Royal Holloway, University of London

School of Business and Management

Foundations of Quantitative Methods for Sustainable Organisations (BA1510-

2023-4)

Title:
Analysis of Customer Preferences and Restaurant Performance

Natalia Asuncion Bocian Otero

1
Abstract:
This study investigates casual dining preferences, analyzing factors such as food quality,
atmosphere, and demographic profiles. Oodles consistently outperforms Wok & Fire in
satisfaction, return likelihood, and recommendations. Psychographically, respondents lean
towards impulsive buying and avoiding fried foods. Demographically, the primary customers
are females aged 35-49, with moderate travel distances and an average annual income of
£63,956.52. Correlation analysis highlights an inverse relationship between travel distance
and income.

2
 Table of Content

1. Introduction.........................................................................................................................6
2. Theoretical concepts/framework.....................................................................................6
3. Research Methods and Procedures................................................................................6
4.1. Identify the factors people consider important in making casual dining
restaurant choice decisions....................................................................................................7
4.2. Determine the characteristics customers use to describe Wok & Fire and its
competitor, Oodles....................................................................................................................8
4.3. Develop a psychographic/demographic profile of the restaurant customers.. . .10
4.4. Determine the patronage and positive word-of-mouth advertising patterns of
the restaurant customers.......................................................................................................13
4.5. Correlation between variables....................................................................................14
5. Conclusion:.......................................................................................................................17
6. References........................................................................................................................18
7. Appendix............................................................................................................................18

3
 List of Tables

Table 1: Mean and standard deviation values for different aspects of a restaurant
…………...7
Table 2: Mean and standard deviation values,
Oodles…………………………………………….8
Table 3: Mean and standard deviation values, Wok & Fire.
……………………………………...9
Table 4: Mean, SD and Mode of Wok and Fire costumers ……………………………………..12
Table 5: Level of Satisfaction of Oodles costumers ………………………………………………
14
Table 6: Level of Satisfaction of Wok & Fire costumers …………………………………………
14
Table 7: Regression distance and income …………………………………………………………
15
Table 8: Variance distance and income ……………………………………………………………
16
Table 9: Regression type of restaurant and balanced foods ……………………………………
17
Table 10: Variance of type of restaurant and balanced foods ………………………………….17

4
 Table of Graphs

Graph 1: Pie Chart of % of each Restaurant ………………………………………………………7

Graph 2: Line graph of mean and standard deviation values of Lifestyle of consumers
……..11
Graph 3: Bar Chart of Clasification Questions ……………………………………………………
12
Graph 4: Correlation distance and income ……………………………………………………….15

5
 1. Introduction

Wok & Fire is a casual dining restaurant with a Chinese design located inside SpaceX's
environment. It has recently faced operational difficulties, as evidenced by a decline in sales
and a decrease in customer interaction. To address these worries, the owner has launched
an extensive data gathering campaign, drawing on information from Wok & Fire customers as
well as its main rival, Oodles. This analysis's main objective is to give the owner a
comprehensive grasp of how customers feel about Wok & Fire by answering important
research questions about what influences dining preferences, how people perceive the
business, how satisfied customers are, and whether or not marketing tactics should be
changed. The goal of this investigation is to provide useful information for strategic decision-
making and continuous operational efficiency enhancements for Wok & Fire.

2. Theoretical concepts/framework

The paper will use particular statistical measures to analyze the data, with an emphasis on
the following: t-test (to compare the means of two groups), analysis of variance (ANOVA, to
compare the means among three or more groups), variance (measure of data spread),
standard deviation (degree of variability from the mean), and mean (arithmetic average). As
necessary instruments for evaluating group differences, data variability, and central patterns,

6
these measures offer important new perspectives on the study topics. While the mode
indicates the value that occurs most frequently, the mean provides a representative average,
and the standard deviation and variance measure the distribution of the data (Bhatnagr,
2023).

3. Research Methods and Procedures

This study relies on a carefully crafted questionnaire as its primary instrument, administered
by trained interviewers over a 2-week period to gather insights from a total of 405 customers.
Among them, 152 respondents relate to Oodles, the main competitor, while 253 are linked to
Wok & Fire. This sample size distinction provides a basis for comparative analysis, enabling a
detailed examination of customer perceptions and behaviors specific to each restaurant. The
segmentation process, initiated through Section A's filter questions, strategically categorizes
respondents based on key criteria, including dining frequency, recent visits to Chinese
restaurants, and minimum annual household income.

