The document discusses different types of customers in foodservice markets including captive, mass, and status markets. It examines factors that influence customer choices such as convenience, social occasions, and lifestyle. Various customer segments are also analyzed including repeat customers, families, seniors, and their specific needs and expectations from foodservice establishments.

1. UNDERSTANDING THE
CUSTOMER
Chapter 2

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

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

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

5. Captive Market

6. Captive Market

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

8. Mass Market

9. Mass Market

10. Mass Market

11. Status Market
• The status market is more concerned
with where we eat.
• To see and be seen is more important
than what is on the menu.

12. Status Market

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

14. Repeat Customers
• Repeat business accounts for anywhere from 60 percent to 80
percent of total revenue for restaurants.
• Frequent diners have two major characteristics.
o They eat dinners out at least seven times a month;
o They have distinct behavior patterns in their din-ing habits.

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

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

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

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

19. Seniors
• Senior citizens are regarded as a frequent dinner customer. As
noted above, this "care-seekers" category includes older adults.
• To appeal to this group operators offer things such as smaller
portions at lower prices, special services, such as a shuttle to the
restau-rant, and early-bird specials.

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

21. Need of the Market

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

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

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

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

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

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

28. Stages
• Staffing
• Concept Planning
• Market Research
• Menu Planning
• Budget Planning
• Marketing Communications
• Event Process Planning
o Pre Event
o Catering Plan
o Purchasing/Receiving/ Inventory Management
o Food and Beverage Production
o Service
o Waste Management
o Post Event Evaluations