- Email: [email protected]
Customer perceptions of Singapore's theme restaurants
Customer Perceptions
of Singapore's Theme Restaurants by Donald J. MacLaurin and Tanya L. MacLaurin
Western favorites Planet Hollywood and Hard Rock Caf~ are popular in Singapore-earning high scores for atmosphere, menu attributes, service quality, and overall value.
Singapore comprises a set of small tropical islands where 3.5 million residents live within a total land area of only 400 square miles. The Asian city-nation attracted approximately 7.2 million overnight visitors in 1997, but in 1998 the Singapore tourism industry recorded a substantial decline. The Singapore Tourism Board (STB) reported that visitor arrivals in 1998 decreased to 6.2 million, down 13.9 percent. Even so, expenditures per visitor that year increased by 8 percent, to $712 Singapore (US$1 = approximately $1.70 Singapore), and average length of stay increased 5 percent, to 3.42 days. Tourism arrivals in the first six months of 1999 increased by 8.9 percent compared to the same period in 1998. By late summer 1999,
Singapore's national newspaper, the Straits Times, predicted that halfa million new visitors would bring the total for the entire year to 6.7 million. 1 Singapore is globally renowned for its vibrant and diverse restaurant industry. With more than 20,000 food-service establishments, there is approximately one outlet for every 150 persons. The majority of those 1S. Khalik,"500,000 More Visitors Likely in 1999," Straits Times, August 7, 1999,p. 1.
Don MacLaurin, Ph.D., ~,adjmaclaurin @ntu. edu.sg,~, and Tanya MacLaurin, Ph.D, ,[email protected],~, are associate professors of marketing and tourism management a~ the Nanyang Business School, Singapore. © 2000, CornellUniversity
June 2000 * 75
food-service operations (79 percent) are hawkers' food centers (e.g., open markets), coffee shops, canteens, and food courts. The remaining 21 percent are classified as restaurants. 2 The rapid growth of the themerestaurant industry in Singapore occurred only in the last decade. According to the Singapore Tourism Board, the prohferation of specialty restaurants focusing on ethnic cuisine in the late 1980s and early 1990s was due to the fact that Singaporeans had more disposable income and were traveling more. Approximately one-half of the Singapore population makes at least one overseas trip per year, exposing residents to a variety of Western and international restaurant concepts. Singaporeans today are more educated, cosmopolitan, and accepting of Western cultures and lifestyles than they were before 1990, based on Singapore Tourism Board data. A large expatriate community consisting of more than 400,000 temporary residents--largely managers and professionals--contributes to an international influence on the local dining scene. Internationally branded companies eagerly embrace the operating environment for business in Singapore. Low tax rates, high levels of disposable income, a stable government, and the use of English as the official language all enhance this environment. Many retail and restaurant companies use Singapore as a test-market and springboard into the Asian market. For example, Borders opened its first bookstore outside North America in Singapore (the only Borders bookstore in the world that serves alcoholic beverages to its customers) and Taco Bell opened its first Asian outlets in Singapore in 1998. This study examined the themerestaurant industry in Singapore. It 2 Ministry of the Environment, Grading System of Eating Establishments and Foodstalls (Singapore: Ministry of Environment Publishers, 1998).
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looks at consumers' perceptions of two Eastern-theme restaurants and those of two eateries that are based on or affiliated with Western themes. We analyze the implications of those findings and offer our recommendations to developers of and investors in theme restaurants.
From Boxcarsto Rock Stars: A Brief History of Theme Restaurants Victoria Station was one of the pioneer players in the themerestaurant industry. Founded in 1969 by three graduates of Cornell University's hotel school, Victoria Station started as a limited-menu restaurant designed for singles, couples, and families who liked to eat out but could not afford high prices. The restaurant chain, which no longer exists, featured prime rib of beef served in the distinctive atmosphere of railroad boxcars. The interiors of the boxcars were refurbished and decorated with railroad equipment and memorabilia. Old baggage carts were used as room dividers and tables. Gaslights, a red English telephone booth, and a London taxi were placed in front of the restaurants. 3 Hard Rock Car6 was one of the first major theme restaurant chains developed after Victoria Station. Two Americans, Peter Tigrett and Issac Morton, started the restaurant in 1971. The restaurant concept was based on a rock-and-roll theme that emphasized the development of the music industry. The first restaurant opened in London; today the Hard Rock Car6 chain has 104 branches in 36 countries. 4 The restaurant displays 60,000 pieces of memorabilia such as record albums, guitars, and jackets belonging to famous 3 Robert C. Lewis, Cases in Hospitality Marketing and Management Second Edition (NewYork: Wiley & Sons, 1997), pp. 13-42, 65-97. 4 Seth M. Siegel, "Official Licensed Burgers and Fries," Brandweek, New York, April 29,1996, p. 17.
past and present rock-music performers. The memorabilia is rotated throughout the chain's global locations (,,www.hardrock.com~). Moreover, Hard R o c k Caf6's merchandising efforts have been so successful that many of its products are treated as collector's items. Planet Hollywood was started in 1992. Keith Barish and Robert Earl came up with the concept of a restaurant based on the Hollywoodmovie industry. Movie stars such as Sylvestor Stallone, Bruce Willis, Arnold Schwarzenegger, and Demi Moore have been high-profile shareholders in Planet Hollywood. The restaurant chain receives extensive publicity by having movie stars grace the openings of its outlets around the world--which now number more than 80. 5
Theme Restaurantsin Singapore Hard R o c k Caf6 was the first theme restaurant to open in Singapore, in 1990. Other theme restaurants, including Hooters and Peppers, followed. (Peppers, a restaurant and pub based on the Beatles, closed within three years of its opening.) The theme-restaurant industry in Singapore did not develop further until Planet Hollywood entered the market in 1996, after which the brands Celebrities Asia and Studio East also opened branches in Singapore. Local entrepreneurs attempted to obtain a share of the market by starting their own theme restaurants. Examples included Monkey's Caf~, Garfield Caf6 (named for the comics-page cat), African Heartbeat, House of Mao, and Snoopy Place (which was based on Shultz's Peanuts cartoon characters). Celebrities Asia. Celebrities Asia is an Asian version of Planet s Ben Van Houten,"Could It Be Magic,"
Restaurant Business, Vol. 97, No. 3 (February 1, 1998), pp. 28-31, 34.
Hollywood. The shareholders include Hong Kong actor Simon Yam, international television cook-show host Martin Yan, Malaysian-born singer Eric Moo, and Singapore movie producer and writer Chua Lain. Shareholders donated their personal belongings for display in the restaurant. 6 Andrew Tjioe, president of the Singapore-based Tung Lok Group, started House of Mao in 1998. The theme of the restaurant was inspired by Mao Zedong and emphasizes the era of the Chinese Cultural Revolution. House of Mao is considered to be the first Chinese-theme restaurant to open in Singapore. The restaurant serves mostly Hunan cuisine with an occasional Western twist to its dishes. Both Singapore locations are decorated with memorabilia such as paintings and life-size photos of Chairman Mao. The uniforms of the food servers are adapted from the uniforms of the Chinese R e d Army. 7 Our study focused on these four Singapore theme restaurants: Planet Hollywood, Hard R o c k Caf6, Celebrities Asia, and House of Mao. A brief description of each of those four theme restaurants and information about their merchandising efforts can be found in the accompanying boxes.
The Research Method A survey comprising 300 selfadministered questionnaires designed to identify respondents' perceptions of the four theme restaurants was conducted in Singapore's Orchard R o a d commercial district. Survey participants were randomly selected using a "mall intercept" approach. Potential respondents were pre-screened with the question 6Selina Lum, "This [Singapore] Eatery Has Items from Eric Moo," Straits Times, November 8, 1997, p. 4. 7Leong Weng Kam, "Braised Pork with a Dash of Mao," Straits Times, June 26,1998, p. 63.
June 2000 • 77
Celebrities Asia
~e
"Have you been a customer in a dents (30 percent) were aged 26 to Singapore theme restaurant during 35 years. That only 18 respondents the past year?" If the answer was (6 percent) were over the age of 36 "yes," respondents were asked to bears out our observation that visiparticipate in the study by complettors to the theme restaurants were ing a four-page survey. Four of primarily teenagers and young the questionnaires were improperly adults. (Our observations were completed, leaving a final sample made during numerous visits to the size of 296. four restaurants at various times of We also arranged for personal the day and week to obtain a balinterviews with managers of the anced perspective of guest activity four Singapore theme restaurants at those establishments.) considered by our study (i.e., Planet This finding is similar to comHollywood, Hard k o c k CafS, ments the restaurant managers made Celebrities Asia, and House of Mao) during our interviews with them: to obtain background information that theme restaurants are considabout those theme restaurants and ered trendy and, hence, appeal more their operating strategies. to teenagers and young adults than The questionnaire was divided to older adults. All the managers of into two sections. Section A asked the theme restaurants remarked that about respondents' perceptions of they did not specifically target any theme restaurants in general. Section age group, but instead targeted evB required respondents to rate, on eryone as a potential customer. a five-point Likert-type scale, nine Gender a n d race. Slightly more attributes for all of the four theme than half the respondents, 160 (54 restaurants they had visited. R e percent), were female. In terms of spondents were also asked several race, 261 (88 percent) were Chinese. open-ended comments at the end of O f the remaining 35 respondents, the questionnaire, such as "Do you 16 (5 percent) were Malay, 11 think more theme restaurants will (4 percent) were Indian, and the open in Singapore in the future?" eight others (3 percent) were Eurand "Do you think these restaurants asians and expatriates. This comwill be successful?" The questionpares to the overall ethnic populanaire was pretested on a sample of tion distribution of Singapore, 20 diners who had eaten at all four which is about 77 percent Chinese, restaurants, and revisions to the 14 percent Malay, 7 percent Indian, questionnaire were made based on and 2 percent "other.''8 those individuals' comments. I n c o m e levels. The largest A t-test and Friedman test number of respondents (102, or (which checks for differences within 35 percent) had incomes lower than groups) were used to analyze the $500 per month (in Singapore dolstudy results. The Friedman test was lars). O f those, the large number of used on the pretest sample of 20 respondents who belonged to the respondents--all of whom had vis16- to 25-year-old age group (64 ited all four theme restaurants--to percent) may account for that lowdetermine whether there were any income finding, since those responsignificant differences in the ways dents were likely to be students, they rated the selected attributes. whose income is solely the family allowances they receive monthly. Characteristicsof Respondents Unlike North American students, The majority, 190 respondents (64 few Singaporean students engage percent), were aged 16 to 25 years (Exhibit 1). Eighty-eight respon8 ~http://www.singstat.gov.sg~.
