J.D. Power and Associates Reports: Service and Environment Rival Price as Drivers of Overall Customer Satisfaction with Restaurants

WESTLAKE VILLAGE, Calif., Aug. 10 /PRNewswire/ -- In the current tough economic environment, in which many restaurant chains seek to attract customers by touting their value, dining establishments may be better able to differentiate themselves by providing satisfying service and environments, rather than competing solely on price and portion size, according to the J.D. Power and Associates 2010 U.S. Restaurant Satisfaction Study(SM) released today.

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The study includes satisfaction rankings for restaurant chains in 10 U.S. markets in three segments: casual, family and quick service. In each segment, four factors drive overall customer satisfaction with restaurants (listed in order of importance): price; service (including timeliness of order and wait staff courtesy and friendliness); meal (including quality/taste of food, meal presentation and portion size); and environment (including ambiance, cleanliness and convenience of location/hours).

The study finds that, among casual and family restaurant brands, the importance of service and environment, combined, outweigh the importance of price as a driver of overall satisfaction. Among quick service restaurant chains, service and environment are equally as important as price.

"In a fiercely competitive marketplace, restaurant companies have focused on a variety of strategies to attract customers—the most prominent being value-based, such as 'dollar menu' items," said Jim Howland, senior director of the hospitality practice at J.D. Power and Associates. "While delivering value is still critical, elevating customer experiences by providing excellent service and an inviting environment are also key for restaurant chains that seek to differentiate themselves."

Overall satisfaction in the 10 markets included in the study averages 742 on a 1,000-point scale among customers at casual restaurants, 708 among family restaurant customers and 700 among quick service restaurant customers.

Casual Restaurant Segment

Casual restaurants are defined as establishments offering wait service and menu items that are moderately priced and are paid for after the meal. Many restaurants in this segment serve only lunch and dinner and may also serve alcoholic beverages.

Among casual restaurants, Carrabba's Italian Grill (headquartered in Tampa, Fla.), The Cheesecake Factory (Calabasas Hills, Calif.), and Maggiano's Little Italy (Dallas, Texas) each rank highest in two markets. Also receiving awards in their respective markets are Buca di Beppo (Minneapolis, Minn.), P.F. Chang's China Bistro (Scottsdale, Ariz.), Red Robin Gourmet Burgers (Greenwood Village, Colo.) and Texas Roadhouse (Louisville, Ky.).

Family Restaurant Segment

Family restaurants are defined as establishments offering wait service and menu items that are moderately priced and are paid for after the meal. Most restaurants in this segment serve breakfast, lunch and dinner, with a strong emphasis on breakfast and lunch, and may also cater to children. A limited selection of alcoholic beverages may be available.

Among family restaurants, Cracker Barrel Old Country Store (headquartered in Lebanon, Tenn.) ranks highest in five markets. Marie Callender's (Memphis, Tenn.) ranks highest in two markets, while The Original Pancake House (Portland, Ore.) ranks highest in one market.

"It's particularly noteworthy that Cracker Barrel Old Country Store receives awards in five markets, as this speaks to its ability to provide highly satisfying experiences consistently across various locations," said Howland. "In any service industry, creating consistently positive experiences for customers has a notable positive effect on loyalty."

Quick Service Restaurant Segment

Quick service restaurants are defined as establishments offering inexpensively priced food that is ordered at a register or selected from a food bar. Meals are paid for before being served to the customer.

Among quick service restaurants, Chick-fil-A (headquartered in Atlanta, Ga.) ranks highest in three markets. Chipotle Mexican Grill (Denver, Colo.), and In-N-Out Burger (Irvine, Calif.) each rank highest in two markets. Also receiving awards in their respective markets are Culver's, Panera Bread (Richmond Heights, Mo.) and Papa Murphy's Take N Bake Pizza (Vancouver, Wash.).

According to the J.D. Power Web Intelligence Division, main themes of social media conversation about quick service restaurants vary widely by demographic group. For example, Teens (ages 14 to 18) and Early Careerists (ages 22 to 29) are most apt to discuss the convenience of these establishments, while Gen Y moms are most inclined to discuss the quality of quick service restaurants. Among Gen X moms and Boomers, the predominant theme of discussion centers around providing themselves and their families with a treat or reward by visiting a quick service restaurant. For all five demographic groups, McDonald's is the quick service restaurant chain that garners the greatest volumes of online discussion.

The study results also include the following key findings:

• One-half of customers of quick service restaurants indicate they order the same meal each time they visit a particular restaurant chain. Approximately 32 percent of customers of family restaurants and 30 percent of customers at casual restaurants say the same.
• More than one-third of quick service restaurant customers (41%) indicate they purchase combo meals offered by the restaurant chain during a recent visit.
• According to the J.D. Power Web Intelligence Division, main themes of social media conversation about quick service restaurants vary widely by demographic group. For example, teens (ages 14 to 18) and early careerists (ages 22 to 29) are most apt to discuss the convenience of these establishments, while Gen Y moms are most inclined discuss the quality of quick service restaurants. Among Gen X moms and Boomers, the predominant theme of discussion centers around providing themselves and their families with a treat or reward by visiting a quick service restaurant. Among all five demographic groups, McDonald's is the quick service restaurant chain that garners the greatest volumes of online discussion.

The 2010 U.S. Restaurant Satisfaction Study is based on responses from 93,410 customers of more than 100 major restaurant chains who dined at a restaurant between May and July 2010. The study was fielded between June and July 2010. For more comprehensive restaurant rankings for all 10 U.S. markets, visit www.jdpower.com/travel. The 10 U.S. markets included in the study are: Atlanta; Boston; Chicago; Houston; Los Angeles/Riverside/Ventura County, Calif.; Minneapolis-St. Paul; New York/Northern New Jersey; Phoenix; the San Francisco Bay Area; and Washington, D.C.

About J.D. Power and Associates

Headquartered in Westlake Village, Calif., J.D. Power and Associates is a global marketing information services company operating in key business sectors including market research, forecasting, performance improvement, Web intelligence and customer satisfaction.  The company's quality and satisfaction measurements are based on responses from millions of consumers annually.  For more information on car reviews and ratings, car insurance, health insurance, cell phone ratings, and more, please visit JDPower.com. J.D. Power and Associates is a business unit of The McGraw-Hill Companies.

About The McGraw-Hill Companies:

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a global information and education company providing knowledge, insights and analysis in the financial, education and business information sectors through leading brands including Standard & Poor's, McGraw-Hill Education, Platts, and J.D. Power and Associates. The Corporation has more than 280 offices in 40 countries. Sales in 2009 were $5.95 billion. Additional information is available at http://www.mcgraw-hill.com/.  

Media Relations Contacts:

John Tews; J.D. Power and Associates; Troy, Mich.; (248) 312-4119; [email protected]

Syvetril Perryman; J.D. Power and Associates; Westlake Village, Calif.; (805) 418-8103; [email protected]

No advertising or other promotional use can be made of the information in this release without the express prior written consent of J.D. Power and Associates. www.jdpower.com/corporate

SOURCE J.D. Power and Associates