Quality Pays Off for Fast Food Chains

A new focus on quality ingredients is helping to boost quick-service restaurants to levels approaching sit-down restaurants.

June 22, 2016

ANN ARBOR, Mich. – Improvements in quality are behind a rebound in customer satisfaction with fast food restaurants, according to a new American Customer Satisfaction Index (ACSI) report.

“Americans are now spending more money dining out than shopping for groceries,” says Claes Fornell, ACSI chairman and founder. “Fast food restaurants appear to be capitalizing on this trend more than full-service restaurants, maintaining the lower prices and speedy service that has long defined the industry, while also appealing to health-conscious consumers via more diverse offerings and higher-quality ingredients.”

Nearly all fast food restaurants achieve higher customer satisfaction, with a notable exception being Chipotle Mexican Grill, which recently suffered a spate of food-related illnesses.

“Higher quality drives the improving scores for the industry, but quality issues relating to food-borne illnesses knock down Chipotle,” says ACSI Managing Director David VanAmburg.

Chick-fil-A, already the top-rated restaurant in the ACSI, shows that product focus has its benefits as the chain pulled further ahead with a 1% increase to 87. Before Chick-fil-A entered the ACSI, Papa John’s often held the top spot in the industry. The pizza chain climbed 5% to second place at 82. Little Caesars surged 9% to 81, tied with fast casual chain Panera Bread.

Customers are more satisfied at Dunkin’ Donuts (+3% to 80) than at Starbucks (+1% to 75). Arby’s (+8% to 80) ties Subway (+4%), and both beat the burger chains. Burger King and Wendy’s are up 6% and 4%, respectively, to 76. McDonald’s is still in last place among fast food chains, but its all-day breakfast proves popular as customer satisfaction jumps 3% to 69.

Full-service restaurants remain one of the highest-scoring industries measured by the ACSI. The industry is also one of the most consistent; this year’s score of 81 equals its long-term average. Most large full-service restaurant chains improve, but the industry retreats as smaller restaurants, which make the bulk of the category, fall 2% to mirror the average of 81.

Restaurant-retail hybrid Cracker Barrel rose 4% to take first place with an ACSI score of 83. Darden’s LongHorn Steakhouse (+1%) and Texas Roadhouse (-1%) tied at 82. Olive Garden, also a Darden brand, was up 3% to 81. After debuting in last place for customer satisfaction in the industry, Ruby Tuesday was the most improved, jumping 7% to 78 and tying TGI Fridays (+3%). Chili’s inched up 1% to 75, while Denny’s slipped 1% to the bottom with a score of 74.

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