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in part-time work. The remaining 189 respondents who reported their income were mainly working adults Participants' profile, N = 296 with varied occupations. N u m b e r o f restaurants < 15 years old 6 visited. More than one-third, or 15 to 25 years old 190 112 respondents (38 percent), had 26 to 35 years old 88 visited just two theme restaurants, 36 to 45 years old 10 and three-quarters of this group > 45 years old 2 (84) had visited both Hard Rock iiii i i !i+iiiJiiiiii!ii!i!iiii+i+iiii!iiiiiii!iiiiiiiiiiiilliCaf6 and Planet Hollywood. Chinese 261 Ninety-eight respondents (33 Malay 16 percent) had visited only one of Indians 11 Other 8 Singapore's theme restaurants (and Women 160 most reported that they had visited Men 136 Hard Rock Caf6). Sixty-six respondents (22 percent) had visited three ii iii!i!ii!iiii!ii!!i!iiiiiiiiiiiiii!iiiiiii!+i!ii!!i!ili!i! restaurants and only 20 (7 percent) < $500 102 $500 to $1,000 20 had visited all four. $1,001 to $1,500 29 Most of the respondents (252, or $1,501 to $2,000 34 85 percent) had visited Hard Rock $2,001 to $2,500 32 Caf~. Planet Hollywood was the $2,501 to $3,000 30 > $3,001 44 second most-patronized restaurant (192, or 65 percent). Only 83 study participants (28 percent) visited Celebrities and just 67 (23 percent) One restaurant 98 Two restaurants 112 visited House of Mao--perhaps Three restaurants 66 because Celebrities Asia and House Four restaurants 20 o f Mao are relatively new and, unlike Hard Rock Caf~ and Planet Hollywood, are not international Not more than once per year 55 brand establishments. 2 to 4 times per year 151 F r e q u e n c y o f p a t r o n a g e . Two Once per month 67 to four times per year, or approxi2 to 4 times per month 20 mately once every three to six 5 or more times per month 3 months, 151 respondents (51 percent) visited theme restaurants. Fifty-five respondents (19 percent) Very successful 6 said that they visited a theme restausuccessful 136 neutral 144 rant no more often than once per unsuccessful 8 year; 67 (23 percent) visit them very unsuccessful 0 once per month; and only 20 (7 percent) reported visiting theme Note: Totals may not add to N = 296 due to rounding or respondents' incomplete restaurants twice or more per surveys. month.
Exhibit 1
Views on success of theme restaurants. When asked whether
they expected more theme restaurants to open in Singapore, almost all respondents (271, or 92 percent) answered "Yes" Most respondents (144, or 49 percent) were neutral about whether these restaurants
June2000 • 79
Exhibit 2
Mean rankings of nine restaurant attributes Mean rank Hard Rock Celebrities Planet House Caf~ Asia Hollywood of Mao
Factors and their attributes 1+ T h e m ~ n c e ~ (a) Theme is excellent (b) Overall experience is up to expectation
3.66* 3.67*
3.23* 3.22*
3.62* 3.43*
3.78* 3.48*
4.00* 3.46* 3.56*
3.57* 3.35* 3.33*
3.76* 3.34* 3.42*
3.64* 3.30* 3.13
3.61 *
3.30*
3.54*
3.16
3.48* 3.62* 4.05*
3.13 3.53* 3.38*
3.11 3.49* 3.68*
313i * 3.27* 3.02
3.61"
3.29*
3.41"
3.14
3.77*
3.41"
3.71"
3.59*
3.70* 3.43*
3.51 * 3.23*
3.61" 3.27*
3.39* 2.94
3.53*
3.44*
3.49*
3.56*
4.07* 3.64*
3.65* 3.62*
4.06" 3.63"
4.i7" 3.06
3.56*
3.38*
3.49*
3.89*
2: S e r v ~ q ~ l ~ (a) Serves food exactly as you ordered (b) Provides prompt and quick service (c) Is able and willing to give information (d) Has well-trained, competent, and experienced employees
3. Food quail~ (a) Taste of food is excellent (b) Appearance of food is excellent (c) Food quantity is sufficient (d) Quality of food served is consistent during each visit (a) Menu design is attractive and reflects the restaurant's image (b) Menu is self-explanatory and user-
friendly (c) Food variety is excellent (d) Menu names of food are appropriate to the theme
5! Atmosphere (a) D~cor suits the theme (b) Dining area is very comfortable (c) Uniforms of service employees suit the theme
Si Convenience
i
(a) Very easy to reach the restaurant (e.g., public transportation, parking) (b) Situated in good location (c) Restaurant is open long enough
r: val~
.
.
.
3.25* 3.48* 3.88*
3.90* 4.04* 3.81"
3.67* 3.99* 3.73* i
.
(a) The restaurant provides value-for-the-money
3.17 3.28* 3.16
3,30*
2.96
2.96
3.03
3.44* 3.34*
3.16 2.91 *
3.41 * 3.31 *
2.75* 2.58*
3.23" 3.56*
3.35* 3.37*
3.48* 3.61"
3.44* 3.39*
8! Produ~ merchandlse (a) The range of merchandise is very wide (b) The merchandise is very attractive
9, Priclng (a) Prices of food are fair (b) Prices of merchandise are fair
* Denotes that the null hypothesis was rejected at the 5-percent level of significance.
would be successful, while 142 respondents (48 percent) believed that future Singapore theme restaurants would be successful. Only eight respondents believed that future theme restaurants in Singapore would not be successful.
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By some measures, the theme restaurant industry worldwide has been constricting. 9 In Singapore, however, the industry is still in its early stages, and we anticipate its continued growth. Moreover, Andrew Tjioe told us that future restaurants would probably be theme restaurants, as customers were beginning to expect more from the dining experience.
Ranking the Four Restaurants' Attributes H o w the respondents perceived nine attributes of the four theme restaurants--theme concept, quality of service, quality of food, menu, atmosphere, convenience, value, produce merchandise, and pricing-is reported in Exhibit 2. The mean score and standard deviation of the ranking for each measure of each attribute was calculated using the SPSS program. House of Mao was rated the highest in terms of theme concept. On the other hand, that restaurant received the highest number of negative views on other factors when compared to the other three restaurants. It is our opinion that some respondents may have believed that this theme trivializes the hardships suffered by the Chinese during the Cultural Revolution. Indeed, letters to the editor of Singapore's national newspaper, The Straits Times, voiced concerns about that theme when the restaurant first opened. Hard R o c k Caf6 received the best ratings for the way the overall experience met expectations. Although respondents highly rated the experience at Hard R o c k Car6, the restaurant's theme of rock-and-roll did not get the highest mean ratings. One possible reason for that apparent contradiction is that the restau9ABC News,"ThemeRestaurants to Shrink Sharply,"December27, 1998a.
rant had arranged the right "overall experience" components of food, service, and atmosphere to compensate for a theme that was not self-sustaining. Hard Rock Caf8 had the highest mean for all four attributes under the service-quality factor. The restaurant's employees are required to complete customer-service training in the classroom and on the job. House of Mao, on the other hand, had the lowest aggregate scores for service quality. That may be a result of the workers in this year-old establishment having less experience and preparation than restaurant employees elsewhere, because House of Mao staff members received no classroom training before starting
ety. House of Mao was rated as the restaurant having the most appropriate food names with respect to its theme. In fact, House of Mao was the only one of the four restaurants to name the food in relation to the theme. House of Mao had the highest means for the category of atmosphere, except for comfort of the dining area. Restaurant managers had succeeded in using the d~cor and the uniform design to reflect the theme of the Chinese Cultural Revolution. For dining-room comfort, however, House of Mao had the lowest mean rating (3.06) and highest standard deviation. The mean of 3.06 was significantly lower than that of the other restaurants, and work. was the only measure of atmosphere Hard Rock Caf6 also had the for which significant differences in means were observed. We believe highest mean scores for quality of that House of Mao's low score illusfood and taste of food. The mean trates the planning challenge of scores for taste of food for all four trading off authenticity against restaurants were neither particularly comfort in theme restaurants. Cushigh, nor were they significantly tomers probably did not feel comdifferent. Respondents seemed to fortable on the hard wooden chairs, be saying that the food served at stools, and tables that the restaurant theme restaurants was not as good had chosen to reflect the simple life as that at other restaurants. Those responses support Farkas, who wrote of the Chinese during the Cultural that theme restaurants were not Revolution. Respondents ranked Celebrities reputed for their food quality but Asia as having the best location and rather for their theme concepts. 1° being the most accessible. The reaHouse of Mao had the second son for the high means for both highest mean for taste of food, but the lowest means for the other three Celebrities Asia and Planet Hollywood was probably that their locameasures of food quality. Planet Hollywood had the highest standard tions were near M R T (subway) stations. House of Mao received the deviation and the highest percentage of negative views with regard to lowest mean for operating hours, the taste of the food. Those conflict- perhaps because House of Mao closed for a time in the afternoon ing results imply that respondents' and also ended business earlier views on the taste of food served at (10:30 PM) than the other three Planet Hollywood varied widely. theme restaurants, which all catered Hard Rock Caf6 had the highest to late-night dining-and-drinking means for user-friendliness of the patrons. menu, menu design, and food variRespondents ranked Hard Rock Caf~ as providing the best value for 10David Farkas,"Theme Dreams," Restaurant the money. This high rating for Hospitality, Vol. 82, No. 1 (Jan. 1998), pp. 36-44.
