Customer perception

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The Psychology of Dining Space Design

The Psychology of Dining Space Design

by Nathen Dubé

Bright, light and airy restaurant interior with communal seating across from the bar

When someone decides they’re going to dine out, they’re basing their selection on more than just what they want to eat; it’s about the entire experience.

The design and layout of a dining space impact guest behavior, emotions, and overall satisfaction to a significant degree. From the colors on the walls to the lighting overhead, every element plays a role in shaping the dining experience.

This article explores the psychological principles behind effective dining space design, offering insights into how restaurants can use these elements to enhance guest satisfaction, and boost sales.

The Impact of Color Schemes

How Different Colors Evoke Specific Emotions and Moods

Colors are powerful tools in setting the mood and atmosphere of a dining space. Different colors can evoke specific emotions and reactions, influencing how guests feel and behave in a restaurant.

Warm colors like reds, oranges, and yellows are stimulating, and can create a lively, energetic atmosphere, often used in fast-food restaurants to encourage quick eating and high turnover.

On the other hand, cool colors such as blues, greens, and purples have a calming effect, promoting relaxation and longer stays, making them ideal for fine-dining establishments.

Neutral colors like whites, grays, and beiges provide a clean and modern look, allowing other design elements to stand out, and making a space feel larger and more open.

Examples of Color Choices and Their Psychological Effects

Red is known to stimulate appetite and increase heart rate, making it a popular choice for fast-food chains.

However, it should be used sparingly in fine dining as it can be overwhelming.

Blue, on the other hand, suppresses appetite and promotes calmness, suitable for seafood restaurants or venues where a relaxed dining experience is desired. Green, associated with freshness and health, is often used in vegetarian and farm-to-table restaurants to reinforce the concept of natural, wholesome food.

Case Studies of Restaurants Using Color to Influence Dining Choices and Atmosphere

Consider McDonald’s use of red and yellow in its branding and interiors. These colors stimulate hunger, and create a sense of urgency, encouraging quick dining and high guest turnover.

In contrast, Starbucks uses a palette of warm browns and greens to create a cozy, inviting atmosphere that encourages guests to linger, increasing the likelihood of additional purchases.

Lighting and Its Psychological Effects

The Role of Lighting in Creating Ambiance and Influencing Guest Behavior

Lighting is a crucial aspect of dining space design, affecting the ambiance and guest experience significantly. Different types of lighting can evoke various moods, and influence how guests perceive the space and their meals.

Natural lighting enhances mood, and makes spaces feel more open and inviting. Restaurants with ample natural light are often perceived as more comfortable and welcoming. Ambient lighting sets the overall tone of the space. Soft, warm lighting can create an intimate and cozy atmosphere, while bright, cool lighting can energize the space. Task lighting focuses on specific areas, such as tables or bars, enhancing functionality and highlighting key features.

Differences Between Natural, Ambient, and Task Lighting

Natural lighting is best for creating a connection with the outdoors, and making spaces feel airy and fresh, often achieved through large windows and skylights.

Ambient lighting provides overall illumination, setting the mood and ensuring guests feel comfortable. Typically, ambient lighting is provided via ceiling lights, chandeliers, and wall sconces.

Task lighting is used for specific purposes, such as illuminating dining tables or highlighting menu boards, typically achieved with pendant lights and under-cabinet lighting.

How Lighting Affects the Perception of Space, Food, and Time Spent Dining

Bright lighting can make a small space feel larger, while dim lighting can create a more intimate and enclosed atmosphere.

Proper lighting enhances the visual appeal of food, making it look more appetizing. Warm, soft lighting is often used in fine dining to highlight the colors and textures of dishes.

Lighting can also influence how long guests stay. Dim, cozy lighting encourages lingering, while bright lighting can make people eat faster and leave sooner.

Acoustics and Soundscapes

The Impact of Noise Levels and Music on the Dining Experience

Sound is a critical yet often overlooked element of dining space design. Noise levels and the type of music played can impact the dining experience significantly.

High noise levels can create a sense of energy and excitement, but may also lead to discomfort and difficulty in conversation. It’s essential to strike a balance, ensuring the space is lively without being overwhelming.

Low noise levels promote relaxation and intimacy, suitable for fine dining or romantic settings. However, overly quiet spaces can feel uninviting and lack atmosphere.

Balancing Background Noise and Creating an Appropriate Sound Environment

Effective sound management involves balancing background noise, and creating a sound environment that complements the restaurant’s concept and ambiance.

