Research and Statistics for Managerial Decison Making
The Relationship Between Waiting Time and Customer Level of Satisfaction At Restaurant In
New York
Howard Wallace
Incorrect cover page structure.
Introduction
With the globally competitive environment in which we coexist, business owners
especially those businesses within the service industry will be at a disadvantage if the appropriate
model is not employed to ensure customer satisfaction. In a survey conducted by New Voice
Media in 2016, customers are ready to leave one company for another as a result of its
inadequacy of their customer experience by a 36% increase. The survey was conducted with
2,002 adults within the United States and reveals that 86% of the participants if an emotional
connection was made with an agent the likelihood of doing business with that company would be
great.
According to Ismael (2010), in an environment with increased competition, companies
should have a customer-oriented approach and the level of satisfaction of customers symbolizes
a modernized approach for quality and foster a truly customer-oriented organization culture and
management. Customer satisfaction is crucial in the success of every business entity, whether
they offer a product or service, or even both. The retention of customers and expansion of
customer base relies on the quality of goods and services offer, the extent to which a company
goes to ensure customers are satisfied, referrals from existing customers, and the company’s
reputation. How a customer perceived value towards any goods or services is very pivotal for
brand and customer loyalty. In the fast-food chain industry, the loyalty of a customer is essential
which is done by the provision of value-based service and food (Baker and Wakefield, 2012;
Izquierdo-Yusta et al., 2019). Jani et al. (2012), stated that with quality of food and service,
affordable prices and a pleasing atmosphere will increase the level of satisfaction of customer
(Jani and Han, 2015).
The purpose of this study is to examine the relationship between waiting time and
customer level of satisfaction at Restaurants in New York, many restaurants does not understand
Missing Table of Content, Dedication and Acknowledgement.
how important it is to satisfy the wait time of customers. They are more focus on improving their
facilities to accommodate waiting customers than to actually satisfies the need of the waiting
customers (Choi & Sheel, 2012).
Background of the study
The level of importance placed on the restaurant industry in New York is high especially
in New York City-based on its social and economic fabric (DiNapoli, 2020). The landscape of
New York’s restaurant industry varies from family-owned restaurants, food carts, four start
restaurants that aim to provide local and international cuisines. This industry generates revenue
of $46 billion annually and has proven vital to the economic development of the State. During
the period 2009 to 2019 before the pandemic, the employment rate in the restaurant industry
grew by 61% and this sector grew by 44%, which is twice the overall growth (DiNapoli, 2020).
Despite the numerous restaurant establishments across the city, customer dissatisfaction
heightens which is influenced by several factors with waiting time as a significant determinant
factor. The wait time of customer experience is ubiquitous, approximately 70% of customers are
concerned about the duration of the time they wait (Ting et al. 2019). According to a survey
conducted by Long Range Systems LLC, the average waitlist per week for a restaurant is 6.6
hours, with customers waiting almost half an hour on average for a table. A total of 267
restaurants owners and managers indicated that about 93% of restaurants have wait-time periods
and 30% represents restaurant where the wait time is getting longer (FSRmagazine, 2013). In a
survey conducted in Bangladesh concerning restaurant’s wait time, respondents expressed their
bitter experience on the time it takes to place your order and when it is delivered (Rahman,
2022). The report highlighted that most frequently the time to serve food after placing an order
is a half-hour, however, the industry standard is twenty minutes maximum. A 33% extra time is a
big shortcoming and creates a negative image to its customer. As wait time increases customer
dissatisfaction decreases which creates a bad image and reputation for the business.
Purpose of the Study
The Restaurant industry continues to increase its corridors in the United States to supply
the demands of the population. An industry of this magnitude and importance is heavily
dependent on should at the least give in return some type of solace to their customers. The
overall purpose of ordering out is defeated if customers are disgruntled at the wait time between
meal purchase and meal delivered. The ultimate goal of the Restaurant owners and managers is
to ensure customer satisfaction not just in wait time, but the overall quality of service provided.
