OSI Group has become one of America’s Top Companies with $6.1 billion in annual revenue.
This is a phenomena that just doesn’t happen overnight, in fact, it took over a hundred years to happen.
It began with humble beginnings with a German immigrant, Otto Kolschowsky, arriving to the United States and changing the course of his and his future generations’ future forever by starting a family meat market in Oak Park, Illinois.
However, his focus shifts from just owning a meat market to incorporating wholesale meat trade into another Chicago suburb, Maywood.
However, this didn’t become the final change that the business would make that would work in its favor.
Just eleven years later, 1928, the business was formed into Otto & Sons that had continue to delivering high-quality meat to its consumers.
McDonald’s As a Fledging Startup
It can be fairly easy to overlook OSI Group as just another food supplier company but this company carries a surprising fact in its origins: it made McDonald’s what it is today.
1955 was a much different time than today where McDonald’s wasn’t just an international conglomerate with restaurants that span all over the world but rather a startup that started its first restaurant in Des Plaines, Illinois.
Luckily and very fortunately, McDonald’s chose OSI Group as its suppler of fresh ground beef patties. The entire deal was made on an agreement between Ray Kroc and the sons of Otto Kolschowsky.
Over the years, Otto & Sons’s main line of revenue became just supplying meat to their favorite client, McDonald’s.
Supercharging OSI Group’s Sucesss
Markets change for the fast food industry when cryogenic food processing was to set to revolutionize the entire fast food industry.
This meant that McDonald’s was able to get high-quality meat supply from dedicated source of high-volume producers and distributors as opposed to relying on 150-200 varying fresh beef suppliers. The result would be that McDonald’s would be able to scale their business more quickly.
However, what about Otto & Sons?
Luckily, the company made the transition into being a high-volume meat supplier in West Chicago, utilizing the cryogenic preservation techniques that was changing the face of the entirely fast food industry.
Because of the foresight displayed by the Otto & Sons, in 1973, they started their very own high-volume meat supplier company using that very same cryogenic technology.
With the close relationship that Kroc had with the Otto & Sons had, they accepted the deal that they would be an exclusive supplier for Donald’s beef meat.
Because of this monumental breakthrough, Otto & Sons was able to grow in relative prosperity with McDonald’s throughout the decades.
Acquiring Other Assets
With the acquired supercharged success of OSI Group (formerly Otto & Sons), it would make superb sense for the company to be able to make acquisitions to strengthen its efforts of delivering meat to its clients.
Recently, it made a purchase for a former Tyson Foods plant in June 27, 2016 for just $7.4 million, saving 480 jobs in the process.
Much like how OSI Group was able to demonstrate quick thinking and foresight, OSI Group saw an undervalued property and was able to purchase the facility.
Going back to its roots of having foresight and implementing it, OSI Group was able to make its fortune to by being ahead of other businesses and staying close to the right business.
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