Background

The COVID-19 pandemic brought unprecedented challenges to businesses, and the food and beverage industry was among the hardest hit. For TasteTown Bistro, a medium-sized restaurant chain known for its casual dining experience, the pandemic decimated customer traffic. As restrictions eased, TasteTown hoped for a strong recovery, but they faced a new challenge: traffic and sales remained stubbornly low. Loyal patrons seemed to be drifting to competitors who offered fresher menu choices or catered better to post-pandemic preferences.

TasteTown had grown steadily over the years, building a reputation for consistent quality and a welcoming atmosphere. However, after the pandemic, customer preferences shifted. The chain’s menu, which had remained largely unchanged for several years, no longer seemed to resonate with diners. Competitors were introducing bold flavors, customizable options, and healthier choices, while TasteTown struggled to keep pace.

The management team conducted initial surveys and received mixed feedback. Some customers appreciated the classic offerings, while others clamored for innovation. The team recognized that they needed a more structured approach to understanding customer preferences. That’s when their marketing director suggested Kano Analysis, a tool used to identify and prioritize customer needs by categorizing them into different levels of importance.

What they did

Kano Analysis, developed by Dr. Noriaki Kano, helps businesses classify customer preferences into five categories:

1. Must-Have Attributes: Basic features that customers expect. If these are missing, customers are dissatisfied, but their presence doesn’t necessarily delight.
2. Performance Attributes: Features that customers rate directly proportional to their satisfaction. The better these features are, the happier customers feel.
3. Delight Attributes: Unexpected features that surprise and excite customers, creating memorable experiences.
4. Indifferent Attributes: Features that customers don’t care about or notice.
5. Reverse Attributes: Features that some customers love but others dislike.

By categorizing feedback, the management team could pinpoint areas requiring improvement, areas to maintain, and opportunities to innovate. TasteTown began their Kano Analysis with a two-phase approach:

Phase 1: Designing the Survey – The team developed a detailed survey targeting their existing customer base. Each feature or attribute was evaluated through two questions:

1. Functional Question: How do you feel if this feature is present?
2. Dysfunctional Question: How do you feel if this feature is absent?

For example:

1. Functional: How do you feel if the menu offers plant-based options?
2. Dysfunctional: How do you feel if the menu does not offer plant-based options?

Customers rated their responses on a scale ranging from “I like it” to “I dislike it.” This dual questioning technique helped determine how each feature was perceived.

Phase 2: Gathering and Analyzing Data – Over three weeks, TasteTown collected responses from 2,000 customers across their locations and online platforms. The data was analyzed and categorized into the five Kano categories. Additionally, open-ended feedback was included to contextualize the quantitative results.

Outcomes

The results revealed surprising insights into customer preferences:

1. Must-Have Attributes:
   • Cleanliness and hygiene were non-negotiable. Customers expected spotless dining areas and clear COVID-19 safety measures.
   • Basic menu staples, like burgers and pasta dishes, remained essential.
2. Performance Attributes:
   • Customers valued quality ingredients, fast service, and competitive pricing. They rated these factors as directly influencing their satisfaction.
3. Delight Attributes:
   • Customization options, such as build-your-own salads and bowls, stood out as highly desirable.
   • Seasonal and regional specials were noted as delightful surprises.
   • Creative dessert offerings and specialty drinks also excited customers.
4. Indifferent Attributes:
   • Decor upgrades were largely unnoticed; customers preferred the familiar, cozy ambiance.
   • Digital tablet menus, while trendy, didn’t significantly impact satisfaction.
5. Reverse Attributes:
   • Some customers disliked the idea of overly elaborate or niche dishes, which they felt clashed with TasteTown’s casual appeal.

Armed with these insights, TasteTown’s leadership crafted a focused action plan:

1. Revamping the Menu
   • Keep Must-Have Items: Signature dishes like their Classic Cheeseburger and Spaghetti Bolognese were retained.
   • Enhance Performance Features: They introduced fresher ingredients and streamlined service times by optimizing kitchen workflows.
   • Add Delight Features: The menu was expanded to include customizable salads, seasonal dishes like summer berry cobblers, and specialty mocktails.
2. Improving Hygiene Standards
   • While TasteTown already adhered to cleanliness protocols, they doubled down on visible efforts, such as sanitizer stations and regular table cleaning.
3. Marketing the Changes
   • A campaign titled “Taste the Future, Love the Classics” highlighted the blend of new offerings and traditional favorites.
   • Social media polls engaged customers, asking them to vote on seasonal specials.
4. Testing and Iterating
   • Two pilot locations implemented the revised menu first. Customer feedback was monitored closely, and further tweaks were made before the rollout across all locations.

The changes began to show results within weeks of the rollout. Here’s what TasteTown achieved:

1. Customer Traffic Increased by 4.6%: Foot traffic steadily grew as customers responded positively to the revamped menu and marketing efforts.
2. Sales Increased by 3.7%: While the traffic increase was a key driver, the addition of high-margin items like customizable bowls and specialty drinks also contributed to higher average checks.
3. Enhanced Customer Satisfaction: Post-implementation surveys indicated improved customer sentiment, particularly around the new menu items and customization options.

Final Thoughts

The success of the Kano Analysis underscored valuable lessons for TasteTown:

1. Listen Closely to Customers: Generic surveys weren’t enough; the structured, detailed approach of Kano Analysis provided actionable insights.
2. Balance Tradition and Innovation: Retaining classics while introducing exciting new options created a balance that appealed to a broader audience.
3. Iterate and Improve: Piloting changes at select locations allowed for refinement before full implementation, minimizing risks.
4. Prioritize Delight: Surprising customers with unique, delightful features strengthened their loyalty and generated word-of-mouth buzz.

TasteTown’s journey from struggling to thriving highlights the power of understanding customer needs at a deeper level. By leveraging Kano Analysis, the chain transformed its offerings to better align with post-pandemic dining trends. The result was not just a recovery in sales but also a renewed sense of connection with their customers. For businesses in any industry, TasteTown’s story serves as a testament to the value of customer-centric innovation.

The image featured at the top of this post is ©ESB Professional/Shutterstock.com.