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Gold Star reveals economic impact of Cincinnati chili parlors
April 21, 2010
Chili is big business in Cincinnati. Tiny regional chain Gold Star Chili was determined to learn just how much of an impact the regions 200-plus chili parlors have on the local economy. In a recent study conducted by Gold Star executives, the research reveals that Cincinnati-style chili parlors play a larger role on the Greater Cincinnati economy than many national brands.
In March 2010, Gold Star Chili CEO Mike Rohrkemper collaborated with marketing director Charlie Howard, and other members of its operations team, to uncover all the ways in which Cincinnati-style chili parlors impact the local economy. After an in-depth review of Gold Star Chili's individual contributions as a local chain, the company projected the estimated annual contribution of their fellow chili parlors in the area, including chains and independent chili parlors.
The findings include:
- Greater Cincinnati chili parlors spend $45 million on food and food-related ingredients annually.
- The parlors spend anestimated $38 million each year with local Greater Cincinnati non–food vendors (e.g., maintenance, insurance, rent and so on).
- Compensation and benefits amounting to approximately $50 million is paid to the estimated 2,700 individuals employed by Greater Cincinnati chili parlors and corporate headquarters.
- The annual spend in construction and development-related costs for new construction and major capital improvements is approximately $12 million.
- Sales of Cincinnati-style chili products at the grocery level are estimated to be $16 million.
After reviewing all of these components, it is estimated that the Cincinnati-style chili industry pours approximately $159 million back into the local economy.
"When you look at these numbers, you realize that Cincinnati-style chili means much more to the city than just its cultural and culinary contributions," said Rohrkemper in a news release. "It is a major contributor to the Greater Cincinnati economy. No other area restaurant concept, even the national chains, has this kind of positive impact on local employment and the fiscal health of the city and its surrounding neighborhoods."
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