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Public perception | KRG Hospitality

Public perception

by David Klemt David Klemt No Comments

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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What’s Going on with Chili Crisp?

What’s Going on with Chili Crisp?

by David Klemt

A street-art-style image of a jar of chili crisp versus a jar of chili crunch

I’m not convinced that AI platforms know much about chili crisp or human hands.

UPDATE (April 15, 2024): David Chang has reportedly stated that Momofuku will no longer enforce the “Chile Crunch” trademark. He made the statement on his The Dave Chang Show podcast.

A legal battle over a chili crisp trademark is spilling into the public arena, and people are taking sides and making their feelings known on social media.

More specifically, Momofuku appears to be defending its “Chile Crunch” and “Chili Crunch” trademarks vigorously. To say some people aren’t exactly fans of this legal news is an understatement.

To provide context for the unfamiliar, Momofuku is a restaurant group first established in 2004 by David Chang. By 2019, the group had expanded, opening 20 venues. In 2020, Momofuku Goods began selling some of its culinary products in the retail space.

Among the products carrying the Momofuku name and peach logo is Chili Crunch. This is the brand’s version of chili crisp, a condiment consisting of oil, fried chili pepper, and other elements, such as garlic and onion (and other peppers).

From what I can find, it’s widely accepted that chili crisp originated in China, and has been around for centuries. How many centuries? I have no idea.

However, I can say with certainty that Momofuku has owned the “chile crunch” trademark since 2023. And I know that Momofuku acquired the rights to that trademark from Chile Colonial, LLC. That acquisition was part of a settlement.

Interestingly, Chile Colonial took action against Momofuku last year for trademark infringement for using the product name Chile Crunch. The former had been selling its Chile Crunch since 2008, and registered the trademark in 2015.

Now, it’s Momofuku, who apparently licenses the trademark to others, taking action to defend the trademark. Toward the end of last month, the company applied to trademark “chili crunch.”

Cease and Desist

As several outlets have reported, a number of chili crisp producers have received cease-and-desist letters.

Eater has reported that one producer, Homiah, received such a letter after they renamed their Crispy Sambal product to Sambal Chili Crunch.

The letter reads, in part, “Momofuku trusts that Homiah did not adopt the CHILI CRUNCH mark in bad faith or with an intent to create confusion. But because trademark law requires brand owners to police use of their trademarks—and because Momofuku is concerned that consumers may actually be confused here—we write to request Homiah’s cooperation.”

One element of the requested cooperation is that Homiah stop using the name Sambal Chili Crunch within 90 days.

It seems that it hasn’t taken long for these legal requests to find their way to the public at large. And, yes, sides have been taken.

Sifting through the comments on Eater’s Instagram post about this situation paints a vivid, albeit not entirely unexpected, picture.

 

View this post on Instagram

 

A post shared by Eater (@eater)

This is a great way to ensure that I’ll never buy Chang’s version,” reads one comment.

If no one owns RANCH, no one should own this,” says another Instagram user.

No, this is absurd. Heinz didn’t trademark ketchup, they trademarked Heinz, this is so ridiculous. He can trademark momofuko and the peach logo. But this is so stupid,” is a comment with nearly 400 likes.

Finally, there’s this simple statement: “You can’t trademark culture.”

Los Angeles Times columnist Jenn Harris would agree with that last comment. Addressing Momofuku’s legal actions, she writes, “I reject the notion that someone could exclusively own something so ingrained in my culture, a food I consider an intrinsic part of my identity.” You can, and should, read her column here.

Must Defend

There’s more at play here when it comes to trademarks.

Speaking in incredibly general termsand without providing any legal adviceonce a trademark has been granted, the owner must defend it. Failing to do so, which includes filing variations and taking action against others, can result in the loss of the rights associated with the trademark.

So, on one finger on one hand, Momofuku must defend “chile crunch” and, if granted, “chili crunch,” if the company wants to retain their trademark rights. On another, does the blame lie with the United States Patent and Trademark Office (USPTO) for granting the trademark in the first place?

Going deeper, should Momofuku have negotiated different settlement terms that wouldn’t preclude others from calling their chili crisp products Chile Crunch? I’m not remotely qualified to speak on the legal dispute between Chile Colonial, LLC, and Momofuku, so I can’t even begin to form an opinion. If the settlement was “pricey,” I understand Momofuku being sensitive about other products potentially cutting into their sales.