Strategies include acoustic panels to absorb sound and reduce noise levels, creating a more comfortable environment. Soundproofing materials like carpets, curtains, and upholstered furniture can help dampen noise.

Music selection is also crucial, with the type of music and its volume aligning with the restaurant’s theme, and the desired guest experience.

Examples of Restaurants Using Sound to Enhance Guest Comfort and Satisfaction

Many upscale restaurants use a combination of soft background music and sound-absorbing materials to create a tranquil dining environment.

For example, the use of live piano music in high-end restaurants can enhance the ambiance without overwhelming conversation.

Seating Arrangements and Layout

The Psychological Impact of Different Seating Configurations

Seating arrangements and layout play a significant role in influencing guest behavior and satisfaction. The choice between booths, communal tables, and individual seating can impact how guests perceive the space, and interact with others.

Booths provide privacy and comfort, making them ideal for intimate gatherings and longer stays, creating a sense of enclosure and personal space. Communal tables encourage social interaction and a sense of community, suitable for casual dining, and environments that promote socializing. Individual seating offers flexibility and can cater to a variety of group sizes, allowing for easy reconfiguration of the space.

How Layout Affects Flow, Privacy, and Social Interactions

The layout of a dining space affects the flow of movement, privacy levels, and the nature of social interactions. Key considerations include:

  • ensuring there is enough space for guests and staff to move comfortably without congestion;
  • clear pathways; and
  • strategic placement of furniture to enhance flow.

Balancing the need for social interaction with the desire for privacy is essential, using partitions, plants, or varying seating heights to create distinct zones.

Design the space to facilitate the type of interaction you want to encourage, with communal tables and open layouts promoting socializing, while booths and nooks offer more private dining experiences.

Strategies for Optimizing Seating to Enhance Guest Comfort and Turnover Rates

Optimizing seating involves creating a comfortable environment while ensuring efficient use of space to maximize turnover rates.

Strategies include:

  • using a mix of seating types to cater to different guest needs and group sizes;
  • investing in high-quality, comfortable seating, which encourages longer stays and repeat visits; and
  • designing the layout to maximize the number of seats without compromising comfort to ensure tables are spaced adequately, allowing for easy movement and service.

Case Studies and Expert Insights

Interviews with Interior Designers and Behavioral Psychologists

Interviews with interior designers and behavioral psychologists provide valuable insights into the principles of effective dining space design. Experts can share their experiences and recommendations for creating spaces that enhance guest behavior and satisfaction.

Key Insights on Effective Design Strategies

Key insights from expert interviews include adopting a holistic design approach, considering all elements—color, lighting, acoustics, and layout—together to create a cohesive and inviting space.

Focusing on the needs and preferences of your target audience is crucial, designing with the guest experience in mind to create a memorable dining environment.

Continuous improvement is essential. This involves reviewing and updating your design regularly to keep it fresh and relevant, and staying informed about new trends and technologies in dining space design.

Real-World Examples of Restaurants That Have Successfully Utilized Design Psychology

Real-world examples highlight how restaurants have implemented design psychology principles successfully to enhance guest satisfaction and increase sales.

For instance, a fine-dining restaurant may use soft lighting, elegant color schemes, and acoustic panels to create an intimate and luxurious dining experience, resulting in a space where guests feel relaxed and pampered, leading to longer stays and higher spending.

Conversely, a casual eatery might incorporate vibrant colors, upbeat music, and communal seating to foster a lively and social atmosphere, attracting a younger crowd looking for a fun and engaging dining experience, boosting guest turnover and repeat visits.

Highlighting Specific Design Choices and Their Outcomes

Specific design choices, such as using warm lighting to highlight food presentation or arranging seating to encourage social interaction, can impact guest perceptions and behavior significantly.

Highlighting these choices and their outcomes provides practical examples of how design can influence the dining experience.

Practical Tips for Optimizing Dining Space Design

Actionable Advice for Restaurant Owners and Designers

Implementing effective dining space design requires practical and actionable steps.

Here are some tips to help restaurant owners and designers optimize their spaces:

  • Choose Colors Wisely: Select color schemes that align with your restaurant’s concept, and desired guest experience. Use warm colors for energetic spaces, and cool colors for calm, relaxing environments.
  • Optimize Lighting: Ensure a balance of natural, ambient, and task lighting to create the right ambiance, and enhance the dining experience. Use dimmers to adjust lighting levels based on the time of day, and desired mood.
  • Consider Acoustics: Use sound-absorbing materials and strategically placed music to create a comfortable sound environment. Avoid excessive noise that can detract from the dining experience.
  • Plan the Layout: Design the layout to maximize space efficiency while ensuring guest comfort. Use a mix of seating types, and ensure clear pathways for easy movement.
  • Align Design with Brand Identity: Ensure that all design elements, from colors to furniture, reflect your brand identity, and resonate with your target audience.

