OSI Group is an Aurora, Illinois-based supplier of processed food including chicken, pork, beef, and vegetables. Their customers include multinational food chains and they make store brands of food for major grocery chains. They started out as butcher shop with an attached retail store in 1909. They moved into wholesaling food in the 1920s and in the 1950s they started supplying restaurants.
The fast-food chain McDonald’s is their biggest customer. OSI Group was founded by Otto Kolchowsky. His sons Arthur and Henry, were good friends with local businessman Ray Kroc. Ray Krock famously opened the first McDonald’s location in Des Plaines, Illinois. At that point in time, he was a franchise agent for two brothers, Richard and Maurice McDonald. McDonald’s was based on their family restaurant.
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When Ray Kroc was getting ready to open his restaurant he went into a handshake agreement with Arthur and Harry Kolchoswky. OSI Group McDonalds relationship would involve supply his restaurant with fresh beef. Ray Kroc opened more McDonald’s locations in Illinois and OSI Group was right alongside him. He eventually acquired McDonald’s and became its chief executive officer.
OSI Group McDonalds relationship eventually evolved providing fresh ground beef to McDonald’s locations regionally. A key at McDonald’s was offering a very consistent product to their customers. OSI Group needed to make sure their production methods were very consistent and affordable. They also needed to make sure they could deliver the beef to farther and farther locations.
There was a breakthrough in the food industry in the 1960s. Someone invented flash freezing which uses liquid nitrogen to near instantly freeze beef. This led to OSI Group McDonalds relation getting stronger because they were able to deliver farther and farther distances at a reduced cost. McDonald’s at that point had hundreds of beef supplier across the United States.
In order to reduce costs and simplify their supply chain McDonald’s reduced the number of beef suppliers to just four due to flash freezing. They chose OSI Group as one of the companies and the rest is basically history. OSI Group McDonalds relationship now involve restaurants all around the world including across the U.S., Canada, Europe, Asia, and Australia.
Search more about OSI Group McDonalds: https://www.inc.com/profile/osi-group