Eating out is a very common practice in the United States, during the period 2010-2020
the annual average spent per household is represented below, in comparison to 2019, there is a
rapid decrease in 2020 of USD$2,375 which may be a result of the COVID-19 pandemic
(Wunsch, 2021).
New York is the city that never sleeps and attracts travelers from all over the world, with
a population of 8,804,190 consisting of 3.1 million immigrants and is considered the most
populous city in the United States. The restaurant industry is vital to New York’s image as a
world-class city, this defines its cultural and atmospheric nature. As a result of the restaurant
business, numerous other businesses are derived example retail, arts, and entertainment which
aid in the development and sustainability of the city, coupled with locals with their individuality
and character. Due to the increase of individuals eating out more and the noticeable long waiting
periods to be served their meals the researcher saw it relevant to explore if there is a correlation
between wait time and customer level of satisfaction at Restaurants in New York.
Indeed correct!
Theoretical Framework
There is an alarming increase in the number of persons eating out as the demographic of
younger patrons at restaurants is different from that of the baby boomers (Kate, 2019). It should
be noted that significant developments are noticeable in the rapid integration of technology into
the delivery and ordering experience. With an increase in restaurant dining customer experience
which includes wait time has also shifted as a result of the influx of customers and the inability
to streamline operations efficiently. Previous research indicates that objective and subjective wait
results in negative effects on the affective and cognitive waiting time evaluation (Wang et al,
2011). Wang also quoted Taylor (1994), that services that are delayed can drastically influence
the feeling of anger. Perception of waiting time influences customers’ waiting time satisfaction.
Customers wait an alarming amount of time in lines waiting, the average wait time before
customers are seated at restaurants in the U.S. is approximately 23 minutes and can go up to an
hour at prominent restaurants (Kuklin, 2019). It is estimated that people in the U.S. spend about
37 billion hours in line annually (Kuklin, 2019). The question is what impact does wait time have
on customer service and their overall behavior and attitude. An analysis of the data from the
population who eat out at restaurants in New York will be conducted to ascertain if there is a
correlation and provide findings to readers. This will also aid restaurants owners and managers to
make an informed decisions and focus on the operational excellence of their establishment.
Queuing Theory was developed at the onset of the 1900s and is established and
functionally in diverse industries, it is an analytical tool that is useful in solving queuing
problems (Siregar et al. 2020). A study conducted by Seigha Gumus using queuing theory to a
Fast-Food Outfit: A Study of Blue Meadows Restaurant (Siregar, et al. 2020). The study
evaluated the queuing system at the Blue Meadows restaurant to establish its operational
characteristics and reduce customers’ wait time with the use of queuing theory. The method
Interesting point made.
employed was the M/M/S model for the queue which evaluated the arrival rate of 40 customers
each hour, the benchmark is 22 customers each hour per server. The amount of service available
was 2 with a utilization rate above average at 0.909 which is very effective, this study can be
utilized as a reference to evaluate current systems and improve their functionality.
Research Question and Hypothesis
This study is guided the following research questions and hypothesis
Research Question:
Is there a relationship between waiting time and customer level of satisfaction?
Hypothesis:
Null Hypothesis: There is no relationship between waiting time and customer level of
satisfaction
Alternative Hypothesis: There is a relationship between waiting time and customer level of
satisfaction
Definition of Variable:
Independent Variable: Waiting time
Dependent Variable: Customer level of satisfaction
Summary
Delayed food orders are an important issue for restaurant services. As a restaurant
manager in Brooklyn, New York, I have witnessed customers' frustration, while waiting on
orders to be delivered to them. Previous studies have shown the negative effects of waiting time
on consumer service satisfaction. However, being satisfied with the service seems to be
insufficient for customers to remain loyal. Creating customer loyalty is even more crucial than
just satisfying them, as repeated customers are the driving force behind restaurants' revenue. The
aim of this research is to investigate how customers weigh up their level of satisfaction and
More clarity required on the definition of the variables.
waiting time in order to determine whether they will remain loyal or not. The results of the study
will be summarized with descriptive statistics including pie and bar charts, and measures of
central tendencies. In addition, inferential statistics will be used to assess the relationship
between independent and dependent variables. The data collected by the use of questionnaires
will be used to establish a possible link between wait time and customers’ satisfaction.
