OSI Group is one of the largest food companies in the world. The company has headquarters in Illinois, but its presence has gone to many other countries. Currently, they have operations in 17 countries and have constructed over 65 food production plants. The development of this company has been impressive. For a company that started as a butcher shop with just one employee, who was also the founder, it is a huge achievement to now have over 20,000 employees. It is a change that shows how aggressive this business has been in its growth. OSI is today ranked as one of the biggest private businesses in the United States by the Forbes. It has a net worth of $6.1 billion and appears in the top 100 businesses.
One factor that contributed to the growth of OSI from a butcher shop to an internationally recognized business is its approach towards technology as a way of boosting efficiency in food production business. In the 1960s, there was a breakthrough in the technology sector when liquid nitrogen cryogenic was introduced as a means of preserving food. This invention was good news to Otto & Sons- now OSI Group. They now had better options for food production, storage, and transportation.
With their main business partner the McDonald’s opening chain restaurants in different parts of the country, preservation of food was a mandatory requirement. Otto & Sons embraced this new technology as soon as it hit the market. It even sought funding from the banks to help it expand food production business by building a food production plant that would integrate the benefits of the new technologies. Adoption of early technology and expansion of business are the reason this company transformed from a family-owned business to OSI Group company.
The transition of Otto and Sons ended up OSI owning a food production plant that was dedicated to the production of products just for the McDonald’s. OSI Group was chosen to be one of the four main suppliers to the McDonald’s. The new move applied more pressure on OSI to keep growing its food production business. McDonald’s was adding thousands of new customers every year, making it mandatory for OSI to increase food production.
It is obvious that the role of McDonald’s in the growth of OSI Group was vital. OSI also took advantage of the moment and moved up with their partners, as McDonald’s moved international, they were there also. The company now runs its business independently and has many clients in different parts of the world they no longer depend on McDonald’s for growth.