer loyalty to the brand from childhood into adulthood. However, what very few people know is that for many years, OSI has serviced in having the notable responsibility of being the company’s chief supplier of ground beef.

Indeed, the OSI Group’s decision to set aside their personal business endeavors in order to commit to a long-term partnership with McDonalds prior to the franchise’s global triumph was a choice that not only allowed McDonald’s to profit and thrive, but one that yielded mutual benefits that enabled OSI to become one of the world’s largest food providers. Yet, just like any other entity that strives to become affluent, success didn’t come for either company overnight. Rather, it was achieved through dedication and invested time. According to an article posted on, there is a backstory that details how each company came to dominate the food industry. Before OSI became known for whom they are today, they were formerly known as Otto & Sons. Otto & Sons was initially established in the city of Chicago in 1928 by a German-immigrant named Otto Kolschowsky. Otto Kolschowsky’s small retail meat market was such a staple to the community after World War II that it continued to prosper as a local business. Moreover, it was also during this time that Ray Kroc (CEO of McDonald’s Corporation) met with Otto Kolschowsky’s sons (Arthur and Harry) to make an agreement on Otto & Sons being McDonald’s main supplier of beef. Following the agreement, McDonald’s business boomed and Kroc was able to then buy out the franchise. Over the course of 20 years, the grand-scale business that generated out of the alliance with McDonald’s pushed Otto & Sons to transition to a global corporation known as OSI Group.

Furthermore, using the latest technological development during that time, OSI began incorporating cryogenic food processing (flash freezing with liquid nitrogen) into their mass manufacturing operations into order to preserve food for shipment and fulfill the global demands of consumers. Nonetheless, with so much incoming business, OSI began to set up several manufacturing plants that were solely dedicated to servicing McDonald’s. In addition to this, the company also began to take on other food franchise clients including Starbucks, Burger King, Subway and several others. Subsequent to establishing new clients, OSI Group also began to expand internationally in India, Australia, China, Europe, and Japan to provide fresh produce, poultry, and beef.

As related by, OSI has achieved such a magnitude of success that the company now manages operations out of a total of 65 facilities that are dispersed over a combination of 17 countries. The Chronicle article further mentions how OSI is committed to food safety in its food plant processing of poultry, beef, pork, and sous vide and how the company’s ingredients supply leading restaurant chains. As of today, OSI stands to be one of the largest private companies in the U.S. that has earned an estimate of $6.1 billion in sales and continues to give back to the community in working with food-associated charities like the Ronald McDonald House Charities and The Northern Illinois Food Bank.

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