How Customer Feedback Shapes Franchise Decisions for Restaurant Brands

In the competitive world of restaurant franchises, customer feedback serves as a cornerstone for strategic decision-making. Did you know the Filet-O-Fish was (supposedly) added to the permanent menu of McDonald’s in 1962 in response to customer feedback from areas with large Catholic populations who wanted non-meat options for Lent? Restaurant brands, big and small, leverage customer insights to adapt, innovate and stay ahead of market trends. This feedback provides real-time insights into customer preferences, satisfaction levels and areas needing improvement. 

“The feedback helps us validate the customer experience,” said Bob Andersen, CEO of The Great Greek Mediterranean Grill. “We get close to 1,000 posts of feedback every week across our network. Those insights for us are invaluable. The important factors are always the same — people always say they love the quality, freshness and value of our food. But we can adjust slightly based on other trends or feedback we start to see in the responses.”

As an example of how feedback can have a direct impact on decisions, Andersen notes that during times of economic uncertainty, many brands reduce portion sizes to manage costs. However, during this current period of inflation, The Great Greek Mediterranean Grill chose to maintain portion sizes and increase prices, relying on customer feedback to justify this decision. 

“When prices went up and the cost of products went up, many brands made their plates smaller, but we maintained the same quality and portion size and we charged more,” said Andersen. “The guests rewarded us by paying more because they could tell we listened to them and provided value.”

Feedback not only influences customer-facing decisions but also impacts internal operations, especially in supporting franchisees. Andersen highlights that feedback helps The Great Greek determine when and where to provide additional support to franchisees: “If we have an individual who doesn’t align with our culture and we see that in our feedback from team members, we will follow up on the support team — What is going on? Do we need more training in that area?”

When it comes to gathering this feedback, the role of technology cannot be overstated. Modern tools allow brands to collect vast amounts of data from various sources, including social media, review sites and direct customer surveys. 

“The feedback is really what drives these search engine algorithms,” said Andersen. “That is the gold of the industry right now."

While identifying and addressing negative feedback is important, recognizing and reinforcing positive trends is equally crucial. “A lot of people think the value of feedback is the ability to recognize problems, but really the value is recognizing the positives where you are doing good,” said Andersen. “It helps you see clearly where the brand is successful and the more we focus on that, the higher the sales go.”

By prioritizing and effectively utilizing customer feedback, restaurant franchises can ensure they meet and exceed customer expectations, ultimately driving long-term success and sustainability in a competitive market.

“Feedback has really become the most important part of our business,” said Andersen. “We try to take it wherever we can — the more we do it, the better we do it, the more we grow. If you are a leader in the brand or a franchisee, there is nothing more important than customer feedback.”

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