Restaurants Order Up Mystery Shopping

When: 3-23-2006
Source: Market Wire (press release) - USA

Research Techniques Merge for Franchise Compliance

ROCKLIN, CA -- (MARKET WIRE) -- 03/23/2006 -- Traditionally, restaurant chains have been a mainstay for National Shopping Service, consistently providing one-third or more of its domestic business. But winds began changing in mid-2004, and, on a downward trend, restaurants provided only 28 percent of the company's revenue for the year.

This trend continued into mid-2005 and left National Shopping Service finishing the year with restaurants generating a record-low 23.8 percent of its total revenue, as restaurant chain operators began switching to Interactive Voice Response (IVR) and other forms of customer satisfaction surveys as an inexpensive alternative to mystery shopping programs.

However, in 2006, the tide is definitely turning again.

Since late 2005, National Shopping Service -- a 34-year mystery shopping leader -- reports that the restaurant industry is again producing well over 30 percent of its total revenue so far in 2006, with a record number of additional projects already in development.

"Unlike in 2004, when we saw chain store operators choosing one or the other [IVR or mystery shopping] its refreshing to now see more and more companies merging these two measurement tools and linking the results," said Tony Yorba, executive vice president of National Shopping Service.

Mystery shopping is useful in providing actionable results and monitoring the impact of training and performance improvement initiatives. Results of this research are most valuable when used to examine gaps between promises made through advertising and actual service delivery, compared to real customer expectations, needs, and requirements.

"For an accurate, clear picture, you really need both quantitative, objective measurements and qualitative, subjective feedback," Yorba said. "For restaurants and convenience stores, when comparing 'actual' customer wait time gained from mystery shopping results to 'perceived' wait time obtained from IVR, analysis should focus on how customer perceptions vary, compared to increases or decreases in actual wait time."

The mystery shopping industry continues to see demands move increasingly toward the development of enterprise-wide service initiatives and the linking of performance data to employee training.

About National Shopping Service:

Founded in 1972, National Shopping Service offers businesses a unique combination of mystery shopping resources and measurement solutions focused on brand alignment and customer retention. Using state-of-the-art data collection methods, Web-based technologies and proprietary processes, National Shopping Service provides managers with actionable information necessary to understand and affect customer loyalty while improving overall business performance.

For more information, visit http://www.nationalshoppingservice.com