Tips on Choosing Colors, Lighting, and Furniture

Choosing the right colors, lighting, and furniture can have a significant impact on the dining experience:

  • Colors: Choose colors that evoke the desired emotions, and match your brand’s personality. Test different shades to find the perfect balance.
  • Lighting: Invest in quality lighting fixtures, and consider the color temperature of bulbs. Use lighting to highlight key areas, and create focal points.
  • Furniture: Select comfortable and durable furniture that complements the overall design. Consider ergonomic options to enhance guest comfort.

Conclusion

The design of a dining space is a crucial component of the guest experience. Understanding and applying the psychological principles of color, lighting, acoustics, and layout helps restaurant owners and designers to create environments that influence guest behavior, enhance satisfaction, and boost sales.

Thoughtful design not only improves the dining experience but also reinforces brand identity, and drives business success.

Image: Adrien Olichon via Pexels

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2024 Datassential 500: Guest Perception

2024 Datassential 500: Guest Perception

by David Klemt

An optical illusion consisting of black and white stripes that may be curving upward and outward

Last week we took a look at the data-driven findings that identify, organize, and rank chain restaurants in the US, forming the Datassential 500.

This annual report sorts the 500 top-performing chains by segment. Further, Datassential identifies the top chains by both number of units, and sales.

In doing so, the F&B intelligence agency uses hard numbers to determine numbers one through 500.

But what about guest perception? Unit and sales growth may appeal to board members, investors, executives, and other hospitality professionals, but what matters to the people their restaurants serve?

It’s doubtful that even the staunchest fans of a particular restaurant chain are aware of or, frankly, care about how many locations they operate. Nor are they likely all that concerned about their annual revenue, unless they’re an investor as well.

To get to the bottom of how the public perceives chain restaurants in the US, and what brands they rank at the top, Datassential looked at six key metrics.

Those metrics? Food quality, service, experience, affordability, value for dollar, and net promoter score.

While the results aren’t exactly shocking, they’re quite telling. A handful of US chains dominate the consumer-facing metrics. And for the most part, they’re not among the top ten of the 2024 Datassential 500.

Anyone interested in reading this year’s report can do so via this link. Alright, let’s check out how the public ranks US chain restaurants.

Perception Matters

To make the comparisons easier, the top 10 US restaurant chains by unit and by sales are below.

Top 10: Total Units

  1. Subway
  2. Starbucks
  3. McDonald’s
  4. Dunkin’
  5. Taco Bell
  6. Domino’s Pizza
  7. Burger King
  8. Pizza Hut
  9. Wendy’s
  10. Dairy Queen

Top 10: Total Sales

  1. McDonald’s
  2. Starbucks
  3. Chick-fil-A
  4. Taco Bell
  5. Wendy’s
  6. Dunkin’
  7. Burger King
  8. Chipotle
  9. Subway
  10. Domino’s Pizza

Guest Perception

Okay, so those are the top performers in the US, by the numbers. Units were counted, sales were analyzed.

Now, these are the brands that guests feel are at the very top, organized into six categories.

Food Quality

  1. Texas Roadhouse
  2. Chick-fil-A
  3. Longhorn Steakhouse
  4. Cheesecake Factory
  5. Ruth’s Chris Steak House

Service

  1. Chick-fil-A
  2. Texas Roadhouse
  3. Longhorn Steakhouse
  4. Cheesecake Factory
  5. In-N-Out Burger

Experience

  1. Chick-fil-A
  2. Ruth’s Chris Steak House
  3. Texas Roadhouse
  4. Maggiano’s Little Italy
  5. In-N-Out Burger

Affordability

  1. Little Caesars
  2. Freshii
  3. Papa Murphy’s
  4. Cici’s Pizza
  5. Pollo Tropical

Value for Dollar

  1. Papa Murphy’s
  2. Little Caesars
  3. Cici’s Pizza
  4. In-N-Out Burger
  5. Del Taco

Net Promoter Score

To determine this ranking, survey participants were asked “How likely would you be to recommend this chain to friends and family?”

