OSI Group has grown from a butcher shop in Chicago to a midwest icon with a presence around the globe. As one of McDonald’s main suppliers, they have become one of the largest companies in the world of their kind. Within 2 years of immigrating to the United States, German-born Otto Kolschowsky opened his shop on the west side of Chicago before he moved to a different suburb in the area when he changed to a wholesale business. Eventually, the business that was to become OSI Group was taken over by Otto’s sons and the expansion continued. As the economy changed in a post World War I United States, so did the Otto & Sons business. A handshake agreement had taken place between the Kolschowsky sons and Ray Kroc, the future chief executive officer of McDonald’s.
From that point on OSI Group continued to expand as McDonald’s restaurants opened throughout the entire country. While McDonald’s does have a significant impact on OSI Group, the company has continued to expand apart from their expansion. In the last 5 years especially, OSI has been focusing on growing their production capability in foreign countries as well. In addition, expansion has been taking place domestically as well with the purchase of a former Tyson Foods plant located near OSI’s current production facility in the area. In 2016 OSI had acquired Creative Foods Europe, formerly Flagship Europe, that had also recently expanded its own business reach through the purchase of Calders Foods.
Flagship Foods provides pies, sauces, and dressings throughout the UK and Europe to business in the food service industry. It is believed that the acquisition will help both OSI and Creative Foods will help the companies improve their services to their existing customers and markets while expanding to new European territories. In recent years there has been a considerable increase in the demand for chicken in Spain and other European countries. While OSI Group already had a production plant in Toledo, Spain, they recently expanded the facility to dramatically increase their production of chicken. This expansion will double their capabilities to produce chicken, beef, and pork.