Graph 1: Pie Chart of % of each Restaurant

% per Restaurant

38
62 %
%

OODLES WOK & FIRE

4. Data Analysis and Findings

7
 4.1. Identify the factors people consider important in making casual dining restaurant
choice decisions.

Table 1: Mean and standard deviation values for different aspects of a restaurant

MEAN STD.DEV
Prices 2.35 1.14744
Food Quality 1.60 0.73961
Atmosphere 3.33 0.72607
Service 2.74 1.02958

The analysis of mean and standard deviation values unveils key factors influencing casual
dining restaurant choices. Food quality emerges as highly valued, reflected in its consistently
favorable perception with a mean of 1.60 and low standard deviation of 0.74. Similarly, the
importance of atmosphere is widely acknowledged, attested by its high average score of 3.33
and low standard deviation of 0.73. Pricing, indicated by a mean of 2.35, demonstrates
moderate favorability, but the higher standard deviation of 1.15 points to diverse opinions.
Service, with a mean of 2.74 and a larger standard deviation of 1.03, reflects a more varied
range of perspectives. These statistical insights underscore the centrality of food quality and
atmosphere in casual dining decisions while signaling potential variations in individual
perspectives on prices and service.

4.2. Determine the characteristics customers use to describe Wok & Fire and its
competitor, Oodles.

8
Based on Section C of the questionnaire, respondents are asked to provide their perceptions
of the Chinese restaurant they most recently dined at, specifically focusing on Oodles.
Respondents rate various characteristics on a scale from 1 to 7, with 1 being "Strongly
Disagree" and 7 being "Strongly Agree."

Table 2: Mean and standard deviation values, Oodles.

MEAN STD.DEV
Friendly employees 4.80 0.48881
Fun Place 4.78 1.07603
Large-size portions 4.22 0.94341
Fresh food 6.64 0.55681
Reasonable prices 4.12 0.90572
Attractive interior 4.37 1.08380
Excellent taste 6.20 0.76374
Knowledgeable employees 4.47 1.09754
Proper temperature 4.76 1.29183
Quick service 6.39 1.21279

Table 2 showcases positive perceptions of Oodles, a Chinese restaurant, relying on mean

scores and standard deviations. The restaurant excels in areas such as friendly employees,
with a mean score of 4.80, and excellent taste, scoring a mean of 6.20, indicating a
consensus among respondents with low standard deviations. Oodles is also perceived as a
fun place to eat (mean: 4.78), providing large-size portions (mean: 4.22) and maintaining
proper food temperature (mean: 4.76). However, opinions vary, especially concerning the
attractiveness of the interior, with a mean of 4.37 and a higher standard deviation of 1.08 and
food temperature, with standard deviation of 1.29, which indicates greater variability or
diversity in opinions among respondents for a specific attribute.

9
Table 3: Mean and standard deviation values, Wok & Fire.

MEAN STD.DEV
Friendly employees 2.94 0.94724
Fun Place 4.85 0.71351
Large-size portions 4.68 1.48146
Fresh food 5.23 1.16367
Reasonable prices 4.47 1.38448
Attractive interior 4.89 0.92607
Excellent taste 4.78 0.88103
Knowledgeable employees 3.00 1.46656
Proper temperature 4.38 1.06497
Quick service 4.50 2.10748

The mean and standard deviation values for the different qualities at Wok & Fire are shown in
Table 3. The standard deviation indicates the level of heterogeneity in people’s opinion,
whilst the mean scores provide the average perceptions of the respondents. Notably,
characteristics with high average scores and low standard deviations, such as "Fun Place"
(Mean: 4.85) and "Attractive Interior", mean of 4.89, indicate broad consensus among
respondents. On the other hand, "Quick Service" exhibits a large standard deviation of 2.11,
suggesting a range of viewpoints. Features with significant standard deviations, indicating
different viewpoints, include "Large-size portions", with a mean of 4.68 and "Reasonable
prices", with a mean of 4.47.

4.3. Develop a psychographic/demographic profile of the restaurant customers.

10
Section B of the questionnaire delves into lifestyle questions, employing a scale from 1 to 7,
where 1 signifies "Strongly Disagree," and 7 signifies "Strongly Agree." Respondents,
showned in graph 2, are prompted to express their level of agreement or disagreement with
statements that capture various aspects of their lifestyle. After analyzing the table of means
and standard deviations for lifestyle questions, it becomes evident that respondents generally
exhibit a higher level of agreement with the statement "When I see a new product in stores, I
often buy it," (Question 9) as indicated by the greatest mean of 5.60. This suggests a
common inclination towards impulsive buying behavior among participants. Conversely, the
lifestyle statement with the smallest standard deviation, "I try to avoid fried foods," (Question
4) with a standard deviation of 1.104784, reflects a more uniform consensus among
respondents in steering clear of fried foods, indicating a consistent commitment to a healthier
dietary choice.

