Description
The quick service (aka, fast food) restaurant industry is significant and growing aspect of the overall restaurant industry. For long-term success quick service restaurants must be perceived as offering sufficient value for consumers. To do this, restaurants must first determine what consumers' value in a quick service restaurant experience.
OC13086
Quick Service Restaurant Success Factors
Kevin Mason, Arkansas Tech University
Stephen Jones, Arkansas Tech University
Mike Benefield, Arkansas Tech University
Jim Walton, Arkansas Tech University
Acknowledgements: The authors express appreciation to Brent Armstrong, Hannah
Goetz and Elliott Brown, undergraduate students, who collected the data and provided
analysis support for this project.
OC13086
Quick Service Restaurant Success Factors
Abstract:
The quick service (aka, fast food) restaurant industry is significant and growing aspect of the
overall restaurant industry. For long-term success quick service restaurants must be perceived as offering
sufficient value for consumers. To do this, restaurants must first determine what consumers’ value in a
quick service restaurant experience. As such, this research study explores consumers’ service quality
preferences in the quick service restaurant industry. Results of this research highlight critical factors
which help to determine the expectations that consumers have about the quick service restaurant industry
and their perceptions of service quality from a dining experience. Based upon university students’ quick
service experiences the results found in this study indicated that consumers are highly price sensitive, but
also place high importance on speed of service, location, quality of food, and cleanliness. A discussion is
provided for how these results can be used to develop effective marketing strategies for quick service
restaurants.
Keywords:
Consumer Perceptions, Fast Food, Quick Service Restaurants
OC13086
Quick Service Restaurant Success Factors
Introduction
The quick service industry was chosen as the focus of this research because of its significance in
the American economy. In both 2002 and 2007, the U.S. Census Bureau (2007) reported that quick
service (fast food) restaurants accounted for about 35% of all restaurant sales in the United States and
that sales grew almost 30% for the quick service restaurant industry while the number of establishments
for the industry surpassed the 200,000 mark. In 2007, the industry’s sales surpassed the $150 billion
mark, and more than three million people were employed in the industry (U.S. Census Bureau 2007).
The quick service restaurant industry has grown to a point that there are now about 67 fast food
restaurants for every 100,000 people in the U.S. In one study (Gordon & Sterrett 1999), it was estimated
that between 30 and 50 percent of all restaurants in the U.S. were of the quick service restaurant variety
and that the number varied regionally. Usage among average quick service restaurant consumers was
reported in 2006 to be at over 17 visits per month and among heavy use consumers to be nearly one visit
per day (Clarke 2006). According to Scholsser (2001) in 1970, Americans spent about six billion on fast
food; in 2010, it is estimated that Americans spent more than $130 billion (Synder & Dillow 2011).
Americans now spend more money on fast food than on higher education, personal computers, computer
software, or new cars (Scholesser 2001).
The quick service restaurant industry was designed around the concept of providing fast and
convenience dining experiences at a relatively low cost. A significant marketing segment for the quick
service restaurant industry is college age students, 18 to 24 years of age (Brandweek 1995). Synder &
Dillow (2011) note that between 1999 and 2009, the number of 18- to 24-year-olds increased from 26.7
million to 30.4 million, an increase of 14 percent, and the percentage of 18- to 24-year-olds enrolled in
college rose from 36 percent in 1999 to 41 percent in 2009 (Synder & Dillow 2011). College age students
often face issues with time management, striving to find balance between school, work, and social life.
College age students often face financial and time constraints (Pilon 2009). The quick service restaurant
industry has been able to capitalize on this dilemma by offering college students a quick, easy and
inexpensive solution for their nutritional needs. To increase or maintain college student market share,
OC13086
quick service restaurants must offer value as perceived by these consumers. As such, it makes sense
that quick service restaurants might want to determine what college students look for in their quick service
restaurant experience.
