OSI Group McDonalds is one of the world biggest food providers. The company has over 65 facilities in 17 countries and a workforce of 20,000 people. The company was started as small retail butchery by Otto Kolschowsky, a German immigrant at the beginning of the 20th century. The immigrant had a good business and had substantial expansion within a decade, and by the end the First World War, he has upgraded to the wholesaler. He extended his operation to Maywood suburb in Chicago.
During the second decade of the operations, the firm was rebranded and named Otto & son in the year 1928, after which it operated a stable and local successful business, until the end of Second World War when he started his first restaurant in 1955 in Illinois. During the time, he was still San Bernardino franchise argent, a couple from California who were the founders of the McDonald restaurant in 1940. Ray Krock restaurant was the first step by OSI Group McDonalds to expand through a franchise model. Rock had entered an agreement with Otto Kolschowsky sibling, Arthur, and Harry, to be the fresh beef supplies.
After operating for few years, Kroc proceeded to buy out McDonald and become the new chief executive of the new and modern OSI Group McDonalds. The new corporation took off, and Ray Kroc was instrumental in laying the foundation and the blueprint for the MacDonald modern franchise model. He retained Otto & son as the beef suppliers. And as fate would have it, Otto and sons became the major supplies of the company which was to become one of the biggest brands in the world.
Otto & son transformed to become an OSI Group McDonalds, a global company from a regional meet supplier in two decades. The core function of Kroc’s franchise operation was to avail each franchise and its customers with a constant product and services. McDonald’s core product was hamburgers. As such, Otto & sons and other beef supplies were at pressure to supply a continuous and affordable customer driven beef, for transportation to all MacDonald’s restaurant.
Technological advancement in food technology in the late 1960s made the work of Otto & sons easier and affordable, and this led to strengthening the relationship of the supplier and McDonald. The innovation of flash freezing cryogenic preservation using liquid nitrogen created new expansion opportunities and reduced production cost in the food industry.