Graph 2: Line graph of mean and standard deviation values of Lifestyle of consumers

11
 Lifestyle Preferences
5.60 5.42
5.39 5.28 5.31
4.65 4.57
4.27 4.41 4.43
4.11

1.863113 1.766466
1.605527
1.222632 1.307608 1.218265 1.228158
1.114862 1.162981 1.104784
1.005090

1 2 3 4 5 6 7 8 9 10 11

MEAN STD.DEV

Section F, named "Classification Questions," aims to collect demographic information from

survey participants. This section includes questions about the distance traveled to the
restaurant, recall of recent advertisements, gender, the number of children under 18 in the
participant's household, age group, and annual total household income. For this section we
analyse the mean, standard deviation and the mode of clients that attended to the Chineese
Restaurant, Wok & Fire. On average, customers travel a moderate distance, but a substantial
portion covers more than 5 miles. However, the low mean for advertisement recall indicates
potential challenges in campaign effectiveness. Gender representation leans slightly towards
females, and customers tend to have fewer children in their households. The predominant
age group falls within 35-49, offering a snapshot of the primary customer age range. The
mean annual total household income of £63,956.52 provides an understanding of the
economic profile. Data is shown in table 4.

Table 4: Mean, SD and Mode of Wok and Fire costumers

12
 MEAN STD.DEV MODE
Distance 2.02 0.837848 3
Advertisemen
t 0.18 0.383158 0
Gender 0.31 0.472800 0
Children 0.78 0.894438 0
Age 3.20 0.965104 3
Income 63956.52 92837 20000

Graph 3: Bar Chart of Clasification Questions

Clasification: Clients of Wok & Fire

3.50

3.00

2.50

2.00

1.50

1.00

0.50

0.00
Distance Advertisement Gender Children Age

MEAN STD.DEV MODE

4.4. Determine the patronage and positive word-of-mouth advertising patterns of the
restaurant customers.

13
Section D, aims to uncover crucial insights into the customer experience. Participants are
prompted to rate their satisfaction levels, likelihood of returning, and the probability of
recommending Wok & Fire to friends on a scale from 1 to 7. This scale provides a detailed
understanding of the customer sentiments, ranging from dissatisfaction to strong
endorsement. The analysis reveals significant differences between Oodles and Wok & Fire in
key aspects of the dining experience (see Table 5 and 6). Oodles consistently outperforms
Wok & Fire, with a higher mean satisfaction rating (5.31 ± 1.14) and a mode of 5, indicating a
prevalent high satisfaction level. Oodles also exhibits a higher mean likelihood of return (4.96
± 1.29) compared to Wok & Fire (4.17 ± 0.85), with a mode of 6, indicating a strong inclination
for repeat visits. The recommendation scores follow a similar pattern, with Oodles having a
higher mean (4.07 ± 1.47) and a mode of 4, suggesting stronger endorsement from
customers. In terms of dining frequency, Oodles leads with a higher mean (3.79 ± 1.03) and a
mode of 3, indicating a more frequent patronage compared to Wok & Fire (2.92 ± 1.37 and a
mode of 2).

Table 5: Level of Satisfaction of Oodles costumers

MEAN STD.DEV MODE
Satisfaction 5.31 1.140661 5
Return? 4.96 1.291242 6
Recommendation 4.07 1.474292 4
How often? 3.79 1.033425 3

Table 6: Level of Satisfaction of Wok & Fire costumers

MEAN STD.DEV MODE
Satisfaction 4.54 1.001614 4
Return? 4.17 0.847563 4
Recommendation 3.61 0.959579 3
How often? 2.92 1.373295 2

14
 4.5. Correlation between variables

We compare the relationship between the following variables: distance and income,
restaurant and balanced food.

We found that the distance and income have a correlation of 0.06, indicating an inverse
relationship, meaning that the farther they live, the lower their income, and vice versa.
Specifically, for each additional point in the survey, their income decreases by approximately
6780.

