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Gold Star Chili Opportunities

USA & CAN

Established

1965

Franchise Units

70

dollar

Minimum Investment

$350,000

dollar

Franchise Fee

$30,000

dollar

Total Investment Range

$750,000

Home Based

No

Description

Gold Star Chili is an iconic name in Cincinnati-style chili and American comfort dining. Founded on authentic family recipes and a deep love for bold flavor, Gold Star Chili has grown from a small neighborhood restaurant to a beloved franchise brand across the Midwest and beyond. Known for its signature three-way chili—spaghetti topped with chili and a mountain of cheese—Gold Star delivers an unforgettable, flavorful experience that keeps customers coming back.


Over the years, the brand has expanded beyond chili to offer a full menu of American classics, including burgers, loaded fries, coneys, and shakes, making it a well-rounded restaurant concept with broad consumer appeal. Gold Star Chili isn’t just about great food—it’s about community, consistency, and creating warm dining experiences that families trust.

For entrepreneurs seeking a strong foothold in the restaurant industry, a Gold Star Chili franchise represents a proven model with a loyal following, simple operations, and exceptional brand recognition. Backed by decades of success and ongoing innovation, Gold Star offers a flavorful path to business ownership that blends tradition with modern appeal.

Why Invest in this Franchise?

Investing in a Gold Star Chili franchise means joining a legacy brand that has been delighting customers for over 60 years. Here’s why it’s a smart choice for investors and food enthusiasts alike:

  • Proven Brand Recognition: Established in 1965, Gold Star Chili has become synonymous with authentic Cincinnati-style chili across the U.S.

  • Broad Customer Appeal: From quick-service dining to family-friendly meals, Gold Star caters to a wide demographic—students, families, professionals, and travelers alike.

  • Simple, Streamlined Operations: The menu and operational systems are designed for efficiency, consistency, and scalability.

  • Strong Franchise Support System: Gold Star provides comprehensive training, operational guidance, and marketing assistance that help franchisees hit the ground running.

  • Loyal Fan Base: With deep roots in Ohio and expanding reach throughout the Midwest and Southern U.S., Gold Star Chili benefits from decades of local love and national curiosity.

  • Flexible Store Formats: Whether you’re looking to open a standalone restaurant, in-line location, or drive-thru model, Gold Star’s adaptable footprint makes it easy to fit your market.


Background

Established Year: 1965

Founders: Four Daoud brothers (Charlie, Fahhad, Basheer, and Bishara Daoud)
Headquarters: Cincinnati, Ohio, USA
Industry: Quick Service Restaurant (QSR) / Fast Casual Dining
Franchise Units: Over 70 locations across Ohio, Kentucky, and Indiana

Gold Star Chili began its journey in Cincinnati when the Daoud brothers opened their first restaurant—Hamburger Heaven—in 1965. They introduced their unique take on chili to the menu, and soon, the chili became the star. Recognizing the public’s growing love for the dish, they renamed their restaurant “Gold Star Chili” and set out to share their signature recipe with the world.

Over the decades, Gold Star has evolved into a household name, becoming an integral part of Cincinnati’s dining heritage. With steady franchise growth across the U.S., the brand has maintained its commitment to quality, authenticity, and community values while embracing modern operations, digital ordering, and brand innovation.

Gold Star’s ownership remains closely tied to its founding family and local leadership, ensuring that the company’s mission and heart remain intact while continuing to innovate within the quick-service dining sector.


Support Training

Gold Star Chili understands that successful franchisees are built through strong systems and dedicated support. That’s why every new partner benefits from a robust onboarding and ongoing support program that includes:


  • Pre-Opening Support:

    • Site selection assistance and demographic analysis

    • Restaurant design, layout, and construction guidance

    • Equipment procurement and vendor coordination

    • Grand opening planning and local marketing launch support

  • Comprehensive Training:

    • 3–4 weeks of hands-on training at corporate headquarters and flagship locations

    • Employee hiring and management training

    • Food preparation, service standards, and customer engagement practices

    • POS system, inventory, and cost-control training

  • Ongoing Operational Support:

    • Field consultants and regional managers providing performance evaluations and guidance

    • Continuous supply chain management and quality control oversight

    • Seasonal menu updates and limited-time promotions

  • Marketing & Branding Support:

    • National advertising campaigns

    • Local marketing playbooks and digital marketing support

    • Access to brand assets, promotions, and community engagement tools

Gold Star Chili’s franchise program ensures that every location maintains the same high-quality experience that has made the brand famous, while empowering franchisees with the knowledge and tools they need to thrive.


Ideal Candidate

Gold Star Chili seeks passionate entrepreneurs who are eager to serve their communities and uphold the brand’s high standards of quality and hospitality. The ideal franchise partner is:


  • Business-Minded: Prior experience in food service, hospitality, or retail management is preferred but not mandatory.

  • Customer-Focused: A genuine passion for serving guests, ensuring satisfaction, and creating a welcoming environment.

  • Community-Oriented: Someone who understands the importance of local engagement, fundraising, and building community relationships.

  • Operationally Committed: Willing to be hands-on during the early stages of business setup and team development.

  • Financially Qualified: Capable of meeting the financial requirements and sustaining operations during the initial ramp-up period.

Ideal territories include suburban and metropolitan areas with strong traffic flow, nearby schools, offices, and family communities—regions that value comfort food, convenience, and local flavor.


Financial Detail

Financial CategoryEstimated Amount (USD)Description
Total Investment$350,000 – $750,000
Includes all startup costs such as build-out, equipment, furnishings, and signage.

Minimum Cash Required$150,000Liquid capital needed to qualify for franchise ownership.
Franchise Fee$30,000
One-time fee granting rights to operate under the Gold Star Chili brand.

Royalty Fee4% of Gross SalesOngoing royalty for brand use, operational systems, and continuous support.
Marketing Fee2% of Gross Sales
Contributed to national and local advertising campaigns.

Working Capital$50,000 – $100,000Funds recommended for initial months of operation to cover payroll, utilities, and inventory.
Restaurant Size1,800 – 2,500 sq. ft.
Ideal footprint for dine-in and drive-thru models.

Equipment & Furnishings$100,000 – $200,000Includes kitchen setup, POS systems, seating, décor, and branding elements.
Leasehold Improvements$120,000 – $250,000
Construction, design, and interior finishing of the restaurant space.

Initial Inventory$10,000 – $20,000Ingredients, packaging, uniforms, and initial food supply.
Grand Opening Marketing$10,000 – $20,000
Local advertising, promotional campaigns, and community launch events.

Training & Travel Expenses$5,000 – $10,000Corporate training sessions, travel, and accommodation during onboarding.
Break-Even Time18 – 24 Months
Expected time frame to recover initial investment depending on location performance.

Expected ROIWithin 3 – 5 YearsTypical range based on average franchise performance metrics.
Revenue StreamsDine-In, Carryout, Drive-Thru, Delivery, Catering
Multiple income channels ensure steady cash flow and scalability.



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