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| In addition to soft sales and traffic, the industry continues to face widespread labor shortages, supply chain difficulties and online guest complaints noting the deterioration in the restaurant experience. During September, restaurant ‘food’ received 1.3% fewer positive mentions in online reviews compared to a year ago. Although the decline in sentiment has been gradual, September had the lowest percentage of positive reviews centered around restaurant ‘food’ since February. The story is similar for ‘service’ sentiment, which received 2.3% fewer positive mentions in September vs. a year ago. This was the lowest percentage of positive mentions based on restaurant ‘service’ since June. Not surprisingly, guests are less positive about their intent to return to those restaurants they have reviewed or commented about online. The percentage of positive ‘intent on return’ mentions declined by almost 3% year over year. Ambiance Key Differentiator for Top Performers Sales growth results for top performers* in limited-service restaurants were 9% higher than those in limited-service during Q3, while top performers in full-service had 13% more sales growth compared to the median growth in this sector of the industry. But how did these top performers set themselves apart the most in the eyes of their guests? In which areas of the restaurant experience are they excelling at the most compared with their competitors? In limited-service restaurants, ‘ambiance’ was the restaurant experience attribute that had the biggest difference in net sentiment for top performers. Top performing brands in limited-service had ‘ambiance’ net sentiment that was 11 points more positive than the rest. The second attribute through which top performers most differentiated themselves was ‘service’, with their net sentiment being 5 points more positive than the ‘service’ sentiment for limited-service overall. The importance of ‘ambiance’ is the one thing that top performing full-service brands had in common with their limited-service counterparts. “Ambiance’ net sentiment for top performing brands was a remarkable 21 points more positive than for the rest of full-service. ‘Beverage’ was the second attribute that top performers excelled at the most. Guests rated beverages at top performing full-service restaurants 17 points more positive than for the rest of competitors in this space. *Top
performers: brands in the top 25% for sales growth
Regional & Market Performance Among the top 25 largest markets in the country, Orlando led in positive net sentiment based on restaurant ‘food’, ‘beverage’, ‘service’ and ‘intent on return’. It was also a good month for Philadelphia, which topped the list for highest net sentiment based on ‘ambiance’, and was also among the top 3 markets based on ‘food’ and ‘service’. New York offered some deep contrasts during the month. Although it was the major market with the most positive ‘value’ sentiment, and ranked 3rd for ‘service’, it was also the DMA with the weakest ‘ambiance’ sentiment in September. As seen in recent months, San Francisco continues having challenges with its guest sentiment. It ranked at the bottom for ‘food’ and ‘service’ sentiment during September. Looking Ahead The big picture will remain the same for the restaurant industry through the rest of the year. Sales will remain better than they were back in 2019, but guest counts will still be down while guest checks continue growing at an unusually high pace. Three hardening conditions for restaurants point towards more slowdown in sales and traffic in upcoming months.
The Restaurant Guest Satisfaction Snapshot™ (RGSS) is produced by data from Black Box Guest Intelligence™. Guest Intelligence is tracking over 190 brands to benchmark customer satisfaction and is the only online tool that integrates with operational performance data to validate the impact on financial performance. The data set focuses on six key attributes of the restaurant industry experience: food, service, ambiance, beverage, value and intent to return. Black Box Intelligence™ is the leading performance benchmarking provider for the restaurant industry. Their unparalleled data set reveals insight into financial, workforce, guest and consumer trends from over 300 brands and 87,000 restaurant units. Black Box Intelligence is also the producer of The Best Practices Conference held annually in Dallas, Texas. The RGSS algorithm determines the highest-ranking brands based on sentiment. Brands included in this monthly snapshot must have a total of at least 250 mentions for the month. Restaurants must have a minimum number of units to be eligible as well. DMA rankings consider only the largest 25 areas. Media
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