The theme-restaurant industry in Singapore is still in its early stages, and we anticipate its continued growth.
June 2000 • 81
Exhibit 3 Mean rankings of the nine restaurant attributes by respondents who visited all four restaurants (N = 20) Meanrank
HardRock
~andlheir a~dbutes
~
Pipet
House Result
(a) Theme is excellent (b) Overall experience is up to expectation
2.80 2.92
1.77 1.65
2.80 2,63
2.63 2.80
.002 .000
Reject Ho Reject Ho
(a) (b) (c) (d)
2,97 2.45 2.65
2.03 2.67 2.30
2.63 2.55 2.72
2,38 2.33 2.33
.002 .676 .260
Reject Ho Do not reject Ho Do not reject H0
2.90
2.15
2.80
2.15
.013
Reject Ho
- 3.20 2.90 3.55
2.28 2.38 2.03
21i3 2.80 2.70
2.40 1.92 1.73
.005 .009 .000
Reject Ho Reject Ho Reject Ho
3.03
2.17
2.85
1.95
2.95
2.t 0
2.70
2.25
.010
Reject Ho
2.72 3.13
2.25 2.33
2.83 2.50
2.20 2.05
.033 .003
Reject Ho Reject Ho
2.70
2.10
2.97
2.22
.010
Reject Ho
2.70 2.88
1.98 2.50
2.65 2.45
2.67 2.17
.021 .174
I
Reject Ho Do not reject Ho
2.80
1.88
2.30
3.03
.001
J
Reject Ho
I. . . . . . . . . . . . . . . ]. . . . . . . . . . . . I 2.85 i 2.15 3.03 I 2.13 2 65 1 90 I .... '
.000 .000 .000
i I
Reject Ho Reject Ho Reject H0
]. . . . . . . I 2.28
.001
Serves food exactly as you ordered Provides prompt and quick service Is able and willing to give information Has well-trained, competent, and experienced employees
(a) Taste off0od is excellent (b) Appearance of food is excellent (c) Food quantity is sufficient (d) Quality of food served is consistent during each visit (a) Menu design is attractive and reflects the restaurant's image (b) Menu is self-explanatory and user-friendly (c) Food variety is excellent (d) Menu names of food are appropriate to the theme (a) Decor suits the theme (b) Dining area is very comfortable (c) Uniforms of service employees suit the theme
(a) Ve~ easy to reach the restaurant . . . . . . . . (e.g., public transportation, parking) 1.88 (b) Situated in good location 1.90 (c). Restaurant 2 ' 97 . . . . . is open long enough
I I
(a) The restaurant provides .value-for-the-money . . . . .
I I
'
(a) Therange0f merchandise isverywide (b) The merchandise is very attractive
3.25 3108 2 70
I
..... 3.13 2.95 2 "47 .... 2.30
2128 . . . . . 2 .20
] I I I
I I
I ..... I 2.17
2.83 . . . . . I 3.05 {
i183 . . . . 2.05
....
i0o0
Reject Ho ....
.ooo
....(ai' Pricesof fo0d are fair ......................... 1198 ......I ........2153................. 219o ...........I .....216o ....... ..........007 .... I : (b) Prices of merchandise are fair 2.78 J 2.05 2.72 I 2.45 .012 ] * The highest mean ranks for attributes 1 to 8 indicate that the customer gave those restaurants a better rating than they did the other three restaurants. ÷ The highest mean ranks for the measures of attribute 9 indicate that the customers believed that Planet Hollywood was more expensive than the other three restaurants.
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...............
I RejectH0
Reject H0 .... : ..... Reject Ho
value might have been based on the overall experience at the theme restaurant, since Hard Rock Caf~ also obtained a high mean for overall experience. Hard R o c k Caf~ also obtained the highest means for both measures of merchandising. One reason might be that the restaurant had improved the design and range of merchandise it offered over the years. Its badges and pins, for example, were considered to be collectors' items. House of Mao had the lowest means for both the range and the attractiveness of its merchandise because, as noted earlier, the restaurant's managers had chosen to concentrate on food rather than on selling merchandise. Planet Hollywood was perceived as having the most expensive food, while Hard Rock Caf6 was viewed as offering the least expensive. Hard R o c k Caf6 may have been ranked least expensive in terms of food because the restaurant served larger portions than the other restaurants. As a result, respondents also agreed that Hard R o c k Caf6 provided the most value for the money. Product merchandise at Celebrities Asia was perceived as least expensive, but the restaurant was holding a "buy-oneget-one-free" promotion during our study, and that may have accounted for this ranking.
Rankings by Those Who Visited All Four Restaurants We conducted a Friedman test on how the 20 respondents who had visited all four restaurants rated the nine attributes to determine whether their wider experience with theme restaurants led to any significant differences in the way they rated the attributes for each restaurant. The results are summarized in Exhibit 3. Our results indicate that respondents who patronized all four restaurants found the themes of Hard
Rock Caf~ and Planet Hollywood to be the most desirable. There were significant differences in how they perceived the total experience as living up to expectations among the four restaurants. Hard Rock Caf6 obtained the highest mean rank (2.92), and Celebrities Asia the lowest (1.65). House of Mao's mean rank of 2.80 was higher than Planet Hollywood's mean rank of 2.63. For serving food exactly as ordered, Hard Rock Caf~ had the highest mean rank (2.97), and Celebrities Asia had the lowest mean rank (2.03). There was no significant difference in the speed and promptness of the service of the four restaurants, or in the ability and willingness of staff members to give information on menu, ingredients, and preparation methods. The restaurants having a Western theme scored significantly higher for having well-trained, competent, and experienced personnel. Hard Rock Cafe's mean rank of 2.90 was the highest, followed by Planet Hollywood (2.80). Both Celebrities Asia and House of Mao had mean ranks of 2.15. There were significant differences in the rankings for quality and appearance of food. Hard Rock Caf~ had the highest mean rank for quality (3.20), and Planet Hollywood the lowest mean rank (2.13). Hard Rock Caf~ also scored highest on the appearance of its food. Because House of Mao serves food in ceramic or metal bowls and plates and with few garnishes, the customers may have perceived the appearance of its food as less attractive. At any rate, they gave House of Mao the lowest score for appearance. Significant differences were found in the sufficiency and consistency of the food quantity served (portion size). Hard Rock Caf6 had the highest mean for both of those attributes, followed by Planet Holly-
wood. The higher mean ranks obtained by these restaurants might be due to their serving Western-size portions, which are normally larger than those served by other local, Asian-style restaurants. The restaurants relying on a Western theme also finished with the highest scores in all four measures of the "menu" attributes: menu design, user-friendliness, food variety, and appropriate menu names for the food items. The differences were significant in all four attributes. Hard Rock Caf6 and Planet Hollywood were perceived as having the best d~cor to suit the restaurant theme. There was no significant difference in the percei~'ed comfort levels of the four restaurants. House of Mao had the highest mean rank (3.03), and Celebrities Asia had the lowest (1.88), for staff uniforms that suited the restaurant theme. The Celebrities Asia staff wore T-shirts that were also sold as restaurant souvenirs (merchandise). Customers, however, might have perceived that Celebrities Asia had been lax in creating a uniform more suited to the theme. There were significant differences in the perceived ease of access to the four restaurants. Celebrities Asia had the highest mean rank (3.13), and Hard R o c k Caf6 had the lowest (1.88). Hard Rock Caf~ also had the lowest score for location (1.90), while Planet Hollywood scored highest, with a significantly higher mean of 3.03. Hard Rock Caf~ is located one block off the main Orchard Road area, and that may have contributed to its low scores on location and accessibility. House of Mao had the lowest mean rank (1.90) for hours of operation, which was significantly lower than the means ranging from 2.47 to 2.97 accorded the other three restaurants. There were significant differences in the means for value-for-the-
June 2000 •
83
SomeExpertsPredictHardTimesAhead Future Trends For the Theme-restaurant Business Ron Paul, president of the restaurant-consulting firm Technomic, Inc., commented that the life-cycle of theme restaurants is much shorter than originally expected (based on others' research). 1 The theme-restaurant industry is expected to constrict dramatically through closings or bankruptcy, according to James Berk, president of Hard Rock Cafe International. Berk also predicts that there will be no additional worldwide theme-restaurant chains but only single-site, independent theme restaurants and quality restaurants of other types. Robert Earl, who helped Hard Rock Cafe expand beyond London and launched Planet Hollywood in 1992, believes that people will go back to those two restaurants after the restaurants now based on narrower, more local, concepts fail. 2 Two theme restaurants that had plans for branches in major cities around the world--Television City and the Fashion Caf~-were expected to close in January 1999. 3 The Fashion Caf~ in London went into receivership in October 1998. Planet Hollywood International, Planet Hollywood's parent company, declared bankruptcy in August 1999. The founder of Television City, David Liederman, commented that the time and money required to develop an elaborate theme forced the restaurant to charge high prices that many people were unwilling to pay. Television City will be converted into Chez Louis, a restaurant that specializes in chicken "roasted" over wood fires. Liederman believed that there will be a massive movement out of the theme-restaurant business, and that Television City will be leading the pack that no longer follows a theme.4 Even famous and well-established theme restaurants such as Hard Rock Cafe, Planet Hollywood, and Rainforest Caf~ have suffered from declining sales.The theme-restaurant industry boomed three or four years ago with promises of untold profits from a slickly packaged blend of eating, shopping, and entertainment. The various reasons cited for the current failure of theme restaurants include too rapid an expansion, loss of novelty, and distracting d~cor.5 On the other hand, some restaurant analysts believe that the theme concept may not be dead yet. They expect Hard Rock Caf~ to survive and prosper, because the largest and oldest theme chain has done a good job of focusing on food,
1Charles V. Bagli, "Their Novelty Gone, Theme RestaurantsAre Tumbling," New York Times, December27, 1998, p. 1. 2ABC News, op. cit. 3S.H. Lee, 'qheme RestaurantsFoldingAround the World," Straits Times, December28, 1998. 4Bagli, op. cit. 5Lee, op. cit.
