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Industry Results for:
Full-Service Restaurants
Limited-Service Restaurants
ACSI®
T h e A m e r i c a n C u s t o m e r
Satisfaction Index (ACSI®) is a
nat iona l economic indicator
of customer evaluations of the
quality of products and services
available to household consumers
in the United States.
The A C S I u s e s data f rom
interviews with roughly 500,000
customers annually as inputs
to an econometr ic model for
analyzing customer satisfaction
with more than 400 companies in
46 industries and 10 economic
sectors, including various services
of federal and local government
agencies.
ACSI resu l ts a r e r e l e a s e d
throughout the year, with all
measures reported on a scale of
0 to 100. ACSI data have proven
to be strongly related to several
essential indicators of micro and
macroeconomic performance. For
example, firms with higher levels of
customer satisfaction tend to have
higher earnings and stock returns
re la t i ve to competitors. Stock
portfolios based on companies
that show strong performance in
ACSI deliver excess returns in up
markets as well as down markets.
At the macro level, customer
satisfaction has been shown to
be predictive of both consumer
spending and GDP growth.
American Customer Satisfaction Index
AMERICAN CUSTOMER SATISFACTION INDEX RESTAURANT REPORT
2019-2020
June 30, 2020
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ACSI® ACSI Restaurant Report 2019-2020
Diminishing Customer Satisfaction With Restaurants May Hamper
Recovery Efforts
A sea change has arrived for the restaurant industry in the form
of a global pandemic, ushering in an era of social distancing and
mandatory lockdowns that have upended business as usual. The
arrival of the COVID-19 crisis hit full-service restaurants the
hardest, as many operators scrambled to transition to takeout and
delivery only. Some shuttered their doors entirely. Lacking the
deep pockets of some major chains, independent restaurants are the
least likely to survive.
Meanwhile, the limited-service segment is better positioned to
weather the storm, with an estimated 70% of its business already
happening via drive-thru lanes. In addition, the cheaper price tag
that most fast food outlets offer may be appealing to consumers
tightening their budgets amid the pandemic.
In results from the American Customer Satisfaction Index
(ACSI®), full-service restaurants are losing the most favor with
U.S. consumers—falling 2.5% to an ACSI score of 79. Customer
satisfaction with the limited-service segment wanes to a lesser
degree, down 1.3% to 78. Together, these declines put downward
pressure on the Accommodation and Food Services sector overall,
which retreats 1.3% to 77.9. This report’s results are based on
surveys conducted over a 12-month period from April 2019 to March
2020—the month when the first U.S. stay-at-home policies began.
Later this year, the ACSI will follow up with special reporting on
the impacts of COVID-19 on customer satisfaction for
restaurants.
According to the National Restaurant Association, the industry
overall lost $120 billion from March to May 2020, and by the year’s
end this total may double. But even before the pandemic hit,
customer satisfaction with both full-service and limited-service
restaurants was heading in the wrong direction. Chains with
declining customer satisfaction, or those with a track record of
lower ACSI scores, may find it more difficult to recover and thrive
under such challenging circumstances. ACSI data consistently show
that the more satisfied customers are, the more willing they are to
increase their restaurant spending in the future.
The pandemic hit the fast-forward button on some trends already
happening across the restaurant industry. Even before COVID-19,
delivery was fast becoming the name of the game with consumers
increasingly looking for off-premises dining options. By mid-2019,
almost four in five full-service restaurant operators reported
using an online ordering platform. Much of this demand came from
millennials, with the anticipation that Gen Z would continue the
trend. By 2019, millennials were 50% more likely to have food
delivered than two years earlier.
Gone are the days when pizza purveyors had a lock on food
delivery. The rise of third-party delivery services like Grubhub,
DoorDash, Postmates, and Uber Eats removed limitations, opening up
more consumer choices. By mid-2019, U.S. restaurant delivery sales
had grown over 50% year-over-year. At the same time, investments in
virtual (“ghost”) kitchens were on an upward
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ACSI® ACSI Restaurant Report 2019-2020
trajectory. Competition outside the industry also grew as
supermarkets added more prepared foods to become grocerants—even
partnering with third-party delivery services.
Meanwhile, tech innovation remains a key to success for both
fast food and full-service chains, especially considering the
younger demographic of digital natives that many restaurants want
to capture. The pandemic made clear what was already moving through
the industry. Engaging with customers digitally, especially through
reliable mobile apps, is becoming a necessity.
