Hospitality Branding Research Paper: Chick-fil-A Benjamin Walker April 25, 2021 1|P a g e TABLE OF CONTENTS Section I: Loyalty & Distribution ....................................................................................................................................3 Introduction ..............................................................................................................................................................3 Loyalty & Distribution Recommendations ................................................................................................................4 Section II: Online Reviews..............................................................................................................................................5 Customer Feedback Overview ..................................................................................................................................5 Customer Feedback Analysis .....................................................................................................................................5 Consumer recommendations/tips/comments ..........................................................................................................7 Conclusion/recommendations ..................................................................................................................................7 References .....................................................................................................................................................................9 2|P a g e SECTION I: LOYALTY & DISTRIBUTION INTRODUCTION Chick-fil-a is considered one of the top fast-food chains in the country. They are known for their highly satisfying experience from when you reach the parking lot, to when you are leaving their restaurant, and sometimes even all the way to your car. Creating a memorable experience for customers is a niche strategy that has been highly effective given that customer service is becoming more and more of a focal point for firms, marketers, and salespeople especially. One of the reasons Chick-fil-a is so successful is due to its robust and rewarding loyalty program. This paper will discuss how this program contributes to helping Chick-fil-a maintain elite satisfaction, increase their customer retention rate, and increase overall customer loyalty. This loyalty program is called Chick-fil-A One. Chick-fil-A One is designed to reward customers who eat at Chick-fil-A frequently. To gain rewards, you just must spend money at Chick-fil-A. For every $1 spent, you receive 10 points which can be redeemed on select items at Chick-fil-A. This has been a very promising program for the restaurant seeing that they are consistently voted for having the politest staff compared to other restaurants. Chick-fil-A puts heavy emphasis and focus on the quality of customer service to create a competitive advantage in its industry. To put it into perspective, Chick-fil-A is like Target in a sense of creating a high-quality experience while serving higher quality goods. Whereas a McDonald’s type restaurant is more comparable to a Walmart in a sense that both firms are pursuing cost-leadership strategies in their perspective fields. Given that customer service is intangible, inseparable, variable, and perishable, it is pertinent that customer service is optimized throughout their buying process. Since customers receive their product after the service, and sometimes during the service, it is important to maintain a high-quality standard of customer service. This strategy has helped propel Chick-fil-A to the spot that it has maintained for many years. Chick-fil-A uses other marketing tactics and techniques to further grow its successful business. One of these techniques deals with social marketing and community engagement. Chick-fil-a positions itself on the side of charities regularly. This gives Chick-fil-A the opportunity to obtain a triple bottom line which is very lucrative and attractive when running a firm. They have planned multiple virtual runs, walks, and rides as charitable events to maintain their social awareness, even through the pandemic. They also fund a charity called the WinShape Foundation which provides an all-inclusive program for Christian aligned individuals. Although Chick-fil-A has multiple campaigns and strategies for satisfying existing customers and obtaining new ones, there are two that are unique, creative, and lucrative. One strategy used by Chick-fil-A, when they launch a new franchise, not only creates that initial wow factor and 3|P a g e traction, but it quickly helps to establish loyal customers. They offer the first 100 customers, to any newly opened Chick-fil-A, a meal every week for a year. This is effective because it communicates that they are here and ready to serve but it almost guarantees 100 loyal customers for a year. This type of publicity creates brand recognition