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I~N~II HOTELANDRESTAURANT ADMINISTRATIONQUARTERLY
decor, and merchandising. Planet Hollywood plans to reorganize by cutting back on its expansion plans and closing the All Star Caf6, a second theme-restaurant concept tested by the parent company. Changes will be made to the menu, prices, Iogos, and designs for the restaurants, and new movie stars will be introduced to boost declining sales. 6 Food and lodging. Theme restaurants are making an attempt to enter the hotel business, too. Fast-growing chains such as Hard Rock Caf~, Planet Hollywood, and House of Blues are entering the lodging business by opening hotels that are usually next door to their restaurants. Hard Rock Caf6, for instance, currently has a resort in Bali and a hotel in Las Vegas, and it is planning to open more hotels and resorts. House of Blues Hotel opened in Chicago in October 1998 and there are plans for more hotel projects--for example, a House of Blues hotel in Las Vegas. Meanwhile Planet Hollywood is investing in a 562-room Hollywood-theme hotel in New York's Times Square.7 The theme-restaurant companies want to open hotels that provide a lodging environment that is fun and creative, and which offers great service. Jeff Lapin, president of House of Blues Hospitality, expects such theme hotels to be a trend. The level of saturation for theme hotels presumably would never be as high as it currently seems to be for theme restaurants because theme hotels require more investment and effort than theme restaurants. That is, the barriers to entry are quite high for theme hotels. The higher capital commitments required to build hotels versus restaurants should reduce the potential number of competing theme-hotel properties within a specific geographic market. Adding hotels to the chain is a way to expand as the theme-restaurant industry slows down. Nevertheless, the owners of some theme restaurants--Rainforast Caf~, for example--do not think that entering the hotel business is a good idea.8 The general consensus among experts is that the themerestaurant industry will slow down as its novelty wears off and as investors recognize that they cannot recover the high set-up costs. Theme restaurants will need to offer more than a novelty eating experience to survive. Focusing on a distinctive dining experience will have to be supplemented by improving the quality of both food and service. To maintain their profits, themerestaurant chains may try to diversify into other industries such as the hotel business.--D.J.M, a n d T.L.M. 6,,PlanetHollywood Looks for Star Power," USA Today, December 1, 1998. 7Gene SIoan, "Chain Reactionamong Eateries:Themed Restaurants Make Room for Hotel Businesses," USA Today, October 2 1998, p. 6D. BIbid.
money and range of merchandise of the four establishments. Hard R o c k Caf~ had the highest mean rank, and House of Mao the lowest for these measures of their respective attributes. Planet Hollywood was ranked the highest and House of Mao the lowest for the attractiveness of their merchandise. Planet Hollywood was judged to have the most expensive food, with a mean score significantly higher than least-expensive Hard Rock. Although most of the managers interviewed stated that prices in their restaurants were similar to those in other theme restaurants, the study results indicated that customers perceived the prices in the four restaurants to differ significantly. Hard R o c k Caf6 was, however, ranked as having the most expensive product merchandise of the four restaurants. Its mean was 2.78, compared to the lowest score (2.05) obtained by Celebrities Asia. Most respondents who had visited House of Mao ranked its theme more highly than that of the other restaurants. Indeed, many respondents believed that the theme was excellent and gave a perfect 5 rating for this attribute. However, the respondents who had visited all four restaurants perceived Hard R o c k Caf~ and Planet Hollywood as having better themes than the other two restaurants. Celebrities Asia had the lowest mean and mean ranks for most of the attributes. Customers gave its theme concept and their overall experience in the restaurant the lowest ranking. Celebrities Asia is changing its concept, since it is not doing as well as the others, so perhaps the respondents in this study are a good reflection of the broader market.
Room to Grow? The theme-restaurant industry in Singapore is still in the early stages
of growth and, in our opinion, its potential for future expansion is substantial given Singapore's highgrowth economy. N o t all experts agree, however, but we notice that many of those industry experts are U.S.-based and may be extrapolating from the generally saturated theme-restaurant market that exists throughout the United States. Singapore's theme-dining industry, by comparison, is less than five years old and is therefore a less mature industry than that in the United States. Our nonexpert survey participants agree with our prediction. More than 90 percent (271) of our 296 respondents believed that more theme restaurants would open in Singapore in the future, and less than 3 percent (8 respondents) believed that any such restaurants would not succeed. Moreover, only two (6 percent) of the respondents predicted that any of the existing theme restaurants would fail.
Thus Far, West Is Best Hard R o c k Caf~, a clear overall favorite in this study, should maintain its present standards and attempt to improve them where possible, to stay ahead of competitors. Also, we suggest that Hard R o c k Caf~ could use distinctive promotions to attract customers. For instance, the restaurant might cosponsor a contest or give-away with the chain's resort in nearby Bali by offering customers the chance to win a trip to the resort. Customers who spend more than a certain amount might be given additional chances. Such a promotion could create awareness of the restaurant among potential new customers and encourage higher spending among current customers. For most attributes, Planet Hollywood obtained higher ratings than both of the local theme restaurants (but lower ratings than Hard R o c k
Caf~). One possible area the restaurant might explore would be to improve the quality, especially the taste, of its food. Since results from the survey indicated that many customers found its prices to be relatively high, Planet Hollywood should also find ways to offer lower prices without seriously affecting its high ranking in other attributes. Celebrities Asia is currently facing a problem in attracting customers. Celebrities Asia should first make general improvements to the restaurant and the quality of its food before holding promotions to attract additional customers. (Also, we wonder whether part of the problem is that some patrons may perceive that its prices are too high.) House of Mao obtained good ratings in general, but not as high as those of Hard R o c k Caf6 and Planet Hollywood. The restaurant could benefit from improving the quality of its food, service, and atmosphere. Its dining area could be made more comfortable by offering chairs instead of stools so that customers might relax while enjoying their meals. Quality of service could be improved by providing employees with classroom training. House of Mao attracted significant local and foreign publicity when the restaurant opened, suggesting that there may be wide interest in its unique theme. One growth option for House of Mao is to expand globally either through licensing franchises or through wholly owned subsidiaries. The restaurant could consider branching out in Western countries where customers may find its themeconcept a novelty among primarily Western-based concepts. Once the novelty of its theme fades, however, or even in anticipation that that will probably happen, House of Mao should begin now to place more emphasis on food and service if the restaurant is to succeed, ga
June 2000 • 85
College Students and Fast FoodHow Students Perceive Restaurant Brands by Bonniej. Knutson
pp. 68-74
Customer Perceptions of Theme Restaurants in Singapore by DonaldJ MacLuurin and Tanya L. MacLaurin
t Brief IN
pp. 76-85
A survey of 200 Michigan State Universitystudents sought to answer these two questions: What drives students’ choices among fast-food restaurants? and How are fast-food brands positioned in the college market? The students were asked to rate the influence of 13 factors (e.g., cleanliness,price, speed) on their fast-food-restaurant choices. The survey next used a “name association” format that askedwhich fast-food restaurant came to these students’ minds for each of 13 positioning traits (for example, “Which fastfood restaurant has the best menu variety?” and “Which restaurant offers the highest nutrition?“). The restaurants considered by this study were: Arby’s, Burger King, KFC,McDonald’s,Subway, Taco Bell,and Wendy’s, In order of importance, the determining factors and the students’top-of-mind perceptions (i.e., brand image) are as follows (with the top-rated restaurant shown in parentheses):cleanlinessand friendliness (Subway): price (Taco Bell); servicespeed and consistencyin menu items (McDonald’s);and menu variety (Wendy’s).The remaining factors were, in order of importance, location, combination meals and discount coupons, atmosphere, drive-through, promotional menu items (new items), and add-on coupons. The other “image” characteristicsincluded “highest nutrition” and “best for vegetarians” (Subway), “best atmosphere” (Wendy’s),and “best combination meals” and “best kids’ meals” (McDonald’s).
Three hundred consumers were asked to rate these four Singaporetheme restaurants: Hard Rock Cafe, Planet Hollywood, CelebritiesAsia, and House of Mao. The two-part questionnaire first asked about respondents’ perceptions of theme restaurants in general, and then required respondentsto rate nine attributes for all four restaurants. Hard Rock Cafe receivedthe best ratings for meeting consumers’ expectations and had the highest means for service quality. House of Mao had the lowest aggregate scores for service quality. Hard Rock Cafe also had the highest mean scores for food quality and taste. House of Mao had the second highest mean for taste of food, but the lowest means for the other measuresof food quality. Planet Hollywood had the highest percentageof negative views for “taste of the food.” House of Mao had the highest means for “atmosphere,” except for “comfort of the dining area,” for which it had the lowest mean rating. Respondentsranked Hard Rock Cafe as providing the best value-for-the-money and the best overall experience.Planet Hollywood was perceivedas having the most expensivefood, while Hard Rock Cafe was viewed as least expensive.
executive
of this issue’s feature articles
Airport-restaurant Service Quality in Hong Kong: An Application of SFRVQUAL by Vincent C. S. Heung, M. Y Wong, and Hailin Qu
pp. 86-96
6
In an extension of the SERVQLIAL methodology, a survey of 630 travelers found that restaurants at the Hong Kong airport provide servicethat exceedsthe travelers’ basic expectationsfor adequate service.Those restaurants do not exceedtravelers’ desiredservice levels, however. The survey asked the travelers to rate 33 service-qualityitems in three ways: as they relate to desired service,as they relate to adequate service,and how the travelers perceivedthe actual service.By comparing the perceptionswith the expectations, the researchersassessedhow near the restaurants came to meeting travelers’ expectations.The study divided the restaurants into these categories: casualdining, Chinese,full service,and quick service. The results revealedthat significant differences exist among those restaurant types in travelers’expectations and perceptions on some of the 33 service-qualityattributes, as well as for the restaurant types overall. In the main, the travelers had relativelyhigh expectations of the full-service restaurants and meager expectationsof the Chineserestaurants.