Methods
Students from a mid-size university (enrollment of between ten and fifteen thousand students)
served as subjects for our study. A total of 125 students participated as subjects. First, these participants
provided general perceptions about their past quick service restaurant dining experiences and general
perceptions about the industry. Specifically, subjects provided general information about themselves
(e.g., gender, age, class status, etc.), restaurant selection criteria (quantity of food, cleanliness, location,
price, etc.), frequency of food preferences (deep-fried, salads, pizza, carbohydrates, breads, etc.),
satisfaction of restaurant selection criteria, satisfaction of the food purchased, satisfaction of the
restaurant environment, satisfaction with the business (employees, etc.) and overall satisfaction with the
transaction (correct change, correct order received, etc.).
Then the subjects were asked to engage in a quick service restaurant dining experience at the
restaurant of their choosing. The only restriction was that the meal must include at least one entrée, one
side item, and one beverage of their choosing. After their dining experience, subjects answered varying
questions about their dining experience. Specifically, subjects were asked to rank various restaurant
attributes according to their relative importance. From subjects’ responses we calculated an attribute
importance index score (AIS). This weighted score takes into account the first, second, third, fourth, and
fifth most important restaurant attributes as perceived by subjects. In addition, subjects were also asked
to provide their perceptions about their dining experience.
Results
As shown in Table 1, the majority of the subjects dine at a quick service restaurant regularly (i.e.,
multiple times per week). Out of the 125 participants, 97.6% stated that they consume quick service
restaurant at least once or twice per week, some indicated they eat fast food more than once per day. In
short, college students were found to be a worthwhile marketing target for quick service restaurants.
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Table 1: Quick Service Restaurant Frequency
Quick Service Restaurant Frequency
Frequency Percent
Never 3 2.4%
Once or twice per week 83 66.4%
Several times per week 32 25.6%
Daily 3 2.4%
More than once per day 4 3.2%
Total 125 100.0%
Consumers’ perceptions of value in shopping, purchase and/or consumption behavior are based
upon their expectations on perceived important criteria being realized during the behavior (Richins 1994).
Table 2 shows which criteria were most important to the consumer subjects in this study. Through
informal discussions with consumers we identified a list of twelve restaurant characteristics that might be
potentially important to consumers. From these twelve characteristics, subjects in the current study were
asked to rank their top five criteria from most important to fifth most important. These selections were then
used to generate a weighted score which could then be used to compare the level of importance from one
criterion to another. The five most prominent (in order) restaurant selection criteria were Price, Speed of
Service, Location, Quality of Food, and Cleanliness. The ability of quick service restaurant establishments
to satisfy these criteria ultimately leads to the level of customer satisfaction, which promotes repeat
business and drives profits.
Price had the highest AIS (246) among the research subjects (Table 2). With limited funds, it is
not surprising that college students would be price sensitive. A breakdown of the meal prices for these
dining experiences is shown in Table 3. The majority of the consumer subjects (Approximately 61%) had
a meal cost between five and eight dollars. At a non-fast food restaurant, it would be uncommon to get a
full meal for less than eight dollars. Price is an important aspect of consumers’ perceived value of a dining
experience. Most quick service restaurants engage in competitive pricing by offering “value menus”.
Following Price in level of importance were two convenience criteria: Speed of Service and
Location (Table 2). These results indicate that it is a quick service restaurant can gain relative advantage
if they provide consumers with convenient locations and provide meals in a quick timely fashion. This
OC13086
implies that quick service restaurants need to understand consumer traffic patterns and have efficient and
consistent operations.
Table 2: Restaurant Selection Criteria
Restaurant Selection Criteria AIS*
Price 246
Speed of Service 217
Location 208
Quality of Food 203
Cleanliness 201
Menu Variety 176
Quantity of Food 146
Ease of Getting In and Out 129
Atmosphere 125
Number of Customers There 106
Employees 70
Number of Party Members 52
*The AIS (Attribute Importance Index Score) was calculated by assigning
weighted values to the level of importance placed on each criterion by the
consumer. (Most important=5 points, 2
nd
most important=4 points, and so on.)
The higher the score, the more important a given criterion is to the consumer.
