Abstract
There is growing pressure from customers who are increasingly demanding higher quality food preparation, healthier food choices and taste, improved physical eating conditions, superior customer service, together with more value for their money. The intangible characteristic of the modern restaurant industry can enhance the vital role of in image in influencing customer’s choice because customers heavily rely on tangible attributes such as restaurant brand name, décor and interior design, and price (Baraban & Durocher 2010, p.46). When faced with restaurant choice decision, a consumer uses both tangible and intangible factors where the latter refers to food quality, service quality, and value for money. It is for these reasons that it has increasingly demanding for restaurants like Remington’s Steak House to create a distinctive image which differentiates it from competitors to demonstrate the product’s main strengths and positioning towards its target market. The image of the restaurant, which can directly reflect the quality of the dining service on the part of customers, can have immense influence on customer’s views on customer value and satisfaction, which, in turn, influences their choice of restaurant (Walker 2007, p.13). A study was done on Remington’s Stake House to better understand customers’ attitudes and feelings toward the restaurant.
Introduction
The study
The management of Remington’s is concerned about the business operations and future of the restaurant. An account representative at a local marketing research firm recommended conducting a research so as to better understand customer’s attitudes and feelings about the Remington’s (Hair 2007, p.46). An image survey using an Internet panel approach was conducted, where initial contact was made with potential respondents using a random digit dialing telephone survey that screens individual who are patrons of the restaurants along with customers of two main competitors – Outback Steak House and Longhorn Steak House. It was required that a respondent’s annual household income of $20,000 in addition to being familiar with one of the three restaurants in this study. Qualified individuals for the study were directed to a website where they completed the survey. The study used the exploratory approach with a modest sample of 200 individuals. The questionnaire questions included the importance of various reasons in choosing a restaurant, perceptions of the images of the three restaurants on the same factors, and selected classification information on the respondents (Hair 2007, p.52).
Generally, the survey revealed the following aspects as relates to perceived image of Remington’s and it two major competitors:
Food quality: ratings for Remington’s are significantly better than those of Outback and Longhorn
Speed of service: Remington’s is rated a poor third after both Outback and Longhorn respectively
Reasonable price: Remington’s tie with Outback while Longhorn is behind by a significantly
Large Portions: Remington’s tie with Outback are tied, much ahead of Longhorn
Atmosphere: Remington’s atmosphere is statistically rated better than both Outback and Longhorn,
Competent employees: Remington’s is a statistically poor third after Outback and Longhorn respectively
Discussion and Analysis
A number of factors determine customer’s choice of restaurant in urban such as Midwest cities. For a region of its extent, Midwest City is home to a wide choice of restaurants in the entire United States. Half of the restaurants are engaged in full-service while three quarters are partial service restaurants (Baraban & Durocher 2010, p.93). Remington’s Steak House is a retail themed restaurant in Midwest City.
Effective management of a restaurant’s image is great significance in forming perceived image, customer satisfaction, and subsequent restaurant choice owing to the increasing number of restaurants dealing in the same range of food products and services (Schroder 2003, p.74). However, Remington’s Steak House restaurant faces particular challenge in the effort to create a distinctive image owing to the fact that image of a single restaurant has great influence of customer’s perception of competing restaurants. This is especially the case because of the current competitive restaurant environment in which customers have diverse options for food together with an extensive range of food in the restaurant (Walker 2007, p.32). This further implies that the actual food on offer is largely of equal standard to that of many other competing restaurants, and thus the image that one restaurant portrays may be a crucial determining factor in the customer’s decision to choose a given restaurant over another. Thus, Remington’s Steak House restaurant needs to harmonize the component of perceived image (i.e. food quality, store location, décor and interior design, waiting time for a meal, menu variety, price, professional appearance of staff, and hygiene (cleanliness) (Kim & Geistfeld 2003, p.145). It is paramount for Remington’s Steak House restaurant to maintain a consistent image for service standards if it is to be the restaurant of choice for dinners in the Midwest City.
Factors influencing customer’s choice of restaurant
Food Quality
Food quality is the most important factor that influences restaurant decisions as shown by several researches on consumers’ restaurant selection behavior. The defining elements of food quality that a restaurant must consider to create a positive perceived image and define itself as a restaurant of choice are unique ingredients and tastes, menu variety, healthy food options, appearance and presentation, and familiar food Ryu and Han (2010).
In order to establish the place of quality among the selected customers of this survey, a scale running from 1-7 was used (with the level of importance increasing numerically). The chart below show the results attained for food quality attribute:
Figure 1. Food quality scale for Remington’s Steak House
The results show that Remington’s customers as well as customers of other competitors hold food quality in high esteem, more than the expected level by the management of the restaurant.
