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Hospitality Final Research Paper

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Hospitality Branding Research Paper:
Chick-fil-A
Benjamin Walker
April 25, 2021
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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
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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
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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.
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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:
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“…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:
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“…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
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•
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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:
•
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“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
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•
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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.
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•
•
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.
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REFERENCES
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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
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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
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gYSIDiAEBSKmNycnlgICACFowCgtjaGljayBmaWwgYRAAEAEQAhgAGAEYAiILY2hpY2sgZmlsIGEqCAgCEAAQA
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wAhVDGs0KHVdVAb4QvS4wD3oECDkQIg&rlst=f#lrd=0x88f457a00fae6b0b:0xe4ea28c6df2dab44,1,,,&rlfi
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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
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https://www.youtube.com/watch?v=0cN-JX6HP7c&t=343s
file:///C:/Users/Ben_W/Downloads/Equity%20Marketing/EquityMarketing.html
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