Latest news with #AmericanCustomerSatisfactionIndex
Miami Herald
a day ago
- Business
- Miami Herald
McDonald's secures honor no restaurants wants
America's restaurant industry is at a post-pandemic crossroads, grappling with rising prices, shifting consumer habits, and the relentless march of digital transformation. Both independent eateries and well-known chains have been suffering and closing rapidly, and there doesn't seem to be one reason for failure or recipe for success. Don't miss the move: Subscribe to TheStreet's free daily newsletter Yet, as the latest 2025 American Customer Satisfaction Index (ACSI) Restaurant and Food Delivery Study reveals, the biggest names in the business often fall short where it matters most: customer satisfaction. While large chains dominate the landscape in terms of sales and visibility, their sheer scale doesn't always translate to happy customers. In fact, the ACSI study shows that many of the industry's largest players - especially in the quick-service and food delivery sectors - routinely fall behind smaller rivals in customer satisfaction scores. For example, the quick-service restaurant (QSR) sector maintained a customer satisfaction score of 79 out of 100. Chick-fil-A led the survey for the 11th year in a row, scoring 83. McDonald's, Wendy's, and Taco Bell failed to make the top tier, overshadowed by regional favorites and smaller brands that have made strides in customer service. McDonald's earned the worst ACSI score (70), but ACSI analysts believe the chain's new efforts to speed up research and development needed to drive faster technology and menu changes could reverse the company's slide. Raising Cane's and Wingstop, relative newcomers compared to some names on the list, are gaining ground by focusing on a limited menu, quality, and digital engagement even as they grow. The full-service segment tells a similar story. Texas Roadhouse, a chain that emphasizes local flair and attentive service, topped the list with an 84. Olive Garden and LongHorn Steakhouse also performed well, but many other big names struggled. Chili's, for example, saw its score drop by 3%, while Buffalo Wild Wings and Denny's posted some of the lowest satisfaction ratings in the sector. Related: Trader Joe's rivals could learn a lesson from the cult favorite company What's driving the gap? "Large chains often face challenges maintaining consistency and personal touch as they expand. Customers notice when service feels impersonal or when digital experiences don't match up to expectations," said Associate Professor of Marketing at Michigan State University and ACSI's Director of Research Emeritus, Forrest Morgeson, in an announcement. Digital ordering and delivery have become critical to the restaurant experience, but the biggest brands are stumbling here, too. The nationwide chains rely on digital platforms for ordering and delivery, but the third-party services may make it difficult for them to provide a seamless or consistent experience. Satisfaction is highest among dine-in customers (83), but falls for carry-out (79) and drops even further for delivery (74). The complexity of scaling digital operations appears to be a stumbling block for many industry leaders. Perhaps nowhere are the challenges facing big brands more evident than in food delivery. While the sector as a whole improved slightly to a satisfaction score of 74, smaller delivery brands outperformed the giants. Uber Eats scored 75, while DoorDash and Grubhub each managed only 73. Chick-fil-A also led in the South and West and tied with Culver's in the Midwest, while Starbucks took the Northeast. In the burger category, Culver's edged out Burger King; in pizza, Papa Johns and Pizza Hut came out on top - demonstrating that even within categories, the biggest names don't always win. As the restaurant industry faces economic headwinds and changing consumer expectations, the ACSI survey makes one thing clear: being big isn't enough. Customers want quality, consistency and a personal touch. These are areas where smaller or regional brands can beat out the big nationwide chains. Related: Trader Joe's making huge mistake not copying Walmart, Target The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Miami Herald
3 days ago
- Business
- Miami Herald
This fast-food chain scored best in customer satisfaction — again, survey says
