How a Partnership With McDonalds Transformed a Chicago Butcher Shop Into OSI Industries

Why are OSI Industries worth $6.1 billion? The company has become one of the most dominant forces in he food industry, but how did they get there? How does a company become so large that it has facilities in 17 countries and supplies food to McDonald’s, Papa Johns, Subway, and more? Well, in the case of OSI Industries, consistently producing quality products is what shot them from a small butcher shop in Chicago into the multinational force of nature that they are today. Really, it was the case of a small handshake and a game-changing restaurant.

OSI Industries used to be Otto & Sons, a small butcher shop — and later wholesale business — owned by the German immigrant Otto Kolschowsky. Otto was renowned for his persistence and quality of products which led his butcher shop to be a long-standing shop in West Chicago. It was his sons, however, that made a deal that would change the fate of this small establishment for years. Before Ray Krok opened his first McDonalds in 1955, Arthur and Harry Kolschowsky shook hands with Ray Krok on an offer to supply McDonald’s with its beef products.

Then, McDonald’s happened. McDonald’s exploded into popularity and made a sweep of the nation adding new customers at an incredible pace. Keeping true to his handshake Krok made Otto & Sons the sole supplier of beef products to McDonald’s. Because of this, Otto & Sons was quickly rebranded to OSI Industries. In order to meet the demands of a growing McDonalds franchise, the company started branching off into the United States gaining factories and new partnerships along the way.

Because of this continued growth, OSI was ready to make the leap into a multinational private company. OSI started to form partnerships across Taiwan and China with companies such as K&K and the Doyoo Group. After these partnerships formed OSI started to leverage them to quickly sprout factories across China, the Philippines, and Taiwan.

Then, to further expand their grasp, in 2016 OSI scooped up Baho Foods and Creative Foods in the same year. Both acquisitions drastically expanded OSIs inventory of products and influence in key European centers across the world. OSI is now a major business. It stands to service some of the biggest names in food. Names such as Papa Johns, of course, McDonald’s, and Subway are part of its list of services foodservice providers. What a leap from a small Chicago butcher shop.

Learn More: www.inc.com/profile/osi-group