Case Study - Panera Shows How Not to Treat Customers

This actually happened. If you had similar experiences either as a customer or business person, let us hear them and we will try to help with solutions. nealr@GreatServiceMatters.com

Last week, I went to the Panera’s on 2924 Broad St, Bexley, OH and was insulted beyond anything I have ever experienced at any other establishment. So much so that I will never go back there. This is a tale of some of the worst service I have ever encountered. I sent them this posting a week ago through their "please let us know" section on their webpage to see if they would try and make amends but they never responded.

Months ago, I purchased 10 cups of coffee at the Bexley/Whitehall (OH) Broad St. Panera’s for the movers and others helping us into our new home in Bexley, OH. The young woman stamped two coffee cards. One she stamped on the 4 and 8 explaining that anyone would know that the card was full so I could get a free coffee in the future. She also stamped another card twice on the 1 and 2. I placed them in my wallet and forgot about them.

While at Bexley Panera, I remembered the card and handed it to the young woman behind the counter when I ordered a cup of small coffee. It had been a habit of mine to get a small coffee there most every day, sometimes with a bagel; many times with my family for lunch or dinner. She looked at the card and said thyis is not good for a cup of coffee." I informed her what the earlier server had said. This young woman said that “that’s wrong. There are only two stamps on here.” I repeated the story and she said rather skeptically with a tone that implied I was trying to sneak one over on her “this is not good for a coffee. If you want one you’ll have to pay for it.” I again explained the situation and this time she called a colleague – a young man.

He listened to her, looked at the card and said with a depreciatory tone and facial expression “You can’t get a coffee with this. If you want one you’ll have to pay for it. We don’t stamp them like this.” He was clearly insinuating that I was trying to scam a cup of coffee! I then explained the whole situation to him and he said “this is not good for a free coffee. No one would stamp it like this.” His tone was accusatory as if I were trying to steal or swindle a cup of coffee. This young man had “served” me before and if he were a bit more attentive to customers, he could have recalled me as a fairly consistent customer. He did not.

I informed him that it may not have been normal procedure but this is what was done – the 4 and 8 were stamped to show a full card. He then stated “Yuh right. She did this for you. This is card is not good for a cup of coffee”. His tone then became very insolent and accusatory again as if I were I were attempting to steal coffee. “If you want a free coffee that much, I’ll give it to you but this card does not give it you.”

I then asked to speak to the manager. The young man hesitated and I issued a demand to see the manager. The manager was called. Gregg Wilson is a nice man but he seemed a bit lost in what to do. He did listen to me, asked the employees if that is what happened, then sent the two servers to the back to wait for him and he said he was sorry. He asked what he could get me to make it up to me and me feel better. But in the case of accusatory behavior, challenging my integrity and making me feel like a thief over a cup of coffee by his employees, his offer rang hollow. Besides it was not a situation of what can I get you now. This is not the time and only made me feel like he thought I was after something free. He may have meant it as a gesture but making me do the request for something put the burden on me.

It seems to me that Panera needs to look into customer service approaches and if any training is done, do a much better job. They not only lost one customer but many more because an angry cuistomer will tell at least 6-9 others who in turn and so on.

The proper response here was actually quite simple.

The front line employees.

1. Never challenge the customer! He may be wrong and customers can be wrong but do not start by putting him on the defensive, particularly when dealing with a simple cup of coffee.

2 Train the employees to explain the situation, "This card was not filled out the correct way I am afraid. Each cup should have been stamped." Education is often the key to good future service.

3. Review the situation with the customer. "You say she stamped the last cups in the rows to show it had been filled?" The customer will answer yes.

4. Here is the secret answer. "Okay, well it was her error. Next time make sure she stamps each cup? Okay? How would you like your coffee?"

The manager

1. The employees are a red flag in front of the customer. Move them employees out of the area immediately. Do it quietly so as not to antagonize them. Get their story later.

2. Move the customer away from the front counter. The customer may also feel he is on display and become even more upset. Moreover, every other customer can observe and hear the issue. It will not please the customers. They will feel badly for one or the other and their experience will be tainted. Suggest going to a booth and talking.

