The OSI Group McDonalds partnership can be traced all the way back to the early 1950s. Franchising agent Ray Krok began a partnership with San Bernadino restaurant owners Mac and Dick McDonald. Amazed by their efficiency and success, he purchased the franchising rights and created his first restaurant in Des Plaines, Illinois.
Krok needed a reliable meat processor to fill his hamburger orders. With a simple handshake deal, Krok hired Otto and Sons meat packing for the job. The partnership became very fateful, in that McDonald’s turned into one of the most profitable and successful restaurant franchises in history.
After a few years, Otto and Sons became OSI Group. The OSI Group McDonalds business merger resulted in OSI Group becoming the sole supplier of meat for all of the Midwest McDonald restaurants. As OSI Group continued to grow, it began to supply other meats like chicken nuggets, chicken patties and fish patties. The company also increased their brand through the introduction of cryogenic freezing, which flash freezes the meats for longevity and safety.
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But even before the OSI Group McDonalds partnership, Otto and Sons started out as a neighborhood meat market in Chicago, Illinois. German immigrant Otto Kolschowski opened his store in 1909. The market was an instant success because of the quality products.
After a few years in business, Otto retired and turned the business over to his son, who continued to run it for several decades. After partnering with McDonald’s, the sons brought in former financial adviser Sheldon Lavin to oversee international finances. So impressed with his expertise, he was offered a partnership.
Soon after joining OSI Group full time, Lavin helped OSI Group grow internationally. The company is now ranked number 59 on Forbes List of Most Successful Private Companies. The OSI Group McDonalds partnership still thrives under Lavin’s stewardship.