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RESTAURANT LOYALTY KEY DRIVER ANALYSIS Coyle Hospitality Group / Oct 2014

Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

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As presented at Cornell University on October 14, 2014, Coyle Hospitality reveals the results of its study to determine the key drivers of restaurant loyalty. Restaurant owners and operators struggle to allocate resources, by understanding what element drive success, restaurateurs can make better decisions.

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Page 1: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

RESTAURANT LOYALTY

KEY DRIVER ANALYSISCoyle Hospitality Group / Oct 2014

Page 2: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

THE PURPOSE OF THIS STUDY IS SIMPLE…TO ANSWER A

QUESTION WE GET ASKED BY RESTAURATEURS EVERYDAY:

WHAT ARE THE MOST IMPORTANT ELEMENTS OF A

DINING EXPERIENCE?

WE SET OUT TO DETERMINE THE KEY DRIVERS OF RESTAURANT

LOYALTY.

INTRODUCTION

Page 3: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

WHO IS COYLE?

EMOTIONAL

MEASUREMENT

MYSTERY SHOPPING

MARKETING RESEARCH

BRAND COMPLIANCE

HOSPITALITY DNA

Page 4: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

THE MEASURMENT PROBLEM

o Disagreement about the factors that

drive loyalty:

o Brands want brand loyalty

o Owners want guest loyalty

o New approach originates in and is

based on real customer experiences

(empirical).

Guest Loyalty

Brand Loyalty

Page 5: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

OBJECTIVE + METHODOLOGY

Research ObjectiveDetermine the degree to which a variety of service touch points in a restaurant experience

drive overall restaurant loyalty.

Research Methodologyo 488 respondents reported on restaurant experiences at full service, US restaurants in July

and August, 2014.

o Respondents were asked their overall feelings, emotions, and reactions.

o Total results are accurate +/- 4.4% assuming equal proportions.

o Analysis was conducted using Relative Importance modeling.

Operators can’t do it all…What are the things that matter?

Page 6: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

DEFINING LOYALTY

Q1 Satisfaction“How satisfied were you with this experience?”

Q2 Likelihood to Return“How likely are you to return to this

restaurant?”

Q3 Likelihood to Recommend“How likely are you to

recommend this restaurant to a

friend, family member, or

colleague?”

Total Loyalty

Page 7: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

RESTAURANT LOYALTY DRIVERS

Greeting

Restroom Condition

Manager’s Level of Concern

Telephone Experience

Friendliness of Host

Cleanliness and Condition of Restaurant

Location

Meal Presentation

Menu Offerings

Name Use

Timing and Flow of Meal

Knowledge Level of the Server

Friendliness of Server

Friendliness of Staff

Portion Size

Ambiance

Server Attentiveness

Final Farewell

Price Expectation

Food Taste

1%

1%

1%

2%

2%

2%

2%

3%

3%

4%

4%

4%

4%

4%

4%

4%

5%

7%

17%

26%

20 Key Drivers of Total Loyalty

The most important drivers of

restaurant loyalty:

1. Food taste (26%),

2. Price (17%),

3. Final farewell (7%),

4. Server attentiveness (5%).

Page 8: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

KEY TAKEAWAYS

Food taste determines one-quarter of customer loyalty.

33% when you add presentation and portion size.

¼

= Use of the customer’s name, friendliness of staff, friendliness of server, portion size, ambiance, timing, and knowledge level of the server are equally minor factors in total loyalty.

Respondents equate server attentiveness with server friendliness.

The high correlation* between these factors indicates attentiveness and friendliness are seen by the customer as ‘service’. Guests doesn’t compartmentalize.

85%

*correlation near 100% represents factors are identical

17% of total loyalty is

influenced by perceived value.

7x The final farewell is seven times more important than the greeting.

Coyle evaluation data; 84%; n=1073, same time period.

Relatively insignificant in total loyalty are: greeting, managers checking on satisfaction/greeting guests, and restroom condition.

<5%

Page 9: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

STAFF CONTRIBUTIONS

HostTelephone Experience

Greeting

Friendliness of Host

Farewell

ChefFood taste

Portion size

Presentation of Food

Value/Price

ServerUse of Name

Attentiveness of Server

Knowledge of Server

Friendliness of Server

Farewell

Other StaffFriendliness of Other Staff

Management Presence

Facilities Restroom Condition

Restaurant Cleanliness and Condition

Location of Restaurant

Ambiance of Restaurant

Page 10: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

KEY DRIVERS BY ROLE

9%

10%

12%

28%

41%

Key Drivers by Employee Role

Other Staff

Host

Facilities

Server

Chef

The server and chef are

responsible for 69 percent of

total loyalty.

Page 11: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

HOSPITALITY CONSTRUCTS

Cleanliness and DecorRestroom Satisfaction

Restaurant Cleanliness and

Condition

Ambiance of Restaurant

TeamworkStaff’s Final Farewell

Manager’s Concern

AccessibilityTelephone Experience

Location

AwarenessUse of Name

Timing of Meal

Attentiveness of Server

FriendlinessGreeting

Friendliness of Server

Friendliness of Host

Friendliness of Staff

Page 12: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

AWARENESS MATTERS

22%

20%

37%

15%

5%

Key Drivers by Construct

Accesibility

Friendliness

Awareness

Teamwork

Cleanliness

It’s all about server

attentiveness, timing of the

meal, and name usage.

Page 13: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

Design cues and service interactions enhance food

perceptions.Fond Farewell

NOW WHAT?

o Good food is subjective; the

perception of good food isn’t.

o Host =

o Engaged management

Brand Ambassador

Page 14: Top 20 Drivers of Restaurant Loyalty (What keeps guests coming back?)

THANK YOUcoylehospitality.com

@coyleexperience