Why chick fil a is the best

NEW YORK CITY, UNITED STATES - 2020/02/20: American fast food restaurant chain, Chick-fil-A logo ... [+] seen in Midtown Manhattan. (Photo Illustration by Alex Tai/SOPA Images/LightRocket via Getty Images)

The latest American Customer Satisfaction Index restaurant report is out and the top restaurant brand for 2019-20 is Chick-fil-A.  

Again.  

This marks the sixth straight year that Chick-fil-A has been No. 1 in the industry, a ranking determined by about half a million consumers tasked with evaluating indicators like order accuracy, food quality, speed of service and mobile app reliability.  

The chicken chain has set a pretty high bar, scoring 84 (out of 100) on the ACSI Index, four points more than No. 2 Chipotle and six points more than the limited-service segment average. Chick-fil-A also outscores the top full-service restaurant, LongHorn Steakhouse, by three points. 

Considering Chick-fil’A’s trajectory throughout the past few years, it’s hard to argue that there isn’t a correlation between customer satisfaction and customer spending.  In late 2018, the chain surpassed Taco Bell and Subway to become the third-largest chain by sales, despite having a significantly smaller footprint and a shorter week in operation.

Chick-fil-A’s sales in 2019 were estimated to be about $11.3 billion, according to Restaurant Business, a 13% increase year-over-year. For context, Taco Bell generated just under $11.3 billion, but with about 4,300 more units and business on Sundays.

Perhaps further proof of this correlation, Chick-fil-A’s per-unit sales are over 50% higher than McDonald’s MCD, the bottom feeder on the list with a score of 70.

To be fair, McDonald’s is one of just three limited-service brands with a higher ACSI score this year versus last year (the Golden Arches are up one point) and the chain itself isn’t exactly hurting. In 2019, comp sales were up by 5% as McDonald’s leaned into its “Experience of the Future” restaurant design, added personalized technology at the drive-thru courtesy of its Dynamic Yield acquisition, expanded its delivery footprint with additional partnerships beyond Uber Eats, and honed in on its popular breakfast menu with new promotions like donut sticks. Also, McDonald’s has trimmed its menu during the coronavirus crisis, which has improved speed of service at the drive-thru. Customer satisfaction scores have improved “significantly” as a result, Restaurant Business reports.

Dunkin’ and KFC were the other two limited-service brands that increased their scores this year.

Dunkin’–up one point to 79–spent much of 2019 promoting its new “Espresso Experience,” part of a $100 million brand refresh meant to pivot the brand toward coffee and away from donuts (including dropping the name “Donuts” from its moniker). As part of this shift, Dunkin’ poured major investments into new espresso equipment and digital technology like mobile ordering and pickup. The latter should help somewhat protect Dunkin’ through the pandemic as consumers crave safe, contactless options and as dining rooms remain closed or re-close in some areas.

Meanwhile, KFC inched up a point for the second year in a row, also finishing with a score of 79. The chain maintained its usual quirky marketing rhythm in 2019 while also bringing forth new menu items like mac and cheese bowls and chicken & donuts. Notably, KFC is, so far, the only brand to embrace plant-based chicken with a Beyond Meat partnership–a move that generated billions of media impressions and quick sell outs. Like Dunkin’, KFC has also been relatively well-positioned during the pandemic with a drive-thru/delivery/pickup-heavy business and an ideal menu for group orders.

If there is, indeed, a correlation between customer satisfaction and sales, one major outlier this year is Popeyes. The chain has been a case study for fast food industry sales, outpacing other brands by double-digit sales comps thanks to its buzz worthy sandwich. To get an idea of just how meaningful its sandwich has been for the brand, consider Popeyes’ system-wide sales grew by over 42% in Q4 2019. That growth yielded a whopping $1.3 billion in sales for the quarter, compared to $934 million in Q4 during the previous year.

But the chain’s ACSI score of 74 ranks it among the bottom five in the segment, above just Sonic, Taco Bell, Jack in the Box and McDonald’s. Notably, this marks Popeyes’ first year on the index, so improvement is certainly attainable.

The segment is struggling to satisfy customers

It’s worth mentioning that in the limited-service category, 11 out of 18 brands experienced a decline in customer satisfaction, including perennial favorite Chick-fil-A–down by two points. The segment is down by an average of 1.3%. Full-service restaurants, which have felt the brunt of the pandemic with dining room closures, dropped 2.5% this year. 

Though the index barely scratches the surface of COVID-19’s effects because of the survey’s timing (April 2019 through March 2020), we may be starting to see some glimpses of consumer distrust in dining out.

The ACSI plans to release a special report later this year with a clearer post-COVID-19 picture, and fast food is expected to be better positioned because of its heavy off-premise business model.

However, with scores down prior to the pandemic, there is plenty of reason for concern. As the ACSI report notes, chains with low or even declining scores will likely have a harder time recovering from the crisis. 

“ACSI data consistently show that the more satisfied customers are, the more willing they are to increase their restaurant spending in the future,” the report notes. 

Very few brands have been immune to sales declines from shelter-at-home orders and the general uncertainty of the pandemic. As a number of executives noted during the last round of earnings calls, the crisis expedited some trends–mobile ordering and pickup, curbside, delivery and value, for example.

These will be the indicators to watch for in the report expected later this year, as well as in next year’s report. The “variety of food and beverages” metric may be less important to a weary consumer set that has become more accepting of slimmer menus, while “restaurant cleanliness” and “reliability of mobile app” will no doubt be higher priority items in a post-pandemic environment. 

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