Despite posting industry-beating same-store sales for years, McDonald's saw a 4.3-percent drop in its customer satisfaction score in 2010, as measured by the American Customer Satisfaction Index.
According to the latest ACSI, which was founded at the University of Michigan’s Ross School of Business and is produced by ACSI LLC, McDonald’s satisfaction score fell from 70 out of 100 in 2009, to 67 this year.
“This may seem somewhat paradoxical in view of McDonald’s sales growth over the past year, particularly compared to the competition,” Claes Fornell, founder of the ACSI, said in a statement Tuesday. “But as increasingly frugal consumers have made price more salient, McDonald’s acquired more customers. These newcomers seem less satisfied, and were it not for the economy some of them would probably rather eat somewhere else.”
McDonald's satisfaction score had increased every year from 2005 until this year, and chain executives had credited a commitment to value and a diverse menu for helping drive recent market share gains and a string of positive same-store sales results.
Jeffrey Bernstein, a restaurant analyst with Barclays Capital in New York, said in a research note Tuesday that a “disconnect … remains,” as the chain's score of 67 is the lowest in the quick-service segment, which averaged a score of 75, even though McDonald’s averaged about 5-percent growth in same-store sales since 2005.
"Of the large chains (individually reported in the [ASCI] survey), all experienced a sequential improvement in 2010 with the exception of McDonald's, surprising to us considering the brand has reported the strongest and most consistent comps in the restaurant industry over the past several years," Bernstein said.
McDonald’s lower score, and lower scores for many smaller chains, contributed to an overall drop in the satisfaction score for the quick-service segment, which fell from 78 to 75. However, most of the nation’s larger quick-service chains, especially the four big pizza brands, improved their individual scores in 2010, compared with 2009.
As a segment, full-service restaurants also posted a decrease in customer satisfaction, falling from 84 in 2009 to 81 this year. Top-scoring Olive Garden, Red Lobster, Outback Steakhouse and Chili’s all improved their individual scores, but satisfaction declines for several other chains led to the overall slip.
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The pizza segment’s four largest brands placed in the top six scores among quick-service brands in the ACSI, with Papa John’s leading the way at 80, up from 75 in 2009. Little Caesars and Pizza Hut tied with Starbucks for the next-highest score of 78, while Domino’s Pizza tied with Wendy’s with a score of 77.
"The pizza category continues to lead the QSR industry, likely due to relative ease of operations and a simplified menu, supporting their most recent sales revival,” analyst Bernstein noted.
Those four brands also are all competing on price. Pizza Hut and Papa John’s both are promoting large pizzas for $10, while Little Caesars has had a $5 deal for its large Hot-N-Ready pizza for quite some time. Domino’s, which scored a major sales and public-relations coup this year with the launch of an entirely reformulated pizza, has offered two medium, two-topping pizzas for $5.99 each since the introduction of the new pizza.
Papa John’s has kept pace with its competitors in terms of value promotions, but a spokesman contended that the brand's “Better Ingredients, Better Pizza” positioning remains a greater driver of guest satisfaction.
“The focus on quality and service is what got us to the top,” said Chris Sternberg, senior vice president of corporate communications and general counsel for Papa John's. “You have to have value to be in the ballgame, but it’s what your brand stands for outside of value that matters, and for us, it’s quality.”
KFC and Burger King also made large gains in customer satisfaction, raising their ASCI scores year-over-year from 69 to 75 and from 69 to 74, respectively. Taco Bell’s score also rose to 74, from 73 in 2009.
The largest chains in the full-service restaurant segment also made gains in customer satisfaction. For the fourth year in a row, Olive Garden led that segment, this year with a score of 84, up from 81 last year. Darden Restaurants’ sister chain Red Lobster saw its score increase from 80 in 2009 to 83 in 2010 to grab the second spot. Following in third and fourth places were Outback Steakhouse with a score of 80, and Chili’s with a score of 78.
Contact Mark Brandau at mbrandau@nrn.com.

Comments
Post a CommentWhenever I visit McDonald's,
Whenever I visit McDonald's, I experience bad customer service almost every time, no matter what the location is. I can name less than five McDonald's employees that were actually respectful to me. The majority of the time, the employees act as if it pains them to greet the customers. When I use their drive-thru service, and drive up to the window, the cashiers just sit and stare, waiting for me to say the first word. When I walk inside to order, the cashiers are equally rude. Most of the McDonald's employees I encounter have a great lack in communication skills- something that the management should train and address from the start. Aside from their inept ability to communicate, the employees get upset when I tell them my food is either cold or incorrect. I remember one employee in particular that made loud, sarcastic comments to her coworkers when I told her that my fries were cold, and asked for more. If I'm paying for your service, I want it done correctly. McDonald's employees have some of the worst customer service I've ever seen, and this corporation should take a lot more pride in the way they operate. Working at a fast food restaurant is no excuse for giving horrible service.
Ronald Witt Illinois Ronald
Ronald Witt Illinois Ronald Witt Illinois
Be it burger Kind, McDonald's
Be it burger Kind, McDonald's or KFC I dislike them all. Its high time people thought that food served by these fast food chains is unhealthy. Visit Dakshin Glatt Kosher in New York, its a great place to dine.
At last !!! maybe people
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McDonald's
Not surprised, as McDonald's has introduced many new menu items recently, including their new premium coffee drinks. They still have some kinks to work out there. The iced coffee is too sweet, and after you deduct for the large amounts of ice, there is not much coffee in the drink. And not all employees are fully trained on making these drinks, i.e., they have to find someone who knows how to make it while you wait. They also seem to chronically be short of staff during all dayparts.
McDonald's Customer Satisfaction Score
One data point does NOT make a trend. McDonald's has historically battled this front. When you serve as many cusotmers and have a new products rollout strategy as aggressive as they have your brand exposure is greater. NOW, if they start stacking a few of these scores back to back they have a trend to be concerned about.
By the way, I had a bad experience at an otherwise top rated chained yesterday. No one is immune.
P.S. I'm not surprised by McD's sales growth. As I stated earlier, with a turbo charged new products strategy, sales momentum is easier to maintain when you have it.
Customer Satisfaction drop
It is no surprise McDonald's is seeing a satisfaction drop. Study findings mirror my personal experience in their stores in several states. Customers are going there for price and tolerating the mediocre to inept service being dished out. They should take some lessons from QSR service leaders like Chick-fil-A.