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Survey: Customers happier with fast food, cable

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By JEFF KORBELIK / Lincoln Journal Star

Tuesday, May 20, 2008 - 12:00:40 am CDT

There’s no reason to break out the champagne just yet, but news coming out of the University of Michigan is encouraging.

After a year of stalling and falling, the American Customer Satisfaction Index (ACSI) reversed course and registered its first gain in a year — up 0.4 percent to 75.2 on ACSI’s 100-point scale, according to the quarterly release Tuesday.

“We’re cautiously optimistic that the upturn may be a sign we’re coming out of this funk,” said David Van Amburg, ACSI managing director, in a phone interview. “It’s too early to say how good the news is.”

Story Photo
Fast-food scored a 78, up 1.3 percent from the previous year and 13 percent since the baseline year. (photos.com)
The following is rundown of American Customer Satisfaction Index ratings of companies that operate in Lincoln. Listed are ratings based on a 0 to 100 scale, with 100 as the best score; percentage change from previous year and percentage change from the first year company was measured.78
Airlines62-1.6-13.9
United Airlines560.0-21.1
Northwest57-6.6-17.4
Wireless Telephone Service680.04.6
Verizon721.45.9
AT&T714.412.7
Sprint56-8.2-5.1
Express Delivery821.21.2
FedEx851.20.0
UPS832.51.2
Hotels755.60.0
Marriott78-1.3-2.5
InterContinental Hotels
(formerly Holiday Inn)
742.87.2
Wyndham Worldwide
(formerly Ramada)
701.40.0
Limited-Service Restaurants1.313.0
Starbucks77-1.30.0
Pizza Hut765.610.1
Papa John’s76-1.30.0
Little Caesar750.04.2
Domino’s750.011.9
Wendy’s73-6.41.4
Burger King712.97.6
Taco Bell701.46.1
KFC70-1.44.5
McDonald’s697.89.5
Full-Service Restaurants80-1.2-1.2
Olive Garden822.52.5
Red Lobster791.31.3
Outback76-3.8-3.8
Chili’s Grill & Bar73-2.7-2.7
Cable & Satellite TV643.20.0
Time Warner Cable591.7-6.3
DISH Network65-3.0-8.5
DirecTV681.5-2.9
General
Hospitals75-2.61.4
U.S. Postal Service741.421.3
Newspapers64-3.0-11.1
Motion Pictures700.0-9.1
Broadcast News693.0-10.4

This is the first gain by the quarterly index in a year.

 ACSI measures more than 200 companies in 43 industries. ACSI companies make up more than 60 percent of the nation’s gross domestic product (GDP).

During the first quarter of each year, the ACSI measures customer satisfaction in utilities, transportation and warehousing, information, health care and social assistance and accommodation and food services. It surveys 250 customers of each company.

The recent report shows airlines continue to struggle, while fast-food restaurants are on an upswing.

Airlines scored a 62, down 1.6 percent from last year and down 13.9 percent since ACSI’s baseline year in 1994. Continental Airlines and US Airways had double digit decreases (10.1 and 11.5) from last year.

“Rising fuel costs continue to be a struggle,” Van Amburg said. “That’s the challenge for them.”

Fast-food scored a 78, up 1.3 percent from the previous year and 13 percent since the baseline year. Starbucks (1.3 percent), Pizza Hut (5.6), Burger King (2.9), KFC (1.4) and McDonald’s (7.8) enjoyed increases from 2007.

Wendy’s, meanwhile, plummeted 6.4 percent in customer satisfaction, from 78 to 73. Van Amburg said it’s a sign of Wendy’s financial difficulties. The company is expected to be sold soon.

Another troubling number, Van Amburg noted, is how full-service restaurants fared. Their overall score of 80 was just two points higher than fast-food restaurants. Chili’s Grill and Bar, for instance, scored just a 73.

“That should be a concern of the industry,” Van Amburg said  “People who are tightening their belts and looking for value are turning to McDonald’s and Wendy’s.”

On the television front, Time Warner Cable rose 1.3 percent increase (from 58 to 59), but is down 6.3 percent since its baseline year in 2001. DirecTV also is up (68, 1.5 percent), while DISH Network is down (65, 3.0 percent).

Newspapers didn’t fare well. They scored a 64, down 3 percent from the previous year and 11.1 percent since 1994.

Reach Jeff Korbelik at 473-7213 or jkorbelik@journalstar.com.


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Yikes wrote on May 20, 2008 8:32 am:
" I don't care how poor I am. I am not going to eat that garbage or feed it to my family. It is an excellent time to buy stock in the companies that make insulin, syringes, prosthetic knees, and those electronic carts. I guess this means our insurance at work will be going up too. Visit the produce aisle. Shop at the farmer's market. What is with you people? "

Ryan wrote on May 20, 2008 11:22 am:
" Who could be happy w/ Time Warner? "

Larry the Cable Guy wrote on May 20, 2008 4:38 pm:
" I know families who complain about Time Warner. They want all the modern technology but don't want to pay for it. The same families will go out and spend more on junky fast food per month than they do their cable tv, internet, and phone. Yikes is right, our society is slowly committing junk food suicide. If you like belching grease for several hours, you could be a fast food junkie. "