The Business History Between the OSI Group and McDonalds

Recently, the OSI Group marked their 100th year anniversary of food processing innovation. The OSI Group started off as corner shop butchery to a global food provider. It is ranked one of the largest food processors in the world with presence in 17 countries with 65 facilities and a total of over 20,000 employees.

The growth of the firm over the decades is rooted in the American economic history especially with the immigrant experience. The growth has also been attributed to the consistent partnership with the McDonalds chain of restaurants.

The innovation behind the OSI Group started off through a technological breakthrough in the process of flash freezing. This created new potential opportunities for the product expansion and also reduced the costs in the food industry.

This led to the formation of the relationship between the OSI Group and the McDonalds. The close ties between the two firms were also due to the personal friendship between Kolschowsky, Arthur and Kroc. The OSI Group became the official supplier of meat nationwide for the McDonalds giving rise to the start of the OSI Group McDonalds parternship. It became part of the four principal suppliers especially after the consolidation of the franchise into the supply chain.

It was in 1973, that the OSI Group developed the first plant which was solely dedicated in the line of McDonald’s products. The plant was located in Chicago, Illinois and consisted of technologically advanced machinery for the processing of the flash freezing hamburger patties. These doubled the role of the OSI Group as a local supplier and a growing Midwest provider.

As the OSI Group McDonalds grew rapidly, it concentrated in the manufacturing capabilities which were in line with the consistent growth of the OSI Group McDonalds. Immediately McDonalds broke into the global market, the OSI Group followed suit and this saw it grow to a multinational corporation to date.

According to Forbes, the OSI Group McDonalds is ranked at the 63th position for the America’s largest private firms. Through acquisitions, the OSI Group has expanded its presence into European counties such as Spain, Germany and also in Asia China and Japan. The OSI Group has won a number of accolades for the recognition of its environmental efforts.