Table 3: Amount Spent on Dining Experiences
Cost of Meal
Frequency Percent Cumulative Percent
$2.00-2.99 4 3.2% 3.2%
$3.00-3.99 9 7.2% 10.4%
$4.00-4.99 10 8.0% 18.4%
$5.00-5.99 23 18.4% 36.8%
$6.00-6.99 30 24.0% 60.8%
$7.00-7.99 23 18.4% 79.2%
$8.00-8.99 11 8.8% 88.0%
$9.00-9.99 4 3.2% 91.2%
$10+ 11 8.8% 100.0%
Total 125 100.0%
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The fourth highest ranking restaurant selection criterion was Quality of Food (Table 2). Food
quality can refer to a wide variety of attributes (e.g., food temperature, food freshness, food preparation,
flavor, etc.). To be effective in the quick service food industry, a restaurant needs to meet or exceed
consumers’ expectations on food quality. Therefore, ingredients need to be reasonably fresh and
prepared in a consistent and sanitary fashion.
If consumers’ perception of a dining experience meets or exceeds their expectations, then they
likely will be satisfied with the experience (Mittal, Kumer & Tsiros 1999). The subjects in our study
indicated their quick service restaurant experiences were primarily positive. As shown in Table 4, 80.8%
of those surveyed were satisfied with their quick service restaurant dining experience. Satisfaction from
shopping, purchase or consumption behaviors serve as a pre-curser for these behaviors to be repeated,
resulting in marketing churn which has been proven to be profitable for retailers (Mittal, Kumer & Tsiros
1999).
Table 4: Overall Dining Satisfaction
Overall, I am satisfied with this dining experience
Frequency Percent
Strongly Disagree 4 3.2%
Somewhat Disagree 6 4.8%
Neither Agree nor Disagree 14 11.2%
Somewhat Agree 54 43.2%
Strongly Agree 47 37.6%
Total 125 100.0%
Marketing Strategy Implications
To have long term success in the quick service restaurant industry it is necessary to build loyal
consumers through a strategy of relationship marketing. The core of the relationship marketing approach
is that resources are directed toward strengthening ties to existing customers on the proven premise that
maintain existing customers is less costly that is attracting new ones (Bagozzi 1995). A key component to
building a relationship is customer satisfaction with market transactions. Anderson and Sullivan (1993)
state that consumer satisfactions lead to increased probabilities of purchasing a particular brand. They
OC13086
contend that satisfied consumers are more likely to be retained. According to Wallace (1995), for fast
food restaurants, it costs three to five times as much to attract a new customer as it does to retain an
existing customer. Wallace further argues that by reducing consumer defection by 5%, a fast food
restaurant can increase it profits by 25%. In short, consumer satisfaction is an important element in
building a marketing relationship between a quick service restaurant and its customers. According to our
findings, the keys to customer satisfaction for quick service restaurants are (in order) price, service speed,
convenient locations, food quality and cleanliness.
Successful quick service restaurants compete effectively on price. For example, McDonald’s has
a dollar menu and Taco Bell offers a value menu. Promotions using coupons are often used to provide
low costs meals. Thus, consumers perceive greater value in their meal purchases. Another aspect of
competing with low costs food, is that successful restaurants must maintain operational efficiency in order
to keep costs as low as possible.
The second criterion driving the customer satisfaction is the restaurant’s location. It is
advantageous for a quick service restaurant to be located where it will have high visibility, convenience
access and for the restaurant to be located conveniently along routes frequently traveled by their
customers (Sharkey et. al. 2007). To register in consumers’ memories, the restaurant must gain the
consumers’ attention. If out-of-sight relates to out- of-mind, then it follows that higher visibility can
promote greater attention and activated memory. Also, given that fast food purchases are typically a low
involvement action for the consumer, the convenience factor has added importance for stimulating
purchase behavior. So, restaurant locations that are on regular routes traveled by consumers provide the
added value of convenience that many consumers are looking for in a purchase behavior situation.
Another aspect of the convenience factor found to impact consumer satisfaction was the speed
of service. Obviously, convenience and quick service are part of the value that consumers are looking for
in their buying behavior. In fact, to keep prices low, quick service restaurants typically operate with low
profit margins. As such, the quicker that purchase orders are completed the quicker the turnover. Higher
turnover allows for higher overall profits over a given period of time. Operational efficiency is a key aspect
of successful quick service restaurants (Pettijohn et. al. 1997). Processes and production processes must
be efficient and consistent to minimize the time between when a customer places and receives their
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order. Several strategies can decrease service time including using technology to outsource the order-
taking process to a call center, employing more people at key times, or using technology to speed up the
food preparation time.
