Chapter 2

UNDERSTANDING THE CUSTOMER

Learning Objectives:

• How does the customer choose What to eat

and Where to eat?

• Customer Behavior and Buying Process

MARKET CATEGORIES

• Captive Market

• Mass Market

• Status Market

Captive Market

• Institutions,

• Industrial

• School settings

Captive Market

Captive Market

Mass Market

• The mass market looks for food in a larger social

setting:

– everyone from teenagers grabbing a burger in the company of

friends

– families eating out together

– to special dates and anniversary dinners

Mass Market

Mass Market

Mass Market

Status Market

• The status market is more concerned

with where we eat.

• To see and be seen is more

important than what is on the menu.

Status Market

Types of Customers

• Repeat Customers• Baby Boomers• Multi-check

Households• Families with

Children• Takeout and

Delivery• Seniors

Repeat Customers• Repeat business accounts for anywhere from 60

percent to 80 percent of total revenue for restaurants.

• Frequent diners have two major characteristics. o They eat dinners out at least seven times a month;

o They have distinct behavior patterns in their din ing

habits.

Frequent Diners

• "Too Tired to Cook”

• "Busy Parents”

• "Urban Sophisticates”

• "Flavor Savorers”

Boomers

• The Baby-boomers were those who born be

tween 1946 and 1964 spend more when they

dine out.

Multiple-check Households

More spending money

More time to enjoy

Focus on lifestyle

Families with Children

Less spending money

Less time to cook

Focus on children’s taste

Takeout and Delivery

• Fast food restaurants account for over 40 percent of

takeout meals.

Seniors

• Senior citizens are regarded as a frequent dinner

customer. As noted above, this "care-seekers" category

includes older adults.

• To appeal to this group operators offer things such as

smaller portions at lower prices, special services, such

as a shuttle to the restau rant, and early-bird specials.

Need of the Market

• Why do we Need Food?

Need of the Market

Same CustomerDifferent Needs

• Monday:

Lunch @ Subway colleagues

• Tuesday:

Dinner @ Italian Rest in 5 star with

wife

• Wednesday:

Lunch @ Country Club with Clients

• Thursday:

Dinner @ Hawker Stall.

• Friday:

Lunch @ Order Pizza

Reasons for eating out

• Convenience

• Variety

• Labour

• Status

• Culture / tradition

• Impulse

• No choice

Meal experience factors

• What do you Expect?– Food and drink on offer

– Level of service

– Level of cleanliness and hygiene

– Perceived value for money and price

– Atmosphere of the establishment

Range of Guest Expectations About Foodservices

OH – 13.1

A B C D

Food Is the“Product”

Service Complements the Food

Service Is Anticipatory and “Invisible”

Service Is the “Product”

Food Is the

Priority

Food and Service Are Priorities Service Is a Priority

Decision Scenarios

• Three Goals– Social Pleasure

( Occasion, For Kids)– Eating Pleasure

( Cravings, Home Cooked Food)

– Life Style (No Time, No Energy)

Project Status• Choose a Leader• Divide into 2 Groups• Select the Theme for your

Event.• Wine or Cocktails

Stages

• Staffing

• Concept Planning

• Market Research

• Menu Planning

• Budget Planning

• Marketing Communications

• Event Process Planning o Pre Event

o Catering Plan

o Purchasing/Receiving/ Inventory Management

o Food and Beverage Production

o Service

o Waste Management

o Post Event Evaluations