Literature Review
As quoted by Sabir et al (2014) “Customer satisfaction can be determined by the quality
of a brand and its characteristics that are offered by the company (Khan & Aafsheen, 2012).
Malik & Ghaffor (2012) defined customer satisfaction as companies that meet the expectations
of the customers in the form of parameters connected with satisfaction. In an article by Thorsten
and Alexander (1997), they view customer satisfaction, product, and services a company offers
as a strategic element to have a competitive advantage (Sabir et al., 2014).
McGuire & colleagues (2010) developed a framework that looks at customer wait
experience; the objective of their paper was to recommend and test a model that describes the
psychological processes that resolve the relationship between perceived wait duration (PWD)
and satisfaction. In this study they explored four reasons and the relationship between PWD and
satisfaction:
Perceived Time, Satisfaction, and the Wait Experience – In general customers have a
perceived waiting time in mind which constitutes how satisfied they were with the service.
Several pieces of research have shown that as a customer's waiting time increases their level of
satisfaction decreases. (Katz et al., 1991; Tom and Lucey, 1997; Davis and Heineke, 1998; Pruyn
and Smidts, 1998). Their perception of waiting time takes precedence over objective waiting
time, with the former having a greater impact on satisfaction than the latter. As PWD increases
the reactions to waiting time becomes more negative which in essence leads to dissatisfaction
and having to wait becomes less acceptable. It was also noted that there is a positive relationship
between emotional reaction to wait and service that meets satisfaction (Dube-Rioux et al., 1989;
Taylor, 1994; Hui et al., 1997; Davis and Heineke, 1998; Pruyn and Smidts, 1998; Bielen and
Demoulin, 2007)
Influence of Situational Variables – There is a relationship between waiting time duration
estimation, wait time evaluations, and the level of satisfaction and how it changes when certain
situational or environmental elements are in the wait environments (Zakay, 1989). Such an
example is occupying the customers’ time with for instance some good entertainment during the
waiting period will result in distraction and the passage of time and they perceived the wait time
is shorter which will lead to an increase in customer satisfaction
Psychological Factors – Psychologist postulated that waiting time is intolerable, in
essence, it wastes time, takes away customers' control, produces boredom, leads to neglect, and
delay gratification (Schwartz, 1975; Osuna, 1985; Carmon et al., 1995). Time is a scarce
resource, time that is spent waiting will increase investment and must be made to attain service
and should reduce the utility that may be derived from it. The more valuable the customers’ time
the more negative their perception of the people or circumstances that waste it. Perceived
boredom is developed when a person does not receive sufficient interesting information. Time
will be perceived to move slowly to someone who experiences boredom, this is a result of how
an individual mind calculates the passage of time in combination with the paucity of events
perceived as significant. Perception of neglect also leaves a negative impact, customers who are
forced to wait will view the experience as unresponsive of owners who are not empathetic. The
final psychological factor is the delay of gratification which speaks to waiting time will eliminate
or prevent a customer from their desired reward, waiting is seen as a deferral of gratification
introduced by an external authority (Nie, 2000).
Occupied Time and Activity Type is where the influence of occupied time on customer’s
reactions to waiting experience is suggestive that it is useful to evaluate how the situational and
environmental variables related to perceived wait duration, psychological factors, and wait
evaluations is impacted.
Data Analysis & Results
This section consists of the data analysis performed on primary data collected by the
researcher. The analysis was guided by the following research question: Is there a relationship
between waiting time and customer level of satisfaction?
Figure 1 shows that 55% of respondents were males while 45% were females.
Figure 1: Gender
Figure 2 shows that 40% of respondents were 18-25, 35% were 26-35, 10% were 36-45,
and 15% were over 45.
Figure 2: Age Group
Figure 3 shows that 75% of respondents were residing in New York City, while 25%
were living outside of the city.
Figure 3: NYC Residency
25.0%
75.0%
No
Yes
Figure 4 shows the wait time for customers at restaurants that order their lunch in the
store. The results show that on average 25% of respondents wait 10-15 minutes, 20% wait 16-20
minutes, 25% wait for less than 10 minutes and 30% wait for over 20 minutes.