Food quality was also found to be important to quick service restaurant consumers. To be seen
has having higher quality food, a quick service restaurant needs to offer meals with fresh ingredients,
reasonably high quality meats, and consistent delivery of food (Pettijohn et. al. 1997). Therefore,
restaurants need reliable vendors for their food ingredients and efficient ingredient supply chains. Also,
meal preparations need ensure that the food has consistent tastes, consistent portions, and is delivered
at consistent temperatures.
As shown in our findings, restaurant cleanliness is also an important criteria in consumers’
purchase behaviors (Pettijohn et.al.1997). This is not surprising, given that several studies have found a
relationship between customer satisfaction, service quality evaluation and restaurant cleanliness
(Steven,& Knutson 1995; Becker & Murrmann 1999; Barber & Scarcelli 2009; Barber & Scarcelli 2010).
Cleanliness is an essential to restaurant success. It is the responsibility of restaurant owners and
management to provide a safe and clean restaurant environment by reducing the burden of disease from
food. For example, hand washing of a bacteria infected worker can cause food-borne illness (Todd &
Greig 2007), thus restaurant service workers must be required to keep their hands clean before handling
any finished food products. Also proper food storage is important. In fact, holding temperatures is one of
the most important methods of controlling the growth of bacteria in food. Proper temperature control
prevents many typos of pathogens from multiplying to the levels that cause food-borne illness (Todd &
Greig 2007). And finally, food must be properly cooked. Undercooked meats, poultry, and eggs can
harbor enough bacterial to sicken diners. While not getting sick from a meal does not necessarily
translate into a satisfying customer experience, getting sick from a dining experience will most certainly
result in an unsatisfactory dining experience.
The quick food restaurants operate in a highly competitive and dynamic industry. To be
successful, a given quick service restaurant must monitor consumer desires and expectations. The
successful restaurants will be seen by consumers as offering value on key factors. In this study, it was
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found that the factors judged to be important to consumers are low prices, fast service speed, reasonable
food quality. Furthermore, consumers seek convenience in restaurant location and clean restaurants.
References
Anderson, E. & M. Sullivan (1993). “The Antecedents and Consequences of Customer Satisfaction for
Firms,” Marketing Science, vol. 12, pp. 125-143.
Bagozzi, R.P. (1995). “Reflections on Relationship Marketing in Consumer Markets,” Journal of the
Academy of Marketing Science, vol. 24, no. 4, pp. 272-277.
Barber, N & J. Scarcelli (2009). “Clean Restroom: How Important Are They to Restaurant Consumers?”
Journal of Foodservice, vol 20(6), pp. 309-320.
Barber, N. & J. Scarcelli (2010). “Enhancing the Assessment of Tangible Service Quality Through the
Creation of a Cleanliness Measurement Scale.” Managing Service Quality, vol. 20(1): pp. 70-88.
Becker, C & S. Murrmann (1999). “The Effect of Cultural Orientation on the Service Timing Preferences of
Customers in Casual Dining Operations: An Exploratory Study.” International Journal of
Hospitality Management, vol. 18(1), pp. 59-65.
Brandweek. (1995). We Want Our Fast-Food…Now! vol. 36 issue 5, p.17.
Clarke, P. (2006), “U.S. Appetite for Fast Food Grows,” press release, Sandleman & Associates, (April
16).
Gordon, P. & J. Sterrett (1999), “Geographic Preference for Fast Food,” Proceedings of the Academy of
Marketing Studies, 4 (2), pp. 1-4.
Mittal, V., P. Kumar & M. Tsiros (1999). “Attribute-Level Performance, Satisfaction, and Behavioral
Intentions over Time,” Journal of Marketing, pp. 88-101.
Pilon. M. (2009). College Graduates Facing Mounting Debt, Rising Unemployment. The Wall Street
Journal.
Pettijohn, L, C. Pettijohn & R. Luke (1997). “An Evaluation of Fast Food Restaurants Satisfaction:
Determinants, Competitive Comparisons and Impact on Future Patronage,” Journal of Restaurant
& Foodservice Marketing, vol. 2(3), pp. 27-41.