Grabbing takeout has gotten more expensive, but customers' loyalty to a certain chicken chain remains unshaken, according to the American Customer Satisfaction Index. Atlanta-based Chick-fil-A leads in customer satisfaction, besting its quick-service industry rivals for the 11th year in a row, the ACSI said in its 2025 Restaurant and Food Delivery Study. Known for its original chicken sandwich, the chain held steady with an ACSI score of 83 despite seeing its 'slowest growth' in U.S. sales in 20 years, according to the index. The report, published Tuesday, June 17, was based on 16,381 surveys conducted over 12 months ending in March 2025, the index said. Individual scores are reported on a 0-100 scale. McClatchy News reached out to Chick-fil-A for comment June 18 and was awaiting a response. For the study, the ACSI asked customers about their experiences with the nation's largest companies, including quick-service, full-service, and 'an aggregate category consisting of 'all other'' restaurants. Customer satisfaction among quick-service (aka fast-food) restaurants remained unchanged from last year, holding steady with an ACSI score of 79, according to the report. Some chains did better than others at keeping customers happy, however. Panda Express jumped 4% to an ACSI score of 80, tying with Starbucks for second place, the report says. Arby's finished in third with a ACSI score of 79, a 1% dip from the year before. Texas-based KFC saw the biggest slide, falling 5% from 81 to 77, according to the study. The ACSI cited competitors' ability to adapt to changing customer preferences more quickly. 'According to ACSI data, customer assessments of both menu variety and food quality for KFC have declined substantially,' the report says. McDonald's landed in last place with an ACSI score of 70, falling 1% from the year before, per the report. The burger giant recently announced plans to extend its late-night hours in a push to boost sales. It reported a 3.6% drop in U.S. store sales in the first quarter of 2025, marking 'its worst performance since the pandemic,' GlobalData reported. Chick-fil-A remained a favorite in the chicken chain category and earned high marks regionally, showing mass appeal with customers in the South and West, according to the ACSI report. However, it tied with Wisconsin-based Culver's for the No. 1 spot in the Midwest, results show. Overall customer satisfaction with fast-food chains was based on benchmarks, including order accuracy and the helpfulness of restaurant staff, the study showed. 'Accuracy of food order and quality of mobile app lead the way at 85, both down 1% year over year,' according to the report. 'Mobile app reliability is 1% lower at 84, matching beverage quality, staff courtesy and helpfulness, food quality, and website satisfaction.'
New York Post
4 days ago
- Business
- New York Post
Chick-fil-A's stronghold on customer satisfaction outshines other restaurants
Americans have a lot of choices when they want to eat out, whether it be at a fast-food chain or a full-service restaurant, with customer satisfaction being a significant factor in where they go. A new report from the American Customer Satisfaction Index (ASCI) offers insight into how brands stack up in terms of customer satisfaction. Advertisement In general, customer satisfaction with quick-service restaurants stayed the same as last year, coming in at 79 out of 100, according to the ASCI Restaurant and Food Delivery Study 2025. Of fast-food brands, Chick-fil-A notched the highest customer satisfaction score, at 83, the study said. It also ranked highest out of chicken-focused fast-food joints specifically. The chain, which has over 3,000 locations throughout the U.S. and Canada, has now held the top spot for customer satisfaction among quick-service restaurants for 11 consecutive years. Advertisement In the overall fast-food scoring, there was a two-way tie for second-place. 6 Of fast-food brands, Chick-fil-A notched the highest customer satisfaction score, at 83, the study said. Refrina – Panda Express and Starbucks received scores of 80, according to the ASCI. Starbucks posted a 4% jump in customer satisfaction year-over-year, the study found. Advertisement Arby's, Panera Bread, Papa Johns and Pizza Hut, with scores of 79, were not far behind, according to the data. The fast-food brand with the lowest customer satisfaction score in the study was McDonald's, at 70. That was 1% lower than last year. 6 Starbucks received scores of 80, according to the ASCI Christopher Sadowski However, the ASCI said the company's 'new efforts to speed up R&D to drive faster technology and menu changes may reverse this trend.' Advertisement McDonald's recently debuted McCrispy Strips on its U.S. menus and will reintroduce its fan-favorite snack wraps next month. The company has also said beverages are an area where it can see major growth. The full-service restaurant