---
title: "GSR Brands Beats Challenges of Early 2020 With Success and Looks Ahead to More Expansion"
url: https://burnaze.com/article/d10fb89d-7918-4e77-9800-1ef8e0cebab7
source: "Franchising.com"
original_url: https://www.franchising.com/news/20200804_gsr_brands_beats_challenges_of_early_2020_with_success_and_looks_ahead_to_m.html
category: "Franchisors"
industry: "Franchise Industry"
segment: "Franchisors"
topics: ["Finance & M&A","Development & multi-unit"]
published: 2020-08-04T12:00:00.000Z
modified: 2026-11-01T02:32:40.142Z
image: https://images.unsplash.com/photo-1611974789855-9c2a0a7236a3?w=1600&q=80&auto=format&fit=crop
---

# GSR Brands Beats Challenges of Early 2020 With Success and Looks Ahead to More Expansion

**TL;DR:** GSR Brands has surpassed last year's numbers despite the impact of COVID-19 and plans to expand throughout the year. The company's president and CEO, Roger David, attributes the success to modifying marketing and operations to match consumer attitudes and behaviors.

*originally published in Franchising.com on 2020-08-04. [Read the original](https://www.franchising.com/news/20200804_gsr_brands_beats_challenges_of_early_2020_with_success_and_looks_ahead_to_m.html).*

## Key facts

- GSR Brands surpassed last year's numbers in Cincinnati
- Gold Star Chili sales were up 9.7 percent before shutdown
- GSR Brands aims to add five new franchisees by 2020

## Story

“We have met and surpassed last year’s numbers in the Cincinnati market,” says GSR Brands president and CEO Roger David. “We had a good first quarter that was above our 2019 numbers, despite the dramatic impact of COVID-19, as the State of Ohio issued shutdowns on March 15,” David says.

“Prior to the shutdown, our sales were up 9.7 percent above 2019. From March 15 through the month of April, we went from 9+ percent to -0.5 percent. This was the major impact of COVID-19. But, then, from March 3, 2020, through June 21, 2020, we have bounced back and are now back up, surpassing last year’s sales by 6.6 percent.”

David attributes the success to paying close attention to consumer attitudes and behaviors along the way and modifying marketing and operations to match. The overall goal, which GSR Brands achieved, was to build consumer trust around safety and protection in both of the GSR Brands: Gold Star Chili and Tom & Chee.

During the shelter-in-place period, Gold Star Chili drove off-premise dining through drive-through and carry-out sales as well as third-party and online ordering.

## New developments

**New Developments**

Expansion of GSR Brands restaurants continues in earnest.

Q2 saw Gold Star Chili’s successful remodel of its Springdale, Ohio, location to the brand’s new G5 prototype. Five more remodels are slated for Q3, toward a goal of 13 total G5-revamped locations in 2020.

Tom & Chee will open a Pittsburgh location and ink an area development agreement with an Oklahoma City franchisee in Q3.

Across Gold Star Chili and Tom & Chee, GSR Brands looks to add five new franchisees by close of 2020.

## Increasing marketing reach

**Increasing Marketing Reach**

As mentioned above, Q1 and Q2 witnessed GSR Brands’ deft navigation of the COVID-19 climate to achieve stellar sales, owing in no small part to adjustments in effectively marketing its drive-through and curbside offerings.

In Q2, GSR Brands struck a partnership with 919 Marketing to lead franchise development and brand awareness initiatives for both of GSR’s restaurant brands in the U.S. and expansion — reaching qualified single- and multi-unit franchisees across the country. 919 Marketing also will expand brand awareness to attract consumers to both restaurant concepts.

In Q3, GSR brands will onboard a new creative agency as well.

## Entities

- Franchising.com (publication)
- unit expansion (topic)
- Franchise Industry (sector)
- franchise development (topic)
- marketing strategy (topic)
- covid-19 impact (topic)

---
Originally reported by Franchising.com (https://www.franchising.com/news/20200804_gsr_brands_beats_challenges_of_early_2020_with_success_and_looks_ahead_to_m.html). Summarized by Burnaze (https://burnaze.com/article/d10fb89d-7918-4e77-9800-1ef8e0cebab7).