3. Pizza Express, Oxford Street, Manchester
Stunning Design
Beautiful Music
“Leave Happy”
Excellent Food
Unique Experience
4. Service Concept
Service concepts/markets require differing approaches to service design/management (Roth et al 2003)
The service concept is operationally defined as a portfolio of core and peripheral service elements
Core services comprises of five elements:
Peripheral services:
Supporting facilities (physical and structural resources)
Facilitating goods (materials, suppliers and merchandise)
Facilitating information (service supporting information)
Explicit services (experiential/sensual benefits)
Implicit services (psychological benefits)
Supplement the core service
Provide additional benefits
Enhance value
Differentiate the core service
Stunning Design
Beautiful Music
Excellent Food
Unique Experience
5. Process Flow: Overview
Seat Customer Treat Customer Feed Customer Exit Customer
Meet and Greet
Seat Customer
Orders Drinks
ProcessKeyActivities
Serve Drinks
Comforts Customer
Offers Starters
Orders Mains
Serve Starters
Serve Main
Offer Drinks
Check Satisfaction
Order Dessert
Bill Provision
Customer Survey
Music
Décor
Ambience
Video
School Pizza Making
Experiences
Exceptional Food (Exceptional Food and Unique Experience)
Unique Experience (Beautiful Music and Stunning Design)
Goals
Namkung, Y and Yang, S (2010)
7. • Focus is not only on time, but on ambience and experience (Lovelock and Gummesson, 2004)
• The waiting environment influences waiting time satisfaction and overall evaluation of the service. (Kimes and
Thompson, 2005)
• Firms adopt strategies to match capacity/ demand to resolve service fluctuation problems (Bateson & Hoffman,
1999)
• The waiting time has four aspects: objective, subjective, cognitive and affective (Kimes and Thompson, 2005):
• Objective waiting time (stopwatch)
• Subjective (customer estimation)
• Cognitive (customer tolerance)
• Affective (customer emotion)
Process Flow: Seat Customer
Seat Customer Treat Customer Feed Customer Exit Customer
Meet and Greet
Seat Customer
Orders Drinks
Theory
• Focus remains on the food service
• Customer experience enhanced due to
‘non-batch’ seating
• Restaurant looks busy due to seating
spread
• Mix of fixed and flexible seating results
in varied table size
• Spread seating means more areas need
to be maintained
• Online reservations are not operational
during busy periods
• Limited waiting area results in potential
loss of custom
Benefits Issues
‘Waiting Area’
9. • The Four V’s describes the typology of an operation (Slack, 2012)
• Cost minimised due to capacity utilisation during busy periods
• Non-varied menu offers increased control over process
• Open kitchen improves the ambience
• Expert forecasts are completed to assist inventory reconciliation
• Inventory reconciliation process is not fully electronic and quite manual
• Fresh ingredients require regular replenishment
Process Flow: Treat Customer
Seat Customer Treat Customer Feed Customer Exit Customer
Standard order fulfilment cycle
Single electronic order placement
Central inventory reconciliation
Busy/Quiet periods
Food Menu is
straight forward
Pizza made in open
kitchen
Serve Drinks
Comforts Customer
Offers Starters
Orders Mains
Theory
Standard MenuOpen Kitchen
Benefits
Issues
11. • Slack et al (2012) suggested a Fixed Layout (Customer Service):
• Demands high variety of tasks for staff
• Creates high service mix and flexibility
• Costs are generally high
• A Cell Layout (Food Creation) offers cost and flexibility for relatively high variety operations (Slack et al, 2012)
• Specific resources are assigned for different areas of a business (Malinconico, 2012)
• Including health information drives innovation and improvement in quality of food being served (Jones, 2009)
• Labour division able to efficiently deal with busy periods
• Food creation forms effective production methods
• Customer service can be tailored to customers/events
• Food creation is limited to specific menu items
• Customer service flexibility could lead to over-utilisation
Process Flow: Feed Customer
Seat Customer Treat Customer Feed Customer Exit Customer
Serve Starters
Serve Main
Offer Drinks
Check Satisfaction
Order Dessert
Theory
Cell LayoutFixed Layout
Benefits
Issues
13. • Customer should generally be included in the innovation process (Kelly and Storey, 2000)
• Service development can be captured by customer involvement (Kelly and Storey, 2000)
• Service firms should reduce the risk of being imitated and surpassed by competition (Thomke, 2003)
• Customer satisfaction can be gauged
• Service level is continued to (hopeful) next visit
• Service able to be offered up to end of service encounter
• Customers may occupy tables for long periods of time
• Special events may be unable to be tailored to during busy periods
Process Flow: Exit Customer
Seat Customer Treat Customer Feed Customer Exit Customer
Bill Provision
Customer Survey
Theory
Cell Layout
Benefits
Issues
14. Restaurant Evaluation
Team Empowerment
•Local team is not empowered enough to make local marketing
decisions
•Local team has no authority over current maintenance issues
(Automatic door issue)
Capacity Utilisation
•The capacity is under utilised during off peak periods (Monday &
Tuesday)
•Attempt to ‘lightly push’ ‘Exit Customer’ during busy periods
Technology
•Smartphone application to the customers for them to browse food
menu and place orders, also enables restaurants to do focussed
campaigns and cross-selling.
Customer Loyalty
•Loyalty card with RF ID could enable the database to identify the
customer as soon as it enters the building.
Stunning Design
Beautiful Music
Excellent Food
Unique Experience
16. References
1. An evaluation of heuristic methods for Determining the best table mix (2005), Kimes and Thompson
2. Agile Supply Chain capabilities: Determinants of Competitive Objectives (2004), Yusuf et al
3. Operations and Process Management (2012), Slack et al
4. The Key to Success for a Small Restaurant - Operational Process Flow (2012), Malinconico, J;
5. Service Failures in restaurants: Which stage of service failure is the most critical (2010), Namkung, Y; Yang, S;
6. Insights into service operations management: a research agenda, (2003), Roth, A. V., and Menor, L. J
7. New service development: initiation strategies ,(2010), Kelly, D. and Storey, C.
8. R&D comes to services: Bank of America’s path breaking experiments, (2003), Thomke, S.
9. New service development: learning from and with customers, (2004), Jonas Matthing, Bodil Sandén, Bo Edvardsson
10. Taking Up Space? How Customers React to Health Information and Health, (2009), Jones, C
