The Supply Side: Famous Chili owners work to grow sales, control costs and maintain quality

Joseph Korkames and his wife, Zhina, of Fort Smith spend most days inside the offices of the family business that spans more than nine decades and four generations of chili makers. The hours are long, and the challenges are many. But the couple work together to grow the family business.

The Famous Chili Co. began in Tyler, Texas, by Korkames’ great-grandfather, also named Joseph. The senior Korkames immigrated from Beirut, Lebanon, around 1900, making his way to East Texas where he acquired a chili recipe and added beef, creating the recipe now sold in more than 2,000 retail grocery stores, including 650 Walmart locations.

“The Korkames family is still running the business, and my dad, David, is semi-retired,” Korkames said.

Korkames’ uncle, Mike, is director of sales. Scott Picard, a cousin, is a sales manager, and cousin Mikey Korkames helps with sales and plant production. The production manager is James Williams.

Since taking over company leadership in 2023, sales revenue has grown by 40%, with volume increasing by 20%, according to the company. Growth slowed in the back half of 2025 amid shifting store distribution and cautious spending patterns, but Korkames is focused on extending the retail reach and expanding production.

Famous Chili Co. also produces 4 Star Chili, a nearly identical recipe to Famous Chili, and a private brand that is sold in Oklahoma.

Korkames said the small Fort Smith plant is running at about 20% capacity, just about half of that is for retail chili, the other 10% is for chili and taco meat tubs sold into food service.

“I really want and need to grow the retail side of this business,” he said. “We are running just two days a week, and that’s not good for our margins. There are also record beef prices and other inflationary pressures, but we have been able to hold the prices down so far.”

Korkames said the company invested in a larger $1 million freezer unit at the plant, which allows him to store beef acquired at lower prices when he can find it. He said the company uses only beef muscle meat and has meat cutters capable of handling large shanks of beef. He said the company also invested in retaining its small workforce, who are skilled in food production and distribution.

Famous and 4 Star Chili are sold in refrigerated bricks, similar in size to a pound or four sticks of butter. The product retails at Walmart for $4.97. The brick packaging allows for less water and more concentrated spices. Korkames said one brick of 4 Star can yield around 2 pounds of meaty chili by adding 6 ounces of water or beef broth, and when adding beans, onions and tomatoes, the chili stretches further.

“Some brands add oatmeal fillers to the chili, but we never compromise on our quality,” Korkames said. “It has always been a premium beef chili, and now with the cost of ground beef, it’s also quite a value.”

Famous chili brands are also sold as refrigerated products, unlike traditional shelf-stable chili competitors. It has a refrigerated shelf life of just under one year because of the highly concentrated formula and salt and spice levels in each brick that is tightly packed in plastic and sold in paper box cartons.

The 4 Star Chili brand expanded its Walmart store locations in 2023. But Korkames learned during a recent meeting with a Walmart buyer that he is losing space in some stores in southwest Oklahoma and north Texas. Korkames said some stores lost had posted triple-digit growth over the past three years.

Famous gained distribution into Nebraska, Illinois, Ohio and Wisconsin with Walmart, but Korkames said it still hurts to lose Walmart space in the Dallas area and south of Oklahoma City where Texas-style chili is popular. Korkames said a lack of refrigerated space in the distribution centers that serve those two key markets is partly why his products shifted to other regions.

“There is space at the stores but not in the warehouse,” he said. “I would have to truck the products directly to the stores all over Texas. I’m looking for some help with the direct-to-store logistics.”

Korkames said he’s dedicated to having a quality product at a quality price that provides value to customers because that’s been the family way for nearly 100 years.

“One of the most fulfilling moments was seeing Famous Chili expand rapidly with a few little pushes, knowing our small Arkansas brand has the potential to be a national, if not global, brand without losing its identity,” he said.

Outside of Walmart, Famous Chili and 4 Star Chili are sold at Harps around Arkansas and neighboring states, and Kroger stores in southern Arkansas. Korkames is also working to grow distribution with Kroger in other states.

Famous Chili is sold in all Schnucks stores in Missouri, and the company is trying to grow distribution in Hy-Vee stores in Missouri and Kansas. Korkames said the chili bricks are sold in several local and regional grocery chains in Oklahoma and across the Midwest.

Editor’s note: The Supply Side section of Talk Business & Politics focuses on the companies, organizations, issues and individuals engaged in providing products and services to retailers. The Supply Side is managed by Talk Business & Politics.