  1. Chick-fil-A
  2. Texas Roadhouse
  3. In-N-Out Burger
  4. Longhorn Steakhouse
  5. Portillo’s Hot Dogs
  6. Cheesecake Factory
  7. The Capital Grille
  8. Ruth’s Chris Steak House
  9. Maggiano’s Little Italy
  10. Topgolf

Subway and McDonald’s may dominate the list in terms of number of units and annual sales, but Chick-fil-A dominates in one key area. Word-of-mouth marketing still matters, undeniably, and, according to Datassential, most consumers perceive Chick-fil-A as the restaurant chain to recommend.

Followed by Texas Roadhouse and In-N-Out Burger, smaller brands are delivering on important operational elements. Consumers at large appear to favor these brands when it comes to stretching their dollars, along with how they perceive the quality of food, the level of service, and the overall dining experience.

Operators interested in scaling their business need to set aside ego and desire, and look at their business objectively. They need to ensure they’re nailing the fundamentals and have the right systems in place first.

Image: BP Miller on Unsplash

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Brand Love: BrandVue’s 2023 Rankings

Brand Love: BrandVue’s 2023 Rankings

by David Klemt

Black and white image of a winners' podium under a spotlight

As we near the end of the year, Savanta has revealed their BrandVue’s Most Loved Eating Out Brands 2023 report, ranking 100 restaurant brands in America.

The B2B and B2C market consultancy has been publishing this report since 2019. Their fifth-annual report includes 16 categories, including ranking consumer opinion of third-party delivery services.

As a category, Burger boasts the greatest presence with 17 loved restaurant brands. In second is Italian or Pizza with 13 brands. With ten brands, Specialty comes in third as a category. Tied for fourth are Mexican and Chicken, featuring eight brands each.

Download the full report here.

Top Restaurant in Each Category

Below you’ll find the gold medalist in each category, in alphabetical order by restaurant type.

  • Asian: Panda Express
  • Burger: McDonald’s
  • Café or Bakery: Starbucks
  • Chicken: Chick-fil-A
  • Family Style: Cracker Barrel Old Country Store
  • Frozen Dessert: Cold Stone Creamery
  • Italian or Pizza: Olive Garden
  • Mexican: Taco Bell
  • Sandwich: Subway
  • Seafood: Red Lobster
  • Specialty: Krispy Kreme
  • Steak: Texas Roadhouse
  • Varied Menu: The Cheesecake Factory

Other Categories

There are a handful of other categories on the BrandVue list. Namely, Delivery, Sports Bar, and Meal-kit.

I’ve separated Delivery in particular because it doesn’t represent brick-and-mortar brands. Rather, these are third-party services.

For this year’s list, Savanta ranks five delivery services. Below, the top three:

  1. Caviar
  2. DoorDash
  3. UberEats

However, it’s important to note that DoorDash bought their one-time rival Caviar back in 2019. So, it’s really as though DoorDash claims two spots among the top three.

Of course, UberEats owns Postmates, which is among the five Delivery brands on this list. So is Seamless, owned by Grubhub. However, Grubhub itself doesn’t appear on this list.

The other two categories, Sports Bar and Meal-kit, count just one brand each among them: Buffalo Wild Wings and Plated, respectively.

Top 26 Restaurant Brands

Below, the top quarter of the 2023 BrandVue list. As you’ll see, the gold medalists among the top 25 are in bold.

Why did I decide to show the top 26 rather than the top 25? My reasoning is simple: one of the top 25 is a delivery service, not a brick-and-mortar restaurant.

  1. Domino’s (Italian or Pizza)
  2. Red Lobster (Seafood)
  3. Cold Stone Creamery (Frozen Dessert)
  4. Culver’s (Burger)
  5. Caviar (Delivery)
  6. Cinnabon (Specialty)
  7. Braum’s (Burger)
  8. Auntie Anne’s (Specialty)
  9. Wingstop (Chicken)
  10. Popeyes (Chicken)
  11. Wendy’s (Burger)
  12. Pizza Ranch (Italian or Pizza)
  13. Pizza Hut (Italian or Pizza)
  14. KFC (Chicken)
  15. The Cheesecake Factory (Varied Menu)
  16. Subway (Sandwich)
  17. In-N-Out Burger (Burger)
  18. Dunkin’ Donuts (Café or Bakery)
  19. Taco Bell (Mexican)
  20. Raising Cane’s (Chicken)
  21. Olive Garden (Italian or Pizza)
  22. Krispy Kreme (Specialty)
  23. Texas Roadhouse (Steak)
  24. McDonald’s (Burger)
  25. Starbucks (Café or Bakery)
  26. Chick-fil-A (Chicken)

Unsurprisingly, the top six spots go to gold medalists. In total, gold medalists claim seven slots amongst the top ten. Twelve of the top performers out of all 16 categories are in the top 25.