The survey also established elements of a good steak as defined by the customers. They desire as thick, juicy and tender steak, cooked properly and with consistent high quality at all times (James 2010, p.49). The following are the 6 key words that consumers associated with high quality steaks:
Prime – 63%
Tender – 61%
Juicy – 58%
USDA Beef – 54%
Angus – 53%
From the study, steakhouse choice determinants & expectations can be summed as:
Choice determinants Visit expectations
Consistently good experience
Steaks cooked correctly
Good selection of quality steaks
Perfectly seasoned & expertly grilled steaks
Fresh, never frozen steaks Steaks cooked correctly
Food prepared to specified standards
Meal appropriately paced
Attentiveness to customer needs
Feel like a valued customer guest
Remington’s Steak House needs to diversify its menu and start offering a range of different menu items so as to attract customers (Hair 2007, p. 85). Given that consumers have become more aware of healthy food choices, there is need for Remington’s Stake House to adjust its menus and add healthy items so as to attract customers who are concerned about nutritional value of the meal they take Ryu and Han (2010).
Customer Satisfaction
The choice of a restaurant by customers is largely influenced by the ability of a given restaurant to enhance customer satisfaction and provide high quality service. The element of customer satisfaction in business is a rather complex human process, which entails both cognitive and affective processes in addition to other physiological and psychological influences (Smith 2007, p.85). A consumer is said to be satisfied when his/her weighted sum total of experiences reflects a feeling of gratification when measured against their expectations. Satisfaction of customer has close correlation to likeness to return in that the more satisfied customers are, the more likely they are to return (Namkung and Jang, 2010). Using a satisfaction scale and a likely to return scale (both ranging from 1-7), the satisfaction level and likeliness to return of surveyed customers was measured. In both the scales, a score of 7 meant a customer was very satisfied and definitely planned to return to the restaurant respectively. The survey results on these two parameters were as follows:
• Satisfaction average = 5.65
• Likeliness to return = 5..35
In view of the above results, the management of Remington’s Steak House must strive to provide its customers with unequaled service satisfaction. Satisfied customers are more likely to develop brand loyalty, bring return business, and also engage in favorable word-of-mouth identifying the food joint as the restaurant of choice (Smith 2007, p.87).
A perceived image of a restaurant with good service quality among customers ultimately improves the restaurant’s market share and profitability. In view of the competitive nature of the restaurant food industry along with the homogeneity of products and services offered, individual restaurants must find ways to make their services and products to out from the others (Namkung and Jang, 2010. In this respect, Remington’s Steak House must direct its efforts to understanding the needs of the customers, and then strive to meet or even better exceed them. To this end, it worth noting that customer satisfaction is indeed a post-purchase evaluative judgment that leads to an overall perception about the transaction (Snepenger 1997, p.54). A favorable restaurant image as a result of customer satisfaction is a key contributor to repeat patronage, achieving competitive advantage, increasing customer loyalty, increasing business performance, retaining existing customers and attracting new ones. In the case of new customers, Remington’s Steak House restaurant will be better placed if the management has the understanding that customer’s choice of restaurant (and thus customer’s repeat purchase and brand loyalty) is influenced by their satisfaction with the initial purchase (Schroder 2003, p.106).
Physical Environment
Physical environment has a significant influence on consumer behavior especially as it relates to choice of a restaurant. Aspects of physical environment of a restaurant involve a restaurant’s atmosphere, exterior and internal décor, ambience, furniture (Baraban & Durocher 2010, p.83). All of these elements come into consideration when a consumer is making a decision on choice of restaurant as well as when evaluating the restaurant experience.
Décor and interior design play a big role in the creation and maintenance of the image of a restaurant, although the real formation of the image entails many more components and not just the purely physical ones. The décor and interior design component appeals to a specific segment of customers especially those that hold atmosphere in high regard as compared to food quality, menu variety, hygiene and service (Kotschevar & Withrow 2007, p.64). Customers of restaurants increasingly want a more entertaining atmosphere so as to enhance the entire dining experience, which necessitates Remington’s Steak House to make efforts towards meeting this expectation through innovative and exciting décor and interior design. The restaurant needs to develop a favorable restaurant image through an effective differentiation strategy that is interior design and design so as to set itself apart from the competition and establish it as the number one restaurant of choice. Similarly, street appeal has increasingly become more crucial in attracting customers to come through the door (Darden 2011, p.14), and thus much focus needs to paid to this elememt.
Value
Customers have grown more selective with their eating out choices in that they weigh the value of the entire eating experience when making a choice on restaurant (Darden 2011, p.14). The value factor is associated with the customer’s perception about the value for money. In the restaurant industry, value alludes to ‘restaurant food & beverage value for money’, ‘room value for money’, ‘restaurant being part of a reputable chain’, and ‘comfortable ambiance of the restaurant’. Customers have become more practical and thus take a cautious approach to discretionary spending. They are cutting back and exploring ways to purchase more for less, and are growing increasingly demanding in the purchase process (Hair et al 2005, p.83). Thus, restaurant customers expect the right combination of good service, product quality, and fair prices. This explains why more and more restaurant consumers consider a restaurant’s reputation and name familiarity. Given that Remington’s Steak House is located in a highly accessible place in the Midwest City, it needs to employ the positive image tactic to enhance the value of its offerings to attain a competitive advantage (Ferell & Hartline 2010, p.157).