Richins, M. L. (1994). “Special Possessions and the Expression of Material Values,” Journal of Consumer
Research, 24 (3), pp. 522-33.
Schlosser, E. (2001). Fast Food Nation: The Dark Side of the All-American Meal. Boston: Houghton
Mifflin.
Snyder, T. D., & S. A. Dillow (2011, April). Digest of Education Statistics, 2010 - Introduction. National
Center for Education Statistics (NCES) Home Page, a Part of the U.S. Department of Education.
Retrieved November 22, 2011, from http://nces.ed.gov/programs/digest/d10/index.asp
Sharkey, J., S. Horel, D. Han & J. Huber (2007). “Association Between Neighborhood Need And Spatial
Access To Fast Food,” International Journal of Health Geography, vol. 20, pp. 47-60.
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Stevens, P. & B. Knutson (1995). “Dineserv: A Tool for Measuring Service Quality in Restaurants,”
Cornell Hotel and Restaurant Administration Quarterly, vol. 36(2); pp. 56-60.
U. S. Census Bureau. (2007). “Sector 72: EC0772A2: Accommodation and Food Services: Geographic
Area Series: Comparative Statistics for the United States (2002 NAICS Basis): 2007 and 2002.”
(accessed November 22, 2011), [available at
http://factfinder.census.gov/servlet/IBQTable?_bm=y&-geo_id=&-ds_name=EC0772A2&-
_lang=en]
Todd, E. & J. Greig (2007). “Outbreaks Where Food Workers Have Been Implicated in the Spread Of
Foodborne Disease. Part 3. Factors Contributing To Outbreaks And Description Of Outbreak
Categories, Journal of Food Protection:vol. 70(9), pp. 2199-2217.
Wallace, J. (1995). “Customer Loyalty In The Fast Food Industry,” Nation’s Restaurant News (June 5), p.
34.
doc_678514066.pdf
The quick service (aka, fast food) restaurant industry is significant and growing aspect of the overall restaurant industry. For long-term success quick service restaurants must be perceived as offering sufficient value for consumers. To do this, restaurants must first determine what consumers' value in a quick service restaurant experience.
OC13086
Quick Service Restaurant Success Factors
Kevin Mason, Arkansas Tech University
Stephen Jones, Arkansas Tech University
Mike Benefield, Arkansas Tech University
Jim Walton, Arkansas Tech University
Acknowledgements: The authors express appreciation to Brent Armstrong, Hannah
Goetz and Elliott Brown, undergraduate students, who collected the data and provided
analysis support for this project.
OC13086
Quick Service Restaurant Success Factors
Abstract:
The quick service (aka, fast food) restaurant industry is significant and growing aspect of the
overall restaurant industry. For long-term success quick service restaurants must be perceived as offering
sufficient value for consumers. To do this, restaurants must first determine what consumers’ value in a
quick service restaurant experience. As such, this research study explores consumers’ service quality
preferences in the quick service restaurant industry. Results of this research highlight critical factors
which help to determine the expectations that consumers have about the quick service restaurant industry
and their perceptions of service quality from a dining experience. Based upon university students’ quick
service experiences the results found in this study indicated that consumers are highly price sensitive, but
also place high importance on speed of service, location, quality of food, and cleanliness. A discussion is
provided for how these results can be used to develop effective marketing strategies for quick service
restaurants.
Keywords:
Consumer Perceptions, Fast Food, Quick Service Restaurants
OC13086
Quick Service Restaurant Success Factors
Introduction
The quick service industry was chosen as the focus of this research because of its significance in
the American economy. In both 2002 and 2007, the U.S. Census Bureau (2007) reported that quick
service (fast food) restaurants accounted for about 35% of all restaurant sales in the United States and
that sales grew almost 30% for the quick service restaurant industry while the number of establishments
for the industry surpassed the 200,000 mark. In 2007, the industry’s sales surpassed the $150 billion
mark, and more than three million people were employed in the industry (U.S. Census Bureau 2007).