Interestingly, the list also puts America’s love for burgers, chicken, and pizza on full display. Of the top 25 most-beloved restaurant brands, five fall into the Burger category, and five fall into Chicken. Four slots belong to the Italian or Pizza category.

Notably, there are no Asian or Family Style restaurants among the top 26. However, I expect more Asian and Mexican restaurants to earn places in the top quarter over the next few years.

To see the full list of the 100 most-beloved restaurant (and delivery) brands in the US, click here.

Image: Joshua Golde on Unsplash

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Restaurant Rewards Making Headlines

Restaurant Rewards Making Headlines

by David Klemt

People toasting with Dunkin' Donuts cups

Loyalty programs are making waves and grabbing headlines but not all of the news is good, according to consumers.

Dunkin’, Chipotle, Taco Bell, and Starbucks are among the restaurants whose programs are receiving attention.

Now, there are still those who cling to the idea that all publicity is good. Personally, I’ve found that idiom to be outdated. In fact, I’ve believed that phrase to be false for several years.

Instead, when it comes to publicity, I find this quote from Warren Buffet to be far more accurate: “It takes 20 years to build a reputation and five minutes to ruin it.”

It’s important for operators—for all entrepreneurs, really—to protect their brand’s reputation. At the end of the day, long-term success depends on the reputation one builds. And make no mistake, that reputation is made—or broken—every day, with every interaction.

So, what does all of that have to do with loyalty or rewards programs? It’s simple—such programs aren’t just about revenue. A loyalty program, when executed well, is a branding tool that boosts engagement, recognition, and perception.

When a loyalty or rewards program is executed poorly it doesn’t just mean low membership numbers. A brand’s reputation can take a severe hit if loyal consumers cry foul.

Let’s take a look at some brands that have made headlines the past couple of weeks.

Taco Bell

This rewards program, the Taco Lover’s Pass, is a bit of an anomaly in the loyalty space.

It was first launched in Arizona in September 2021. Depending on the location, the pass cost either $5 or $10. In exchange, people could get a free taco a day for 30 consecutive days, and they could choose from seven tacos.

Back in January of this year, Taco Bell brought back the Taco Lover’s Pass. This time, the program was available throughout the US, and it cost $10. Again, those who snagged a pass through the chain’s app could get a free taco each day for 30 consecutive days.

And just two weeks ago, Taco Bell made the Taco Lover’s Pass available again. This time, people had one day to download the app (if they didn’t have it already) and grab the pass.

Time will tell if Taco Bell will eventually make this wildly popular program permanent. For now, this occasional reward program seems to be serving the chain just fine, and their loyal guests don’t seem to be angry that the Taco Lover’s Pass, thus far, appears fleetingly.

Starbucks

Another interesting approach to loyalty sees Starbucks partnering with Delta Airlines.

As of yesterday, members of Starbucks Rewards and Delta SkyMiles can link the programs together. Members of the former can receive double stars on days on which they’re flying Delta (at participating locations). For the latter, members will earn one mile for every dollar they spend at Starbucks.

Essentially, linking the two accounts ensures that members earn points across both programs for a single purchase. Not a bad move—it should be an effective way to boost loyalty for both companies.

Chipotle

Ah, Chipotle. It’s safe to say this brand has experienced plenty of ups and downs over the past several years.

But credit where credit is due: It seems that the chain manages to come back from each scandal or mistake. And that’s what’s so frustrating—they wouldn’t have to correct missteps if they took care to avoid making them in the first place.

So, why are people upset with Chipotle now? The backlash concerns the restaurant chain’s Chipotle Rewards program.

When someone signs up the program, they can redeem a nice perk immediately: free chips and guacamole. On their birthday, they have access to another perk. In general, the biggest benefit is earning up to 10 points for every dollar spent at Chipotle.

The points a member earns are redeemable in multiple ways: free menu items, a charitable donation, or merchandise. Seems very straightforward, right?

Well, Chipotle updated their rewards program, and it’s not an upgrade. In response to inflation, Chipotle has increased prices, just as innumerable restaurants have also done.

However, the chain updated Chipotle Rewards so that members must spend more to get their free entree reward. Members must now spend an additional $20-plus to get their reward, and they’re understandably unhappy.

It should go without saying but a rewards program is for increasing visits or orders per member. With people declaring they’re “done” with Chipotle, the brand’s update is driving down visits and potentially harming their reputation.