and equity for the newly operated store which will not only increase sales, but customer loyalty as well. The second strategy that is worth mentioning is how they let a kid bring in a toy to trade in for a free ice cream cone. This is very important because businesspeople learn that the decision maker is not always the purchaser of your products. This gives customers the impression that Chick-fil-A is family friendly and that they are willing to improve their surrounding community. These two strategies alone help create the satisfaction and loyalty needed to maintain a competitive advantage in the Hospitality industry. Chick-fil-A should continue to reach people through their website, their social platforms, and events. They should consider expanding into areas that appeal to GenZ. Creating a Tiktok to engage this community can be promising. Chick-fil-A should also consider improving the rewards program for their loyal customers. While there are deals, the value seems to be decreasing as inflation kicks in from economic stimulation. Also creating an opt-in, text friendly program to keep customers updated on events and promotions would be more efficient than email since people spend almost half of every day on their phone, and never travel without it. Lastly, Chick-fil-A should consider dropping firms like Doordash and consider creating their own delivery service like Aldi because going through the third-party delivery services is decreasing the value of the food, which decreases perceived value and the value of the loyalty program and this ultimately could decrease sales and customer traffic. Although Chick-fil-A seems to be doing well, they can still improve in some areas which will help them grow expand and maintain their market position. Fortunately, a survey was conducted earlier this year about Chick-fil-A with the following results: https://surveyhero.com/results/312119/ddba936ae03533adcbfebd12edd25109 *Survey with 50+ participants LOYALTY & DISTRIBUTION RECOMMENDATIONS After analyzing the results, Chick-fil-A is falling short on 3 areas: 1. Awareness of Charitable Contributions: People have expressed that their loyalty and trust to the fast good chain would increase if they had more community interaction and gave back more. While Chick-fil-A does this significantly, it is not well-known to many of its customers. A marketing campaign should be specifically designed to increase awareness of how the restaurant is helping its surrounding communities through its business practices. 4|P a g e 2. Religious Alignment: There is nothing wrong with having your own morals and beliefs, but they come at a cost. When Chick-fil-A aligns itself with Christianity, a lot of people from the LGBTQ+ community feel isolated and outcasted. While Chick-fil-A should maintain its belief system publicly, it should do so in a neutral manner if it wants to gain potential customers in this community especially given the circumstances of the pandemic and ‘cancel culture’. 3. Menu Variety: Chick-fil-A has a great menu selection, but they seem to lack the variety that accommodates all dietary lifestyles. Chick-fil-A does have salads, but so does Wendy’s and other competitors. Chick-fil-A should make a real effort to appeal to different diets if it wants to extract the full financial potential from these target markets. Vegans and vegetarians say they would eat at Chick-fil-A if their meals were tailored to their eating lifestyles. Chick-fil-A may want to consider expanding their options or even partnering with a place like ‘Slutty Vegan’ or ‘Envegan’ to reach the target market hat seems to be growing as people are becoming more health conscious. SECTION II: ONLINE REVIEWS CUSTOMER FEEDBACK OVERVIEW Customer reviews, or feedback, are an integral part of optimizing a business in the Hospitality industry. The reviews are somewhat of a Bible for hospitality firms. They can discover a lot of information about the characteristics and personalities of your customers. This is very important when determining the needs and wants of their target market. Retrieving these unsolicited, unstructured, and bottom-up data from consumers can give you a picture on how they view, and feel about, your brand. Like Stephen Baker’s article mentions, “The web knows what you want.” CUSTOMER FEEDBACK ANALYSIS After carefully reading the reviews for Chick-fil-A on Yelp, Google, and Consumer Affairs, it was determined that certain factors were a common theme on both ends. For the satisfied customers, they mention how well the customer service is, how quickly they get their food, and how well the food is prepared. Here are a few quotes: • • • “…Service is always excellent and let's be real, the food can't be beat!...” “…Reliable. Clean. Nice people.” “…This place has polite and helpful service…” As for the negative reviews, they were somewhat of the direct opposite reasoning for the bad reviews: • “…Apparently your business model