Small Restaurant Chains Improve Customer Satisfaction

Subway loses lead spot, while Pizza Hut delivers on customer satisfaction in latest ACSI report.

June 23, 2014

ANN ARBOR, Mich. – Small restaurant chains are gaining in customer satisfaction as the largest chains deteriorate, according to a new American Customer Satisfaction Index (ACSI) report. ACSI data show that Americans ate out an average of four meals per week in 2013, representing a 60% increase since the end of the Great Recession. Also, they are happier with their restaurant dining experiences. Customer satisfaction with full-service restaurants is up 1.2% to an ACSI score of 82, holding a slim lead over fast food (80).

“In a weaker economy, consumers respond to price, but as the economy improves, quality becomes more important to restaurant customers,” said Claes Fornell, ACSI chairman and founder. “This is good news for smaller chains and individual restaurants, which customers associate with higher quality food and better service.”

Customer satisfaction for smaller restaurant chains is up 2%, while the largest chains experienced declines. Outback Steakhouse and Darden’s Olive Garden rank high among other large chains, but Outback slipped 1% and Olive Garden’s guest satisfaction is down 4% from a year ago. Red Lobster took the biggest fall, down 6%, alongside Applebee’s (-5%) and Chili’s (-5%).

Customer satisfaction with limited-service restaurants remained steady, marking the third consecutive year that fast-food restaurants have maintained their highest-ever level of customer satisfaction.

“This is a considerable transformation for an industry that posted scores in 60s throughout the 1990s and never exceeded an ACSI score of 70 until 2001,” said David VanAmburg, ACSI director. “Price has always been a strong point for fast food, but fast casual restaurants have been improving quality and service at such a brisk pace that customer satisfaction with fast food is nearly as high as dine-in restaurants.”

For QSRs, a group of smaller chains — including the rapidly growing fast casual segment with brands like Panera and Chipotle — now have a higher level of customer satisfaction than any of the major fast-food operators since the Index’s inaugural year of 1994. Among the biggest companies, pizza dominates, with all four of the largest pizza chains topping the category: Papa John’s, Pizza Hut, Little Caesar and Domino’s Pizza.

Subway, meanwhile, dropped out of the top spot to tie with Wendy’s. Starbucks is down 5% in customer satisfaction, followed closely by coffee rival Dunkin’ Donuts (-6%). KFC declined the most, dropping 9%, followed by Taco Bell (-3%) and McDonald’s (-3%).

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