Full-Service Restaurants
Customer satisfaction with the full-service restaurant industry
sinks 2.5% to 79 compared to a year ago. Among 12 major
full-service chains, seven post customer satisfaction declines and
only one chain shows slight improvement. Across the history of ACSI
measurement, this is only the second time that the industry’s
satisfaction has dropped below 80. This relatively low level of
satisfaction indicates that sit-down chains overall were struggling
well before the pandemic to please customers. According to diners,
both product and service quality has significantly eroded year over
year, with some weakening in value as well.
What is even more concerning is that the full-service restaurant
industry is less satisfying when it comes to the now-critical
components of takeout and delivery. Customers are the happiest when
dining in (ACSI score of 78) as compared with either carryout (75)
or delivery (77). Moreover, in the ACSI survey 92% of respondents
reported dining in at a sit-down venue, while only 6% opted for
carryout and 2% for delivery. While many operators were pivoting
toward off-premises dining before the pandemic, not all were
prepared to shift operations entirely over to takeout and
delivery.
The top of the full-service restaurant industry belongs to
Darden’s LongHorn Steakhouse, stable for a third straight year at
an ACSI score of 81. As of November 2019, LongHorn was a strong
performer for Darden, with same-store sales up 6.7%. According to
customers, LongHorn shines when it comes to restaurant layout and
cleanliness, scoring best in class.
Meanwhile, last year’s industry leader Texas Roadhouse tumbles
4% to 80, losing its crown to steak rival LongHorn. The two
steakhouses, along with the group of smaller restaurants (-1% to
80), are the only chains to score above the industry average.
Customer perceptions of value have eroded significantly for Texas
Roadhouse—more so than for any other major full-service chain. In
the second quarter of 2019, menu prices at the steakhouse went up
1.5%, following an increase of 1.7% in the prior fall.
Like Texas Roadhouse, hybrid restaurant-store Cracker Barrel
loses ground this year, down 4% to 79 after holding a second-place
berth in 2019. Both of these former top-rated performers now sit at
record ACSI lows. Known as a dining destination experience,
highway-focused Cracker Barrel may find it challenging to succeed
in a market that stresses digital interfaces, takeout, and
delivery. According to ACSI data, the quality of the chain’s mobile
app has deteriorated significantly, now lagging nearly every other
chain. Recently, in April 2020, the company announced a partnership
with DoorDash to deliver its comfort food to customers. At the same
time, Cracker Barrel hopes to get guests in the door by adding beer
and wine to its menu.
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AMERICAN CUSTOMER SATISFACTION INDEX:FULL SERVICE
RESTAURANTS
Full-Service Restaurants
LongHorn Steakhouse (Darden)
All Others
Texas Roadhouse
Cracker Barrel
Olive Garden (Darden)
Red Lobster
Outback Steakhouse
TGI Fridays
Applebee’s
Denny’s
Red Robin
Ruby Tuesday
Chili’s
2019
81
81
81
83
82
79
78
79
78
77
77
79
78
78
2020
79
81
80
80
79
79
79
78
78
77
76
76
76
75
% CHANGE
-2.5%
0%
-1%
-4%
-4%
0%
1%
-1%
0%
0%
-1%
-4%
-3%
-4%
© 2020 American Customer Satisfaction Index. All Rights
Reserved.
0-100 Scale
The remaining full-service restaurants all come in below the
industry average. Outback Steakhouse slips 1% to 78, trailing the
other steak chains. TGI Fridays stays put at 78, while Applebee’s
is flat at 77. When COVID-19 hit, unlike Applebee’s, Fridays did
not have a curbside pickup program in place. To combat having too
few incoming restaurant phone lines, the company converted its
headquarters into a call center. Nevertheless, Fridays is
projecting that up to 20% of its locations may close
permanently.
At the low end of the industry, Denny’s (-1%) meets Red Robin
(-4%) and Ruby Tuesday (-3%) at 76. All three chains had stable
satisfaction last year but decrease in 2020. The current
satisfaction loss is steepest for Red Robin, which closed 10
underperforming locations in 2019 as it continued to encounter foot
traffic declines. Likewise, Ruby Tuesday shut down 26 locations in
2019 after shuttering 51 in 2018. According to customers, Ruby
Tuesday’s mobile app rates worst in class for reliability. The
company is likely to lose even more stores during 2020 as multiple
temporary closures could become permanent.