CURNEIJ HOTEL ANDRESTAURANT ADMINISTRATION QUARTERLY *VOLUME41,NUMBER 3
of Singapore's Theme Restaurants by Donald J. MacLaurin and Tanya L. MacLaurin
Western favorites Planet Hollywood and Hard Rock Caf~ are popular in Singapore-earning high scores for atmosphere, menu attributes, service quality, and overall value.
Singapore comprises a set of small tropical islands where 3.5 million residents live within a total land area of only 400 square miles. The Asian city-nation attracted approximately 7.2 million overnight visitors in 1997, but in 1998 the Singapore tourism industry recorded a substantial decline. The Singapore Tourism Board (STB) reported that visitor arrivals in 1998 decreased to 6.2 million, down 13.9 percent. Even so, expenditures per visitor that year increased by 8 percent, to $712 Singapore (US$1 = approximately $1.70 Singapore), and average length of stay increased 5 percent, to 3.42 days. Tourism arrivals in the first six months of 1999 increased by 8.9 percent compared to the same period in 1998. By late summer 1999,
Singapore's national newspaper, the Straits Times, predicted that halfa million new visitors would bring the total for the entire year to 6.7 million. 1 Singapore is globally renowned for its vibrant and diverse restaurant industry. With more than 20,000 food-service establishments, there is approximately one outlet for every 150 persons. The majority of those 1S. Khalik,"500,000 More Visitors Likely in 1999," Straits Times, August 7, 1999,p. 1.
Don MacLaurin, Ph.D., ~,adjmaclaurin @ntu. edu.sg,~, and Tanya MacLaurin, Ph.D, ,[email protected],~, are associate professors of marketing and tourism management a~ the Nanyang Business School, Singapore. © 2000, CornellUniversity
June 2000 * 75
food-service operations (79 percent) are hawkers' food centers (e.g., open markets), coffee shops, canteens, and food courts. The remaining 21 percent are classified as restaurants. 2 The rapid growth of the themerestaurant industry in Singapore occurred only in the last decade. According to the Singapore Tourism Board, the prohferation of specialty restaurants focusing on ethnic cuisine in the late 1980s and early 1990s was due to the fact that Singaporeans had more disposable income and were traveling more. Approximately one-half of the Singapore population makes at least one overseas trip per year, exposing residents to a variety of Western and international restaurant concepts. Singaporeans today are more educated, cosmopolitan, and accepting of Western cultures and lifestyles than they were before 1990, based on Singapore Tourism Board data. A large expatriate community consisting of more than 400,000 temporary residents--largely managers and professionals--contributes to an international influence on the local dining scene. Internationally branded companies eagerly embrace the operating environment for business in Singapore. Low tax rates, high levels of disposable income, a stable government, and the use of English as the official language all enhance this environment. Many retail and restaurant companies use Singapore as a test-market and springboard into the Asian market. For example, Borders opened its first bookstore outside North America in Singapore (the only Borders bookstore in the world that serves alcoholic beverages to its customers) and Taco Bell opened its first Asian outlets in Singapore in 1998. This study examined the themerestaurant industry in Singapore. It 2 Ministry of the Environment, Grading System of Eating Establishments and Foodstalls (Singapore: Ministry of Environment Publishers, 1998).
"/6
Ill'NILE HOTELANDRESTAURANTADMINISTRATIONQUARTERLY
looks at consumers' perceptions of two Eastern-theme restaurants and those of two eateries that are based on or affiliated with Western themes. We analyze the implications of those findings and offer our recommendations to developers of and investors in theme restaurants.
From Boxcarsto Rock Stars: A Brief History of Theme Restaurants Victoria Station was one of the pioneer players in the themerestaurant industry. Founded in 1969 by three graduates of Cornell University's hotel school, Victoria Station started as a limited-menu restaurant designed for singles, couples, and families who liked to eat out but could not afford high prices. The restaurant chain, which no longer exists, featured prime rib of beef served in the distinctive atmosphere of railroad boxcars. The interiors of the boxcars were refurbished and decorated with railroad equipment and memorabilia. Old baggage carts were used as room dividers and tables. Gaslights, a red English telephone booth, and a London taxi were placed in front of the restaurants. 3 Hard Rock Car6 was one of the first major theme restaurant chains developed after Victoria Station. Two Americans, Peter Tigrett and Issac Morton, started the restaurant in 1971. The restaurant concept was based on a rock-and-roll theme that emphasized the development of the music industry. The first restaurant opened in London; today the Hard Rock Car6 chain has 104 branches in 36 countries. 4 The restaurant displays 60,000 pieces of memorabilia such as record albums, guitars, and jackets belonging to famous 3 Robert C. Lewis, Cases in Hospitality Marketing and Management Second Edition (NewYork: Wiley & Sons, 1997), pp. 13-42, 65-97. 4 Seth M. Siegel, "Official Licensed Burgers and Fries," Brandweek, New York, April 29,1996, p. 17.
past and present rock-music performers. The memorabilia is rotated throughout the chain's global locations (,,www.hardrock.com~). Moreover, Hard R o c k Caf6's merchandising efforts have been so successful that many of its products are treated as collector's items. Planet Hollywood was started in 1992. Keith Barish and Robert Earl came up with the concept of a restaurant based on the Hollywoodmovie industry. Movie stars such as Sylvestor Stallone, Bruce Willis, Arnold Schwarzenegger, and Demi Moore have been high-profile shareholders in Planet Hollywood. The restaurant chain receives extensive publicity by having movie stars grace the openings of its outlets around the world--which now number more than 80. 5
Theme Restaurantsin Singapore Hard R o c k Caf6 was the first theme restaurant to open in Singapore, in 1990. Other theme restaurants, including Hooters and Peppers, followed. (Peppers, a restaurant and pub based on the Beatles, closed within three years of its opening.) The theme-restaurant industry in Singapore did not develop further until Planet Hollywood entered the market in 1996, after which the brands Celebrities Asia and Studio East also opened branches in Singapore. Local entrepreneurs attempted to obtain a share of the market by starting their own theme restaurants. Examples included Monkey's Caf~, Garfield Caf6 (named for the comics-page cat), African Heartbeat, House of Mao, and Snoopy Place (which was based on Shultz's Peanuts cartoon characters). Celebrities Asia. Celebrities Asia is an Asian version of Planet s Ben Van Houten,"Could It Be Magic,"
Restaurant Business, Vol. 97, No. 3 (February 1, 1998), pp. 28-31, 34.
Hollywood. The shareholders include Hong Kong actor Simon Yam, international television cook-show host Martin Yan, Malaysian-born singer Eric Moo, and Singapore movie producer and writer Chua Lain. Shareholders donated their personal belongings for display in the restaurant. 6 Andrew Tjioe, president of the Singapore-based Tung Lok Group, started House of Mao in 1998. The theme of the restaurant was inspired by Mao Zedong and emphasizes the era of the Chinese Cultural Revolution. House of Mao is considered to be the first Chinese-theme restaurant to open in Singapore. The restaurant serves mostly Hunan cuisine with an occasional Western twist to its dishes. Both Singapore locations are decorated with memorabilia such as paintings and life-size photos of Chairman Mao. The uniforms of the food servers are adapted from the uniforms of the Chinese R e d Army. 7 Our study focused on these four Singapore theme restaurants: Planet Hollywood, Hard R o c k Caf6, Celebrities Asia, and House of Mao. A brief description of each of those four theme restaurants and information about their merchandising efforts can be found in the accompanying boxes.
The Research Method A survey comprising 300 selfadministered questionnaires designed to identify respondents' perceptions of the four theme restaurants was conducted in Singapore's Orchard R o a d commercial district. Survey participants were randomly selected using a "mall intercept" approach. Potential respondents were pre-screened with the question 6Selina Lum, "This [Singapore] Eatery Has Items from Eric Moo," Straits Times, November 8, 1997, p. 4. 7Leong Weng Kam, "Braised Pork with a Dash of Mao," Straits Times, June 26,1998, p. 63.
June 2000 • 77
Celebrities Asia
~e
"Have you been a customer in a dents (30 percent) were aged 26 to Singapore theme restaurant during 35 years. That only 18 respondents the past year?" If the answer was (6 percent) were over the age of 36 "yes," respondents were asked to bears out our observation that visiparticipate in the study by complettors to the theme restaurants were ing a four-page survey. Four of primarily teenagers and young the questionnaires were improperly adults. (Our observations were completed, leaving a final sample made during numerous visits to the size of 296. four restaurants at various times of We also arranged for personal the day and week to obtain a balinterviews with managers of the anced perspective of guest activity four Singapore theme restaurants at those establishments.) considered by our study (i.e., Planet This finding is similar to comHollywood, Hard k o c k CafS, ments the restaurant managers made Celebrities Asia, and House of Mao) during our interviews with them: to obtain background information that theme restaurants are considabout those theme restaurants and ered trendy and, hence, appeal more their operating strategies. to teenagers and young adults than The questionnaire was divided to older adults. All the managers of into two sections. Section A asked the theme restaurants remarked that about respondents' perceptions of they did not specifically target any theme restaurants in general. Section age group, but instead targeted evB required respondents to rate, on eryone as a potential customer. a five-point Likert-type scale, nine Gender a n d race. Slightly more attributes for all of the four theme than half the respondents, 160 (54 restaurants they had visited. R e percent), were female. In terms of spondents were also asked several race, 261 (88 percent) were Chinese. open-ended comments at the end of O f the remaining 35 respondents, the questionnaire, such as "Do you 16 (5 percent) were Malay, 11 think more theme restaurants will (4 percent) were Indian, and the open in Singapore in the future?" eight others (3 percent) were Eurand "Do you think these restaurants asians and expatriates. This comwill be successful?" The questionpares to the overall ethnic populanaire was pretested on a sample of tion distribution of Singapore, 20 diners who had eaten at all four which is about 77 percent Chinese, restaurants, and revisions to the 14 percent Malay, 7 percent Indian, questionnaire were made based on and 2 percent "other.''8 those individuals' comments. I n c o m e levels. The largest A t-test and Friedman test number of respondents (102, or (which checks for differences within 35 percent) had incomes lower than groups) were used to analyze the $500 per month (in Singapore dolstudy results. The Friedman test was lars). O f those, the large number of used on the pretest sample of 20 respondents who belonged to the respondents--all of whom had vis16- to 25-year-old age group (64 ited all four theme restaurants--to percent) may account for that lowdetermine whether there were any income finding, since those responsignificant differences in the ways dents were likely to be students, they rated the selected attributes. whose income is solely the family allowances they receive monthly. Characteristicsof Respondents Unlike North American students, The majority, 190 respondents (64 few Singaporean students engage percent), were aged 16 to 25 years (Exhibit 1). Eighty-eight respon8 ~http://www.singstat.gov.sg~.
