Yummy inMy Tummy:

Cafeteria Study

April 29, 2009

Mr. Pat CreosoteDirector of Cafeteria ServicesAJ Industries

Subject: Report on the results of the Yummy in My Tummy (YMT) cafeteria survey

Dear Mr. Creosote:

We are pleased to present you with a report on the results of the Yummy in My Tummy cafeteria survey. This report was prepared in accordance to the research proposal/contract that was submitted to you in March 2009.

As predicted, the report indicates that patrons are not dining frequently in the cafeteria. The report recommends that to entice people to eat at the YMT cafeteria, a new range of fast food restaurants should be introduced. Our suggestion is to offer a range of such restaurants. All the restaurants should have quality food and offer it at a reasonable price. Quality and price were found to be the most important to customers when selecting a restaurant.

Via an intercept method at a central location, 100 surveys were gathered from a representative sample. The survey sought information pertaining to customer behavior, values, restaurant attributes, customer preferences, and customer demographics.

The results of this survey can be used to make preliminary decisions regarding inclusion of new restaurants in YMT cafeterias. I would like to thank you for your assistance in completing this research.

Sincerely,

Bobby BobBob Bobby

Table of Contents

Letter of Transmittal X

Managerial Summary 1

Statement of Research 2

Background 2

Purpose 2

Objectives 2

Benefactors 2

Research design & Methodology 2

Results 3

Consumer Behavior

Restaurant Attributes

Consumer Preferences

Demographics

Limitations 9

Recommendations 9

Appendix A (Questionnaire) 10

Appendix B (Frequency Tables) 14

MANAGERIAL SUMMARY

CONSUMER BEHAVIOR Forty-six percent of respondents said they eat in the cafeteria less than once a month and

of that percentage, 26% of respondents said that they never dine in the cafeteria, though 32% of respondents dine there 1-2 times a week. These data suggest there is a problem with the present facility.

When reviewing the responses to the frequency of dining in specific restaurants, the mean values indicate that McDonald’s is most frequently dined at with a mean of 4.08, which is equivalent to twice a month on average. Not far behind, with a mean of 3.83 is Wendy’s. Next, in order, Subway and KFC are closely related having a mean of 3.1 and 3.0, respectively. These means indicate that frequency of visits is on average roughly once a month.

RESTAURANT ATTRIBUTES Through correlation analysis, it was concluded that the attributes that most influenced

whether or not respondents dined at the cafeteria were the quality of the food and the pricing. On the other hand, the atmosphere and speed of service had the least impact on the frequency that respondents dined in the cafeteria. Also, there was a high frequency of respondents not satisfied with the selection available.

The restaurant qualities favored by the respondents were quality of food and price. Respondents said they prefer the quality of food offered by KFC, Pizza Hut, and Subway. The price of McDonald’s and Wendy’s is the favored aspect. In relation to their low frequencies, it was unsurprising that respondents said they liked nothing about Burger King and Taco Bell.

CONSUMER PREFERENCES The respondents said that they would be most likely to dine at the cafeteria if there were a

Wendy’s, Subway, McDonald’s, or KFC. Even if there was a Taco Bell or Pizza Hut, respondents would be 43.0% and 42.7%, respectively, more likely to dine in the cafeteria. The only restaurant, if located in the cafeteria, that respondents said that they would me more unlikely than likely to dine in was Burger King, with 46.4%. With these data, we can conclude that if any of the fast food restaurants that respondents were asked about were located in the cafeteria more customers would dine there more frequently. CONCLUSIONS

With the data collected from the surveys, it can be concluded that the overall satisfaction with the cafeteria is poor as indicated by the infrequency of patronage of respondents at YMT. Respondents hold quality and price at the top of their lists when choosing a restaurant and would like to see a change in the cafeteria without compromising quality or price. A variety of restaurants are favored over the present facility.

RECOMMENDATIONS It is our recommendation that a Wendy’s, Subway, and/or McDonald’s

replace the current cafeteria. A combination of the three would be the most productive, but any one of them would produce higher sales by an increase

in the volume of customers served as well as the frequency at which they purchase.