doesn't greet you with a "welcome to chikfila!" anymore. In fact, the last two recent trips there was a lot of horse play at the window and no attention to the customer parked there listening to the food runners gossip. No thank 5|P a g e • • • you's for coming. So disappointed that you've compromised the company's great mission statement and its great training program…” “Place is going to sh!!!!!!!!t.. Service SUCKS G.O.D BALLS…” “This particular Chick-fil-A just does not make the freshest food. Every time I come in, there is an issue with the food. I try and give them the benefit of the doubt, but every time I express an issue to the cashier or manager, someone gives me an ugly and dirty look and asks what do I want instead…” “…The drive-thru is ALWAYS backed up because they move the cars so slowly. When they get your order wrong the manager does not want to make it right. True McDonald's level service, but with higher prices.” Another thing was noticed while analyzing the customer reviews. While most reviews were negative or positive because of food quality, customer service, and wait times, it was observed that a lot of the reviews emphasized the above and beyond service as well as the small, detailed things when leaving a review. Here are a few examples: • • • • “Chick fil a is the best and I love this location! Service is always excellent and let us be real, the food can't be beat! A few years ago, I noticed something very cool they did and love to share: I am in a wheelchair and after I ordered, I noticed the server push a button "customer in chair", this way, all employees knew there was a customer who might need extra help. I was so impressed and appreciative of this small detail!” “…My only complaint would be that the stopped wiping off your cups if they spilled some soda on it as they filled it up. I know that's a small gripe but when you're in your car and you're searching for a napkin to wipe off your cup before it gets all over you and your console, it's a sort of a downer.” “…I also like that they usually have hand wipes and the disposable placemats for high chairs.” “…Hate it when Ur order doesn't Come with a SAUCE !” After analyzing negative and positive complaint issues, a search was continued to look for recommendations or tips from the customers to gain insight on future strategies and decisions. This was difficult, considering most suggestions were from negative comments and those suggestions were not very productive but consolidating the data told a bigger story about the problems. These were some of the tips, recommendations, and comments: • • “So disappointed that you've compromised the company's great mission statement and its great training program. Does not matter if food is consistent; customer always knows if you don't care anymore. Don't think I'll be coming to this location anymore.” “Got my food and receipt around 5:42. I was checking the bag for the sauces but the cashier said it was in there. So I trusted her words. As I was driving home, I told my girlfriend to check if we had the sauces… Made my way back to chick fil a. Went around 6|P a g e • • • • • • • just to talk to the operator again and told him I did not get any sauces. He said go back in line and we'll take care of you. I said the line was long. He said well I can't do anything. Again, I waited and was pissed. This could've been handled if he went inside just to get my chick fil a sauce…” (Suwanee, GA) “…My favorite Chick-fil-A is Moore's Road and Sugarloaf as I always get fresh food and exceptional service.” “…This location is really starting to slack off.” (Duluth, GA) - interesting “…You will leave with fully belly and happiness!” (Duluth, GA) - interesting “…Chick-fil-A you have lost my business at this location. Get a clue, we as customers are not going to beg you to take our money.” (Duluth, GA) “They just need to work on their scanners.” (Stone Mountain, GA) “This is the worst Chick-Fil-A I have ever been to. I go to Chick-Fil-A about 3 times a week (Holcomb Bridge or Pleasant Hill locations)…” (Sandy Springs, GA) “…I'm really surprised they still let this store operates. Gordon Ramsay will sure shut this store down the moment he walks into this unsanitized store.” (Johns Creek, GA) CONSUMER RECOMMENDATIONS/TIPS/COMMENTS Lastly, after searching for recommendations, tips, and constructive criticism, an online search was conducted to see if Chick-fil-A cared to respond and give their unhappy customers a reason to come back. It was apparent that on Yelp, Google, and Customer Affairs, Chick-fil-A did not respond to any customers, positive or negative. This is a big blunder considering the valuable data that could be potential business intelligence in the comments. It is understood that Chick-fildeals with ‘Big Data’, but they are missing valuable data and community interaction on multiple review sights which could easily have a snowball effect if consumer sentiment on these sites is