Gold Star Chili Customer Market Focus!
Gold Star Chili, Inc., based in Cincinnati, Ohio, was founded in 1965 as a family-owned system
of franchised and company-owned restaurants. Gold Star operates over 100 regional locations
(most of which are franchised, with a few being company restaurants or are co-owned). The
Gold Star menu is based on a unique, “Cincinnati-style” chili recipe, flavored with a proprietary
blend of spices from around the world. The chili is prepared in a central commissary, designed to
participant with the Cincinnati Restaurant Association and the National Restaurant Association.
These connections help maintain awareness of business trends, and advances in new technology.
Gold Star Chili defines two key customer groups: direct customers who use Gold Star
products and services, and indirect customers with whom Gold Star has other relationships.
Direct customers are divided into six customer segments, determined by product use: restaurant
customers, franchisees, franchise applicants, retail customers, retail wholesalers, and mail-order
customers. Indirect customers include product suppliers, service suppliers, co-packers,
brokers/consultants, shareholders, and regulatory agencies.
Gold Star’s mission is to create lasting relationships based upon respect, trust, and support
given to customers. More than 70 percent of customers eat in a Gold Star restaurant at least once
Franchisees are attracted by the relatively low investment required to join the Gold Star
family of restaurants, the opportunity to operate a profitable business, and to benefit from the
strong brand equity built into the Gold Star name. All department heads treat franchisees as
internal customers, and have signed a pledge guaranteeing to return calls within 24 hours. If a
Visit the company’s website at www.goldstarchili.com to gain a perspective about the
company, its menu, activities, and culture. Click the “About Us” link to read about the history
and mission of the company. Using the information provided in the case and concepts developed
in this chapter, answer the following:
1. What would be some moments of truth in Gold Star’s environment?
2. What implications would the segmentation of Gold Star’s customers have on their customer-
focused practices?
3. What types of approaches should Gold Star consider to listen and learn from different
customer segments?
4. How would you design customer satisfaction surveys for Gold Star consumers and for
franchisee (who are customers of the corporation)? What types of questions would you ask?