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Chapter 2
UNDERSTANDING THE CUSTOMER
Learning Objectives:
• How does the customer choose What to eat
and Where to eat?
• Customer Behavior and Buying Process
MARKET CATEGORIES
• Captive Market
• Mass Market
• Status Market
Captive Market
• Institutions,
• Industrial
• School settings
Captive Market
Captive Market
Mass Market
• The mass market looks for food in a larger social
setting:
– everyone from teenagers grabbing a burger in the company of
friends
– families eating out together
– to special dates and anniversary dinners
Mass Market
Mass Market
Mass Market
Status Market
• The status market is more concerned
with where we eat.
• To see and be seen is more
important than what is on the menu.
Status Market
Types of Customers
• Repeat Customers• Baby Boomers• Multi-check
Households• Families with
Children• Takeout and
Delivery• Seniors
Repeat Customers• Repeat business accounts for anywhere from 60
percent to 80 percent of total revenue for restaurants.
• Frequent diners have two major characteristics. o They eat dinners out at least seven times a month;
o They have distinct behavior patterns in their din ing
habits.
Frequent Diners
• "Too Tired to Cook”
• "Busy Parents”
• "Urban Sophisticates”
• "Flavor Savorers”
Boomers
• The Baby-boomers were those who born be
tween 1946 and 1964 spend more when they
dine out.
Multiple-check Households
More spending money
More time to enjoy
Focus on lifestyle
Families with Children
Less spending money
Less time to cook
Focus on children’s taste
Takeout and Delivery
• Fast food restaurants account for over 40 percent of
takeout meals.
Seniors
• Senior citizens are regarded as a frequent dinner
customer. As noted above, this "care-seekers" category
includes older adults.
• To appeal to this group operators offer things such as
smaller portions at lower prices, special services, such
as a shuttle to the restau rant, and early-bird specials.
Need of the Market
• Why do we Need Food?
Need of the Market
Same CustomerDifferent Needs
• Monday:
Lunch @ Subway colleagues
• Tuesday:
Dinner @ Italian Rest in 5 star with
wife
• Wednesday:
Lunch @ Country Club with Clients
• Thursday:
Dinner @ Hawker Stall.
• Friday:
Lunch @ Order Pizza
Reasons for eating out
• Convenience
• Variety
• Labour
• Status
• Culture / tradition
• Impulse
• No choice
Meal experience factors
• What do you Expect?– Food and drink on offer
– Level of service
– Level of cleanliness and hygiene
– Perceived value for money and price
– Atmosphere of the establishment
Range of Guest Expectations About Foodservices
OH – 13.1
A B C D
Food Is the“Product”
Service Complements the Food
Service Is Anticipatory and “Invisible”
Service Is the “Product”
Food Is the
Priority
Food and Service Are Priorities Service Is a Priority
Decision Scenarios
• Three Goals– Social Pleasure
( Occasion, For Kids)– Eating Pleasure
( Cravings, Home Cooked Food)
– Life Style (No Time, No Energy)
Project Status• Choose a Leader• Divide into 2 Groups• Select the Theme for your
Event.• Wine or Cocktails
Stages
• Staffing
• Concept Planning
• Market Research
• Menu Planning
• Budget Planning
• Marketing Communications
• Event Process Planning o Pre Event
o Catering Plan
o Purchasing/Receiving/ Inventory Management
o Food and Beverage Production
o Service
o Waste Management
o Post Event Evaluations