Category: Food Industry

Foodservice 101: OSI Industries

The foodservice industry operates at full capacity year-round. This particular industry brings in billions on a yearly basis thanks to the field’s variety of products and services. OSI Industries is a standout because this food provider covers the entire gambit of services. OSI has a specialty in development, sourcing, distribution, management and processing. Thanks to the company’s food supply chain, it can distribute the foods in a much faster timeframe than many of its competitors. OSI Industries has a market value of more than $6 billion, and it’s one of the biggest privately held companies in the United States.

KFC, McDonald’s, Burger King, Subway, Papa John’s Pizza, Pizza Hut and Starbucks are some of its many clients. Thanks to striking a deal with McDonald’s back in the day, OSI has served as one of the hamburger chain’s main suppliers of beef. Fresh beef has played a key role in the OSI Industries success. During the early years, OSI was known as Otto’s Meat Market, and it provided some of the freshest beef products in the Midwest. As time went on, this tiny meat market transformed into a foods wholesaler.

The game had changed for the best at this time as America was going through an economic rebirth. The 1970s brought in a new changing of the guard. Sheldon Lavin took over the CEO position, and he has helped to take this business to a new level. Sheldon Lavin is somewhat of a financial guru as he has founded his very own financial consulting firm in Chicago. In addition to that, OSI Industries has won numerous awards that pertain this field, including the Globe of Honor Award and the International Safety Award. OSI Industries has revolutionized the food service industry in more ways than one because it’s setting new trends while changing the status quo.

OSI Group CEO Sheldon Lavin: Creating Global Excellence

Chairman and Chief Executive Officer of OSI Group Sheldon Lavin is considered to be on the most revered and sought-after talents in the food production industry. Sheldon Lavin has a plethora of experience in the food industry spanning all the way back to the ’70s when Lavine helped finance OSI Group or Otto & Sons as it was called at the time. The board of directors found Sheldon Lavin’s talents and innovative mindset to be so crucial to the company that they appointed him the head of what is today known as OSI Group. Those assumptions of Sheldon Lavin would come to true as he would end up taking the company from a decent size national company to a global conglomerate. We recently sat down with Sheldon Lavin to go a little more in-depth about himself and OSI Group as a whole.

How did you become apart of OSI Group?

Lavin states that his involvement with the company was supposed to be a one and done deal with him helping to finance OSI Group, however, he would soon find himself becoming more a part of the daily functions of the business eventually leading to him purchasing the company.

What was your vision for the company when you took over?

The vision for OSI Group moving forward was always to maintain the original goal of the company which was to provide the highest quality product to retailers and restaurants but to also expand the companies operations to a global scale as well as to innovate the product.

What were some of the key component of creating such a successful company?

Sheldon Lavin states that it is the freedom that employees of the company have. Sure we have rules and regulations, however, the company runs more like a family, says Lavin. He further states that the entrepreneurial spirit that employees have allows them to grow and help innovate our products and production.

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OSI Group McDonalds Relationship

OSI Group is a global franchise that deals with the manufacturing and processing of food products. OSI Group is an international brand because it sells quality food products that are carefully inspected and vetted before being put in the market. Some of the products that one can find from the OSI Group include sausages, meat patties, vegetables, and hot-dogs.

OSI Group does not only provide these food products to customers directly, but it also partners with other food franchises to deliver food products. McDonalds is an exceptional example of a food franchise that OSI Group works with. OSI delivers food products to McDonalds that they serve to the customers. This business relationship began in the late 90″s when the first McDonalds was opened by Roy Kroc. Roy Kroc had made an informal agreement with Arthur and Harry (sons of the founder of OSI) to bring him meat patties to the restaurant.

This was the genesis of the OSI Group McDonalds. Roy Kroc soon after became the CEO of McDonalds after buying it from its owners, and he made OSI Group McDonalds official. The relationship between OSI and McDonalds has significantly grown over the years with OSI having a storage facility and warehouse that produces products for McDonalds. The growth was however faced with some challenges along the way. When McDonalds started opening branches all over America, OSI found it more and more difficult trying to get to the branches in a timely manner. McDonalds main issue was maintaining consistency to their customers and OSI had to ensure this. Another challenge that OSI faced was ensuring the food did not go stale or go bad over the long distances.

With time, OSI Group McDonalds utilized technology to ensure that the food products did not go bad. This maintained the freshness and safety of the food that was being delivered. OSI Group was, therefore, able to guarantee the safety of the food that they delivered. OSI Group McDonalds are a big corporation now and the partnership is bringing a lot of food and custom solutions to their customers.

Read more: OSI Group acquires Baho Food

OSI Group’s success from past to present

OSI Group is a world-renowned company and currently are among Americas Top 100 food companies. They have 65 facilities in 17 countries and employee number of 20,000 and Forbes magazine estimates their net worth to be a gargantuan $6.1 billion. It is hard to believe that this massive success began as only a small butcher shop in Chicago by the name of Otto & Sons. So what is the key behind turning a small butcher shop into a massive global business? If it were to be described in simple words, one would say, making the right decision at the right time. Otto & Sons made several timely decisions which caused them to become the giant in the food industry that they are today.

One of them was that Otto and Sons were the first main suppliers of meat to the first McDonald’s chain restaurant which was brought to life in the year of 1955 and as McDonald’s chain of restaurants began opening throughout the Midwest, Otto & Sons knew that they had struck gold. This decision while crucial however was not their best one, the decision which allowed Otto & Sons dominance in the modern world was their lack of skepticism and early adoption of the technological advancements of liquid nitrogen cryogenic freezing. They saw a vision of the impact this technology would have and seized it in time. The results of that vision are visible today as OSI Group has just finalized a deal for the Purchase of Baho Foods, a Dutch Food production company, which allows them to strengthen their hold in food production business over Europe.

With Subsidiaries in Germany and supply of food to over 18 countries in Europe, Baho foods was an excellent strategic move on the part of OSI Group which is sure to pay off. OSI Group has said that they will keep the team of managers already present at Baho Foods and will have them collaborate with executives from OSI group for future conduction of business and the managers have expressed eagerness to work under the Aurora, Illinois based company. The Group had earlier also purchased Flagship Europe, a company of frozen poultry, pies and condiments, so this purchase will undoubtedly give them a firm footing in Europe.