{"id":2657,"date":"2009-05-07T13:47:00","date_gmt":"2009-05-07T13:47:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2009\/05\/07\/tgi-fridays-not-loyal-to-its-loyalty-programs-and-how-that-made-me-think-of-total-cost-of-ownership\/"},"modified":"2023-06-22T09:27:46","modified_gmt":"2023-06-22T13:27:46","slug":"tgi-fridays-not-loyal-to-its-loyalty-programs-and-how-that-made-me-think-of-total-cost-of-ownership","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/tgi-fridays-not-loyal-to-its-loyalty-programs-and-how-that-made-me-think-of-total-cost-of-ownership\/","title":{"rendered":"TGI Friday’s Not Loyal To Its Loyalty Programs (And How That Made Me Think of Total Cost of Ownership)"},"content":{"rendered":"
\n

\u201cA bird in the hand is worth two in the bush\u201d is a saying that means it\u2019s better to have something tangible today than a hope for the future that may never materialize. This can apply to total cost of ownership calculations.<\/p>\n

Don\u2019t miss updates on Procurement & Supply Chain, Subscribe here!<\/p>\n

Consider this example. You are considering two supplier proposals: one that has a higher price but a rebate at the end of the 3-year contract\/program and one that has a lower price but no rebate. When factoring in the rebate and analyzing both proposals using a net present value equation, the supplier with the rebate has a slightly lower total cost of ownership (let\u2019s say slightly less than 1%).<\/p>\n

Everything else being considered equal, what would you do?<\/p>\n

I know what I would do.<\/p>\n

I would either select the supplier not offering a rebate or would ask the supplier offering the rebate to re-price its proposal without the rebate.<\/p>\n

That rebate is essentially the \u201ctwo birds in the bush.\u201d It may never be paid. Too much can change over three years.<\/p>\n

Think of an airline industry contract signed before 9\/11. Or an automotive industry contract signed in early 2008.<\/p>\n

Do you think those two-birds-in-the-bush obligations were all kept?<\/p>\n

No, I don\u2019t either.<\/p>\n

I\u2019ve always felt strongly about this topic but hadn\u2019t thought about it for a while. But a customer service incident at TGI Friday\u2019s reminded me why you can\u2019t count on future obligations.<\/p>\n

(BTW, the procurement lesson of this post is over and I\u2019m gonna rant about bad customer service. So, if you want to stop reading here, it\u2019s OK. I won\u2019t be offended if you walk out at this time .)<\/p>\n

TGI Friday\u2019s at one time had been one of my family\u2019s favorite restaurants for a good, kid-friendly meal. We were part of their \u201cGold Points\u201d loyalty program and actually ate there enough to accumulate quite a bit of points. I can\u2019t remember how many, but I know that we had at least enough to get a free appetizer and may have crossed the threshold to getting a free entree.<\/p>\n

Now, we hadn\u2019t been there for several months \u2013 there are no shortage of restaurant choices in the Robinson Township and Moon Township areas \u2013 but we decided to return and cash in our points on that free appetizer. I got our Gold Points card right away and asked the server whether she needed to see it now or when she brought our check.<\/p>\n<\/div>\n

<\/div>\n
\n

She was new and was unfamiliar with the Gold Points program, so she took our card to the back. She returned to say that the program was no longer in place and that our card could not be honored.<\/p>\n

I gently expressed my displeasure, but we went on with our meal.<\/p>\n

When she brought our check, I told her that I wanted her to tell the manager to take the charge for our appetizer off the bill because we earned a free appetizer and it just wouldn\u2019t be right to not honor the program. She said she\u2019d get the manager and she did.<\/p>\n

The manager, Rich Wolfe, came over and said that he couldn\u2019t honor the card and couldn\u2019t comp our appetizer, but TGI Friday\u2019s had a new loyalty program that we could sign up for online that was \u201cbetter.\u201d Acting like a typical customer (without extensive negotiation expertise) I asked him why he thought we\u2019d sign up for a loyalty program when TGI Friday\u2019s obviously doesn\u2019t honor the incentives that its customers earn. I repeated my desire for the appetizer to be taken off of our check.<\/p>\n

I couldn\u2019t believe how this guy continued to resist comping our appetizer, acting like it would bankrupt the establishment. It\u2019s six dollars that I was asking for! And that\u2019s my price, not his cost!<\/p>\n

So, it was time to shed the facade of being the typical customer and putting on my professional negotiator persona. And, of course, the appetizer was taken off of our bill.<\/p>\n

Sorry, I \u2013 nor any other customer \u2013 should not have to turn up the heat to get a measly six dollar appetizer comped in this type of situation.<\/p>\n

So not only will I not trust the two-birds-in-the-bush loyalty programs of TGI Friday\u2019s \u2013 I simply will never step foot in another TGI Friday\u2019s in my life. With so many great restaurant choices, there\u2019s no reason to bother with a restaurant with terrible loyalty programs and non-customer-centric values.<\/p>\n

Perhaps I\u2019m just jaded by my recent vacation to Disney, where every employee buys in to the goal of giving the customer a magical experience.<\/p>\n

Recommended Reading<\/strong><\/p>\n

Why The CPA Has Been More Revered Than Traditional Purchasing Certifications<\/a>
\nWhitepaper Wednesday \u2013 Outsourcing Fundamentals<\/a>
\nBuilding A Sourcing Team<\/a>
\nSPSM Certification Gains Strength In Asia-Pacific<\/a>
\nOffice Supply Vendors\u2019 Dirty Tricks, Part IV<\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u201cA bird in the hand is worth two in the […]<\/p>\n","protected":false},"author":12,"featured_media":4058,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2657","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\nTGI Friday's Not Loyal To Its Loyalty Programs (And How That Made Me Think of Total Cost of Ownership) - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/tgi-fridays-not-loyal-to-its-loyalty-programs-and-how-that-made-me-think-of-total-cost-of-ownership\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"TGI Friday's Not Loyal To Its Loyalty Programs (And How That Made Me Think of Total Cost of Ownership) - 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