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Study finds economy-driven strategies boost guest satisfaction

ANN ARBOR Mich. Improvements in guests’ perceptions of service and value at some of the country’s largest restaurant companies contributed to another quarterly uptick in the American Customer Satisfaction Index, researchers said Tuesday. The national economic indicator, which measures customer evaluations of products and services in several industries, rose 0.4 percent for the first quarter of 2009, to a score of 76 on a 100-point scale.

The Ross School of Business at the University of Michigan produces the index in partnership with the American Society for Quality and CFI Group.

Satisfaction with both the quick-service and full-service restaurant sectors beat the ACSI’s all-industry average. The satisfaction score for fast food remained unchanged at 78, its highest score ever. Meanwhile, the full-service segment’s score rose 5 percent, to 84. Officials of the study noted, however, that sit-down restaurants’ high satisfaction scores could only slightly mitigate the effects of a small increase in customer loyalty, meaning many customers still ended up trading down to fast food or dining at home.

“Fast food has done well throughout the recession,” noted Claes Fornell of the University of Michigan. “The average number of customer visits to fast-food restaurants has increased, and so has customer satisfaction. … Offering more consumer choice usually leads to higher satisfaction, but only if the new offerings fit the customer base and if quality does not suffer.”

Domino’s Pizza, based in Ann Arbor, had the highest score among quick-service restaurants with 77. The chain’s recent success has dovetailed with the introduction of several new products in the past 12 months, including Oven Baked Sandwiches and Bread Bowl Pastas, as well as aggressive advertising and promotions, like the Big Taste Bailout. For Domino’s first quarter of 2009, ended March 22, domestic same-store sales rose 1 percent.

According to the report, Wendy’s and Taco Bell each improved ACSI scores by 4 percent, to 76 and 73, respectively.

 

The most improved quick-service chain over the long haul, however, has been McDonald’s. The Oak Brook, Ill.-based segment leader raised its satisfaction score 1 percent to its all-time high of 70, surpassing the scores of Burger King and KFC. McDonald’s score has risen 13 percent over the past four years, improving at a rate four times faster than the industry average.

For the March 31-ended first quarter, McDonald’s same-store sales rose 4.7 percent in the United States. The chain of more than 32,000 locations worldwide recently rolled out its McCafé beverages systemwide and reportedly is testing a Snack Wrap version of its iconic Big Mac sandwich.

“McDonald’s business remains strong, despite the economic concerns around the world,” chief executive Jim Skinner said in a statement. “Our well-known value proposition and unparalleled convenience continue to resonate with customers.”

Meanwhile, at full-service restaurants, customer traffic may be slipping, but the guests who remain loyal customers are still satisfied with the experience, the report found.

“The recession continues to pose difficulties for full-service restaurants,” Fornell noted. “While consumers have opted for lower-priced fast food, spending at sit-down restaurants has deteriorated. In response, many of these restaurants are using price reductions and menu changes in order to mitigate customer defection. This has resulted in a sizeable increase in customer satisfaction, but only a small increase in customer loyalty — not enough to offset a loss of customers to fast food and dining at home.”

Though its ACSI score fell 1 percent, Olive Garden still led the sector with a value of 81, the report found.

Contact Mark Brandau at [email protected]

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