Per reporting, Susan Hojel, the owner of Chile Colonial, has said she was “going broke” defending the Chile Crunch trademark. Many of the cease-and-desist letters were going to large companies. In that sense, Hojel saw herself in the role of David, going after corporate Goliaths.

Now, however, the public views David Chang and Momofuku as Goliath, attempting to crush noble Davids. Therefore, I have to wonder if the real issue is public perception, not legality. After all, I’ve seen the label “trademark bully” affixed not to just Momofuku but Chang as well.

Worth It?

I don’t know what the answer is for the questions swirling around this legal fight. All I can do is wonder if defending this trademark is worth the backlash.

At the moment, we’re seeing comments expressing disappointment and disdain. What happens if those comments manifest in damaged brand perception?

Put another way, there’s defending your brand…and there’s defending your brand.

Image: Shutterstock. Disclaimer: This image was generated by an Artificial Intelligence (AI) system.

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Nachogate: A Lesson in Standards

Nachogate: A Lesson in Standards

by David Klemt

People sharing a plate of nachos

You wouldn’t think a social media post about a plate of nachos could cause a scandal but that’s exactly what’s happening, and it’s known as Nachogate.

Shockingly, this story comes to us from a luxury casino resort in Las Vegas.

A photo of a meager dish with six entire tortilla chips on it has 1.3 million views already. That’s pretty impressiveor unfortunate, depending on which side of the post you’re onconsidering the post is from this Monday.

One of the top comments on the post points out that there’s quite the disparity between chips and accompaniments.

“More condiments than chips. Wow,” reads the comment. To which the original poster responds, “They said it was so you can have the perfect bite.”

It should go without saying that every dish put in front of a guest needs to be as close to perfect as possible. If it’s on the menu, if it leaves the kitchen, it impacts the guest experience. There is no, “Well it’s only [insert item]. It’s not that big of a deal.”

That mindset simply has no place in hospitality.

No, not every dish or drink is perfect. Yes, everyone makes mistakes. The absolute lowest standard should be caring enough to catch mistakes before they affect guests.

Failing that, every operator and leadership team member needs to care enough to acknowledge mistakes that reach guests, handle them gracefully, and fix them. This includes listening to and rewarding servers, bartenders, barbacks, and hosts whenever they catch a mistake.

Of course, there’s another lesson here. When developing non-negotiable standards, aim high. Fountainbleau Las Vegas is a luxury lifestyle brand; I doubt Nachogate reflects the company’s standards.

#Nachogate Fallout

Look, it can feel good to say that we don’t have competitors in this industry, we have peers. In some ways that can be an accurate statement.

However, watch what happens when an operator makes a mistake and it blows up in spectacular fashion.

Case in point, Nachogate. Or, given how the situation went viral, #Nachogate.

It would be bad enough if The Tavern at Fountainbleau Las Vegas took a reputational hit solely with the guests it affected directly. Obviously, it gets exponentially worse when it takes off on social media and alters the perception of potential guests.

But #Nachogate got worse when the venue’s “peers” leveraged the situation to their advantage.

That’s just a handful of posts taking advantage of Fountainbleau Las Vegas’ mistake. And that’s a lot of free marketing leveraging an unforced error that transformed into a viral moment.

Resolution

Alright, so I probably haven’t made any friends at Fountainbleau for sharing this story. Well, allow me to extend an olive branch. After all, I’ve made plenty of mistakes and will make more in the future.

It appears that the issue has been addressed by the property. That says to me that there are indeed standards, and there are people who care enough to respond when they’re not met.

Again, mistakes happen. The key is to correct course and move forward. Fountainbleau has done just that.

That’s a smart move. A mistake was made, people piled on, and instead of ignoring the issue, the company acknowledged and corrected the mistake where it blew up: the public eye.

Fountainbleau Las Vegas is just over a month into serving the public. There are going to be growing pains. Indeed, anyone who has been following the casino resort is aware that there have been much larger issues. For example, the company is dealing with the departures of three high-level executives.

The point of this article isn’t to roast Fountainbleau further. Assuming the viral post is true and the nachos at The Tavern have indeed been improved, a mistake was made and was then addressed.

I’m sharing this story as an example to drive home the need for standards, for non-negotiables. That means sitting down, considering every element of operations and service, writing out standards, and training teams on those non-negotiables. It’s as important as identifying values, sharing them with the team, and adhering to them.

Sit down today and develop your standards. If you’ve done that in the past, review your standards, update them if necessary, and ensure they still have buy-in from your team.

Image: Herson Rodriguez on Unsplash

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