EflRNELLHOTELANDRESTAURANTADMINISTRATIONQUARTERLY
in part-time work. The remaining 189 respondents who reported their income were mainly working adults Participants' profile, N = 296 with varied occupations. N u m b e r o f restaurants < 15 years old 6 visited. More than one-third, or 15 to 25 years old 190 112 respondents (38 percent), had 26 to 35 years old 88 visited just two theme restaurants, 36 to 45 years old 10 and three-quarters of this group > 45 years old 2 (84) had visited both Hard Rock iiii i i !i+iiiJiiiiii!ii!i!iiii+i+iiii!iiiiiii!iiiiiiiiiiiilliCaf6 and Planet Hollywood. Chinese 261 Ninety-eight respondents (33 Malay 16 percent) had visited only one of Indians 11 Other 8 Singapore's theme restaurants (and Women 160 most reported that they had visited Men 136 Hard Rock Caf6). Sixty-six respondents (22 percent) had visited three ii iii!i!ii!iiii!ii!!i!iiiiiiiiiiiiii!iiiiiii!+i!ii!!i!ili!i! restaurants and only 20 (7 percent) < $500 102 $500 to $1,000 20 had visited all four. $1,001 to $1,500 29 Most of the respondents (252, or $1,501 to $2,000 34 85 percent) had visited Hard Rock $2,001 to $2,500 32 Caf~. Planet Hollywood was the $2,501 to $3,000 30 > $3,001 44 second most-patronized restaurant (192, or 65 percent). Only 83 study participants (28 percent) visited Celebrities and just 67 (23 percent) One restaurant 98 Two restaurants 112 visited House of Mao--perhaps Three restaurants 66 because Celebrities Asia and House Four restaurants 20 o f Mao are relatively new and, unlike Hard Rock Caf~ and Planet Hollywood, are not international Not more than once per year 55 brand establishments. 2 to 4 times per year 151 F r e q u e n c y o f p a t r o n a g e . Two Once per month 67 to four times per year, or approxi2 to 4 times per month 20 mately once every three to six 5 or more times per month 3 months, 151 respondents (51 percent) visited theme restaurants. Fifty-five respondents (19 percent) Very successful 6 said that they visited a theme restausuccessful 136 neutral 144 rant no more often than once per unsuccessful 8 year; 67 (23 percent) visit them very unsuccessful 0 once per month; and only 20 (7 percent) reported visiting theme Note: Totals may not add to N = 296 due to rounding or respondents' incomplete restaurants twice or more per surveys. month.
Exhibit 1
Views on success of theme restaurants. When asked whether
they expected more theme restaurants to open in Singapore, almost all respondents (271, or 92 percent) answered "Yes" Most respondents (144, or 49 percent) were neutral about whether these restaurants
June2000 • 79
Exhibit 2
Mean rankings of nine restaurant attributes Mean rank Hard Rock Celebrities Planet House Caf~ Asia Hollywood of Mao
Factors and their attributes 1+ T h e m ~ n c e ~ (a) Theme is excellent (b) Overall experience is up to expectation
3.66* 3.67*
3.23* 3.22*
3.62* 3.43*
3.78* 3.48*
4.00* 3.46* 3.56*
3.57* 3.35* 3.33*
3.76* 3.34* 3.42*
3.64* 3.30* 3.13
3.61 *
3.30*
3.54*
3.16
3.48* 3.62* 4.05*
3.13 3.53* 3.38*
3.11 3.49* 3.68*
313i * 3.27* 3.02
3.61"
3.29*
3.41"
3.14
3.77*
3.41"
3.71"
3.59*
3.70* 3.43*
3.51 * 3.23*
3.61" 3.27*
3.39* 2.94
3.53*
3.44*
3.49*
3.56*
4.07* 3.64*
3.65* 3.62*
4.06" 3.63"
4.i7" 3.06
3.56*
3.38*
3.49*
3.89*
2: S e r v ~ q ~ l ~ (a) Serves food exactly as you ordered (b) Provides prompt and quick service (c) Is able and willing to give information (d) Has well-trained, competent, and experienced employees
3. Food quail~ (a) Taste of food is excellent (b) Appearance of food is excellent (c) Food quantity is sufficient (d) Quality of food served is consistent during each visit (a) Menu design is attractive and reflects the restaurant's image (b) Menu is self-explanatory and user-
friendly (c) Food variety is excellent (d) Menu names of food are appropriate to the theme
5! Atmosphere (a) D~cor suits the theme (b) Dining area is very comfortable (c) Uniforms of service employees suit the theme
Si Convenience
i
(a) Very easy to reach the restaurant (e.g., public transportation, parking) (b) Situated in good location (c) Restaurant is open long enough
r: val~
.
.
.
3.25* 3.48* 3.88*
3.90* 4.04* 3.81"
3.67* 3.99* 3.73* i
.
(a) The restaurant provides value-for-the-money
3.17 3.28* 3.16
3,30*
2.96
2.96
3.03
3.44* 3.34*
3.16 2.91 *
3.41 * 3.31 *
2.75* 2.58*
3.23" 3.56*
3.35* 3.37*
3.48* 3.61"
3.44* 3.39*
8! Produ~ merchandlse (a) The range of merchandise is very wide (b) The merchandise is very attractive
9, Priclng (a) Prices of food are fair (b) Prices of merchandise are fair
* Denotes that the null hypothesis was rejected at the 5-percent level of significance.
would be successful, while 142 respondents (48 percent) believed that future Singapore theme restaurants would be successful. Only eight respondents believed that future theme restaurants in Singapore would not be successful.
,
CflRNELLHOTELAND RESTAURANTADMINISTRATION QUARTERLY
By some measures, the theme restaurant industry worldwide has been constricting. 9 In Singapore, however, the industry is still in its early stages, and we anticipate its continued growth. Moreover, Andrew Tjioe told us that future restaurants would probably be theme restaurants, as customers were beginning to expect more from the dining experience.
Ranking the Four Restaurants' Attributes H o w the respondents perceived nine attributes of the four theme restaurants--theme concept, quality of service, quality of food, menu, atmosphere, convenience, value, produce merchandise, and pricing-is reported in Exhibit 2. The mean score and standard deviation of the ranking for each measure of each attribute was calculated using the SPSS program. House of Mao was rated the highest in terms of theme concept. On the other hand, that restaurant received the highest number of negative views on other factors when compared to the other three restaurants. It is our opinion that some respondents may have believed that this theme trivializes the hardships suffered by the Chinese during the Cultural Revolution. Indeed, letters to the editor of Singapore's national newspaper, The Straits Times, voiced concerns about that theme when the restaurant first opened. Hard R o c k Caf6 received the best ratings for the way the overall experience met expectations. Although respondents highly rated the experience at Hard R o c k Car6, the restaurant's theme of rock-and-roll did not get the highest mean ratings. One possible reason for that apparent contradiction is that the restau9ABC News,"ThemeRestaurants to Shrink Sharply,"December27, 1998a.
rant had arranged the right "overall experience" components of food, service, and atmosphere to compensate for a theme that was not self-sustaining. Hard Rock Caf8 had the highest mean for all four attributes under the service-quality factor. The restaurant's employees are required to complete customer-service training in the classroom and on the job. House of Mao, on the other hand, had the lowest aggregate scores for service quality. That may be a result of the workers in this year-old establishment having less experience and preparation than restaurant employees elsewhere, because House of Mao staff members received no classroom training before starting
ety. House of Mao was rated as the restaurant having the most appropriate food names with respect to its theme. In fact, House of Mao was the only one of the four restaurants to name the food in relation to the theme. House of Mao had the highest means for the category of atmosphere, except for comfort of the dining area. Restaurant managers had succeeded in using the d~cor and the uniform design to reflect the theme of the Chinese Cultural Revolution. For dining-room comfort, however, House of Mao had the lowest mean rating (3.06) and highest standard deviation. The mean of 3.06 was significantly lower than that of the other restaurants, and work. was the only measure of atmosphere Hard Rock Caf6 also had the for which significant differences in means were observed. We believe highest mean scores for quality of that House of Mao's low score illusfood and taste of food. The mean trates the planning challenge of scores for taste of food for all four trading off authenticity against restaurants were neither particularly comfort in theme restaurants. Cushigh, nor were they significantly tomers probably did not feel comdifferent. Respondents seemed to fortable on the hard wooden chairs, be saying that the food served at stools, and tables that the restaurant theme restaurants was not as good had chosen to reflect the simple life as that at other restaurants. Those responses support Farkas, who wrote of the Chinese during the Cultural that theme restaurants were not Revolution. Respondents ranked Celebrities reputed for their food quality but Asia as having the best location and rather for their theme concepts. 1° being the most accessible. The reaHouse of Mao had the second son for the high means for both highest mean for taste of food, but the lowest means for the other three Celebrities Asia and Planet Hollywood was probably that their locameasures of food quality. Planet Hollywood had the highest standard tions were near M R T (subway) stations. House of Mao received the deviation and the highest percentage of negative views with regard to lowest mean for operating hours, the taste of the food. Those conflict- perhaps because House of Mao closed for a time in the afternoon ing results imply that respondents' and also ended business earlier views on the taste of food served at (10:30 PM) than the other three Planet Hollywood varied widely. theme restaurants, which all catered Hard Rock Caf6 had the highest to late-night dining-and-drinking means for user-friendliness of the patrons. menu, menu design, and food variRespondents ranked Hard Rock Caf~ as providing the best value for 10David Farkas,"Theme Dreams," Restaurant the money. This high rating for Hospitality, Vol. 82, No. 1 (Jan. 1998), pp. 36-44.