Graph 4: Correlation distance and income

Tendency Line
1400000

1200000

1000000

800000

600000

400000

200000

0 f(x) = − 6779.9775991567 x + 86265.0876268284

0 2
R² = 0.00442732295534731 4 6

The coefficient of determination (R^2) of 0.0045 suggests that only about 0.45% of the
variability in the dependent variable can be explained by the independent variables in the

15
regression model. The adjusted R^2 is even lower, indicating that the model does not fit the
data well.
The error, represented by 0.860601795, is relatively high, suggesting that the model has
limited ability to accurately predict the dependent variable. Additionally, the number of
observations is 404, indicating the quantity of data points used to construct the model. In
summary, the results indicate a very weak relationship between the variables and suggest
that the regression model is not very effective in explaining the variability in the dependent
variable.

Table 7: Regression distance and income

Regression
Multiple correlation coefficient 0.06727507
Coefficient of determination (R^2) 0.00452594
R^2 adjusted 0.00204963
Error 0.8606018
Observations 404

On the other hand, the F-statistic compares the variability explained by the regression model
to the unexplained variability. A higher F-value indicates that the explained variability is
significantly greater than the unexplained variability. However, to determine if the regression
model is significant, the F-value is compared to the critical F-value. In this case, the F-value is
1.827698154, while the critical F-value is 0.177159796.

Table 8: Variance distance and income

16
On the other hand, when comparing the restaurant variables (Oodles or Wok and Fire) with
the variable indicating whether customers consume healthy and balanced food, we found a
positive correlation of 0.58, which is close to one and signifies a moderate positive correlation
between OODLES and WOK customers. Those who frequent OODLES typically do not
consume balanced or nutritious meals, whereas those who visit WOK tend to do so.

Additionally, the coefficient of determination (R^2) of 0.345 suggests that approximately

34.5% of the variability in the dependent variable can be explained by the independent
variables in the regression model. The adjusted R^2 takes into account the number of
variables in the model and is 0.343394438. The error, represented by 0.3925164, indicates
the standard deviation of the residuals from the regression model, which is a measure of how
well the model fits the data. Finally, the number of observations is 404, indicating the quantity
of data points used to construct the model.

Table 9: Regression type of restaurant and balanced foods

Regression
Multiple correlation coefficient 0.58738721
Coefficient of determination (R^2) 0.34502373
R^2 adjusted 0.34339444
Error 0.3925164
Observations 404

In this case, the F-statistic compares the variability explained by the regression model with
the unexplained variability. The high F-value of 211.7626961 suggests that the explained
variability is significantly greater than the unexplained variability. To determine if the
regression model is significant, the F-value is compared to the critical F-value, which is very
close to zero (7.76164E-39). The extremely low p-value indicates that the model is highly

17
significant. These results imply that the regression model is a good fit for the data, and the
variables included in the model contribute significantly to explaining the variability in the
dependent variable.

Table 10: Variance of type of restaurant and balanced foods

5. Conclusion:

In conclusion, the comprehensive analysis of customer feedback and survey data presents a
multifaceted understanding of the casual dining landscape, encompassing critical factors
influencing choices, customer perceptions of specific restaurants,
psychographic/demographic profiles, patronage patterns, and correlations between variables.
Notably, food quality and atmosphere emerge as pivotal determinants in casual dining
choices, with respondents valuing these aspects consistently. Oodles outshines Wok & Fire in
various dimensions, boasting higher satisfaction, return likelihood, recommendation scores,
and dining frequency. The psychographic analysis reveals a proclivity for impulsive buying but
a collective commitment to avoiding fried foods. Demographically, the predominant customer
base comprises females in the 35-49 age range, with a moderate travel distance and an
average annual household income of £63,956.52. The correlation analysis highlights
intriguing dynamics, such as an inverse relationship between travel distance and income and
distinct dining behaviors between Oodles and Wok & Fire patrons. These insights equip
stakeholders with a nuanced understanding of customer preferences, facilitating informed
decisions for strategic enhancements and improved competitiveness in the dynamic casual
dining industry.

18
 6. References

- Bhatnagr, P. (2023) What statistical metrics are most used in data analysis?, Quora.
Available at: https://www.quora.com/What-statistical-metrics-are-most-used-in-data-
analysis#:~:text=questions%20being%20asked.-,Some%20of%20the%20most
%20commonly%20used%20statistical%20metrics%20in%20data,in%20a%20set
%20of%20data. (Accessed: 30 January 2024).

7. Appendix

19
20
21
Excel

22
23
24
25