QUOTE(normajean @ Nov 18 2008, 05:34 PM)

palango: let's you and i open up a restaurant. we'll kick butt!
90-97% percent of all new restaurants fail (non chain/franchise) within the first 3 years. If I did own or managed a restaurant, I would run it like Olive garden. Once I had terrible service. I completed their online survey and their district manager called to apologize and mailed me a $25 gift card . That little "extra mile" service made me come back and refer all my friends and colleague (POSITIVE word of mouth).
Referring back to this original thread, the person that intially posted this about the Iron Point IHOP tried to complain, but he/she was treated like crap and did not get a return call nor the manager/owner/district manager ever cared to call her back. This lack of regard for the opinion of the client will cause the client to share their bad experience (word of mouth) to all their family, friends, and colleagues. Those folks in turn will talk to their friends and family and I shall quote a very wise myfolsom.com member (A Folsom Man) who once stated about customer service :
Let’s say 50 people hear about this ordeal, and these 50 tell another 20. That is 1000 people. One percent of 1000 is 10. If this ordeal changes only 1% of the shopping decisions by these 1000 people, IHOP will lose out on 10 possible sales. What is the net profit from those 10 possible future sales and all of the future sales of the original customer? The net profit from future sales lost would cover the cost of staisying an angrys customers repair 10 fold. So, IHOP didn’t save money in the ordeal, but what they did do was lose money in the long term, alienate an existing customer, and created a story which will damage their image.