The theme-restaurant industry in Singapore is still in its early stages, and we anticipate its continued growth.
June 2000 • 81
Exhibit 3 Mean rankings of the nine restaurant attributes by respondents who visited all four restaurants (N = 20) Meanrank
HardRock
~andlheir a~dbutes
~
Pipet
House Result
(a) Theme is excellent (b) Overall experience is up to expectation
2.80 2.92
1.77 1.65
2.80 2,63
2.63 2.80
.002 .000
Reject Ho Reject Ho
(a) (b) (c) (d)
2,97 2.45 2.65
2.03 2.67 2.30
2.63 2.55 2.72
2,38 2.33 2.33
.002 .676 .260
Reject Ho Do not reject Ho Do not reject H0
2.90
2.15
2.80
2.15
.013
Reject Ho
- 3.20 2.90 3.55
2.28 2.38 2.03
21i3 2.80 2.70
2.40 1.92 1.73
.005 .009 .000
Reject Ho Reject Ho Reject Ho
3.03
2.17
2.85
1.95
2.95
2.t 0
2.70
2.25
.010
Reject Ho
2.72 3.13
2.25 2.33
2.83 2.50
2.20 2.05
.033 .003
Reject Ho Reject Ho
2.70
2.10
2.97
2.22
.010
Reject Ho
2.70 2.88
1.98 2.50
2.65 2.45
2.67 2.17
.021 .174
I
Reject Ho Do not reject Ho
2.80
1.88
2.30
3.03
.001
J
Reject Ho
I. . . . . . . . . . . . . . . ]. . . . . . . . . . . . I 2.85 i 2.15 3.03 I 2.13 2 65 1 90 I .... '
.000 .000 .000
i I
Reject Ho Reject Ho Reject H0
]. . . . . . . I 2.28
.001
Serves food exactly as you ordered Provides prompt and quick service Is able and willing to give information Has well-trained, competent, and experienced employees
(a) Taste off0od is excellent (b) Appearance of food is excellent (c) Food quantity is sufficient (d) Quality of food served is consistent during each visit (a) Menu design is attractive and reflects the restaurant's image (b) Menu is self-explanatory and user-friendly (c) Food variety is excellent (d) Menu names of food are appropriate to the theme (a) Decor suits the theme (b) Dining area is very comfortable (c) Uniforms of service employees suit the theme
(a) Ve~ easy to reach the restaurant . . . . . . . . (e.g., public transportation, parking) 1.88 (b) Situated in good location 1.90 (c). Restaurant 2 ' 97 . . . . . is open long enough
I I
(a) The restaurant provides .value-for-the-money . . . . .
I I
'
(a) Therange0f merchandise isverywide (b) The merchandise is very attractive
3.25 3108 2 70
I
..... 3.13 2.95 2 "47 .... 2.30
2128 . . . . . 2 .20
] I I I
I I
I ..... I 2.17
2.83 . . . . . I 3.05 {
i183 . . . . 2.05
....
i0o0
Reject Ho ....
.ooo
....(ai' Pricesof fo0d are fair ......................... 1198 ......I ........2153................. 219o ...........I .....216o ....... ..........007 .... I : (b) Prices of merchandise are fair 2.78 J 2.05 2.72 I 2.45 .012 ] * The highest mean ranks for attributes 1 to 8 indicate that the customer gave those restaurants a better rating than they did the other three restaurants. ÷ The highest mean ranks for the measures of attribute 9 indicate that the customers believed that Planet Hollywood was more expensive than the other three restaurants.
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...............
I RejectH0
Reject H0 .... : ..... Reject Ho
value might have been based on the overall experience at the theme restaurant, since Hard Rock Caf~ also obtained a high mean for overall experience. Hard R o c k Caf~ also obtained the highest means for both measures of merchandising. One reason might be that the restaurant had improved the design and range of merchandise it offered over the years. Its badges and pins, for example, were considered to be collectors' items. House of Mao had the lowest means for both the range and the attractiveness of its merchandise because, as noted earlier, the restaurant's managers had chosen to concentrate on food rather than on selling merchandise. Planet Hollywood was perceived as having the most expensive food, while Hard Rock Caf6 was viewed as offering the least expensive. Hard R o c k Caf6 may have been ranked least expensive in terms of food because the restaurant served larger portions than the other restaurants. As a result, respondents also agreed that Hard R o c k Caf6 provided the most value for the money. Product merchandise at Celebrities Asia was perceived as least expensive, but the restaurant was holding a "buy-oneget-one-free" promotion during our study, and that may have accounted for this ranking.
Rankings by Those Who Visited All Four Restaurants We conducted a Friedman test on how the 20 respondents who had visited all four restaurants rated the nine attributes to determine whether their wider experience with theme restaurants led to any significant differences in the way they rated the attributes for each restaurant. The results are summarized in Exhibit 3. Our results indicate that respondents who patronized all four restaurants found the themes of Hard
Rock Caf~ and Planet Hollywood to be the most desirable. There were significant differences in how they perceived the total experience as living up to expectations among the four restaurants. Hard Rock Caf6 obtained the highest mean rank (2.92), and Celebrities Asia the lowest (1.65). House of Mao's mean rank of 2.80 was higher than Planet Hollywood's mean rank of 2.63. For serving food exactly as ordered, Hard Rock Caf~ had the highest mean rank (2.97), and Celebrities Asia had the lowest mean rank (2.03). There was no significant difference in the speed and promptness of the service of the four restaurants, or in the ability and willingness of staff members to give information on menu, ingredients, and preparation methods. The restaurants having a Western theme scored significantly higher for having well-trained, competent, and experienced personnel. Hard Rock Cafe's mean rank of 2.90 was the highest, followed by Planet Hollywood (2.80). Both Celebrities Asia and House of Mao had mean ranks of 2.15. There were significant differences in the rankings for quality and appearance of food. Hard Rock Caf~ had the highest mean rank for quality (3.20), and Planet Hollywood the lowest mean rank (2.13). Hard Rock Caf~ also scored highest on the appearance of its food. Because House of Mao serves food in ceramic or metal bowls and plates and with few garnishes, the customers may have perceived the appearance of its food as less attractive. At any rate, they gave House of Mao the lowest score for appearance. Significant differences were found in the sufficiency and consistency of the food quantity served (portion size). Hard Rock Caf6 had the highest mean for both of those attributes, followed by Planet Holly-
wood. The higher mean ranks obtained by these restaurants might be due to their serving Western-size portions, which are normally larger than those served by other local, Asian-style restaurants. The restaurants relying on a Western theme also finished with the highest scores in all four measures of the "menu" attributes: menu design, user-friendliness, food variety, and appropriate menu names for the food items. The differences were significant in all four attributes. Hard Rock Caf6 and Planet Hollywood were perceived as having the best d~cor to suit the restaurant theme. There was no significant difference in the percei~'ed comfort levels of the four restaurants. House of Mao had the highest mean rank (3.03), and Celebrities Asia had the lowest (1.88), for staff uniforms that suited the restaurant theme. The Celebrities Asia staff wore T-shirts that were also sold as restaurant souvenirs (merchandise). Customers, however, might have perceived that Celebrities Asia had been lax in creating a uniform more suited to the theme. There were significant differences in the perceived ease of access to the four restaurants. Celebrities Asia had the highest mean rank (3.13), and Hard R o c k Caf6 had the lowest (1.88). Hard Rock Caf~ also had the lowest score for location (1.90), while Planet Hollywood scored highest, with a significantly higher mean of 3.03. Hard Rock Caf~ is located one block off the main Orchard Road area, and that may have contributed to its low scores on location and accessibility. House of Mao had the lowest mean rank (1.90) for hours of operation, which was significantly lower than the means ranging from 2.47 to 2.97 accorded the other three restaurants. There were significant differences in the means for value-for-the-
June 2000 •
83
SomeExpertsPredictHardTimesAhead Future Trends For the Theme-restaurant Business Ron Paul, president of the restaurant-consulting firm Technomic, Inc., commented that the life-cycle of theme restaurants is much shorter than originally expected (based on others' research). 1 The theme-restaurant industry is expected to constrict dramatically through closings or bankruptcy, according to James Berk, president of Hard Rock Cafe International. Berk also predicts that there will be no additional worldwide theme-restaurant chains but only single-site, independent theme restaurants and quality restaurants of other types. Robert Earl, who helped Hard Rock Cafe expand beyond London and launched Planet Hollywood in 1992, believes that people will go back to those two restaurants after the restaurants now based on narrower, more local, concepts fail. 2 Two theme restaurants that had plans for branches in major cities around the world--Television City and the Fashion Caf~-were expected to close in January 1999. 3 The Fashion Caf~ in London went into receivership in October 1998. Planet Hollywood International, Planet Hollywood's parent company, declared bankruptcy in August 1999. The founder of Television City, David Liederman, commented that the time and money required to develop an elaborate theme forced the restaurant to charge high prices that many people were unwilling to pay. Television City will be converted into Chez Louis, a restaurant that specializes in chicken "roasted" over wood fires. Liederman believed that there will be a massive movement out of the theme-restaurant business, and that Television City will be leading the pack that no longer follows a theme.4 Even famous and well-established theme restaurants such as Hard Rock Cafe, Planet Hollywood, and Rainforest Caf~ have suffered from declining sales.The theme-restaurant industry boomed three or four years ago with promises of untold profits from a slickly packaged blend of eating, shopping, and entertainment. The various reasons cited for the current failure of theme restaurants include too rapid an expansion, loss of novelty, and distracting d~cor.5 On the other hand, some restaurant analysts believe that the theme concept may not be dead yet. They expect Hard Rock Caf~ to survive and prosper, because the largest and oldest theme chain has done a good job of focusing on food,
1Charles V. Bagli, "Their Novelty Gone, Theme RestaurantsAre Tumbling," New York Times, December27, 1998, p. 1. 2ABC News, op. cit. 3S.H. Lee, 'qheme RestaurantsFoldingAround the World," Straits Times, December28, 1998. 4Bagli, op. cit. 5Lee, op. cit.
