In the current market climate of the fast food industry, customer retention is an important feature
of ensuring future revenue for the business. This is particularly relevant in the fast food industry,
where many restaurants have been increasing in competition within the area.
There are many things that jeopardize customer retention at the current time, although service
failure is perhaps the most common. Service failure is defined as a situation where the customer
is dissatisfied with the service in some way. There can be many causes for service failure in the
fast food industry and any of them can lead to the loss of customers. This loss of customer may
result in a loss of significant earnings to the restaurant and may drive the customer to a
competitor, increasing their share in the market. Therefore, it is critical for fast food restaurants
to ensure that service failures are kept to a minimum if they are to maintain or even build their
share in the current market.
One way a restaurant can stand out above the competition and retain customers, is to introduce a
loyalty program. Loyalty programs improve customer retention and encourage spending.
Customer acquisition is improved by distinguishing the restaurant and the services they provide
from the competition.
White Castle prides itself in standard setting leadership, incorporating a loyalty program for its
customers, not only lives up to the company’s vision “Our quest is standard setting leadership in
each of our industries”, but it also lets customers and the communities in which they operate in,
that in these uncertain times they care and appreciate their customers for being loyal to the brand.
The following is a plan to implement a loyalty card program into the White Castle Restaurant.