Figure 4: Waiting time
Figure 5 shows that most (30%) customers were somewhat satisfied with their wait time.
In addition, 25% were very satisfied with their wait time. In contrast, 20% were very dissatisfied.
Figure 5: Level of Satisfaction
When asked, what is the ideal waiting time for food ordered in-store? 60% of respondents
believe 1-5 minutes is ideal, 20% argued that 6-10 minutes is ideal while 20% thinks 11-15
minutes wait is ideal.
Figure 6: Idea wait time
Figure 7 shows customers’ level of satisfaction based on their gender. The data shows
that males (27.3%) were more likely to be very satisfied when compared to females (22.2%).
Also, females (33.3%) were more likely to be very dissatisfied when compared to males (9.1%)
Wow, this is really interested.
Figure 7: Gender and Satisfaction
Regression Analysis
A simple regression was carried out to determine the relationship between wait time and
customer satisfaction. The results are presented below. Table 1 shows that there was a strong
association between waiting time and customer satisfaction based on an R-value (Pearson
correlation) of 0.951. In addition, the R square value (Coefficient of Determination) of 0.905
indicates that 90.5% of the variation in customer satisfaction was due to waiting time.
Table 1: Model Summary
Regression Statistics
Multiple R 0.951
R Square 0.905
Adjusted R Square 0.900
Standard Error 0.489
Observations 20.000
Table 2 represents the analysis of the variance table (ANOVA). The ANOVA test the
significance of the model. Based on the results there is a significant relationship between waiting
time and customer satisfaction. This is because the p-value, 0.00, was less than the level of
significance which was 0.05. Hence, the null hypothesis was rejected.
Table 2: ANOVA
df SS MS F
Significance
F
Regression 1 40.89944 40.89944 171.1848 0.00
Residual 18 4.300557 0.23892
Total 19 45.2
Table 3 shows the extent to which waiting time affects customer satisfaction. The
findings suggest that an increase in waiting time by 1-minute decreases customer satisfaction by
1 point.
Table 3: Regression Coefficient
Coefficients
Standard
Error t Stat P-value Lower 95%
Upper
95%
Intercept 6.341 0.264 24.038 0.000 5.787 6.896
waiting time -1.232 0.094 -13.084 0.000 -1.430 -1.034
The regression equation is as follows:
Customer satisfaction = 6.341 – 1.232 * Waiting time
Conclusion
The purpose of this study was to determine if there is a significant relationship between
customer satisfaction and waiting time. The findings confirmed that waiting time significantly
affects customers' level of satisfaction. Specifically, the longer customers wait, the less satisfied
they are with the restaurants. This finding was similar to other studies that found that customers
are generally dissatisfied with long wait times. Although there will always be a period between
the time a customer places an order and the time that customer takes to receive the item, it is
important that restaurants put measures in place to reduce this duration. By reducing wait time,
establishments can improve customer service and ultimately increase revenue as customers are
more likely to return and make purchases. Managerial staff should implement systems to collect
customer feedback in a timely manner to ensure the highest level of service to customers.
Howard, this was a great paper. You followed the directives by submitting the drafts so that you would be able to produce this quality paper. Please see the comments in the body of this paper.
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Appendix
Questionnaire
What is your Gender?
A. Male
B. Female
C. Other___
Which age group do you belong to?
A. 18-25
B. 26-35
C. 36-45
D. 45+
Do you reside in NYC?
A. Yes
B. No
On average, how long do you wait to get your lunch when you order in store?
A. Less than 10 mins
B. 10-15 mins
C. 16-20 mins
D. Over 20 mins
Overall, how satisfied are you with the restaurant service?
A. Very dissatisfied
B. Somewhat Dissatisfied
C. Neutral
D. Somewhat satisfied
E. Very satisfied
What would be the ideal time to wait on a meal ordered in store?
A. 1-5 mins
B. 6-10 mins
C. 11-15 mins
D. 16-20 mins