STATEMENT OF RESEARCH

BACKGROUND

Yummy in My Tummy (YMT) cafeteria is operated by the YMT Corporation; it is opened for breakfast, lunch, and dinner, Monday through Friday. Its daily specials consist of a meat, vegetables, and dessert in addition to the common menu items (e.g., hamburgers, grilled cheese sandwich, chicken, wings, fries, and onion rings). We devised a survey to better understand how consumers felt about the cafeteria; the data gathered will help YMT better position its cafeteria in the marketplace.

PURPOSE OF THE RESEARCH

The general purpose of this study is to determine YMT target market’s perception of the food offered at YMT cafeteria. In doing so, it will help to determine the success of modifying YMT dining facilities. For example, should fast food chains be incorporated in the YMT business model? A careful review of these areas led to the identification of the following specific research objectives:

To determine the target market’s attitude towards eating at YMT.

To determine what fast food restaurants the target market frequents.

To identify the extent that the target market dines at specific fast food restaurants.

To determine which fast food restaurants the target market likes most when dining out.

To identify why the target market frequents certain fast food restaurants.

To determine whether or not the target market would dine at YMT facility more frequently if fast food chains replaced the present cafeteria.

BENEFACTORS

The results of this survey can be used by the appropriate YMT operators to design a larger scale survey as well as to make preliminary decisions about bringing in new restaurants to the YMT cafeteria.

RESEARCH DESIGN & METHODOLOGY

This research design was exploratory and data were collected via survey methods. A structured questionnaire was used because it is an inexpensive, convenient, and efficient way of

collecting a large and varied amount of information from the target market pertaining to their dining behavior and preferences. The survey design included a variety of close-ended questions related to the research objectives (see Appendix A). After receiving feedback from the pre-tests, explicit instructions were added to the matrix questions; revising questions also occurred to clarify their meaning.

Convenience sampling was used in the selection of the respondents (N=100). The survey was distributed via intercept points at YMT; however, not all of the survey questions contained a response and some questions were answered incorrectly (i.e., more than one response was given), which made such responses unusable. SPSS was used to analyze the data; frequency and cross tabulation data were examined. These data offered insight to a number of pertinent areas, including customer behavior and preferences, favored restaurant attributes, and demographics.

RESULTS

CONSUMER BEHAVIOR

YMT CafeteriaFrequency: Most respondents (32%) answered that they dined in the YMT cafeteria “1-2 times a week.” The second most frequent response was answered by 26% of respondents who said they “Never” dine in the YMT cafeteria. In general, this question indicates that 46.9% dine in the YMT cafeteria once a month or less, while only 53.1% dine there more than twice a month. (See Graph 1.1)

Never

Less th

an Onc

e a M

onth

Once a

Month

Twice a m

onth

1-2 tim

es a week

3+ tim

es a w

eek07

14212835

2617

310

32

12

Frequency of dining in AWC Cafeteria

Respondents

Frequency

# of

Res

pond

ents

Graph 1.1

Fast Food Restaurants (see Table 1.1 and 1.2 in Appendix B)Graph 1.2 at the end of this section provides a view of the frequency at which

respondents dine at the specified fast food restaurants.

Burger King

Frequency: For Burger King, most respondents, 54%, said that they eat there less than once a month; of that 54%, 28% said that they never dine there. In relation to other fast food establishments, Burger King had a low mean, 2.71, indicating a low frequency of dining.

KFCFrequency: For KFC, most respondents, 42.4%, said that they eat there less than once a month; of that 42.4%, 17% said that they never dine there. KFC averaged a 3.0 mean, indicating that respondents on average choose KFC once a month.

McDonald’sFrequency: Respondents indicated that 27.3% dine at McDonald’s twice a month and 25.3% dine there 1-2 times a week. This is clear when viewing the mean, 4.08, which indicates that on average, respondents dine there twice a month. It is important to note that this is the highest mean showing and that it is the most frequented fast food establishment.

Pizza HutFrequency: A majority of respondents, 55.2%, answered that they have Pizza Hut less than once a month; of that 55.2%, 26% said that they never eat Pizza Hut. Reviewing the mean reinforces the above findings. Pizza Hut, with a mean of 2.59, had the lowest mean indicating that it is the least frequented of the various fast food restaurants.