The quick service restaurant industry has grown to a point that there are now about 67 fast food
restaurants for every 100,000 people in the U.S. In one study (Gordon & Sterrett 1999), it was estimated
that between 30 and 50 percent of all restaurants in the U.S. were of the quick service restaurant variety
and that the number varied regionally. Usage among average quick service restaurant consumers was
reported in 2006 to be at over 17 visits per month and among heavy use consumers to be nearly one visit
per day (Clarke 2006). According to Scholsser (2001) in 1970, Americans spent about six billion on fast
food; in 2010, it is estimated that Americans spent more than $130 billion (Synder & Dillow 2011).
Americans now spend more money on fast food than on higher education, personal computers, computer
software, or new cars (Scholesser 2001).
The quick service restaurant industry was designed around the concept of providing fast and
convenience dining experiences at a relatively low cost. A significant marketing segment for the quick
service restaurant industry is college age students, 18 to 24 years of age (Brandweek 1995). Synder &
Dillow (2011) note that between 1999 and 2009, the number of 18- to 24-year-olds increased from 26.7
million to 30.4 million, an increase of 14 percent, and the percentage of 18- to 24-year-olds enrolled in
college rose from 36 percent in 1999 to 41 percent in 2009 (Synder & Dillow 2011). College age students
often face issues with time management, striving to find balance between school, work, and social life.
College age students often face financial and time constraints (Pilon 2009). The quick service restaurant
industry has been able to capitalize on this dilemma by offering college students a quick, easy and
inexpensive solution for their nutritional needs. To increase or maintain college student market share,
OC13086
quick service restaurants must offer value as perceived by these consumers. As such, it makes sense
that quick service restaurants might want to determine what college students look for in their quick service
restaurant experience.
Methods
Students from a mid-size university (enrollment of between ten and fifteen thousand students)
served as subjects for our study. A total of 125 students participated as subjects. First, these participants
provided general perceptions about their past quick service restaurant dining experiences and general
perceptions about the industry. Specifically, subjects provided general information about themselves
(e.g., gender, age, class status, etc.), restaurant selection criteria (quantity of food, cleanliness, location,
price, etc.), frequency of food preferences (deep-fried, salads, pizza, carbohydrates, breads, etc.),
satisfaction of restaurant selection criteria, satisfaction of the food purchased, satisfaction of the
restaurant environment, satisfaction with the business (employees, etc.) and overall satisfaction with the
transaction (correct change, correct order received, etc.).
Then the subjects were asked to engage in a quick service restaurant dining experience at the
restaurant of their choosing. The only restriction was that the meal must include at least one entrée, one
side item, and one beverage of their choosing. After their dining experience, subjects answered varying
questions about their dining experience. Specifically, subjects were asked to rank various restaurant
attributes according to their relative importance. From subjects’ responses we calculated an attribute
importance index score (AIS). This weighted score takes into account the first, second, third, fourth, and
fifth most important restaurant attributes as perceived by subjects. In addition, subjects were also asked
to provide their perceptions about their dining experience.
Results
As shown in Table 1, the majority of the subjects dine at a quick service restaurant regularly (i.e.,
multiple times per week). Out of the 125 participants, 97.6% stated that they consume quick service
restaurant at least once or twice per week, some indicated they eat fast food more than once per day. In
short, college students were found to be a worthwhile marketing target for quick service restaurants.
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Table 1: Quick Service Restaurant Frequency
Quick Service Restaurant Frequency
Frequency Percent
Never 3 2.4%
Once or twice per week 83 66.4%
Several times per week 32 25.6%
Daily 3 2.4%
More than once per day 4 3.2%
Total 125 100.0%
Consumers’ perceptions of value in shopping, purchase and/or consumption behavior are based
upon their expectations on perceived important criteria being realized during the behavior (Richins 1994).
Table 2 shows which criteria were most important to the consumer subjects in this study. Through
informal discussions with consumers we identified a list of twelve restaurant characteristics that might be
potentially important to consumers. From these twelve characteristics, subjects in the current study were
asked to rank their top five criteria from most important to fifth most important. These selections were then
used to generate a weighted score which could then be used to compare the level of importance from one
criterion to another. The five most prominent (in order) restaurant selection criteria were Price, Speed of
Service, Location, Quality of Food, and Cleanliness. The ability of quick service restaurant establishments
to satisfy these criteria ultimately leads to the level of customer satisfaction, which promotes repeat
business and drives profits.