2. Get the customer the cup of coffee! That is what he came in for so at least complete that task.Maybe even grab a muffin or something to add to it as a peace offering. It will be taken as a gesture of good will. Even if the customer is wrong finally it is always easier to work with a happier customer.

3. Hear the customer out and take notes. That shows you are listening and take him seriously.

3. Do not ask the customer what he wants to make him happy. That is a question that can inflame the situation. The customer is made to feel as if he has to solve the problem and what do you do if he asks for something you cannot give him?
So, you suggest a solution. In this case, "I know you are upset now but give me a chance to show you how it should be done. I would like to give you a certificate for a dinner on me for you and the family and free coffee for a month?"
Balance the cost of the free coffee and a dinner for a customer who will perhaps become an advocate from finally being treated well and with respect. This could result in him telling others of a good resolution. Leaving a customer feeling accused and angry will turn him into a Panera subversive who will make sure you lose at least 6-9 customers. And not just in Bexley but in other Paneras as well. Simple choice it would seem.

The company

1. Answer your requested emails. If you offer someone a chance to write a comment, respond, particularly if it is an angry customer problem.

2. Solve the issue. See above.

If these steps had been followed, the customer would believe he had at least been heard. This is an important step. He may not have gone back to Panera's for a while, maybe never, but he would not be happily retelling the story to disuade others. That would have been a big plus.

Oh yes, my family and others who have now heard the story will never go back. We are recommending Cosi. I am certain that if there is an opportunity to let people know how Panera treats customers, I will take it. In fact, I guess I did by begin by placing this on my blog

Perhaps this experience with commentary on how it should have been handled will help some of you...but I am not sure it will help Panera. They need help.

Go to the Bank on Great Customer Service

Just wanted to enter an event that illuminates Good Customer Service Principles #1" Everyone wants to go to Cheers University - where everyone knows your name and is glad you came..." (For a copy of the 15 Principles of Good Customer Service, just click the link . Be pleased to send it.) We opened a second office in Columbus, OH leaving the Bethpage opffice to work exclusively on tech solutions like Leadwise, a personalized catalogue creator and websites that really work. As a result, I needed to move some bank acounts to Columbus from Long Island.

At first I was ambivalent about moving the banking acounts from one bank because I enjoyed banking at the North Fork Bank branch in Nesconset, NY. And it wasn't because they had free Vermont Coffee wating for customers. The people, especially John Lugo and Corrie Wong made it very easy, convenient and even pleasurable to do my banking there.

As a result, I actually thought about staying with North Fork and banking by distance.Now that was a dumb thought because of the issues of banking from Columbus to Nesconset, NY but I considered it because John and Corrie actually treated me with service and personal attention that banks used to provide rather than the cold, commercialism of the current corporate industrial bank complex. These two obviously provided a level of customer service that made me feel personally welcome and valued to the point that I would consider a decision that was not necessarily in my best interest.And what did they do? Took the time to learn my name. Always said hello. Asked to help and then did. Suggested additional services or banking assistance to solve any problem and make my life easier. And took an extra minute to talk with me not as a banking customer but a person.The result. I was not happy to leave their branch. Hope you see their point.

Take an additional minute to turn your business into a "cheery" place where you at least make everyone feel like you know their name. And you and your people should always make everyone who comes in feel that you are very glad they came. Give everyone a smile and a hello certainly, then do what Corrie and John did. Make each customer feel valued. It is the value you provide to a customer that increases your value. And your sales and referrals. Heck, this blog is a referral for Northfork after all. Free marketing of the best sort.

If you want to call them and ask about great service mattering, try them at North Fork Bank, Nesconset Branch. Knowing them they'd be glad to help.Have a comment, thought or question? Write and Post it here or the link below, or call me Neal Raisman 413.219.6939 nealr@GreatServiceMatters.com

Must all Customer Service Be Good?

Customer service. Just what in the world is it really? Maybe it’s like art? We may not know why a picture is great or not but we can feel it when it is or isn’t? Or better, like love. We all know when we have found it or lost it but cannot explain why or how we know.