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ACSI® ACSI Restaurant Report 2019-2020
Along with Cracker Barrel, two full-service chains are tied with
the industry average: Darden’s Olive Garden (unchanged) and Red
Lobster (+1%). While the gain is slight, Red Lobster is the only
full-service chain to show improvement year over year. Customers
are more impressed with the value offered by Red Lobster, which
brought back one of its popular promotions—Endless Shrimp—for a
limited time in September 2019.
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2020 2019
FULL-SERVICE RESTAURANTSCustomer Experience
BenchmarksYear-Over-Year Industry Trends
Accuracy of food order
Food quality (taste, temperature,freshness of ingredients)
Quality of mobile app
Restaurant layout and cleanliness
Beverage quality (taste, temperature)
Courtesy and helpfulness of waitstaff
Variety of food on menu (not including beverages)
Variety of beverages on menu
Reliability of mobile app (minimal down time, crashes, lags)
Speed with which food order was received at table
Website satisfaction
85
85
84
83
84
82
85
50 55 60 65 70 75 80 85 90
© 2020 American Customer Satisfaction Index. All Rights
Reserved.
ACSI (0-100 Scale)
86
87
85
8486
8789
80
8183
82
8186
87
84
ACSI® ACSI Restaurant Report 2019-2020
The bottom of the industry belongs to Chili’s this year,
plummeting 4% to 75. Beyond having the lowest level of customer
satisfaction in the full-service segment, Chili’s also lags behind
the majority of fast food chains. Customers find Chili’s service
quality to be lacking compared with all other full-service
chains.
According to diners, the full-service restaurant experience has
gotten worse nearly across the board. While food order accuracy
continues to be the top-ranked element with a high score of 87, it
has dropped 2% year over year. Likewise, food quality (85) and
beverage quality (84) each decline 2% but still outpace
limited-service chains (83 for food and 82 for beverage
quality).
Results for mobile apps are mixed. Diners are slightly more
pleased with the quality of apps (85) but are finding apps to be
far less reliable (-6% to 81). With apps gaining more widespread
use during lockdown periods and beyond, this does not bode well for
the industry.
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In-person service also worsens, with staff courtesy dropping 3%
to 84 and service speed down 2% to 81. The least regarded aspect of
the experience remains websites, which have fallen 2% to 80 and now
lag fast food websites (81).
Limited-Service Restaurants
Customer satisfaction with the limited-service (fast food)
restaurant industry slips 1.3% to 78, the lowest ACSI score since
2015. Overall, fast food restaurants trail the full-service segment
by just a point. Among the 18 brands measured a year ago, 11
experience some lessening in customer satisfaction, but the
majority of these changes are 2% or less. With a business model
honed over years to allow quick, more frictionless customer
experiences through drive-thru lanes and delivery, the fast food
segment is positioned to fare better than sit-down restaurants in a
COVID-19 impacted market.
The undisputed industry leader is Chick-fil-A despite a 2%
decline to an ACSI score of 84. This is the sixth straight year
that Chick-fil-A has been number one across both restaurant
categories. Although its ACSI score is lower compared with prior
years, Chick-fil-A continues to be a pacesetter across much of the
customer experience. The chicken specialist has grown to become one
of the top U.S. fast food chains by system-wide sales. Per location
in 2019, Chick-fil-A sales were over 50% higher than McDonald’s
per-unit sales.
In second place, the group of smaller fast food outlets drops 2%
to 80, tying with Chipotle Mexican Grill (unchanged). This is the
first time that Chipotle has returned to its number-two position in
the industry since its food safety crisis abruptly lowered
satisfaction in 2016. Panera Bread holds its third-place slot this
year but is now joined by five other chains at 79. While Panera
stays just above the industry average in 2020, the 2% decline
brings the fast-casual chain to its lowest score since its ACSI
debut in 2015.
Sandwich specialist Subway is unchanged at 79 after two years of
modest customer satisfaction decline. The company closed over 1,000
U.S. locations in 2019, following similar closures in 2018. For
Subway, a bright spot is the quality of its mobile app, which is
top-rated by customers. Arby’s (Inspire Brands) joins in at 79 as
well with a 1% downturn. Over the past five years, Arby’s score has
been steady within the range of 79 to 80.