sector, meanwhile, had a customer satisfaction score of 82, according to the ASCI. That marked a decrease of 2% from last year. 6 The fast-food brand with the lowest customer satisfaction score in the study was McDonald's, at 70. Christopher Sadowski The ASCI said full-service restaurant customers 'perceive less value and are frustrated with their carry-out and delivery experiences' but noted food and service benchmarks were still 'quite high.' Texas Roadhouse, which tied for first with LongHorn Steakhouse last year, held onto the top customer satisfaction score for sit-down restaurants this year despite a 1% drop. It scored 84. With a decrease in customer satisfaction of 2%, LongHorn Steakhouse dropped to No. 2, receiving an 83, per the study. Advertisement Darden Restaurants-owned Olive Garden, at 81, was below LongHorn. 6 Texas Roadhouse, which tied for first with LongHorn Steakhouse last year, held onto the top customer satisfaction score Christopher Sadowski Two brands – Applebee's and Cracker Barrel – scored 80 for customer satisfaction, the ASCI study found. ASCI Director of Research Emeritus Forrest Morgeson said in a statement that restaurants 'can't simply rely on their traditional playbooks anymore.' Advertisement 'The brands that succeed will be the ones that adapt quickly to shifting tastes without compromising consistency or experience,' he said. 6 Two brands – Applebee's and Cracker Barrel – scored 80 for customer satisfaction, the ASCI study found. Oksana – The ASCI's study also looked at how food delivery services were faring on customer service. It found 'smaller' services saw higher customer satisfaction compared to major companies such as Uber Eats, DoorDash and Grubhub. Advertisement The small services had a score of 77, two points higher than Uber Eats and five points higher than DoorDash and GrubHub. In general, customer satisfaction for food delivery services hit 74, a 1% year-over-year increase. 6 'Smaller' services saw higher customer satisfaction compared to major companies such as Uber Eats, DoorDash and Grubhub. Christopher Sadowski 'While prices remain the lowest-scoring part of the food delivery experience, scores have improved somewhat with fairness of food prices and fairness of taxes and service fees both up 3% to 71,' the ASCI report said, noting customer satisfaction with food delivery mobile apps and websites also made some gains. Advertisement The average total that U.S. households spend on eating out each month averages $269 per month, according to WalletHub. Some restaurant brands have been contending with consumers eating out less and spending less when they do in recent months as economic uncertainty has factored into their decisions.
Business Wire
5 days ago
- Business
- Business Wire
Chick-fil-A Tops Quick-Service Restaurants for 11 th Straight Year Despite Slowest Growth in Two Decades, ACSI Data Show
BUSINESS WIRE)--Amid rising food prices and shifting consumer preferences, the restaurant industry is facing a dilemma of 'super size' proportions. The brands that succeed will be the ones that adapt quickly to shifting tastes without compromising consistency or experience. Quick-service restaurants maintain a steady customer satisfaction score of 79 (on a 100 point scale), while full-service restaurants — despite slipping 2% to 82 — remain one of the highest-rated industries in the Index, according to the American Customer Satisfaction Index (ACSI ®) Restaurant and Food Delivery Study 2025. At the same time, U.S. chain sales grew just 3.1% in 2024 — falling short of the 4.1% menu-price inflation rate. Restaurants must now navigate a razor-thin margin between maintaining customer loyalty and managing escalating costs. With households increasingly treating dining out as a luxury, every menu item and service interaction becomes a potential make-or-break moment. 'Restaurants can't simply rely on their traditional playbooks anymore," says Forrest Morgeson, Associate Professor of Marketing at Michigan State University and Director of Research Emeritus at the ACSI. "Smaller, popular brands like Raising Cane's and Wingstop are proving that creative marketing, digital engagement, and focusing on core strengths can challenge even the most established chains. The brands that succeed will be the ones that adapt quickly to shifting tastes without compromising consistency or experience.' Texas Roadhouse takes the restaurant crown Among sit-down venues, steaks still reign supreme. Last year's co-leaders Texas Roadhouse (down 1%) and LongHorn Steakhouse (down 2%) finish first and second with ACSI scores of 84 and 83, respectively. Olive Garden