Perceived image of key competitors
The two major competitors for Remington’s Steak House are Outback Steakhouse and Longhorn Steak House.
Outback Steakhouse
Outback’s’ customer base is individuals aged between 18-53 years looking for a casual fun dining experience. Outback Steakhouse service concept is built on 5 principles: hospitality, quality, sharing, fun, and courage (Mazzola 1998, p.6). The restaurant has a positive customer perceived image because of the unmated waiting experience offered. Customers are particularly pleased by the exquisite waiting areas, the bar and patio, where they can order for a drink while watching television. A house specialty, “Bloomin’ Onion” appetizer, is offered to customers when the wait is long. Further, Outback’s customers like the approach of the restaurant to give them pagers to instantly notify them when a table is available. The consistent promotion of an “Aussie” theme at Outback has built a strong identity among customers (Kivela 1997, p.76). The restaurant appeals more to customers because of diversified menu that not only includes steak, but also non-red-meat products such as chicken and pasta. Furthermore, customers are pleased by the smooth execution of employees together with the concepts of sports and community marketing that Outback has adopted. The “No-Rules” approach employed by Outback, where employees have the freedom to do whatever is necessary to make a customer happy, also sits well the customers and boosts their perceived image (Mazzola 1998, p.9). Staff interacts extensively with their customers and offer complementary desert or appetizer or even a free meal to a dissatisfied customer.
Longhorn Steak House
Longhorn Steak House is a western-themed whose primary customer base is individuals between 35 and 55 years of age (Johns & Pine 2002, p.54). Longhorn is the number three restaurant in the steakhouse category, commanding a 7percent hold on market share. Longhorn’s customers’ household incomes range between $50,000 and $75,000. The restaurant’s customer perceived image has been boosted by the steakhouse’s promotional strategies such as a new lunch menu –stuffed fillets and a “steakhouse dinner for $2.99”. The Longhorn brand is believed to offer genuine western hospitality as evidenced by a comment by one of its customers, “I can count on Longhorn to assist me unwind and savor a wonderful steakhouse meal served with truly genuine western hospitality” (Darden 2011, p.20).
Recommendations
In view of the current state of Remington Stake House in terms of perceived image, this study presents several recommendations are believed will bring positive change to the restaurant. First, Remington’s restaurant needs to lay more emphasis on customer service. There should be reenergized emphasis on providing over the top hospitality to ensure customers receive great food experience to and beyond their expectations so that they are inspired to bring return patronage to the restaurant (Darden 2011, p.26). Remington’s should work on the speed of service by either improving their speed or change the perception of their customers. The latter option can be achieved through making the wait time more entertaining e,g. through music or television. Further, the restaurant should stress their speedy service in all promotional campaigns they undertake (Handlechner 2008, p.86).
Secondly, given that the primary raw material for the steakhouse is cattle/beef, Remington’s needs to enhance research into improving steak quality and consistency through precise calf selection and disciplined feeding regimen. It is important to keep closer alignment with beef suppliers in view of the declining cattle herds (Darden 2011, p.27). Similarly, Remington’s needs to identify alternate muscle cuts which can be prepared to eat same as the premium middle steaks. In light of customer decisions being increasingly driven by value, it is paramount for Remington’s to continue reviewing customer acceptance of lower cost beef cuts in its menu applications. It would also be viable for the restaurant to consider sourcing globally considering the escalating domestic costs so as to remain competitive in the industry (Sloan & Leith 2012, p.46).
Thirdly, the restaurant needs to adopt a strategy that focuses of offering quality services and products at premium prices. A third strategy that is bound to work for Remington’s is to adopt a menu that has variety and is inclusive, having something for everyone. In this regard, the restaurant should use more local ingredients for the menu items it offers along with constant fresh products. The restaurant is also obliged to integrate healthier menu items in light of the increasing customer concern on healthy eating (Darden 2011, p.13). In addition, Remington’s needs to reinvent its menu by describing and presenting it in a manner that will appeal to its current customers and attract new ones. Also, it is a highly necessary that the restaurant puts into a place a functional customer feedback box and appropriate action taken in response to the complaints, compliments and suggestions (Kurtz 2010, p.65). Finally, Remington’s must avoid the temptation of charging extra on substitutions so as to appeal to more customer base and engage its workforce in training so as to achieve desired competency.
Conclusion
To a larger extent, the marketing strategies currently practiced by Remington’s Steak House are in tandem with the market needs. Nonetheless, the restaurant can optimize its overall image by making improvements to food quality, customer satisfaction and ad campaigns as well diversifying its target market (Reynolds & Oslon 2001, p.81). Also, the steakhouse ought to differentiate by renewing its total experience along with offering additional value options on its menu so as to increase traffic. To appeal to more customers, Remington’s should consider establishing an alternate value proposition of lower prices given the current regular menu prices are regarded as too expensive by customers (Kurtz 2010, p.75). It is believed that the implementation of these recommendations will result in improved customer loyalty in addition to appealing to a wide range of customers.
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