Most experts will tell you that it is focusing so fully on meeting the satisfaction level of the customer, that he or she will love you. Others will say that it is loving your customer – hug them, overwhelm them with service, and they will love you back. Yet, others will say that it is a series of activities that make the customer more than happy from dealing with you. And some even propose that customer service is providing the customer service beyond service. Almost as if the customer were royalty in the days of kings.

After all, THE CUSTOMER IS ALWAYS RIGHT. Right? And rule number one is the customer comes first, second and third. And rule number two is “read rule number one.” Besides, we are all here to make the customer happy with his or her experience. Right?

I tried to keep all of this in mind when I went to a very popular restaurant in Boston. It has been around since 1827. And we had to wait in a long line as waitresses rushed and pushed around the customers with both hands and mouths. “Hey, move over, I’m working here,” one said as she cut in front of me. “Get the hell out of my way” another growled as she carried a tray of food through the waiting customers in line. Then we were finally seated at a long table, sort of like a family gathering around the long dining room table but we were stuck in between two couples we did not know. And we did not get to know them or the ones across the table from us that night.

A waitress finally came over to take our order. It took a while. “Okay, what’ll it be?” I am a notoriously slow decider in restaurants because I really want to try it all. I told the waitress I would be a minute. “Okay, but not much more. We’re real busy tonight.” And she turned away to accost another customer.

After we ate and left, we walked around Faneuil Hall and talked about the meal. It was very good, especially the Indian pudding for desert. The pot roast I got was very tender and there was enough even for me, a person of dependably large appetite. But the waitresses? Wow! I had never been treated like that before, even at some of the dive places I enjoy frequenting when on the road. No server had ever cursed me before in a restaurant. At least not to my face. Would we go back sometime? Of course. Great food at a decent price and with service that was horrid.

While walking off the meal, I overheard another couple talking about their experience at Durgin Park. They were a bit upset it seemed. “Wonder what is happening to there? What’d think we were? Tourists? Some hicks from the Midwest? That waitress we had.. The food came fast and it was good but the waitress… She was polite and helpful. Maybe the place is just changing but not for the better. We’ll give it another shot because I like their prime rib and maybe we can get some real bitchy waitress next time. Did you see the size of that prime rib. My dog will love the leftovers?“

What? They were bothered because the waitress was polite, helpful, gave them good service? Haven’t they read the rules? We, the customers come first. Waitresses should provide not just good, but great service. They should fawn all over us. Get beyond the “Hi, my name is Tiffany and I will be serving you tonight” to real serving to our every whim and desire (well, maybe onto every one of them but restaurant-related). And these folks were complaining because their waitress did all this? Are they communists or something?

I had a chance to hear another small group as they another restaurant in the area.. All but one of them seemed to enjoy his evening. They were generally pleased with being maltreated. “That was good. What service. That waitress really hopped and made sure everything was there when it should be. And when I looked at my steak and saw it was not done enough , she just whipped it away. Could tell by my face. Like she read my mind and took it back to get cooked more. And when you said the fish was cooked too much and dry, the frown on her face told it all. She must’ve told the chef off for you too since she brought his apologies and a new piece of fish.”

“She was great. One of the best waitresses I ever had but I don’t know. She was great but all in all, but the place was not quite what I expected. I thought the steak would’ve been better. I mean it was good but a little tough. For what it cost, it should have been like butter.”

“Yuh, well, okay so we’ll skip it next time we’re in town and try somewhere else.”

CUT! Hold everything. One guy is complaining he wasn’t served rudely enough in one place but he would go back to be treated worse next time. And another guy gets great service, absolutely great and he isn’t going back to that restaurant? This makes no sense.

I can’t find anything about this in any of the books or articles I’ve read. According to them, the first person would be running as fast as he can from Durgin Park and swearing that he’ll never go back to be treated so poorly. The second guy should be raving about the service. He should be extolling the place as a paragon, an exemplar of service. He should be looking forward to telling at least six people to go to the restaurant because of the great service. But instead, he doesn’t want to go back.