slides 2% to 81. Applebee's inches closer to the leaders, up 1% to 80. Although the chain faces the same traffic challenges as much of the industry, customers seem to appreciate its 'Everyday' value platform. Red Robin climbs 3% to 78 thanks in large part to its focus on menu and food. Meanwhile, Chili's, which saw average unit volumes increase 16% in 2024, experiences a 3% satisfaction drop to 78. This lower satisfaction was largely driven by its carry-out performance during spring 2024, when it began targeting McDonald's with products and messaging. At the bottom end of the industry, Buffalo Wild Wings sinks 4% to 76, and Denny's slips 1% to 75. Customers can become more critical of the quality of products and services when prices increase. This is the case with the full-service restaurant customer experience, as customer experience benchmarks decline across the board. Still, the food and service metrics are quite high. Accuracy of food order leads the way at 88, while beverage quality and waitstaff performance both score 86. The lowest ratings are related to the digital experience, which also shows the most deterioration. Website satisfaction tumbles 6% to 82, mobile app quality slides 6% to 80, and mobile app reliability plunges 8% to 78. Additionally, customer satisfaction with full-service restaurants varies significantly depending on the type of purchase experience (dine in, carry out, or delivery). Customers who dine in are by far the most satisfied (despite the score slipping 1% to 83). However, satisfaction falls 5% to 79 for carry-out service and plummets 9% to 74 for delivery. Chick-fil-A rules the roost among quick-service restaurants Chick-fil-A leads the industry for the 11 th year in a row with a steady ACSI score of 83. However, the chain experiences its slowest growth in 20 years after U.S. sales only grow 5.4% in 2024, providing openings for popular brands like Raising Cane's and Wingstop. Among other chicken chains, KFC stumbles 5% to 77 as it faces competitors who are adapting to shifting preferences more quickly. Popeyes (up 4% to 75) looks to build on gains by rolling out its 'Easy to Run' initiative to standardize processes, improve order accuracy, and reduce wait times. Other notable score changes include Panda Express (up 4% to 80), which jumps into a second-place tie with Starbucks (unchanged). The chain's documented emphasis on training shows in its strong performance on service quality and value. Little Caesars, up 3% to 77, improves ratings for food and service quality since introducing Crazy Puffs and continues its strong performance for value. Five Guys and Sonic both falter 4% to scores of 75 and 73, respectively. Last-place McDonald's dips 1% to an ACSI score of 70. The chain's new efforts to speed up R&D to drive faster technology and menu changes may reverse this trend. The customer experience for quick-service restaurants is similar to last year. Every aspect receives a score of 81 or higher. Accuracy of food order and quality of mobile app lead the way at 85, both down 1% year over year. Mobile app reliability is 1% lower at 84, matching beverage quality, staff courtesy and helpfulness, food quality, and website satisfaction (the only metric to increase in 2025). Chick-fil-A leads in the South and West, rivals Culver's in the Midwest, while Starbucks has the goods brewing in the Northeast Most of the reported quick-service restaurant brands fall into one of four categories: burgers, chicken, pizza, and coffee/bakery-cafe. Culver's (78) leads burger chains (the largest category), followed closely by Burger King (77). Chick-fil-A (83) leads the chicken category by a wide margin. Papa Johns and Pizza Hut (both 79) share the pizza chain lead, just ahead of Domino's (78). Starbucks (80) outperforms Panera Bread (79) and Dunkin' (78) in the coffee/bakery-cafe chain category. ACSI is also reporting its first-ever geographic results by region. Chick-fil-A and Starbucks show broad appeal across regional markets. Chick-fil-A leads outright in the South (84) and West (82). The chain faces stiff competition in the Midwest, however, tying Culver's for the top spot at 82 apiece. Starbucks is a top-two performer in three of the four regions: first in the Northeast at 80, second in the South (tied with Pizza Hut at 82), and second in the West (81). Group of small brands outperform the big players in food delivery Despite improving 1% to an ACSI score of 74, the food delivery industry still lags well behind full-service restaurants and quick-service restaurants. Customer satisfaction with the group of smaller food delivery services drops 3% to 77 yet still