Price had the highest AIS (246) among the research subjects (Table 2). With limited funds, it is
not surprising that college students would be price sensitive. A breakdown of the meal prices for these
dining experiences is shown in Table 3. The majority of the consumer subjects (Approximately 61%) had
a meal cost between five and eight dollars. At a non-fast food restaurant, it would be uncommon to get a
full meal for less than eight dollars. Price is an important aspect of consumers’ perceived value of a dining
experience. Most quick service restaurants engage in competitive pricing by offering “value menus”.
Following Price in level of importance were two convenience criteria: Speed of Service and
Location (Table 2). These results indicate that it is a quick service restaurant can gain relative advantage
if they provide consumers with convenient locations and provide meals in a quick timely fashion. This
OC13086
implies that quick service restaurants need to understand consumer traffic patterns and have efficient and
consistent operations.
Table 2: Restaurant Selection Criteria
Restaurant Selection Criteria AIS*
Price 246
Speed of Service 217
Location 208
Quality of Food 203
Cleanliness 201
Menu Variety 176
Quantity of Food 146
Ease of Getting In and Out 129
Atmosphere 125
Number of Customers There 106
Employees 70
Number of Party Members 52
*The AIS (Attribute Importance Index Score) was calculated by assigning
weighted values to the level of importance placed on each criterion by the
consumer. (Most important=5 points, 2
nd
most important=4 points, and so on.)
The higher the score, the more important a given criterion is to the consumer.
Table 3: Amount Spent on Dining Experiences
Cost of Meal
Frequency Percent Cumulative Percent
$2.00-2.99 4 3.2% 3.2%
$3.00-3.99 9 7.2% 10.4%
$4.00-4.99 10 8.0% 18.4%
$5.00-5.99 23 18.4% 36.8%
$6.00-6.99 30 24.0% 60.8%
$7.00-7.99 23 18.4% 79.2%
$8.00-8.99 11 8.8% 88.0%
$9.00-9.99 4 3.2% 91.2%
$10+ 11 8.8% 100.0%
Total 125 100.0%
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The fourth highest ranking restaurant selection criterion was Quality of Food (Table 2). Food
quality can refer to a wide variety of attributes (e.g., food temperature, food freshness, food preparation,
flavor, etc.). To be effective in the quick service food industry, a restaurant needs to meet or exceed
consumers’ expectations on food quality. Therefore, ingredients need to be reasonably fresh and
prepared in a consistent and sanitary fashion.
If consumers’ perception of a dining experience meets or exceeds their expectations, then they
likely will be satisfied with the experience (Mittal, Kumer & Tsiros 1999). The subjects in our study
indicated their quick service restaurant experiences were primarily positive. As shown in Table 4, 80.8%
of those surveyed were satisfied with their quick service restaurant dining experience. Satisfaction from
shopping, purchase or consumption behaviors serve as a pre-curser for these behaviors to be repeated,
resulting in marketing churn which has been proven to be profitable for retailers (Mittal, Kumer & Tsiros
1999).
Table 4: Overall Dining Satisfaction
Overall, I am satisfied with this dining experience
Frequency Percent
Strongly Disagree 4 3.2%
Somewhat Disagree 6 4.8%
Neither Agree nor Disagree 14 11.2%
Somewhat Agree 54 43.2%
Strongly Agree 47 37.6%
Total 125 100.0%
Marketing Strategy Implications
To have long term success in the quick service restaurant industry it is necessary to build loyal
consumers through a strategy of relationship marketing. The core of the relationship marketing approach
is that resources are directed toward strengthening ties to existing customers on the proven premise that
maintain existing customers is less costly that is attracting new ones (Bagozzi 1995). A key component to
building a relationship is customer satisfaction with market transactions. Anderson and Sullivan (1993)
state that consumer satisfactions lead to increased probabilities of purchasing a particular brand. They
OC13086
contend that satisfied consumers are more likely to be retained. According to Wallace (1995), for fast
food restaurants, it costs three to five times as much to attract a new customer as it does to retain an
existing customer. Wallace further argues that by reducing consumer defection by 5%, a fast food
restaurant can increase it profits by 25%. In short, consumer satisfaction is an important element in
building a marketing relationship between a quick service restaurant and its customers. According to our
findings, the keys to customer satisfaction for quick service restaurants are (in order) price, service speed,
convenient locations, food quality and cleanliness.