The pizza segment has a new leader in 2020: Domino’s at 79
(unchanged). In contrast, three other major pizza competitors lose
ground. For the first time since 2009, Domino’s beats Papa John’s,
which retreats 3% to 78. For Papa John’s, this is the lowest ACSI
score since 2015. In the fourth quarter of 2019, Domino’s beat
analysts’ expectations with U.S. same-store growth of 3.4%. The
pizza segment overall has been facing pressure from third-party
delivery services. Unlike other chains, Domino’s uses its own
digital platform and employees for ordering and delivery. In 2019,
digital sales made up 70% of its total U.S. sales, and the company
has a database of over 85 million customers.
ACSI® ACSI Restaurant Report 2019-2020
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ACSI® ACSI Restaurant Report 2019-2020
AMERICAN CUSTOMER SATISFACTION INDEX: LIMITED-SERVICE
RESTAURANTS
COMPANY
Limited-Service Restaurants
Chick-fi l-A
All Others
Chipotle Mexican Grill
Arby’s (Inspire Brands)
Domino’s
Dunkin’
KFC (Yum! Brands)
Panera Bread
Subway
Papa John’s
Starbucks
Pizza Hut (Yum! Brands)
Burger King (RBI)
Little Caesars
Wendy’s
Popeyes (RBI)
Sonic Drive-In (Inspire Brands)
Taco Bell (Yum! Brands)
Jack in the Box
McDonald’s
2019
79
86
82
80
80
79
78
78
81
79
80
79
80
76
77
77
NM
76
75
75
69
2020
78
84
80
80
79
79
79
79
79
79
78
78
77
76
76
76
74
74
74
73
70
% CHANGE
-1.3%
-2%
-2%
0%
-1%
0%
1%
1%
-2%
0%
-3%
-1%
-4%
0%
-1%
-1%
NA
-3%
-1%
-3%
1%
© 2020 American Customer Satisfaction Index. All Rights
Reserved.
0-100 Scale
NM = Not MeasuredNA = Not Available
Pizza Hut (Yum! Brands) drops further than Papa John’s—down 4%
to 77. Little Caesars slips just 1% but remains in last place among
the pizza chains at 76. In the fourth quarter of 2019, Pizza Hut’s
U.S. same-store sales tumbled 4%. Pizza Hut is transitioning toward
delivery and carryout only—which is 90% of its business. Over the
next two years, Pizza Hut may shed up to 500 restaurants.
Coffee specialists remain within a point of each other but swap
places as Dunkin’ moves up 1% to 79, just ahead of Starbucks at 78
(-1%). For Starbucks, price is clearly an issue as it rates at the
bottom of the industry for value.
Like Dunkin’, KFC (Yum! Brands) rises 1% to 79, staying far
ahead of its sister brand Taco Bell (-1% to 74). While KFC
continues to trail Chick-fil-A by a sizeable gap of 5 points, the
chain outperforms another chicken rival—ACSI newcomer Popeyes
Louisiana Kitchen (Restaurant Brands International). In its first
appearance in the Index, Popeyes earns a score of 74 that
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ACSI® ACSI Restaurant Report 2019-2020
places it in the bottom five for customer satisfaction. The
chain lit up social media with its August 2019 sold-out chicken
sandwich launch, boosting same-store sales that quarter by about
10%. Nevertheless, ACSI data show that Popeyes has a long road
ahead to catch up with its chicken rivals for customer
satisfaction. In particular, Popeyes falls behind leader
Chick-fil-A the most when it comes to service quality.
Among burger chains, Wendy’s drops 1% to tie with a stable
Burger King (Restaurant Brands International) at 76. The two chains
have been tied or within a point of each other for six straight
years. Sonic Drive-In (Inspire Brands) cedes ground this year, down
3% to 74 after debuting in the Index one year ago. Even lower, Jack
in the Box declines 3% to 73, and the chain has never seen customer
satisfaction higher than 75.
Consistent with its track record of last-place customer
satisfaction, McDonald’s anchors the bottom of the fast food
category at 70 (+1%). Still, this is one of the few times that the
chain has broken out of the 60s. In 2019, the company’s U.S.
comparable sales were up by 5% as the chain continued its
“experience of the future” remodel. McDonald’s also acquired
decision-logic firm Dynamic Yield in 2019 to personalize its
drive-thru experience via changing digital menu displays.
Nevertheless, improvements to the customer experience remain
incremental. ACSI data show that service speed has improved but not
enough to rival any other competitor.