not monitored. CONCLUSION/RECOMMENDATIONS With a better understanding of Chick-fil-A’s customer feedback and current positioning it is safe to safe that Chick-fil-A’s position in their market and industry is not in imminent danger. This does no mean they should become complacent and ride the wave they have created. There are several things this elite fast-food chain can improve to increase their success and influence in their market. The following is suggested: • It is highly recommended that Chick-fil-A allocate some of its budget to reviewing consumer feedback and reviews on most, if not all, customer reviewing sights to gain insight on potential key points of failure and to maintain that customer relationship. This includes answering community frequently asked questions and responding to negative and positive comments. This will increase community engagement which builds trust and loyalty. Customers will believe that Chick-fil-A genuinely cares about them. 7|P a g e • • It is also recommended that Chick-fil-A reenforces their standard of quality for food, cleanliness, and customer service across all stores. This seems to be a recruiting and branding issue. Management should embed the core values of Chick-fil-A into their employees’ brains. This will help to improve the overall image and customer service of Chick-fil-A. Another way of improving customer service, indirectly, is by improving employee perks, pay, programs etc. to empower them and help them understand the value of great customer service. The last recommendation, which may be the most impactful, is for Chick-fil-A to exercise paying more attention to detail. As mentioned above, customers loved and hated when detail-oriented factors benefited them and negatively affected them, respectively. Paying close attention to details will show that Chick-fil-A cares on a deeper level. The ‘wheelchair button’ was ingenious given the fact that the disabled community is often left out aside from ramps and parking spaces. This button seems very innovative and caring, and little details like this can go a long way when trying to enter new markets. This could even create a temporary competitive advantage if no one else is paying attention to detail. Chick-fil-A may possibly be analyzing reviews, but they are surely not responding which, once again, is a huge mistake. If Chick-fil-A considers these recommendations for their business, this would drive them further towards success and create a dominance that competitors may not be able to overcome. Without considering the above recommendations Chick-fil-A would hinder its market position by neglecting the voice of their customers and overlooking opportunities to differentiate itself from its competitors giving them a chance to steal market share and power. 8|P a g e REFERENCES • • • • • • • • • • Kotler, P. (2016). Marketing for Hospitality and Tourism. https://platform.virdocs.com/r/s/0/doc/243301/sp/15471513/mi/50491462?cfi=%2F4%2F2%5BP700101 227100000000000000000698A%5D%2F4%5BP700101227100000000000000000698C%5D%2C%2F1%3A3 99%2C%2F1%3A399 Taylor, K. (2019) Chick-fil-A is taking over America by offering the best customer service in fast food. https://www.businessinsider.com/chick-fil-a-best-customer-service-in-fast-food-2019-6 https://www.chick-fil-a.com/about/giving-back https://www.consumeraffairs.com/food/chick-fil-a.html?#sort=top_reviews&filter=1 https://www.google.com/search?q=chick%20fil%20a&sxsrf=ALeKk00dxspyd7snhUsp2E8QsCjSVSSQgQ:16 19360224017&source=hp&ei=3HmFYJXHJLGKwbkPsZOPuAE&iflsig=AINFCbYAAAAAYIWH7K2tV19Bpyk_s6 FLa3m6HJZsY4jQ&gs_ssp=eJzj4tTP1TcwSk4uKVRgNGB0YPDiTs7ITM5WSMvMUUgEAGrdB7E&oq=chi&gs_l cp=Cgdnd3Mtd2l6EAEYADIOCC4QsQMQxwEQowIQkwIyCwguELEDEMcBEKMCMgsIABCxAxCDARDJAzIFCA AQkgMyBQgAEJIDMggIABCxAxCDATILCC4QsQMQxwEQowIyCwguELEDEMcBEKMCMgIIADICCAA6BAgjECc 6BQgAELEDOggILhCxAxCDAToOCC4QsQMQgwEQxwEQowI6CAguEMcBEKMCUPsGWJULYPMTaABwAHgAg AH0AYgBnQSSAQUwLjIuMZgBAKABAaoBB2d3cy13aXo&sclient=gwswiz&tbs=lf:1,lf_ui:4&tbm=lcl&rflfq=1&num=10&rldimm=16495041419810810692&lqi=CgtjaGljayBmaWw gYSIDiAEBSKmNycnlgICACFowCgtjaGljayBmaWwgYRAAEAEQAhgAGAEYAiILY2hpY2sgZmlsIGEqCAgCEAAQA RACkgEUZmFzdF9mb29kX3Jlc3RhdXJhbnSqARMQASoPIgtjaGljayBmaWwgYSgA&ved=2ahUKEwiyr6n3ypn wAhVDGs0KHVdVAb4QvS4wD3oECDkQIg&rlst=f#lrd=0x88f457a00fae6b0b:0xe4ea28c6df2dab44,1,,,&rlfi =hd:;si:16495041419810810692,l,CgtjaGljayBmaWwgYSIDiAEBSKmNycnlgICACFowCgtjaGljayBmaWwgYRA AEAEQAhgAGAEYAiILY2hpY2sgZmlsIGEqCAgCEAAQARACkgEUZmFzdF9mb29kX3Jlc3RhdXJhbnSqARMQASo PIgtjaGljayBmaWwgYSgA;mv:[[33.7338561,-83.93186960000001],[33.4067699,84.4980618]];tbs:lrf:!1m4!1u3!2m2!3m1!1e1!2m1!1e3!3sIAE,lf:1,lf_ui:4 https://runsignup.com/Race/Info/SC/Anderson/ChickfilAKidzKampRun https://www.surveyhero.com/user/surveys/312119/results/report https://www.yelp.com/biz/chick-fil-a-duluth?start=20&sort_by=date_desc https://www.youtube.com/watch?v=0cN-JX6HP7c&t=343s file:///C:/Users/Ben_W/Downloads/Equity%20Marketing/EquityMarketing.html 9|P a g e