Ahmed Al Ketbi
CRM Strategy 1
Service Recovery System 2
Service Guarantee 3
Texas Roadhouse is a restaurant chain which opened its doors in the February of 1993 and has been sustainably serving its customers for twenty years. The first store was opened in Clarksville, Indiana. Since 1993, it has now spread to 49 states and 430 locations in the United States of America. It has also grown internationally through its 5 outlets in the Middle East. It has a distinct cultural identity in the manner the stores are decorated and how it treats its employees and customers. Since the advent of 2003 after being named as the number one steakhouse in America, it has grown to be renowned as one of the best of its kind and a desirable place to work. The reason for their success lies in the way the customers are treated and served which is a part of their customer relationship management skills and their quality of service. (Texas Roadhouse, 2014)
Before knowing what Texas roadhouse plans to attract customers and sustain their business, it is essential to realize how they have grown based on their earlier strategies. After the introduction of their IPO, the share prices increased 67% in a week and after being enquired their answer to the reason behind their continuous success was how they target their customers. They always targeted customers based on locations in cities where people are value conscious and belong to a middles class house hold and Texas Roadhouse thrives on that customer base and makes utmost efforts to serve them. They try to keep the prices as low as possible by spending less on advertisements and spending more on the quality of food. (Saito, 2005)
Their CRM strategy declares their focus on customer food safety measures which are rigorous and extensive and make the customer have their food without worrying about the cleanliness of their product. It is an important factor in the food industry and even customers give it a higher priority. It uses localization as a CRM strategy to keep a constant communication with their customers through social media (mainly facebook). After the initiation of a social media platform recognized as MomentFeed, Texas Roadhouse has strengthened their bond with customers without spending on advertizing as much as their competitors. (Fiorletta, 2013) They also have made meticulous efforts in serving their customers and the best example of that would be their initiative on Veteran’s day in 2013 by providing a free meal to 150,000 veterans which was a million dollar donation drive and a way of showing their respect towards war veterans which was appreciated by lot of their customers. (Texas Roadhouse, 2014)
They also support various causes and there are several incidents where Texas Roadhouse stepped out of their way to help individuals through a tough time. A student Athlete named Jacob Lee was aided with a money for surgery and his wheelchair ramp through a fundraiser where many customers and the store itself raised money to help Jacob. Their tie-ups with many institutions like Make-a-Wish foundations to host free meals for needy people are also well known their continuous efforts builds up the spirit of their customers and makes their customers that Texas Roadhouse serves their customers well and works for their welfare too which has been a recognition gained through the sentiments of their customers.
Service Recovery System
Service recovery is essentially a process that comes into play when a service goes wrong. The company offering the service mainly takes measures to alleviate the problems caused due to the failure in providing a service. In case of Texas Roadhouse which is a food service industry their aim remains to offer tasty, clean food to their customer but there are always chances of isolated incidents popping up when there are so many outlets that there something wrong with the food or a customer might feel mistreated and what Texas Roadhouse would do as a measure to recover that situation and correct the mistake and take precautionary measure after that to ensure undeviating service and customer satisfaction is what makes a service recovery system of Texas Roadhouse.
Texas Roadhouse takes customer service very seriously; it can be found from several customer reviews that the service is very fast and customers usually don’t have to wait longer for getting a meal at any outlet and the quality is impeccable and consistent. Even if they have an incident, Texas Roadhouse tries their best to make it up to their customers to ensure customer satisfaction. (Ecolab Food Safety, 2014)
They employ coaches to train their employees to ensure food safety protocols and are determined o make it a habit to provide consistent food safety measures. There is a report of an isolated incident about a customer finding a maggot in their food but it was never been proved. Despite that, Texas Roadhouse offered the customer another free meal and declared that they take strict measures to ensure that their food is safe and healthy. (Mcclain, 2014)
Their Service Recovery system can be observed in the continuous quality of service across their outlets which also depict how their employees are trained to serve and behave with the customers. As Texas Roadhouse is a family restaurant chain, their 60% of the customers come with families and there is a friendly environment observed which is an important requirement for family restaurants.
Texas Roadhouse Claims that culture is one of their biggest assets and their mission statement boasts of a “legendary” service. That claim can be cemented with facts regarding their outstanding service. Reductions in negative calls, constant growth due to appreciation and customer turnout are the biggest factors concerned with their service. They aim of creating movements that exceeds the results that have been generated due to their culture and the movements are destined to be something their employees and customers would feel engaged in. Texas Roadhouse is frequently tested for these commitments and they turn out victorious due to their display of a strong customer relationship built on their culture which they have created in these 20 years. (Tanner, 2014)
Ecolab Food Safety. (2014). Texas Roadhouse. Retrieved 11 25, 2014, from foodsafety.ecolab.com: https://foodsafety.ecolab.com/us/food-safety/article?issue=fall-2013&article=texas-roadhouse#.VHQWL_mUd0w
Fiorletta, A. (2013, 2 14). Texas Roadhouse Sees 71% Higher Engagement On Facebook Place Pages. Retrieved 11 25, 2014, from www.retailtouchpoints.com: http://www.retailtouchpoints.com/shopper-engagement/2300-texas-roadhouse-sees-71-higher-engagement-on-facebook-place-pages
Mcclain, E. (2014, 6 11). Taylor Texas Roadhouse patron alleges maggot found in steak; Health inspection finds nothing. Retrieved 11 25, 2014, from www.thenewsherald.com: http://www.thenewsherald.com/articles/2014/06/11/news/doc5391eb7c86701364901950.txt
Saito, D. (2005, 1 18). Texas Roadhouse Cooks Up Own Style Of Wal-Mart’s Rural Strategy. Retrieved 11 25, 2014, from news.investors.com: http://news.investors.com/investing/011805-404652-texas-roadhouse-cooks-up-own-style-of-wal-marts-rural-strategy.htm
Tanner, O. C. (2014). Texas Roadhouse Delivers Outstanding Service and Results. Retrieved 11 25, 2014, from www.octanner.com: http://www.octanner.com/insight/client-stories/texas-roadhouse
Texas Roadhouse. (2014). Company Profile. Retrieved 11 25, 2014, from http://investor.texasroadhouse.com/: http://investor.texasroadhouse.com/
Texas Roadhouse. (2014). Our Commitment. Retrieved 11 25, 2014, from www.texasroadhouse.com: http://www.texasroadhouse.com/our-story/our-commitment