ANN ARBOR – Customers are
less satisfied with fast food as their discretionary income improves and
preferences shift in favor of quality over price, according to new data from
the American Customer Satisfaction Index.
Customer satisfaction with
full-service restaurants holds steady at 82 on ACSI’s 100-point scale, while
fast food restaurants fall 3.8 percent to 77, the lowest score in five years.
The gap between fast food and full-service restaurants is the largest since
2010.
“The job market is the
strongest it has been in years, which is having an interesting effect on supply
and demand,” says Claes Fornell, ACSI Chairman and founder. “On the demand
side, consumers with greater discretionary income seem to put quality ahead of
price in their decision-making. On the supply side, restaurants are finding it
harder to hire and retain qualified and motivated workers, which can have an
adverse impact on service quality.”
The ACSI report, which is
based on 5,023 customer surveys collected in the first quarter of 2015, is
available for free download at www.theacsi.org/news-and-resources/customer-satisfaction-reports/reports-2015/acsi-restaurant-report-2015.
Two new entrants to ACSI
debut at the top of limited-service (fast food) restaurants: Chick-fil-A and
Chipotle Mexican Grill. Chick-fil-A leads at 86-the highest company score to
date in the category. Fast casual restaurants, which typically offer better
ingredients, freshness and more developed décor, make a strong showing as
Chipotle takes second place in its first ACSI appearance with a score of 83.
The aggregate of small fast
food restaurants, while still near the top of the industry, falls 4 percent to
81 and is a major drag on the industry’s overall ACSI score. Panera Bread
rounds out the top three companies with a first-time score of 80.
“The fast casual segment of
quick service restaurants is nicely situated for the confluence of changing
consumer tastes and a rebounding economy,” says ACSI Director David VanAmburg.
“Consumers have a bit more money in their pockets, but are still pressed for time.
Fast casual outlets offer higher-quality ingredients, freshness and fast
service – all at a reasonable price.”
Pizza chains suffer from
changing consumer preferences. The four major pizza purveyors in the study endure
large customer satisfaction losses. Papa John’s and Yum! Brands’ Pizza Hut each
shed 5 percent to 78, while Domino’s falls 6 percent to 75. Little Caesar loses
the most, diving 8 percent to 74. Over the past several years, pizza chains
have increasingly competed on price, sometimes at the expense of quality
ingredients, and that is now beginning to have a negative effect on customer
satisfaction.
Established fast food entities
like McDonald’s (-6% to 67), Burger King (-5% to 72), KFC (-1% to 73), Wendy’s
(-6% to 73), Arby’s (debuts at 74) and Taco Bell (unchanged at 72) remain at
the bottom of the industry. As the largest fast food company in the United
States, McDonald’s weak customer satisfaction puts downward pressure on the
overall industry score. Company revenue has dropped for six straight quarters.
As the economy improves, McDonald’s needs higher levels of customer
satisfaction if it is to reverse the revenue trend.
Dunkin’ Donuts is the only
fast food chain to improve customer satisfaction in 2015. The company climbs 4
percent to 78, jumping ahead of Starbucks (-3% to 74). In 2014, Dunkin’ Donuts
rolled out a beverage rewards program tied to its mobile app with seemingly
positive results. The chain is extending its U.S. presence beyond its Northeast
stronghold to the West, hoping to gain traction against not only premium
outlets like Starbucks, but also McDonald’s, which offers quality coffee at
lower prices.
In the full-service category,
the aggregate of smaller chains scores 83 and shares the lead with ACSI
newcomer Texas Roadhouse. Darden’s LongHorn Steakhouse debuts at 81, but
Outback Steakhouse slides 3 percent to 78. Another new ACSI entrant, Cracker
Barrel Old Country Store, scores 80, coming in just ahead of Darden’s Olive
Garden (-1% to 79).
The competitive landscape
once had full-service restaurants expanding their menus to broaden appeal, but
the trend now is toward simplification and shorter menus. As of yet, however,
these changes do not seem to have had much of an impact for companies like Red
Lobster (-1% to 77) and Chili’s (unchanged at 74). Other full-service
restaurants new to the Index are Red Robin Gourmet Burgers (77), TGI Fridays
(76), Denny’s (75) and Ruby Tuesday (73).
In addition to company and industry
customer satisfaction scores, the ACSI measures critical elements of the dining
experience that affect patron satisfaction. These customer experience
benchmarks include the quality and variety of food and beverages, restaurant
layout and cleanliness, and service elements such as staff courtesy, food order
accuracy, and speed of food delivery to the customer.
The chart that follows shows
the benchmark leaders in the fast food and sit-down dining segments. Across
nine aspects of the fast food experience, Chick-fil-A leads the field. The
company now surpasses KFC as the largest U.S. fast food chicken chain. Among
full-service restaurants, LongHorn Steakhouse is a leader across most elements,
including food quality, staff courtesy, and restaurant layout and cleanliness.
The Darden-owned chain posted strong sales growth as of the fourth quarter of
2014.
The ACSI
Restaurant Report 2015 provides industry-level benchmarks across both
restaurant categories.
