Consumer Choice and Segmentation in the Restaurant Industry

Abstract A model of restaurant choice is derived from a survey of consumers which supports restaurateurs' competitive strategies. Whereas consumers say that food type and food quality are the primary variables of restaurant choice, once a choice set appropriate to the occasion and segment has been evoked, a restaurant's style and atmosphere become the deciding factors. The three demographic segments which emerged from the study - students, well-to-do middle aged, and older people of moderate income - showed clear preferences best explained by differences in style. Thus restaurateurs are right to compete primarily on style. Given the importance of a seemingly unimportant attribute, determinant analysis might be the best way to discover the critical success factors in a local market.