Hooray for Today!

Hooray for Today, Inc. is a popular food chain currently serving 300 countries. Its key market is the young crowd and their products are geared toward that group with occasional promotions to other markets to increase awareness of their product offerings. Recently, they are looking at tapping into the health conscious market and are keen on creating a product line that responds to this.

In the last year, however, Hooray for Today, Inc. experienced a decline in market share, with a drastic dip from a recent high 65% to a lower than imagined level of 40%. This makes it impossible for the organization to achieve the 67% target it had set up during its last strategic planning session. In a survey conducted to understand this marked change, it was revealed that the market per- ceived better products or choices of competitors vs Hooray for Today’s offerings.

Connected to his decline was the level of Customer Service in the key markets it serves. Five years ago, the company enjoyed an average satisfaction rating of 4.8 out of 5. In the last 4 years, however, this rating began a steady decline – 4.6 in 2016, 4.4 in 2017, 4.16 in 2018, and 3.9 in 2019. At this point in 2020, customer satisfaction is trending at 3.89, with a projected 3.6 trend by year end.

Another issue revealed in the surveys was the prolonged handling time of orders. In a fast food environment, customers expect to be served in a little over 60 seconds. Customers shared that their experience with Hooray for Today took more than the expected time, averaging to about two minutes per transaction. 40% of respondents also said their orders did not match what they were served on the occasions they visited a store. Performance of staff also declined from a high average of 80% to 60%.

Taste and quality of food has also declined. Management blame the cooks and manner of food preparation, but workers in the kitchen area are consistently trained and audited of their skills. There have been no significant changes in the processes and equipment used as well, though some upgrades were done specifically for the utility ovens and freezers. The rating around food trended at 3 out of 5. The last high rating for quality was in 2015 at an average of 4.5.

There are customers that said what keeps them coming back are their kids. The stores feature play areas which kids can access while the parents watch and eat. If it weren’t for the kids, customers shared, they would move to another store or facility altogether as Hooray for Today lack facilities or options for adults such as wifi, newspapers or magazines, and even food choices.

This decline in market share and customer satisfaction has been attributed to the upkeep of the stores and the consistent feedback about employee tact and customer service. The management feels that the prices and products need not be necessarily changed and that pressure on getting the right people or training the current ones would help improve their state. The last new product the company introduced were Italian Zizzle soda-floats in 2014 and Krizz-Kut Fries in 2015. The sales of these products were deemed unsatisfactory and thus were subsequently discontinued.

One of the more successful products Hooray for Today launched, however, were “lite” versions of their popular products. Lite Quarter Burgers, Lite Cheeze Chomps and Lite Frize flew “off the shelf,” the Sales and Marketing Director said. Sales during that period, 2016 to 2017, was staggering, though it failed to expand the market. The products were eventually scrapped, but more due to supply constraints rather than market response, as both required ‘special ingredients’ which were difficult to source at an economical price.

The mix of standard products to new products, then, has declined to a 1 is to 0 ratio. Most companies in this industry have a mix of 80% standard products and 20% new or seasonal products.

In interviews conducted among key employees, it was revealed that they received no training on the new products or promotions the company launched. Those manning the cashiers and order booths would usually have no idea what (or which) product or promotion a customer was requesting or referring to. This was a point that was also revealed in the customer surveys.

The lack of training has taken some toll on the engagement level of employees as well. 80% of them said they planned to look for another job or leave the company within the next 6 months. Even then, turnover is already at a high, at almost 40% attrition every month, a high average within the industry whose rate pans out at just 3% every months. Members of management attribute the changes to pays not being adjusted in the last 3 years. However, no cost savings measures have been implemented as well.