SOCi Inc., a comarketing cloud for multilocation enterprises, is releasing a follow-up to the company’s 2023 Local Visibility Index (LVI), providing a comprehensive analysis and ranking of the top multilocation fast-casual and quick-service restaurants in the U.S. based on their online reputation score. Each reputation score was carefully calculated based on five key parameters, evaluating overall restaurant location performance across top social and business listings platforms, Google, Yelp and Facebook.
SOCi analyzed:
- Velocity, the rate of new reviews each month and whether it was increasing or decreasing.
- Volume, the average number of reviews per location, tracking upward or downward trends.
- Variety, the mix of positive and negative reviews.
- Response, how quickly and how often a company responds to positive and negative reviews.
- Ratings: the average score a company receives on each platform across all locations.
In total, SOCi analyzed over 100 signals measuring online performance and engagement, including reviews, questions, and rankings across online listings for thousands of restaurant locations.
Key takeaways from the ranking include:
- Chick-fil-A secured the top position with a reputation score of 66 out of 100 possible points. The top five also included Five Guys (57), Dairy Queen (56), Sonic Drive-In (54) and Chipotle (52).
- The average score for the restaurants in the analysis was around 45, indicating considerable room for improvement for the industry in managing online reputation.
- The bottom five included Little Caesars (33), Domino's (32), Cinnabon (24), Baskin Robbins (19) and Subway (18).
- The analysis identified a worrying trend of “ghosting,” where companies ignore online feedback, reviews and questions, often seen among the lower performers. SOCi estimates that ghosting costs chain/franchise restaurants in the U.S. approximately $14.07 billion in lost value annually. The major factors contributing to this loss include decreased consumer trust, lower conversion rates and weakened customer loyalty.
"Ghosting is bad for customers and has serious financial implications for brands," said Ho. "By quantifying the damage, we hope to underscore the critical need for brands to proactively manage their online reputation and address customer feedback — both positive and negative."
To focus on the top restaurant chains, the analysis applied rigorous selection criteria, considering only chains with hundreds or thousands of locations, leading annual sales figures, broad geographic or global presence, strong brand recognition, and a track record of success over time.
Additional findings from SOCi’s analysis include:
- Top performer vs. bottom performer: The top-ranked player, Chick-fil-A, with a score of 66, outperforms the bottom-ranked player, Subway, by 267%. This suggests top-performing chains are nearly three times more effective at managing their online reputation. Additionally, with the average score among these restaurants being around 45, Chick-fil-A's score is about 47% higher than average. In contrast, Subway's score is 60% lower than the average.
- Burger QSRs scored better: Burger chains take three out of the top five spots — with Chick-fil-A (66), Five Guys (57) and Sonic (54) — demonstrating that burger-focused brands maintain a stronger online reputation than their peers. The average reputation score for burger-focused chains including McDonald's (49), Arby's (48), Wendy's (39) and Burger King (38) is 43.5, just below the overall average for all restaurants (45).
- Pizza QSRs underperform: Pizza-focused chains did not fare as well. Pizza Hut (46) outperformed other pizza chains but still ranked lower than top burger chains. Meanwhile, Little Caesars (33) and Domino's (32) came in near the bottom. The average reputation score for pizza chains is 37, which is noticeably lower than the overall average.
- Chick-fil-A lifts chicken-focused QSRs: Chick-fil-A, the top performer, represents chicken-focused chains strongly. However, Popeyes (42) and KFC (39) didn't fare as well. The average reputation score for chicken-focused chains is 49, slightly higher than the overall average, driven largely by Chick-fil-A.
- Health-conscious and alternative QSRs: While not directly categorized, Chipotle, known for healthier options, ranks within the top five with a score of 52. Similarly, Panera Bread, a brand focusing on fresh ingredients, scores 49, indicating that health-conscious and alternative food chains also have a strong online reputation.
The top- and bottom-performing fast-casual restaurants and QSRs based on reputation score include:
Top performers
- Chick-fil-A - 66
- Five Guys - 57
- Dairy Queen - 56
- Sonic Drive-In - 54
- Chipotle Mexican Grill - 52
Bottom performers
- Little Caesars Pizza - 33
- Domino's Pizza - 32
- Cinnabon - 24
- Baskin Robbins - 19
- Subway - 18
The findings from this analysis emphasize the significant role of online reputation in driving local visibility for restaurants. With the digital landscape shaping consumers' dining choices, a strong online presence and proactive customer engagement can substantially enhance a brand's local visibility and competitiveness in the market.
"Local visibility and online reputation are two sides of the same coin,” said Ho. “As our analysis shows, a restaurant's proactive and positive engagement with its online audience is instrumental in boosting local visibility and, ultimately, business success. Brands that understand this have a competitive edge. They not only demonstrate their commitment to their customers but also maximize their reach within their local markets.”
To delve deeper into how online reputation influences local visibility, and to discover the strategies employed by top-performing chains, visit the interactive LVI dashboard or download the "The High Cost of Invisibility for Multi-Location Enterprises."
Source: SOCi