Dunkin’

Things in the reward and reputation space may be worse for Dunkin’ than any other restaurant brand at the moment.

The chain first launched its DD Perks loyalty program eight years ago. Last week, Dunkin’ “reworked” loyalty, launching Dunkin’ Rewards.

Unfortunately, according to several reports, social media, and Reddit, the new program deflated the value of members’ points. From what I’ve seen members must now earn more than double the points they needed to prior to the Dunkin’ Rewards rollout for a gratis beverage.

Oh, and free drinks on a member’s birthday? The new program eliminates that perk. As is often the case on social media, some people are seething.

However, a statement from Scott Murphy, the president of Dunkin’, suggests that people are perhaps misunderstanding or misrepresenting the new program.

“Dunkin’ loyalists told us they wanted the ability to redeem for more than just beverages and we listened,” Murphy said to The Washington Post. “They also wanted to bundle points for larger orders, which we accomplished. And they told us they wanted to be recognized for their loyalty, which they can now achieve through Boosted Status and earn points even faster when they come to Dunkin’ more often.”

In short, Dunkin’ Rewards is built to allow members to redeem points for a wider array of menu items, including meals. For now, however, it seems the knee-jerk reaction is that many members feel the points they earned prior to the new program’s launch are devalued. And they’re furious, with some calling for a boycott.

Obviously, a boycott is the opposite effect one wants from their loyalty program.

Loyalty is a Tightrope Act

If there’s one takeaway here, it’s that rewarding guests for their loyalty isn’t as simple as offering points for dollars.

Perhaps it should be simple, and maybe it was was that simple a while back. But now, operators must be far more cautious when designing a loyalty program.

I’ll continue to dislike offering discounts for most brands. In my opinion, once a guest becomes accustomed to receiving a discount regularly, that discount becomes the standard price. That’s not good for most operators.

It may seem counterintuitive, but I’d rather see loyalty program members receive a free item than discounts. At least they’ve paid full price to earn that perk.

Another issue, however, is making changes to loyalty programs. Operators are facing incredible strain when it comes to costs, and this industry’s margins are already razor thin. It appears that some brands aren’t just increasing costs, they’re also increasing the points it takes to earn loyalty perks.

That may make sense on paper but program members are showing that they don’t take kindly to this type of change.

Slow Down

Look at loyalty programs through the eyes of consumers, not just the eyes of an accountant.

When the costs of living rise and a person’s dollars don’t go as far as they did before, they tend to cut back or eliminate expenditures. Commonly, restaurant visits are among the first things suffer. Loyalty programs can offer guests a way to stretch their dollars—there’s an attractive perk around the bend that allows them to justify continual visits.

If a brand devalues a loyalty program member’s points or requires them to spend more to earn the same benefits, why would they be happy? Why would they remain loyalty? As far as they’re concerned, their incentive to do so no longer exists. The perceived value is no longer there.

Before an operator launches or “revisits” a loyalty program, they need to slow down and analyze it from every angle. These programs are a delicate balancing act, demanding they make sense for both the bottom line and the guests.

If an operator hasn’t yet implemented a loyalty program, perhaps they should hold off until costs become more reasonable. With inflation affecting costs and therefore prices, the wisest move may be to take the time to really dial in the program, prepare the necessary assets, and implement when it won’t impact revenue negatively.

On the flip side, operators considering making significant changes to their loyalty programs need to take the time to strategize before implementation. A misstep, even if it’s a misunderstanding from the member side, can do irreparable harm.

Image: Isabella and Zsa Fischer on Unsplash

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Leadership Facepalm, Part Two

Leadership Facepalm, Part Two

by David Klemt

Airplane email icon set against white brick wall

In a stunning example of tone-deafness and callousness, a franchisee executive sent an email that led to severe consequences.

And no, I’m not talking about the termination of the offending exec. That, in my opinion, was well deserved.

In this instance, the email has led to mass resignations and damage to a global restaurant chain’s reputation. What’s more, the negative impact to the brand’s reputation comes from consumers and employees.

Of course, I’m talking about the now-infamous Applebee’s “gas prices” email.

The Email: Labor

Let’s just jump right into the email, because…wow.

“Most of our employee base and potential employee base lives paycheck to paycheck,” writes the executive. “Any increase gas prices cuts into their disposable income.”

This could have been an excellent example of awareness and perhaps even empathy. In the context of this email, it’s appalling.

Why? Mainly because this executive appears to be celebrating the fact that Applebee’s employees, at least those who work for this franchisee, are barely earning a living wage.