SubwayFrequency: The most frequent response seen when asked how often they eat Subway was twice a month with 28.1%. Subway’s mean, 3.10, indicates a moderate to high frequency.

Taco BellFrequency: A majority of respondents, 50%, answered that they choose Taco Bell less than once a month; of that 50%, 23% said that they never eat Taco Bell. Another low mean, 2.8, indicates that respondents frequent Taco Bell on average less than once a month.

Wendy’sFrequency: 30% of respondents eat at Wendy’s 1-2 times a week, followed closely by 22% who dine twice a month. Wendy’s had the second highest mean, 3.83, indicating that respondents eat there an average of almost twice a month.

Burg

er K

ing

McD

onal

d's

Pizz

a H

ut

Subw

ay

Taco

Bell

Wen

dy's

0

5

10

15

5.1

10.1

2.1 3.1 2

10

Respondents Frequency of Dining (%)

3+ times a Week

Restaurant Options

Perc

enta

ge (%

)

Graph 1.2RESTAURANT ATTRIBUTES

YMT CafeteriaSatisfaction: Cross-tab analysis indicated that there are very low correlations between how satisfied respondents are with the atmosphere, speed of service, and selection available in the cafeteria and the frequency at which they dine there. In other words, we found that even as the respondents’ satisfaction rate of these attributes changed, their frequency of dining did not change. The attributes that held moderate correlations were the quality of the food and the price. This implies that the more or less satisfied respondents are with the quality of the food and the price, the more or less frequently they dine in the cafeteria, respectively.

When frequencies are examined, there were a meaningful number of respondents who were indifferent to many of the attributes in question. However, the areas with the most satisfaction were the quality of food available, the speed of service, and the atmosphere. When asked about the food selection, 41.4% of respondents said that they were somewhat or not at all satisfied with the food selection available in the cafeteria. Pricing was another area where respondents were not very satisfied. Here, 44.4% of respondents indicated that they were either somewhat or not at all satisfied. These frequencies indicate that YMT patrons are not satisfied with the pricing or the selection available in the cafeteria. This indicates that there is room for other restaurants and that a combination of restaurants would most likely be successful in order to satisfy the customer’s need for variety. (See Table 2.1 in Appendix B)

Fast Food Restaurants (see Table 2.2 in Appendix B) Respondents were asked which attribute they liked the most about the following:

Burger King

Preference: For Burger King, 38.8% of respondents said that they like “nothing” about Burger King. But the next two choices were “quality of food” (23.5%) and “price” (16.3%).

KFCPreference: For KFC, 53.1% of respondents indicated that they like the “quality of food” KFC offers.

McDonald’sPreference: McDonald’s results showed that “price” is the respondent’s top attribute, with 45.9% selecting it as their choice.

Pizza HutPreference: Again, quality of food was the most liked quality. Pizza Hut had 43.6% of respondents choose their “quality of food” as their best attribute.

SubwayPreference: “Quality of food” ranked as Subway’s top attribute receiving 45.8% of respondents’ vote. It is also important to note that “selection” was 22.9% of respondents’ choice.

Taco BellPreference: Of the respondents, 28.6%, answered that they like “nothing” about Taco Bell. Because this is not an overwhelming amount it is necessary to review the other responses. There was a relatively close distribution among those who chose “price,” “selection,” “quality of food,” and “speed of service” as their most liked attribute.

Wendy’sPreference: Exactly half of those who were asked responded that they most like the “price” offered by Wendy’s. The “quality of food” earned 21% of the respondents’ choice.

CONSUMER PREFERENCES

One of our research objectives was to determine whether or not another restaurant would be more successful than the cafeteria if added to YMT. To determine respondents’ preferences in fast food restaurants, they were asked how likely they would be to dine in the cafeteria given a choice of the various fast food restaurants. The results from this question could aid in any future plans for development of the cafeteria. The hypothesis tested is that if customers were more pleased with the choice(s) available, there would be an increase in the volume of patrons dining there, as well as an increase in the frequency at which they dine. Our results indicate that that over half of the respondents would be more “likely” (at least) to dine in the cafeteria if there were a Wendy’s, Subway, McDonald’s, or KFC. If there was a Pizza Hut or Taco Bell, only 40% of respondents said that they would be more “likely” (at least) to dine in the cafeteria. Although some of the fast food restaurants may not be frequented or favored by respondents, they would be more “likely” to dine in YMT if these establishments were located within YMT.

