Archive for General Information

#ButtGate Made Worse by Short Fuse

Last week, a story went viral about a customer who left a less than stellar Google review for a restaurant in Tennessee. The owner, who pays attention to reviews (that’s a good thing), got a bit….upset with the customer and shot back a “review” of their own. In case you missed it, here’s a replay of the exchange:

 

Customer’s Google review:

 

Okay, so this review is a bit dramatic and could have been written differently and gotten the same message across, but there are some points to be made. After all, unclothed children are probably not a good idea in the dining room.

Instead of taking a breath and stepping back, the owner was reactive and posted this on the company’s Facebook page (it is now deleted):

 

You can only imagine the reaction it got from Facebook users.

After calming down a bit, the owners then posted this explanation, which has also been deleted. At least it’s a better explanation – mothers know that when it comes to criticizing children, parents do tend to get a bit sensitive.

 

 

There are always three sides to every story – his, hers, and the truth. I’m sure both sides are correct in their perception of what happened, but both reacted in a rather unnecessary way. However, it’s the business owner who will feel the impact of this – will people feel comfortable leaving less than stellar reviews going forward, or will they simply not return? Will people hesitate to visit, not necessarily because of the customer’s review (though that doesn’t help) but more because of the knee jerk response from the owners?

Honestly, this is a viral story at this moment – I’m sure it will blow over and no one will remember it in a few months. But for now, the reactionary response doesn’t seem worth it from a business perspective.

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3 Ways Digital Food Delivery May Impact the Restaurant Industry

 

Convenience is taking over the restaurant industry. What were once traditional restaurants and fast food establishments now have the opportunity to compete with restaurants that offer delivery services in an efficient, cost effective manner.

Digital delivery is making headlines as Uber continues to roll out its UberEATS program across the country over the last several months and again highlight food delivery apps.

It’s very similar to other digital delivery programs such as GrubHub , DoorDash, and Seamless – use the app, order food from a participating restaurant, and then sit back and wait for delivery.

So how does this impact the industry overall?

  • It makes things a bit tougher for “traditional delivery” restaurants, those who have always offered delivery services. With digital delivery options increasing, it puts some pressure on these traditional restaurants – their range of competitors opens up a bit, at least for the short term, so they need to make sure their value, service, and quality are prominently displayed. Considering upgrading their services to maybe include online ordering, if not available, may help offset the new competition.

 

  • Even casual dining restaurants may struggle a bit more than quick serve or fast food establishments who turn to food delivery app programs. A recent article states that the margin on delivery programs may be problematic for casual dining establishments (think Buffalo Wild Wings or Red Robin) while the impact on sales will not hurt fast food/fast casual restaurants such as Chipotle, Shake Shack, and Dunkin. These quick serve restaurants can benefit from digital delivery, as the margin will not impact sales as significantly.

 

  • While restaurants jumping into the delivery arena have a great opportunity, they will stilll need to implement new procedures and systems to accomodate this new service. While it’s not as significant as it would be if they were to start up their own in-house delivery service, it’s important to carefully considering the upgrades & adjustments BEFORE jumping in to a GrubHub or UberEATS – if your restaurant can’t handle the increased business, it won’t matter how much business these apps bring in. You will quickly lose those customers who have a poor first experience.

While delivery apps are definitely changing the restaurant industry, technology will not likely have the same impact as it has for retail. However, convenience reigns supreme, so restaurants of all types need to pay attention to the latest trends. But, should your restaurant join in the latest trend right away?

Maybe. Before jumping in just because it’s the new thing to do and “everyone is doing it” plan carefully, decide if it’s truly worth it, and let it play out a while before jumping in – by hesitating a bit, you’ll be sure that the trend is viable and worth getting into while having a solid plan in place to provide seamless service across all touchpoints.

How to Calculate NPS

 

Net Promoter Score

 

Net Promoter Score (NPS) can be a helpful snapshot of satisfaction and to learn more about consumers who are detractors, promoters, and passives. If you are collecting NPS data from multiple sources, you may be wondering how to calculate this score manually.

If you’re not familiar, NPS is a score that measures satisfaction. It’s based on one question you may see often on customer feedback surveys, asked on phone interviews, or even see on mystery shopping reports.

The question is quite simple: “On a scale of 0 to 10, how likely are you to recommend this company’s product or service to a friend or colleague?”

There are two data points to look at – the actual score given and the NPS score.

The actual scores, of course, range from 0 to 10, with 10 being the most satisfied. This is a helpful data point to look at for determining which customers, or how many customers, are detractors, promoters, or passive. This is how each category is defined:

Detractors are those giving ratings 6 and below. They are not particularly thrilled by the product or the service. They, with all likelihood, won’t purchase again from the company, could potentially damage the company’s reputation through negative word of mouth.

Passives are those giving ratings of 7 or 8. They are somewhat satisfied but could easily switch to a competitor’s offering if given the opportunity. They probably wouldn’t spread any negative word-of-mouth, but are not enthusiastic enough about your products or services to actually promote them.

Promoters are those giving ratings of 9 or 10. They love the company’s products and services. They are the repeat buyers, are the enthusiastic evangelist who recommends the company products and services to other potential buyers.

The second data point is the actual NPS score, which can range from -100 to 100. This is calculated by subtracting the detractors from the promoters – sounds easy, right? But what happens when you are collecting NPS data from multiple sources and end up with a spreadsheet of data? It could take all day to try to calculate manually. There is an easy formula to calculate this in Excel, and it only takes a few minutes.

Once you have your column of NPS data, you’ll want to add a formula to calculate your score.

The formula is: =100*(COUNTIF(BU2:BU27,”>8″) COUNTIF(BU2:BU27,”<7″))/COUNT(BU2:BU27)

In the example above, it assumes that your NPS scores are located in column B, rows 2 through 27. To make this formula work for you, all you need to do is change out BU2 and BU27 to the column and row numbers that contain your data.

Let’s take a look at a quick example of how the formula would change based on your data. If this is what your spreadsheet looks like, with the last column (E) being the data for NPS, which goes from row 2 through row 43:

 

 

Then your formula would look like this:

The formula is: =100*(COUNTIF(E2:E43,”>8″)-COUNTIF(E2:E27,”<7″))/COUNT(E2:E27)

All it took was a quick replace of BU with E.

NPS is a great tool to get a quick snapshot of satisfaction levels; it’s no longer a chore to calculate it manually across multiple touch points, so make sure you’re asking that very important question at every opportunity possible!