“As inflation continues to climb and gas prices continue to go up, that means more hours employees will need to work to maintain their current level of living,” continues the author.

In this exec’s view, this franchisee is “no longer competing with the government when it comes to hiring.” He cites stimulus payments and boosted unemployment support have run out. Therefore, he reasons that people will be forced to return to the workforce.

The author further points to competitors increasing wages to recruit and retain employees. This, he figures, is untenable and some will have to close their doors. So, the labor pool will fill up and this franchisee will benefit.

The Email: Wages

Some of what I’ve laid out above is accurate. According to some estimates, about two-thirds of Americans live paycheck to paycheck.

Additionally, it’s accurate to state that some employees will seek more hours to combat the effects of rising costs. Further, yes, the labor market is turbulent and challenging.

And, unfortunately, some independent operators are facing incredibly difficult decisions. To recruit and retain, they’ll need to be competitive and raise their wages. To pay for that, they’ll need to raise prices, passing on rising costs to customers. In some instances, for some operators, that will prove unsustainable.

However, an executive in this industry shouldn’t be delighted about any of this. And they certainly shouldn’t see it as an opportunity to potentially pay employees even less.

You see, the author of this email suggests that the franchisee can bring in new workers “at a lower wage to decrease our labor (when able).”

He then recommends monitoring employee morale to ensure that the Applebee’s operated by this franchisee is their “employer of choice.”

For me, however, the most eyeroll-inducing line is this: “Most importantly, have the culture and environment that will attract people.”

Images of printouts of the email reveal that at least a handful of recipients agreed. “Great message Sir! [sic]” reads one response. Another paints the email as “Words of wisdom.”

Clearly, the culture and environment are unhealthy.

The Consequences

Before I proceed, know this: I’m not going to name the author. It’s not remotely difficult to find the author’s name if you feel the need.

However, I will name the franchisee that finally fired him. American Franchise Capital reportedly owns more than 120 Applebee’s and Taco Bell locations in nine states.

So, to be clear, this executive didn’t work for Applebee’s directly. In fact, Applebee’s has disavowed the former executive and the email.

In the interest of clarity, it’s possible the author worked for Apple Central LLC, owned by American Franchise Capital.

As far as fallout, it was swift. According to reports, consequences were realized immediately. A Kansas franchise manager was shown the emails, printed them out for staff to discover, and comped the meals of everyone at the location. Then, he quit and the staff walked out.

Per reporting, four other Applebee’s managers quit, as did several employees. The location remained closed for at least the following day.

If reports are accurate, Applebee’s lost five managers, nearly a dozen employees, and sales from a location for at least two days. That’s just the localized fallout.

Applebee’s, of course, is distancing the company from the former executive. However, that’s not going to stanch the reputational bleeding and turnover.

As we know, a significant percentage of consumers want to know their dollars and support are going to companies that align with their values. The same is true of employees; they want to work for companies with values they can get behind.

A Final Thought

This now-infamous email was sent March 9. Just two weeks later, it was circulated and went viral. The author, gleeful about being able to hire employees “at a lower wage,” was fired before the end of March.

I’ve seen several takes on this situation, and I’ve read some accompanying leadership advice. One in particular caught my attention.

Unfortunately, it’s not because I thought it was great advice: Be cautious about what you send via blast emails.

I’m not saying one shouldn’t be careful about what they send out in emails—that’s good advice. However, that’s not the lesson I’ve learned from this situation.

Personally, I see this as a lesson in emotional intelligence, relationship intelligence, brand culture, and work environment.

At least two companies, one with annual sales in the billions of dollars, another in the hundreds of millions, have had their reputations tarnished. The fault may not lie with Applebee’s but they’ll be dealing with the consequences regardless.

If an operator is going to learn anything about being cautious, it’s this: Be cautious when hiring those in leadership positions. Be cautious about those with whom you enter into partnerships. And be careful about how you view those who work for you.

If you aren’t seeing those who choose to work for you as people worthy of your respect, as human beings, your brand’s culture is poisoned.

Image: Daria Nepriakhina on Unsplash

by David Klemt David Klemt No Comments

What Your Brand Can Learn from LEGO

What Your Brand Can Learn from LEGO

by David Klemt

Assortment of LEGO bricks in different colors, sizes and shapes

When it comes to brands that enjoy nearly universal reverence, LEGO is a company with enviable presence and visibility.

Around the world, it’s difficult to find someone who isn’t aware of LEGO. It’s even more difficult to find someone who outright dislikes the brand.