Burg

er K

ing

KFC

McD

onal

d's

Pizz

a Hut

Subw

ay

Taco

Bell

Wen

dy's

0%20%40%60%80%

34.40

% 58.20

%

63.30

%

42.70

%

70.40

%

43.00

% 71.00

%

Likeliness to Dine

At least "Likely"

Restaurant Options

Perc

enta

ge (%

)

Graph 3.1

Graph 3.1 above shows the percentage of respondents who would be at least more likely to dine in the cafeteria if the fast food restaurants were available. Table 3.1 in Appendix B can be referenced for exact figures.

By reviewing frequency figures, means, and modes gathered from respondents’ choices when asked to rank the restaurants according to what they would most like to see in the cafeteria, we found that Subway was the overall top choice. The most frequently appearing data were 1; that, in conjunction with a low median of 2 and the lowest mean of 3.02, indicate that a majority of respondents’ top choice Subway (to be located within YMT). But, also with a mode of 1, were Wendy’s and McDonald’s. KFC was next followed by Pizza Hut, Taco Bell, and Burger King, respectively. Graph 3.2 below gives a picture indicating the frequency at which each restaurant was chosen first. Table 3.2 in Appendix B shows all related means, medians, and modes.

412

20

531

5

21

Restaurants Ranked #1

Burger King

KFC

McDonald's

Pizza Hut

Subway

Taco Bell

Wendy's

Graph 3.2

DEMOGRAPHICS

ClassificationRegarding class standing, 55.7% were seniors, 28.9% were juniors, 7.2% were sophomores, 5.2% were graduate students, and 3.1% were freshmen; 89.9% were business majors.

ResidenceMost respondents (70%) do not live on campus.

TravelBecause of the high percentage of students who are juniors or seniors and who do not live on campus, we expected most students to drive; in fact, 83.8% drive a vehicle.

PaymentOf those surveyed, 68.8% said that they pay for their food in the cafeteria by cash. Because of the small percentage of respondents that live on campus, it would not be expected that many would pay by a meal plan (although any student can purchase a meal plan regardless of residence). Those paying with a meal plan made up 21.5% of respondents.

GenderFor gender, 52% were female and 48% were male.

AgeOf those surveyed, the median age range was “20-21,” which consisted of 46.9%. Next were those “22-23,” with 29.6% of respondents. Finally, 9.2% said that they were “24-25.”IncomeFor income, 52.1% of respondents make “under $15,000” annually. The next range also had a substantial amount of responses: 19.8% earn “$15,000-$24,999.” The rest of the responses were as follows: 8.3% earn “$25,000-$34,999,” 7.3% earn “$35,000-$44,999,” 2.1% earn “$45,000-$59,999,” and 10.4% earn “$60,000 or more,”

EthnicityFor ethnicity, 83.2% of respondents were Black, 9.5% were Caucasian, 1.1% were Hispanic, and 6.3% replied “Other.”

LIMITATIONS

This research is not without limitations. Because convenience sampling was used in the selection of survey respondents, the results may be biased and contain measurement error. More specifically, some surveys were distributed in or around the cafeteria. Another bias could be that three of the restaurants in question are located nearby YMT. Respondents who have or are living on campus may have skewed opinions of these three restaurants because of their frequent subjection to them. Although all surveys were returned, not all were filled out completely and correctly (for example, many respondents did not answer an important open-ended question and

when asked to select a favorite restaurant attribute, and some respondents marked all that applied).

RECOMMENDATIONS

Our conclusion is that the sample is not satisfied with YMT, and therefore do not dine there frequently. One of the main points of dissatisfaction seems to be the lack of selection in the cafeteria. It also was found that students are sensitive to pricing and the quality of food, not only in the cafeteria but in other restaurants as well. It was found that students most often eat at McDonald’s, Wendy’s, Subway, and KFC, respectively. The respondent’s favorite attributes of these restaurants, quality of food and price ranked highest. The survey results indicate that if any of the seven restaurants in this survey were to replace the present cafeteria, respondents would be more likely to dine there. When asked which restaurant they would like to replace YMT, most respondents said Subway, closely followed by Wendy’s and McDonalds’s. Our recommendation is that the present cafeteria be restructured to offer a wider selection of food. More specifically, we suggest that a Subway, Wendy’s, or McDonald’s replace YMT.

