The food and beverage industry is highly competitive, and customer service plays a critical role in creating customer satisfaction, loyalty, and retention. Customer service refers to the assistance provided by a company to its customers before, during, and after a purchase, including addressing inquiries, providing recommendations, and resolving issues.
This study aims to evaluate the influence of customer service on customer satisfaction in the food and beverage sector, with a specific focus on the case of Shangel Restaurant at Hillside Royal Suites in Katsina State, Nigeria.
The research will explore the various elements that contribute to customer satisfaction and examine how customer service impacts them
2. CHAPTER ONE
INTRODUCTION
The food and beverage industry is highly competitive, and customer service plays a critical
role in creating customer satisfaction, loyalty, and retention. Customer service refers to the
assistance provided by a company to its customers before, during, and after a purchase,
including addressing inquiries, providing recommendations, and resolving issues.
This study aims to evaluate the influence of customer service on customer satisfaction in
the food and beverage sector, with a specific focus on the case of Shangel Restaurant at
Hillside Royal Suites in Katsina State, Nigeria.
The research will explore the various elements that contribute to customer satisfaction and
examine how customer service impacts them.
The Expectancy-Disconfirmation Theory and the Service Quality Model will be utilized as
theoretical frameworks to understand the relationship between customer service and
customer satisfaction.
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3. CHAPTER ONE Cont..
BACKGROUND OF THE STUDY
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In a global context, studies have shown the significant impact of customer service on customer
behavior. For instance, research conducted in the United States revealed that a poor service
experience led 78% of customers to abandon a transaction or not make an intended purchase.
Similarly, a survey in the United Kingdom found that 96% of customers consider customer service an
important factor in their brand selection. In the local context of Nigeria, the food and beverage
industry is a critical sector contributing to the country's economy. However, challenges such as high
employee turnover, competition, and the need to adapt to changing customer preferences and
technology persist. Therefore, understanding the relationship between customer service and
customer satisfaction is crucial for businesses like Shangel Restaurant in Hillside Royal Suites. The
study's findings not only contribute to academic literature but also provide practical
recommendations for improving customer service practices in the food and beverage industry,
ultimately enhancing customer satisfaction and fostering long-term customer relationships.
4. CHAPTER ONE Cont…
Statement of the Problem:
• The existing literature on the impact of customer
service on customer satisfaction in the food and
beverage industry acknowledges its significance
but lacks specific insights into the factors that
contribute to customer satisfaction and their
potential for improvement. Furthermore, there is
a research gap in understanding customer
service and satisfaction within the Nigerian food
and beverage industry, particularly in Katsina
State. Recent studies by Adeniran and Adebayo
(2020), Olusola and Adebiyi (2021), and Okoroji
and Opara (2022) highlight this gap and
emphasize the need for comprehensive and
comparative research in this context.
Research Purpose:
• The purpose of this study is to identify the specific
factors that contribute to customer satisfaction in
the food and beverage industry, focusing on
responsiveness, empathy, assurance, and
tangibles. By conducting the research in Katsina
State, Nigeria, with a specific case study of Hillside
Royal Suites, it aims to fill the literature gap and
provide valuable insights into the local context
that has been overlooked in previous studies. This
research aims to contribute to the body of
knowledge on customer service and satisfaction in
the Nigerian food and beverage industry, offering
practical implications for businesses operating in
this sector. 4
5. CHAPTER ONE Cont…
Practical Issues and Problems:
• In the highly competitive food and beverage
industry, companies face practical issues such as
high employee turnover and increasing
competition, which can negatively impact the
consistency of customer service quality.
Additionally, the need to adapt to changing
customer preferences and technological
advancements poses challenges for
businesses in meeting customer needs. These
practical problems highlight the importance of
understanding the specific factors that
contribute to customer satisfaction and how
they can be improved to enhance customer
loyalty and profitability.
Gap Filled by the Study:
• This study fills the literature gap by providing a
comprehensive analysis of the specific factors
that contribute to customer satisfaction in the
food and beverage industry, with a focus on the
Nigerian context, particularly Katsina State.
Previous studies have highlighted the need
for such research, emphasizing the lack of
comprehensive studies and systematic
reviews in this area. By addressing this gap,
the current study offers valuable insights
and recommendations for businesses in the
food and beverage industry, guiding them in
improving customer service practices to
enhance customer satisfaction, loyalty, and
profitability.
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6. FINDINGS
Major Findings:
• The majority of respondents
were male, aged between 25
and 44, with a monthly income
ranging from N50, 000 to N150,
000.
• Respondents visited food and
beverage establishments at least
once a week, and cash was the
preferred payment method.
Service Quality:
• The restaurant's physical appearance was
appealing, and employees maintained a
neat appearance.
• The restaurant delivered services on time
and kept their promises regarding services
and programs.
• Employees were helpful and provided
prompt service when needed.
• Employees displayed knowledge and skills,
instilling confidence in customers.
• Employees showed empathy by addressing
individual needs, actively listening to
concerns, and providing personalized
attention.
Customer
Satisfaction:
• Customers were generally satisfied with the
quality and variety of food and beverages
offered.
• Customers were satisfied with the speed of
service and the responsiveness of staff to their
needs.
• Customers perceived good value for money
regarding the food and beverages.
• Customers expressed satisfaction with the
cleanliness and comfort of the restaurant's
facilities.
• Overall, the study found positive feedback
regarding the customer service, service quality,
and customer satisfaction aspects of Shangel
restaurant in Hillside Royal Suites, Katsina State.
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Demographics and Customer
Behavior
7. Findings
Cross tabulation of Service Quality and Customer Satisfaction
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Service Quality Customer Satisfaction Frequency Percentage
High High 70 70%
High Moderate 20 20%
High Low 10 10%
Moderate High 10 10%
Moderate Moderate 50 50%
Moderate Low 40 40%
Low High 5 5%
Low Moderate 25 25%
Low Low 70 70%
8. Findings
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Major Recommendations
Facility Enhancement:
• The Shangel restaurant should invest in
maintaining clean and well-equipped
facilities to improve the physical
appearance and attractiveness of their
establishments.
Employee Training
• Management should provide regular
training to employees to enhance their
skills and knowledge of the services they
provide, ensuring they can deliver a high-
quality customer experience.
Effective Complaint Handling
• The restaurant should establish effective
complaint handling mechanisms and
encourage customers to provide
feedback, enabling them to identify areas
for improvement and address customer
concerns promptly.
Prioritize Responsiveness
• The Shangel restaurant should prioritize
the responsiveness dimension of the
SERVQUAL model by ensuring prompt
service delivery, a willingness to help
customers, and maintaining a customer-
centric approach.
9. Future Research
• Future research should explore the influence of
other factors such as pricing, menu variety, and
customer loyalty programs on customer
satisfaction in the food and beverage sector,
providing a more comprehensive understanding
of customer preferences.
• Implementing these recommendations will
enable the Shangel restaurant of Hillside Royal
Suites, Katsina State to enhance their customer
service, improve customer satisfaction, and
potentially increase customer loyalty, positive
word-of-mouth, and overall revenue.
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