Of course, we can say the strength of the LEGO brand boils down to them being a toy company that taps into nostalgia.

However, LEGO’s strength was recently revealed by tech columnist Jason Aten for Inc. The company, it turns out, approaches customer interactions in a “freaky” manner.

Fun

“Freaky,” as Aten explains in the Inc. article, stands for Fun, Reliable, Knowledgeable and Engaging.

When you look at those four words in the context of LEGO’s “freaky” approach, you can see the obvious links that can be made to hospitality.

Let’s start with Fun. This should be an easy one—your restaurant, bar or hotel should provide a fun guest experience.

Really, this should go without saying. If spending time at your hospitality business isn’t fun, why would guests return to spend their money on you?

Also, if your business is fun, your guests will become loyal, walking billboards for you. They’ll tell family, friends, and tourists they need to check out your restaurant, bar or hotel.

However, the guest side is only half of the brand equation. A brand that’s fun to work for as well is even more powerful. Your workers will help you recruit rock stars to add to add to the team if it’s fun working for you.

Think about it: If it’s fun to work for your brand, every team member is now a brand advocate.

Finally, think about your mental and emotional health as an operator. Running a business in this industry will always be difficult to some degree. Wouldn’t you be happiest operating a brand that’s fun and loved by guests and staff alike?

Reliable

Replace the Reliable with “consistent” and you can see where I’ll be going with this one.

While lately they never seem to be shy of controversy, McDonald’s is an excellent example for consistency.

After all, there’s a reason the company is the most-powerful fast-food concept on the planet. Not to malign the brand, but do you think it’s because they craft the best-tasting, highest-quality cheeseburgers?

No, it’s because McDonald’s demands consistency from all their locations. For decades, the company has dialed in their processes.

Global perception of the brand is that regardless of where in the world you visit a McDonald’s, the experience will essentially be the same. There may be menu items exclusive to certain countries or regions, but the core menu will taste the same.

One of the most effective ways to convert a person into a loyal guest is to ensure your experience is consistent.

The food, the service, the atmosphere, the energy… If it’s consistent—also known as reliable—your guests will return (if it’s consistently great, of course).

Knowledgeable

When of the most effective ways to turn a small guest issue into a huge one is to utter the following: “I don’t know.”

Guests hate those three words. Whether it’s a question about a menu item or one that’s about a problem, being told “I don’t know” is frustrating.

According to many reports throughout the years, Disney prohibits guest-facing staff from saying those three words. Instead, if they don’t know the answer to a question, they’re supposed to say, “I can find out for you,” or, “That’s a good question.”

And that’s just one example of ensuring you and your staff are knowledgeable.

Another example is educating your guests.

It’s fair to say that due to the nature of their positions, your bartenders and servers spend the most time engaging with your guests.

Sharing their knowledge of your menu items is a great way to upsell and create loyalty. It’s one thing to be able to rattle off a menu description; it’s quite another to be able to go deeper and share information beyond a short menu blurb.

Bartenders in particular are integral to educating guests. In a few moments, a knowledgeable bartender can introduce your guests to new spirits, beers, wines and cocktails.

That sharing of information demonstrates being Knowledgeable and Fun. And if guests return because of that element of the guest experience, it also embodies being Reliable.

Engaging

Put Fun, Reliable and Knowledgeable together. What do you get? A hospitality brand that’s Engaging.

Of course, that’s not all there is to building an engaging brand.

Social media, it should go without saying, leverages engagement. Your guests—and potential guests—can interact with your brand when they’re not physically at your location via your social channels.

Wendy’s is a compelling example of being Engaging. The brand’s Twitter account is famous for engagement and interaction. It’s also Fun (for their audience, not always so much for their targets) and Reliable (in the sense that we know what’s going to happen if you step to the Wendy’s Twitter admin).

However, I caution against attempting to copy what Wendy’s does on Twitter, lest you draw their ire. Like battle rappers had a long-standing rule against challenging KRS-ONE, hospitality and foodservice accounts should heed the rule against trying to battle Wendy’s on Twitter.

Guest-facing staff with great personalities, informative and fun tastings, special promotions, F&B-focused membership clubs, loyalty programs, and live entertainment are also examples of how you can build an Engaging brand.

They’re also examples of being Fun, Reliable and Knowledgeable. That’s because all four elements feed into one another.

So, take some time to consider what your brand communicates to your guests and staff. If it’s “freaky,” you’re on your way to being as beloved as LEGO.

Image: Xavi Cabrera on Unsplash

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