outclasses the larger brands: Uber Eats (up 1% to 75), DoorDash (unchanged at 73), and Grubhub (up 3% to 73). Satisfaction varies based on the customer's reason for using the service. Those looking for convenience (for example, work schedule, spending time with family, or group events) are more satisfied than those ordering due to need (e.g., health, not having a vehicle, lack of time, or not wanting to drive). Customers using the service for family time or group events generally perceive higher value. Gamers report the lowest level of satisfaction and greater frustration with the ordering process. Although prices are still the lowest-scoring part of the food delivery experience, scores have improved somewhat, with fairness of food prices and fairness of taxes and service fees both up 3% to 71. Mobile app and website satisfaction improve 1% each to 83 and 82, respectively. Yet, while customers may find the ease of ordering (80) to be acceptable, lower scores for food temperature (up 1% to 74) and order accuracy and accuracy of quoted delivery times (both unchanged at 75) remain problematic. The ACSI Restaurant and Food Delivery Study 2025 is based on 16,381 completed surveys. Customers were chosen at random and contacted via email between April 2024 and March 2025. Download the full study and follow the ACSI on LinkedIn and X at @theACSI. No advertising or other promotional use can be made of the data and information in this release without the express prior written consent of ACSI LLC. About the ACSI The American Customer Satisfaction Index (ACSI ®) has been a national economic indicator for over 25 years. It measures and analyzes customer satisfaction with about 400 companies in about 40 industries and 10 economic sectors, including various services of federal and local government agencies. Reported on a scale of 0 to 100, scores are based on data from interviews with roughly 200,000 customers annually. For more information, visit ACSI and its logo are Registered Marks of American Customer Satisfaction Index LLC.
CNET
11-06-2025
- Business
- CNET
5G Internet Is Beating Fiber in Customer Satisfaction: Here's Why 5G Might Be Here to Stay
Since its widespread launch in 2019, 5G home internet has become a staple in many urban homes and a viable solution for rural connectivity. While I generally tout a 'fiber-first' mindset when recommending cost-efficient, reliable high-speed internet options, 5G has often surpassed my expectations, and consumers seem to think so, too. J.D. Power data from 2024 and 2025 suggests that customers prefer fixed wireless internet, specifically 5G or 4G LTE, over both fiber and cable internet. The report finds that even while adoption has grown to nearly 12 million subscribers, a 47% increase since last year, customer satisfaction has remained stable in the past two years. J.D. Power Technology, Media & Telecom Intelligence Report June 2025 That's a significant achievement, even if subscribers are still in the 'honeymoon phase,' as Carl Lepper, senior director of the technology, media and telecommunications intelligence practice at J.D. Power, writes in the report. 'I think there's a bit of a halo effect,' Lepper told me. 'I do think there are a lot of people who were early adopters who loved it because it gave them an option they didn't have, and it gave them a price point they didn't have before.' That echoes the thoughts of a former CNET colleague, Rick Broida, who tested T-Mobile's 5G home internet service in 2021 and concluded, 'Imperfection is a lot more tolerable when you're paying less than half what you were before.' Locating local internet providers As more consumers sign up for 5G internet, the fact that the 5G home internet services continue to receive high marks is impressive. The American Customer Satisfaction Index also affirms customer satisfaction with 5G, with scores for non-fiber providers trending upwards. In contrast, fiber scores remained stagnant, and for the first time, T-Mobile 5G Home Internet tied with AT&T Fiber for first place overall. As an industry, broadband receives pretty low customer satisfaction scores overall, and it's not hard to see why. Everything from navigating confusing marketing lingo, dealing with sales-forward customer service and paying expensive monthly bills makes for a frustrating internet user experience. Plus, if you have an unreliable internet connection, it may not seem like you're getting the most out of your money. A recent CNET survey found that 63% of US adults are paying, on average, $195 more for their internet service than last year. J.D. Power Technology, Media & Telecom Intelligence Report April 2024 As an internet solution for rural communities without the luxury of fiber internet or the infrastructure of cable networks, 5G is an increasingly appealing alternative, especially over DSL, slower fixed wireless internet and satellite internet. Recent FCC data shows that the nation's biggest 5G provider, T-Mobile, covers 64% of households nationwide, and a significant portion of its coverage is rural. 