What’s the deal? This does not jive with what we have been told all these years about customer service.

The deal simply is that what most people say about customer service has been overly simple and frankly, very often dead wrong. And we all know it. Good service as in the process of a waitress or waiter being polite, attentive, helpful, friendly and efficient is not what we are really after in a restaurant after all. The ceremonial rite of service in the restaurant is just that, a ritual that literally sets the table for the real event, the real service, the food.

In fact, it’s the food that is the real core of the service itself. Not just the social ceremony of prompt greeting, a little chat during the presenting of the menu, asking for drink orders, leaving to get the drinks and bring them back, announcing the specials, taking the orders, bringing the food to the table, asking for desert orders, bringing the bill, processing the credit card and saying thank you, then for you to leave to collect the tip. This is a more or less set cultural ceremony and is expected to flow well by the participants in the ritual we call eating out. This is the ritual that most people think of as service. And at a primary level it is. And the flow of the ritual is part of upon what we base the tip we give to the waitress. If it is out of order or not done well, we feel that the ritual we expected has been violated so sometimes, people tip lower. The ceremony goes as we expected, and we tip as expected, around 15%.

And the ceremony is repeated ritualistically in most places to eat except fast food places which have their own rites. No names exchanged, menu overhead, “Can I take you order?” Repeated into a microphone and asked to stand to the side while waiting for the food or pre-cooked and wrapped then pulled off a stainless steel food retainer. Put into a bag. “That’ll be $3.45.” Thank you. Come again.” This is the expected ritual. No social interaction really just process. Just simple, relatively quick service. In fact, if a counter person starts or a customer asks a common eating out service question such as “do you recommend the double hamburger or the bacon, mushroom, cheese, hugie today?” there is usually a very puzzled look from the counter person accompanied by a blank stare or a shrug of “what?.” This is not part of the expected impersonal service ritual after all.

Unless one goes to Durgin Park. Durgin Park breaks the rules. The customer is not only often wrong, but is actively shown to be an inconvenience. Personalized experience goes out the window there when customers are seated rather impersonally at a table with people they do not know, nor may not ever wish to know. Being made to feel important and valuable is just not something they do well, if at all. But they would be missing an important reality of what customer service really is.

Durgin Park’s concept of service would make most customer service experts pull out their hair and predict its doom. According to most business gurus, rude, discourteous service should, kill the place. And as noted, there must be something to that belief since Durgin Park has only been around doing the same thing for only 80 years. And people are willing to stand in line every day to be disrespected. Its questionable service should give the place no more than, say, another 80 years, give or take a decade.

Unless, they start to be too nice to the customers. That could be their downfall.

The reason is simple. People expect to be treated rudely. That is part of the expected experience. People go there with the expectation that they will be treated disrespectfully and are disappointed if they are not as was the man in the second group of Durgin Park diners. He was upset because he expected bad-mannered service and didn’t get it. His expectations were disrupted and he felt unfulfilled.

We go to the fast food places for just what they say they are. For getting food quickly. It is the food we are after. Not the event or the ceremony of eating out. The food is what will get us to come back. Not the service. There really is very little to consider at a fast food place. I mean “would you like fries or a drink with that” does not seem to qualify as the kind of service we have been told we have to always provide if we want to make people customers for life. Yet, McDonald’s, Burger King, Sonic, Taco Bell, Jack in the Box, Carl’s and many others have certainly created customers for life – even if their food may shorten it as the critics claim.

So what is learned from all this? It is not the sizzle, not the actions that we call service that can do it alone. Certainly, good service as in treating customers absolutely wonderfully is an incontrovertible aspect of building a solid customer relationship. No doubt. And very, very important but the concepts of customer service that have been bandied about are at best just part of the issue. They are not the issue itself.

Customer service is not a simple ritualistic rite that fit all businesses Customer service is built not on adages and smiles but on customer expectations. And Durgin Park certainly proves that.

Comments? Thoughts? Disagreements? Other customer service issues.
Contact me at Nealr@greatservicematters.com.
Be Glad to talk also at 413.219.6939