1. UNDERSTANDING THE
CUSTOMER
Chapter 2

2. Learning Objectives:
• How does the customer choose What to eat
and Where to eat?
• Customer Behavior and Buying Process

3. MARKET CATEGORIES
• Captive Market
• Mass Market
• Status Market

4. Captive Market
• Institutions,
• Industrial
• School settings

5. Captive Market

6. Captive Market

7. Mass Market
• The mass market looks for food in a larger social
setting:
o everyone from teenagers grabbing a burger in the company of
friends
o families eating out together
o to special dates and anniversary dinners

8. Mass Market

9. Mass Market

10. Mass Market

11. 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.

12. Status Market

13. Types of Customers
• Repeat Customers
• Baby Boomers
• Multi-check
Households
• Families with Children
• Takeout and Delivery
• Seniors

14. 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.

15. Frequent Diners
• "Too Tired to Cook”
• "Busy Parents”
• "Urban Sophisticates”
• "Flavor Savorers”

16. Boomers
• The Baby-boomers were those who born
be-tween 1946 and 1964 spend more when they
dine out.

17. Multiple-check Families with Children
Households Less spending money
More spending money Less time to cook
Focus on children’s taste
More time to enjoy
Focus on lifestyle

18. Takeout and Delivery
• Fast food restaurants account for over 40 percent of takeout
meals.

19. 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.

20. Need of the Market
• Why do we Need
Food?

21. Need of the Market

22. • Monday:
Same Customer
Lunch @ Subway colleagues Different Needs
• Tuesday:
Dinner @ Italian Rest in 5 star with
wife
• Wednesday:
Lunch @ Country Club with Clients
• Thursday:
Dinner @ Hawker Stall.
• Friday:
Lunch @ Order Pizza

23. Reasons for eating out
• Convenience
• Variety
• Labour
• Status
• Culture / tradition
• Impulse
• No choice

24. Meal experience factors
• What do you Expect?
o Food and drink on offer
o Level of service
o Level of cleanliness and hygiene
o Perceived value for money and price
o Atmosphere of the establishment

25. Range of Guest Expectations About
Foodservices
A B C D
Food Is the Service Complements Service Is Service Is
“Product” the Food Anticipatory the “Product”
and “Invisible”
Food Is Food and Service Are Priorities Service Is a
the Priority
Priority
OH – 13.1

26. Decision Scenarios
• Three Goals
– Social Pleasure (
Occasion, For Kids)
– Eating Pleasure (
Cravings, Home Cooked
Food)
– Life Style (No Time, No
Energy)

27. • Choose a Leader
Project Status
• Divide into 2 Groups
• Select the Theme for your
Event.
• Wine or Cocktails

28. 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