'Is it a better product than fiber? Absolutely not,' Lepper said. 'No one would say it is, but it's hitting all the other buttons just right.' 5G may not always be consistent, but it's getting better J.D. Power uses several metrics to gauge customer satisfaction with broadband, the most notable being the level of trust an internet user has with an ISP. Fixed wireless internet is generally more unreliable than fiber internet since it's more susceptible to congestion and requires proximity to a tower and good weather conditions. However, it has substantially improved over the years. Former CNET writer Eli Blumenthal switched from Spectrum to Verizon 5G and hands-on tested T-Mobile 5G and AT&T Internet Air. While Blumenthal didn't get consistent gigabit speeds with any provider, each connection handled the stress of heavy bandwidth tasks from multiple users just fine. In that vein, I'll note that CNET router expert and broadband writer Joe Supan spent a week testing AT&T Internet Air in his apartment in Seattle and found the speeds sorely lagging -- they barely passed 10Mbps down. Still, while Supan's experience emphasizes the potential inconsistencies of 5G internet, AT&T Internet Air is a preferred alternative to AT&T's legacy DSL network and is much easier to install in rural communities than fiber. Additionally, while fiber providers often emphasize lightning-fast speeds, that speed only gets you so far. Depending on your internet usage and the number of devices in your home, you probably don't need more than 100 or 300Mbps of download speed. Equipment upgrades from T-Mobile 5G Home Internet have allowed the provider to boost speed maximums to 415Mbps down. That's quite an improvement from when T-Mobile 5G Home Internet first debuted in 2021. Broida was one of the earliest adopters of the service, and he saw max speeds of 132Mbps down and a low speed of 6.8Mbps, but those average speeds were still more than fine to get through the work day. In fact, you probably won't be able to tell the difference between 300Mbps of download speed and 1,000Mbps of download speed. What you can pick up on, however, is latency, lag and congestion. The true measure of a good internet connection is it's overall reliability, and if this latest batch of high customer approval ratings for the service suggests anything, it's that 5G has some staying power. What's next for 5G? The promise and convenience of 5G lie in the fact that mobile network operators can use the same technology powering our phones to get us online at home. But that technology has some limitations, like the amount of licensed spectrum, for example. 'There is a finite amount of spectrum,' Alex Roytblat, vice president of worldwide regulatory affairs at the Wi-Fi Alliance, told me in a previous interview. 'It's like real estate.' Major 5G internet providers Verizon, AT&T and T-Mobile 5G Home Internet use a mixture of frequency bands, such as millimeter-wave, low-band and midband 5G spectrums, to optimize customer experience. 'The higher in frequency you go, the more challenging it becomes to propagate the signal,' Roytblat said. 'The attenuation of the signal becomes greater as the frequency increases.' Concerns of spectral efficiency, or the limits to what information we can transmit in a communication channel, are also at play in the effectiveness of 5G. In fact, due to 'network capacity,' T-Mobile 5G Home Internet has a waitlist of around 1 million people. After covering the broadband industry for nearly two decades, Lepper is optimistic about how 5G technology will evolve in the hands of today's major mobile network operators. 'I'm always amazed how much control the industry has over the new technology, and what's next is already ready to go,' Lepper said. 'I think 5G has been extremely well-marketed.' Telecoms like Huawei and Bell Canada have successfully tested new technology to improve spectral efficiency. In February, Verizon 5G achieved record-breaking upload speeds of 480Mbps, mainly due to the newly opened 6-GHz band. 'The MNOs [mobile network operators] of the world have such a strong network that is impressive now,' said Lepper. 'When it taps out, will they have the next thing ready to go? Absolutely.'
