Retailers, consumers and prices
Papa John’s and Olive Garden got top marks in their respective restaurant categories in the University of Michigan’s 2010 American Customer Satisfaction Index, while McDonald’s and Chili’s Grill & Bar were laggards.
Papa John’s took the lead in the limited-service category from Domino’s Pizza. Notably, this year’s win for Papa John’s came as Domino’s was getting a sales bump from its reformulated pizza recipe and crowing about how its new pies were beating rivals in taste tests.
Papa John’s earned an ACSI score of 80 (out of 100), up from 75 last year. Little Caesar, Pizza Hut and Starbucks each made gains versus 2009 and were close behind with scores of 78. Domino’s score of 77 was flat from a year ago.
McDonald’s, which has outperformed most other quick-service restaurants, was the only major fast-food company to post a decline. Its score fell to 67 from 70 last year.
Polo Ralph Lauren reported higher second quarter profit, citing increased sales and a lower tax rate.
Polo, whose brands include Polo, Chaps and Club Monaco, affirmed its earnings outlook for fiscal 2009, but it tempered its full-year sales forecast. It now expects a low single-digit increase in 2009 revenue, instead of a low-to-mid single digit increase as earlier expected.
Check out Papa John’s countering U.S. pizza sector woes by continuing its global expansion and announcing plans to open more locations in Canada.
Last month, at the Reuters Food Summit in Chicago, Papa John’s CEO Nigel Travis said the pizza industry was under more pressure than it was at the beginning of the year.