APPENDIX A – QUESTIONNAIRE (YMT CAFETERIA)

PLEASE CHECK THE BOX NEXT TO THE ANSWER THAT BEST CORRESPONDS WITH YOUR RESPONSE.

1. How often do you eat at YMT cafeteria? 3 or more times a week (6) 1-2 times a week (5) twice a month (4) once a month (3) less than once a month (2) never (1)

2. How satisfied are you with the food quality available in the cafeteria? very satisfied (1) satisfied (2) neither satisfied nor dissatisfied (3) somewhat not satisfied (4) not at all satisfied (5)

3. How satisfied are you with the speed of service available in the cafeteria? very satisfied (1) satisfied (2) neither satisfied nor dissatisfied (3) somewhat not satisfied (4) not at all satisfied (5)

4. How satisfied are you with atmosphere in the cafeteria? very satisfied (1) satisfied (2) neither satisfied nor dissatisfied (3) somewhat not satisfied (4) not at all satisfied (5)

5. How satisfied are you with the pricing of food in the cafeteria? very satisfied (1) satisfied (2) neither satisfied nor dissatisfied (3) somewhat not satisfied (4) not at all satisfied (5)

6. How satisfied are you with the food selection available in the cafeteria? very satisfied (1) satisfied (2) neither satisfied nor dissatisfied (3) somewhat not satisfied (4) not at all satisfied (5)

7. How much do you agree with the statement: “I enjoy dining at YMT cafeteria.” strongly agree (1) agree (2) neither agree, nor disagree (3) disagree (4) strongly disagree (5)

QUESTION 8-11 ASK YOUR OPINIONS ON A VARIETY OF FAST FOOD RESTAURANTS. PLEASE CHECK THE BOX NEXT TO THE ANSWER THAT BEST CORRESPONDS WITH YOUR RESPONSE.

8. How often do you eat at the following: (PLEASE CHECK ONLY ONE RESPONSE PER RESTAURANT)

(6) (5) (4) (3) (2) (1)3 or more

times a week1-2 times a

weekTwice a month

Once a month

Less than once a month Never

Burger King

KFC

McDonald’s

Pizza Hut

Subway

Taco Bell

Wendy’s

9. What do you like the most about the following restaurants:(PLEASE CHECK ONLY ONE RESPONSE PER RESTAURANT)

(1) (2) (3) (4) (5) (6)

PriceQuality of

Food AtmosphereSpeed of Service Selection Nothing

Burger King

KFC

McDonald’s

Pizza Hut

Subway

Taco Bell

Wendy’s

10. If the following restaurants were located in the cafeteria of the YMT, how much more likely would you be to dine in the cafeteria?

(1) (2) (3) (4) (5)

Very Likely LikelyNeither likely, Nor Unlikely Unlikely Very Unlikely

Burger King

KFC

McDonald’s

Pizza Hut

Subway

Taco Bell

Wendy’s

11. Rank the following restaurants in order from 1-7 of those that you would like to have in the cafeteria. (1-would like the most, 7-would not like at all)

Burger King ________

KFC ________

McDonald’s ________

Pizza Hut ________

Subway ________

Taco Bell ________

Wendy’s ________

12. What is your classification? Freshman (1) Sophomore (2) Junior (3) Senior (4) Graduate Student (5)

13. Do you live on campus? yes (1) no (2)

14. Are you taking more than one class on the Avon Williams Campus? yes (1) no (2)

15. If so, what is your major? __________________________________

16. How do you travel to school? Drive yourself (1) are dropped off by friend/family member(2) Carpool (3) Campus shuttle (4) MTA (Metropolitan Transit Authority) (5) Other (6)

17. How do you pay for your food at YMT? Meal plan (1) Cash (2) Debit card (3) Check (4)

18. Do you have a meal plan? yes (1) no (2)

JUST A FEW MORE QUESTIONS AND YOU WILL BE FINISHED. 19. What is your gender?

