Extended Wait Times Could Increase Restaurant Business
Long wait lines at restaurants could potentially boost their brand popularity, suggesting high demand.
Business
Long Wait Times May Boost Restaurant Popularity
By Jack Simpson
April 25, 2024
Restaurants can actually benefit from making their customers wait, according to a new study conducted by researchers at the Penn State School of Hospitality Management. The research showed that having a pre-process wait line, such as waiting to be seated in a restaurant, can enhance the perceived brand popularity among first-time customers.
The study was spearheaded by Associate Professor of Hospitality Management, Breffni Noone, and published in the International Journal of Hospitality Management. It found that this effect is intensified when paired with an independent organization's brand popularity statement. Such statements convey widespread use of the brand and may include reviews labeling the business as "most popular" within its location.
No one suggests that it might not always be beneficial for businesses to eliminate pre-process wait lines completely. Instead, having a visible queue could positively impact first-time consumers' anticipation about their dining experience since they perceive it as an indicator of popularity.
Two studies were carried out to assess how wait times affect businesses. In the first one, 156 participants from across America were surveyed using Prolific, a platform commonly used in hospitality consumer research. They were shown images of an imaginary casual dining restaurant, either with or without a waiting line or brand popularity statement.
According to Noone, these findings are applicable not just for restaurants but also for retail outlets, nightclubs, bars, and theme parks looking to boost their perceived brand value while cutting unnecessary costs associated with minimizing waiting times.
However, there is a potential downside if customers have to endure excessively long waits, which become irritating rather than appealing signs of demand. To understand how different lengths of wait time could alter customer perceptions, further research was done by surveying 269 people on Prolific again, showing them pictures like before but assigning them randomly into queues with varying estimated wait times ranging from zero minutes up to forty-five minutes.
This second round revealed that patrons generally tolerated delays up until fifteen minutes before any positive effects related to perceived branding began fading away, largely because they had to wait. However, the presence of a brand popularity statement helped mitigate this effect somewhat.
No one suggests that whether customers are more sensitive to time or price would determine their response. Time-sensitive individuals might not mind waiting if it means being part of something popular, but they may be willing to pay for expedited service, like theme park fast passes, to avoid long queues. On the other hand, those who prioritize cost over convenience might choose longer waits instead.
In case patrons become frustrated after prolonged waits, businesses must then work harder during actual service delivery, such as providing exceptional service once seated at a restaurant, in order to regain customer trust and satisfaction.
Accordingly, Noone concludes that having visible wait lines can actually be beneficial, especially when dealing with large numbers of first-time customers. Therefore, businesses should reconsider investing heavily in eliminating queues completely unless they reach levels that could potentially harm business interest overall.
This research was done in collaboration with Michael S. Lin from Hong Kong Polytechnic University.
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