For the limited-service restaurant industry overall, the
customer experience shows signs of weakening, but not to the extent
seen in the full-service segment this year. Accuracy of orders
still tops the list at 85, down slightly from a year ago. While
staff are somewhat less courteous and helpful (83), they now come
close to rivaling full-service wait staff (84). On the other hand,
service speed (81) is deemed to be no better than that of
full-service restaurants (81).
Customers still find mobile apps from full-service chains to be
superior in terms of quality (85 versus 81 for fast food). But as
mobile app usage increases, full-service restaurant apps have
become much less reliable (down 6% to 81). For fast food apps,
reliability has instead improved such that it now matches the
full-service segment (81). For both restaurant segments, however,
website satisfaction is moving in the wrong direction, with fast
food (81) now just ahead of the full-service industry (80).
In the limited-service segment, guests continue to be happier
with food quality (83) than food variety (80). Likewise, beverage
quality (82) is more acceptable than beverage variety, which at 79
is the worst aspect of the fast food experience.
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ACSI® ACSI Restaurant Report 2019-2020
2020 2019
LIMITED-SERVICE RESTAURANTSCustomer Experience
BenchmarksYear-Over-Year Industry Trends
Accuracy of food order
Courtesy and helpfulness of waitstaff
Food quality (taste, temperature,freshness of ingredients)
Restaurant layout and cleanliness
Beverage quality (taste, temperature)
Quality of mobile app
Reliability of mobile app (minimal down time, crashes, lags)
Speed of check-out or delivery
Website satisfaction
Variety of food on menu (not including beverages)
Variety of beverages on menu
83
83
81
82
81
81
83
50 55 60 65 70 75 80 85 90
© 2020 American Customer Satisfaction Index. All Rights
Reserved.
ACSI (0-100 Scale)
83
81
80
8283
8586
79
8080
80
8182
84
83
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About This Report
The ACSI Restaurant Report 2019-2020 on full-service and
limited-service (fast food) dining chains is based on interviews
with 23,312 customers, chosen at random and contacted via email
between April 15, 2019, and March 19, 2020. Customers are asked to
evaluate their recent experiences with the largest sit-down and
fast food restaurants in terms of market share, plus an aggregate
category consisting of “all other”—and thus smaller—restaurants in
those industries.
The survey data are used as inputs to ACSI’s cause-and-effect
econometric model, which estimates customer satisfaction as the
result of the survey-measured inputs of customer expectations,
perceptions of quality, and perceptions of value. The ACSI model,
in turn, links customer satisfaction with the survey-measured
outcomes of customer complaints and customer loyalty. ACSI clients
receive confidential industry-competitive and best-in-class data on
all modeled variables and customer experience benchmarks.
No advertising or other promotional use can be made of the data
and information in this report without the express prior written
consent of ACSI LLC.
ACSI and its logo are Registered Marks of the University of
Michigan, licensed worldwide exclusively to American Customer
Satisfaction Index LLC with the right to sublicense.
ACSI® ACSI Restaurant Report 2019-2020
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CUSTOMER SATISFACTION BENCHMARKS BY INDUSTRYBreweries
Personal Care & Cleaning Products
Food Manufacturing
Soft Drinks
Televisions & Video Players
Household Appliances
Internet Investment Services
Internet Retail
Banks
Cellular Telephones
Life Insurance
Automobiles & Light Vehicles
Athletic Shoes
Credit Unions
Financial Advisors
Full-Service RestaurantsInternet Travel Services
Property & Casualty Insurance
Computer Software
Limited-Service RestaurantsPersonal Computers
Specialty Retail Stores
Supermarkets
Ambulatory Care
Apparel
Consumer Shipping
Internet News & Opinion
Internet Search Engines & Information
Department & Discount Stores
Health & Personal Care Stores
Video Streaming Service
Hotels
Airlines
Health Insurance
Wireless Telephone Service
Cooperative Energy Utilities
Gasoline Stations
U.S. Postal Service
Investor-Owned Energy Utilities
Internet Social Media
Hospitals
Municipal Energy Utilities
Fixed-Line Telephone Service
Video-on-Demand Service
Internet Service Providers
Subscription Television Service
8483
828282
79
818181
80
807979
80
7979
79
78
7978
787878
7777777777
767676
75
74
7474
7373
727272
7068
6564
72
© 2020 American Customer Satisfaction Index. All Rights
Reserved. 0-100 Scale
73
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ACSI® ACSI Restaurant Report 2019-2020
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