Female (1) Male (2)

20. What is your age? 18-19 (1) 20-21 (2) 22-23 (3) 24-25 (4) 26-31 (5) 32-42 (6) 43-65 (7)

21. What is your household income? 18-19 (1) 20-21 (2) 22-23 (3) 24-25 (4) 26-31 (5) 32-42 (6)

22. What is your ethnicity? African American (1) Asian American (2) Caucasian (3) Hispanic (4) Native American (5) Other (6)

APPENDIX B – FREQUENCY TABLES

Table 1.1, How frequent respondents dine at the specified restaurants. (valid %)

NeverLess than

once a month

Once a month

Twice a month

1-2 times a week

3 or more times a week

Burger King 28.6 % 26.5 % 12.2 % 14.3 % 14.3 % 4.1 %KFC 17.2 % 25.3 % 22.2 % 16.2 % 14.1 % 5.1 %McDonald’s 11.1 % 16.2 % 11.1 % 27.3 % 25.3 % 9.1 %Pizza Hut 26.0 % 29.2 % 14.6 % 21.9 % 6.3 % 2.1 %Subway 16.7 % 0.8 % 17.7 % 28.1 % 13.5 % 3.1 %Taco Bell 23.0 % 27.0 % 15.0 % 19.0 % 14.0 % 2.0 %Wendy’s 10.0 % 9.0 % 19.0 % 22.0 % 30.0 % 10.0 %

Table 1.2, Mean of how often respondents eat at specified restaurants. (valid %)Burger King KFC McDonald’s Pizza Hut Subway Taco Bell Wendy’s

2.71 3.0 4.08 2.59 3.10 2.80 3.83

Table 2.1, Degree of Satisfaction with aspects of the YMT Cafeteria. (valid

%)

Very Satisfied

Satisfied Neither Satisfied Nor Dissatisfied

Somewhat not Satisfied

Not at all Satisfied

Food Quality 7.1% 39.4% 29.3% 16.2% 8.1%Speed of Service 8.1% 32.3% 32.3% 20.2% 7.1%Atmosphere 9.1% 54.5% 21.2% 10.1% 5.1%Pricing 6.1% 20.2% 29.3% 32.3% 12.1%Selection 5.1% 30.3% 23.2% 27.3% 14.1%

Table 2.2, Frequency of most liked attributes. (valid %)

Burger King

KFC McDonald’s Pizza Hut

Subway Taco Bell

Wendy’s

Price 16.3% 2.1% 45.9% 1.1% 1.0% 20.4% 50.0%Quality of Food

23.5% 53.1% 13.3% 43.6% 45.8% 16.3% 21.0%

Atmosphere 4.1% 4.2% 2.0% 5.3% 4.2% 1.0% 0.0%Speed of Service

7.1% 4.2% 15.3% 6.4% 8.3% 16.3% 7.0%

Selection 10.2% 16.7% 6.1% 9.6% 22.9% 17.3% 8.0%

Nothing 38.8% 19.8% 17.3% 34.0% 17.7% 28.6% 14.0%

Table 3.1, Frequency of how much more likely to dine if the restaurant

replaces YMT. (valid %)

Very Likely LikelyNeither

Likely, nor Unlikely

Unlikely Very Unlikely

Burger King 9.1% 25.3% 19.2% 12.1% 34.3%KFC 18.4% 39.8% 15.3% 12.2% 14.3%McDonald’s 33.7% 29.6% 11.2% 8.2% 17.3%Pizza Hut 12.5% 30.2% 26.0% 10.4% 20.8%Subway 41.8% 28.6% 12.2% 7.1% 10.2%Taco Bell 16.0% 27.0% 23.0% 9.0% 25.0%Wendy’s 38.0% 33.0% 17.0% 1.0% 11.0%

Table 3.2, Statistics consisting of the Mean, Median, and Mode.

Burger King

KFC McDonald’s

Pizza Hut Subway Taco Bell Wendy’s

Mean 5.32 3.85 3.59 4.39 3.02 4.63 3.53Median 6.00 4.00 3.50 5.00 2.00 5.00 3.00Mode 7 3 1 6 1 5 1