Changes in the reputation of companies in the travel and restaurant industry: Sodexo has risen from the ranks of those with a poor reputation, while Hesburger’s reputation has plummeted

T-Media’s Reputation&Trust survey of the tourism and restaurant industry examined Finns’ views and perceptions of organizations in the sector as well as the industry as a whole. The survey shows that the industry’s reputation, which had been on an upward trend for several years, has begun to decline. The reputation of the tourism and restaurant sector has fallen to 3.24 (on a scale of one to five), down from 3.33 last year.

An annual comparison of the eight components of reputation shows that perceptions of the industry’s overall financial situation have improved from a weak level to a moderate one. Perceptions of the value for money of products and services have remained virtually unchanged. The biggest drops in reputation scores have occurred in the areas describing employer practices and corporate responsibility.

Whereas during the pandemic, companies were expected above all to demonstrate a capacity for innovation and to secure their financial position, the study indicates that expectations have now shifted to focus particularly on good employment practices and responsible business operations. “In addition to the labor shortage in the industry, the Hesburger reputation crisis has also had a major impact on the increased emphasis on employer image,” comments Elisa Runsas, an information management expert at T-Media.

 

 

Hotels are doing well, while fast-food restaurants are suffering from a decline in reputation

In addition to the industry’s overall reputation, the study examined the reputation of nearly 20 major players in the sector. The company-specific results reveal that many hotel chains, in particular, have succeeded in strengthening their already strong reputation. Sokos Hotels performed the best (3.74). In addition, Sodexo, which had a poor reputation in previous years, rose to a moderate reputation level this year (3.08). With the exception of Sodexo’s positive change in reputation, the majority of players in the restaurant industry experienced significant drops in reputation.

Hesburger’s reputation plummeted from a high level (3.61) to a low level (2.98)—an exceptionally sharp decline—and the effects were felt by other players in the market as well, particularly among fast-food restaurants.

 

 

“All of the industry surveys we conducted this spring show that people’s expectations of companies have risen. At the same time, a company’s reputation no longer rises as high based on performance alone; maintaining that level now requires more action than before. This is also evident in the travel and restaurant industry. Furthermore, the influence of reputation on people’s behavior appears to have grown stronger,” says Runsas.

As a result of last year's events, the number of people seeking employment in the sector has fallen to an exceptionally low level, even though consumer demand remains high.

 

“If you look at the media landscape over the past six months and the reputational crises that have emerged, they have primarily been related to employment practices rather than, for example, the products and services offered. People expect industry players to act in accordance with their values and to do the right thing. If an organization does not reinforce these expectations through its actions and communications, the media will likely shape the public perception,” says Harri Leinikka, CEO of T-Media.

 

Conducting the Study

The results are based on Reputation&Trust of the tourism and restaurant industry conducted in April 2022, which examined the reputation of organizations in the sector operating in Finland among the Finnish public.

Organizations were evaluated using T-Media’s Reputation&Trust, in which an organization’s reputation score is calculated as the average of eight different categories. The areas are corporate governance, finance, leadership, innovation, interaction, products & services, workplace, and responsibility. The study used a five-point rating scale (1–5).

A total of 2,565 Finns participated in the survey. The survey targeted Finns aged 15–65 nationwide (excluding the Åland Islands). The sample was weighted to be representative of the population by gender, age, and region of residence.

 

For more information:

Elisa Runsas, Information Management Specialist
Tel. 050 468 8849, elisa.runsas@reptrust-staging.fi-p.seravo.com

Mari Isotalo, Research Manager
Tel. 040 564 2269, mari.isotalo@reptrust-staging.fi-p.seravo.com