Successful quick service restaurants compete effectively on price. For example, McDonald’s has
a dollar menu and Taco Bell offers a value menu. Promotions using coupons are often used to provide
low costs meals. Thus, consumers perceive greater value in their meal purchases. Another aspect of
competing with low costs food, is that successful restaurants must maintain operational efficiency in order
to keep costs as low as possible.
The second criterion driving the customer satisfaction is the restaurant’s location. It is
advantageous for a quick service restaurant to be located where it will have high visibility, convenience
access and for the restaurant to be located conveniently along routes frequently traveled by their
customers (Sharkey et. al. 2007). To register in consumers’ memories, the restaurant must gain the
consumers’ attention. If out-of-sight relates to out- of-mind, then it follows that higher visibility can
promote greater attention and activated memory. Also, given that fast food purchases are typically a low
involvement action for the consumer, the convenience factor has added importance for stimulating
purchase behavior. So, restaurant locations that are on regular routes traveled by consumers provide the
added value of convenience that many consumers are looking for in a purchase behavior situation.
Another aspect of the convenience factor found to impact consumer satisfaction was the speed
of service. Obviously, convenience and quick service are part of the value that consumers are looking for
in their buying behavior. In fact, to keep prices low, quick service restaurants typically operate with low
profit margins. As such, the quicker that purchase orders are completed the quicker the turnover. Higher
turnover allows for higher overall profits over a given period of time. Operational efficiency is a key aspect
of successful quick service restaurants (Pettijohn et. al. 1997). Processes and production processes must
be efficient and consistent to minimize the time between when a customer places and receives their
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order. Several strategies can decrease service time including using technology to outsource the order-
taking process to a call center, employing more people at key times, or using technology to speed up the
food preparation time.
Food quality was also found to be important to quick service restaurant consumers. To be seen
has having higher quality food, a quick service restaurant needs to offer meals with fresh ingredients,
reasonably high quality meats, and consistent delivery of food (Pettijohn et. al. 1997). Therefore,
restaurants need reliable vendors for their food ingredients and efficient ingredient supply chains. Also,
meal preparations need ensure that the food has consistent tastes, consistent portions, and is delivered
at consistent temperatures.
As shown in our findings, restaurant cleanliness is also an important criteria in consumers’
purchase behaviors (Pettijohn et.al.1997). This is not surprising, given that several studies have found a
relationship between customer satisfaction, service quality evaluation and restaurant cleanliness
(Steven,& Knutson 1995; Becker & Murrmann 1999; Barber & Scarcelli 2009; Barber & Scarcelli 2010).
Cleanliness is an essential to restaurant success. It is the responsibility of restaurant owners and
management to provide a safe and clean restaurant environment by reducing the burden of disease from
food. For example, hand washing of a bacteria infected worker can cause food-borne illness (Todd &
Greig 2007), thus restaurant service workers must be required to keep their hands clean before handling
any finished food products. Also proper food storage is important. In fact, holding temperatures is one of
the most important methods of controlling the growth of bacteria in food. Proper temperature control
prevents many typos of pathogens from multiplying to the levels that cause food-borne illness (Todd &
Greig 2007). And finally, food must be properly cooked. Undercooked meats, poultry, and eggs can
harbor enough bacterial to sicken diners. While not getting sick from a meal does not necessarily
translate into a satisfying customer experience, getting sick from a dining experience will most certainly
result in an unsatisfactory dining experience.
The quick food restaurants operate in a highly competitive and dynamic industry. To be
successful, a given quick service restaurant must monitor consumer desires and expectations. The
successful restaurants will be seen by consumers as offering value on key factors. In this study, it was
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found that the factors judged to be important to consumers are low prices, fast service speed, reasonable
food quality. Furthermore, consumers seek convenience in restaurant location and clean restaurants.
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