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decor, and merchandising. Planet Hollywood plans to reorganize by cutting back on its expansion plans and closing the All Star Caf6, a second theme-restaurant concept tested by the parent company. Changes will be made to the menu, prices, Iogos, and designs for the restaurants, and new movie stars will be introduced to boost declining sales. 6 Food and lodging. Theme restaurants are making an attempt to enter the hotel business, too. Fast-growing chains such as Hard Rock Caf~, Planet Hollywood, and House of Blues are entering the lodging business by opening hotels that are usually next door to their restaurants. Hard Rock Caf6, for instance, currently has a resort in Bali and a hotel in Las Vegas, and it is planning to open more hotels and resorts. House of Blues Hotel opened in Chicago in October 1998 and there are plans for more hotel projects--for example, a House of Blues hotel in Las Vegas. Meanwhile Planet Hollywood is investing in a 562-room Hollywood-theme hotel in New York's Times Square.7 The theme-restaurant companies want to open hotels that provide a lodging environment that is fun and creative, and which offers great service. Jeff Lapin, president of House of Blues Hospitality, expects such theme hotels to be a trend. The level of saturation for theme hotels presumably would never be as high as it currently seems to be for theme restaurants because theme hotels require more investment and effort than theme restaurants. That is, the barriers to entry are quite high for theme hotels. The higher capital commitments required to build hotels versus restaurants should reduce the potential number of competing theme-hotel properties within a specific geographic market. Adding hotels to the chain is a way to expand as the theme-restaurant industry slows down. Nevertheless, the owners of some theme restaurants--Rainforast Caf~, for example--do not think that entering the hotel business is a good idea.8 The general consensus among experts is that the themerestaurant industry will slow down as its novelty wears off and as investors recognize that they cannot recover the high set-up costs. Theme restaurants will need to offer more than a novelty eating experience to survive. Focusing on a distinctive dining experience will have to be supplemented by improving the quality of both food and service. To maintain their profits, themerestaurant chains may try to diversify into other industries such as the hotel business.--D.J.M, a n d T.L.M. 6,,PlanetHollywood Looks for Star Power," USA Today, December 1, 1998. 7Gene SIoan, "Chain Reactionamong Eateries:Themed Restaurants Make Room for Hotel Businesses," USA Today, October 2 1998, p. 6D. BIbid.
money and range of merchandise of the four establishments. Hard R o c k Caf~ had the highest mean rank, and House of Mao the lowest for these measures of their respective attributes. Planet Hollywood was ranked the highest and House of Mao the lowest for the attractiveness of their merchandise. Planet Hollywood was judged to have the most expensive food, with a mean score significantly higher than least-expensive Hard Rock. Although most of the managers interviewed stated that prices in their restaurants were similar to those in other theme restaurants, the study results indicated that customers perceived the prices in the four restaurants to differ significantly. Hard R o c k Caf6 was, however, ranked as having the most expensive product merchandise of the four restaurants. Its mean was 2.78, compared to the lowest score (2.05) obtained by Celebrities Asia. Most respondents who had visited House of Mao ranked its theme more highly than that of the other restaurants. Indeed, many respondents believed that the theme was excellent and gave a perfect 5 rating for this attribute. However, the respondents who had visited all four restaurants perceived Hard R o c k Caf~ and Planet Hollywood as having better themes than the other two restaurants. Celebrities Asia had the lowest mean and mean ranks for most of the attributes. Customers gave its theme concept and their overall experience in the restaurant the lowest ranking. Celebrities Asia is changing its concept, since it is not doing as well as the others, so perhaps the respondents in this study are a good reflection of the broader market.
Room to Grow? The theme-restaurant industry in Singapore is still in the early stages
of growth and, in our opinion, its potential for future expansion is substantial given Singapore's highgrowth economy. N o t all experts agree, however, but we notice that many of those industry experts are U.S.-based and may be extrapolating from the generally saturated theme-restaurant market that exists throughout the United States. Singapore's theme-dining industry, by comparison, is less than five years old and is therefore a less mature industry than that in the United States. Our nonexpert survey participants agree with our prediction. More than 90 percent (271) of our 296 respondents believed that more theme restaurants would open in Singapore in the future, and less than 3 percent (8 respondents) believed that any such restaurants would not succeed. Moreover, only two (6 percent) of the respondents predicted that any of the existing theme restaurants would fail.
Thus Far, West Is Best Hard R o c k Caf~, a clear overall favorite in this study, should maintain its present standards and attempt to improve them where possible, to stay ahead of competitors. Also, we suggest that Hard R o c k Caf~ could use distinctive promotions to attract customers. For instance, the restaurant might cosponsor a contest or give-away with the chain's resort in nearby Bali by offering customers the chance to win a trip to the resort. Customers who spend more than a certain amount might be given additional chances. Such a promotion could create awareness of the restaurant among potential new customers and encourage higher spending among current customers. For most attributes, Planet Hollywood obtained higher ratings than both of the local theme restaurants (but lower ratings than Hard R o c k
Caf~). One possible area the restaurant might explore would be to improve the quality, especially the taste, of its food. Since results from the survey indicated that many customers found its prices to be relatively high, Planet Hollywood should also find ways to offer lower prices without seriously affecting its high ranking in other attributes. Celebrities Asia is currently facing a problem in attracting customers. Celebrities Asia should first make general improvements to the restaurant and the quality of its food before holding promotions to attract additional customers. (Also, we wonder whether part of the problem is that some patrons may perceive that its prices are too high.) House of Mao obtained good ratings in general, but not as high as those of Hard R o c k Caf6 and Planet Hollywood. The restaurant could benefit from improving the quality of its food, service, and atmosphere. Its dining area could be made more comfortable by offering chairs instead of stools so that customers might relax while enjoying their meals. Quality of service could be improved by providing employees with classroom training. House of Mao attracted significant local and foreign publicity when the restaurant opened, suggesting that there may be wide interest in its unique theme. One growth option for House of Mao is to expand globally either through licensing franchises or through wholly owned subsidiaries. The restaurant could consider branching out in Western countries where customers may find its themeconcept a novelty among primarily Western-based concepts. Once the novelty of its theme fades, however, or even in anticipation that that will probably happen, House of Mao should begin now to place more emphasis on food and service if the restaurant is to succeed, ga
June 2000 • 85
College Students and Fast FoodHow Students Perceive Restaurant Brands by Bonniej. Knutson
pp. 68-74
Customer Perceptions of Theme Restaurants in Singapore by DonaldJ MacLuurin and Tanya L. MacLaurin
t Brief IN
pp. 76-85
A survey of 200 Michigan State Universitystudents sought to answer these two questions: What drives students’ choices among fast-food restaurants? and How are fast-food brands positioned in the college market? The students were asked to rate the influence of 13 factors (e.g., cleanliness,price, speed) on their fast-food-restaurant choices. The survey next used a “name association” format that askedwhich fast-food restaurant came to these students’ minds for each of 13 positioning traits (for example, “Which fastfood restaurant has the best menu variety?” and “Which restaurant offers the highest nutrition?“). The restaurants considered by this study were: Arby’s, Burger King, KFC,McDonald’s,Subway, Taco Bell,and Wendy’s, In order of importance, the determining factors and the students’top-of-mind perceptions (i.e., brand image) are as follows (with the top-rated restaurant shown in parentheses):cleanlinessand friendliness (Subway): price (Taco Bell); servicespeed and consistencyin menu items (McDonald’s);and menu variety (Wendy’s).The remaining factors were, in order of importance, location, combination meals and discount coupons, atmosphere, drive-through, promotional menu items (new items), and add-on coupons. The other “image” characteristicsincluded “highest nutrition” and “best for vegetarians” (Subway), “best atmosphere” (Wendy’s),and “best combination meals” and “best kids’ meals” (McDonald’s).
Three hundred consumers were asked to rate these four Singaporetheme restaurants: Hard Rock Cafe, Planet Hollywood, CelebritiesAsia, and House of Mao. The two-part questionnaire first asked about respondents’ perceptions of theme restaurants in general, and then required respondentsto rate nine attributes for all four restaurants. Hard Rock Cafe receivedthe best ratings for meeting consumers’ expectations and had the highest means for service quality. House of Mao had the lowest aggregate scores for service quality. Hard Rock Cafe also had the highest mean scores for food quality and taste. House of Mao had the second highest mean for taste of food, but the lowest means for the other measuresof food quality. Planet Hollywood had the highest percentageof negative views for “taste of the food.” House of Mao had the highest means for “atmosphere,” except for “comfort of the dining area,” for which it had the lowest mean rating. Respondentsranked Hard Rock Cafe as providing the best value-for-the-money and the best overall experience.Planet Hollywood was perceivedas having the most expensivefood, while Hard Rock Cafe was viewed as least expensive.
executive
of this issue’s feature articles
Airport-restaurant Service Quality in Hong Kong: An Application of SFRVQUAL by Vincent C. S. Heung, M. Y Wong, and Hailin Qu
pp. 86-96
6
In an extension of the SERVQLIAL methodology, a survey of 630 travelers found that restaurants at the Hong Kong airport provide servicethat exceedsthe travelers’ basic expectationsfor adequate service.Those restaurants do not exceedtravelers’ desiredservice levels, however. The survey asked the travelers to rate 33 service-qualityitems in three ways: as they relate to desired service,as they relate to adequate service,and how the travelers perceivedthe actual service.By comparing the perceptionswith the expectations, the researchersassessedhow near the restaurants came to meeting travelers’ expectations.The study divided the restaurants into these categories: casualdining, Chinese,full service,and quick service. The results revealedthat significant differences exist among those restaurant types in travelers’expectations and perceptions on some of the 33 service-qualityattributes, as well as for the restaurant types overall. In the main, the travelers had relativelyhigh expectations of the full-service restaurants and meager expectationsof the Chineserestaurants.
CURNEIJ HOTEL ANDRESTAURANT ADMINISTRATION QUARTERLY *VOLUME41,NUMBER 3