detailed evaluation of problems in Australian restaurant and service industry with recommendations

1. MMBA8022 Term- 4, 2020
Amit Sati | 45692386
Video Presentation
Workplace Problem
Assignment - 3

2. Title:
Problems in Australian Restaurant Industry
Marketing Theory:
Service Quality
Unit Convener:
Associate Professor Chris Baumann

3. 1. Introduction Problems in Restaurant
Service Quality
Click to add text

4. 2. Articulation
of Problems
Lower Evaluation of Services
Turnaround time to serve the orders increases significantly compared to low
occupancy time period.
Delays in Order delivery cause a lower perceived quality of services by
customers.
2.1 Delays in Order Delivery
“Longer delays resulted in lower evaluations of service; overall service
evaluations were affected by evaluation of punctuality.”
Taylor,S.(1994).Waitingforservice:The relationship
betweendelaysand ev.Journal of Marketing,58(2),56-69.
Scholarly Corner

5. 2. Articulation
of Problems
2.1 Delays in Order Delivery
Taylor,S.(1994).Waitingforservice:The relationshipbetweendelaysand ev.
Journal of Marketing,58(2), 56-69.
Source

6. 2. Articulation
of Problems
Frequent Service Delivery Failures
Human errors in taking orders, final billing, food delivered to wrong table or
accidents during service.
Creating problems in flawless service delivery and overall service quality.
2.2 Frequent Errors in Delivery
“Assuring accurate performance, creates a direct impact on the overall
service quality by addressing human errors.”
Stewart,D.,& Chase,R. (1999). The Impact of Human Error
on deliveringService Quality.ProductionandOperations
Management,8(3), 240-263.
Scholarly Corner

7. 2. Articulation
of Problems
Frequent Service Delivery Failures
Other prevalent problem is related to faults or errors in preparing dishes or
drinks ordered by customers.
Undercooked dishes or inappropriately mixed drinks could create a significant
negative impact in providing the tangible goods during service encounter.
2.3 Frequent Errors in Production
“Service encounters provide tangible goods (e.g. food, beverages, and
toilet paper, which customers need during flight) and intangible
goods (e.g. service attitude of employees, such as smile, attitude and
atmosphere) at the same time.”
Scholarly Corner

8. 2. Articulation
of Problems
Frequent Service Delivery Failures
New employees take time to get accustomed to the service environment and
deliver a cheerful hospitality experience to customers.
The problem is further aggravated by unplanned leaves by both front line &
kitchen staff, which causes lower level of responsiveness for customer
requests.
2.4 Skilled Resource Scarcity
Good Schools Guide. 2020. Why Is There A Skills Shortage In
Hospitality? | Good Schools Guide. [online] Available at:
<https://www.goodschools.com.au/insights/education-updates/why-
is-there-a-skills-shortage-in-hospitality> [Accessed 4 November 2020].
References

9. Gap Between Expectations and Delivery
The increasing gap between customer expectations and the perception of final
delivery is resulting in lower service quality.
Managing Service quality remains the key challenge for the business while
delivering according to increasing demand.
3.1 Service Quality Let-Downs
“Service quality is commonly referred to as the gap between
customers’ expectations of service performance and their
perceptions of actual service performance.”
Stewart,D.,& Chase,R. (1999). The Impact of Human Error
on deliveringService Quality.ProductionandOperations
Management,8(3), 240-263.
Scholarly Corner
3. Analysis of
Problems
(Service Quality Lens)

10. 3. Analysis of
Problems
(Service Quality Lens)
3.1 Service Quality Let-Downs

11. 3. Analysis of
Problems
(Service Quality Lens)
3.1 Service Quality Let-Downs

12. 3. Analysis of
Problems
(Service Quality Lens)
3.1.1 Impact on Service Quality because of
Service Delivery Failure
Factors Causing
Service Delivery
Failure
Tangible Goods
Failure
(Undercooked Food,
Spillage, Wrong
dishes served etc)
Intangible Goods
Failure
(Delayed delivery,
understaffed
frontline etc)
Intangible Goods
Failure
(Inefficient Frontline
staff, or lacking in
confidence)
Service QualityModel (frompreviousslide),identifyingourcase problems.
Problem 2.2, 2.3
Problem 2.1
Problem 2.4

13. 3. Analysis of
Problems
(Service Quality Lens)
3.1.2 Five Dimensions of Service Quality
Source
The indicatorswere developedbyA Parasuraman,Valarie A. Zeithami,and
leonardL.berry andorginallypublishedin“SERVQual:A Multiple-ItemScale
for MeasuringConsumerPerceptionof Service Quality.”Journal of Retailing,
Vol 64 (Spring1988), pp12-40
Reliability
Assurance
Responsiveness
Tangibles
Empathy
Ability to perform the promised service
dependably and accurately
Knowledge and courtesy of employees
and their ability to convey trust and
confidence
Willingness to help customers and
provide prompt service
Physical facilities, equipment, and
appearance of personnel
Caring, individualised attention

14. 3. Analysis of
Problems
(Service Quality Lens)
3.1.2 Factors Causing Service Delivery Failure
Five Dimensionsof service quality(frompreviousslide),identifyingourcase
problems.
Reliability
Assurance
Responsiveness
Tangibles
Empathy
Service Errors by staff
Delays in order Delivery
Or Issue Resolution
Lack of Hospitality
Experience staff
Undercooked food or
Improper Drinks
Lack of Cheerful
Customer Interactions
by staff
Problem 2.2
Problem 2.4
Problem 2.1
Problem 2.3
Problem 2.4

15. 3. Analysis of
Problems
(Service Quality Lens)
3.2 Resource Management
Stewart,D.,& Chase,R. (1999). The Impact of Human Error on
deliveringService Quality.ProductionandOperationsManagement,
8(3), 240-263.
Source
Cognitive Black Box
GEMS

16. 4.
Recommendations
4.1 Demand Management
Scholarly Corner

17. 4.
Recommendations
4.1 Demand Management
Source

18. 4.
Recommendations
4.1.1 Weekdays Specific Offers
Scholarly Corner
“Several marketingmixelementscanplayanimportantrole inchangingdemand
as perthe capacity.”
Discounts to Increase Weekdays’Footfall
Weekdays specific discounts instead of blanket discounts will help to balance
the demand and reduce the excess demand during peak footfall period of
weekend.
Scholarly Corner
“Deal-pronenessisone of the keyelementsindecisionmakingforeatingout.”

19. 4.
Recommendations
4.1.1 Weekdays Specific Offers
Utilising Marketing Communications
Making maximum use of promotions through integrated marketing
communications will help to either stimulate or dampen the demand.
Source

20. 4.
Recommendations
4.1.1 Weekdays Specific Offers
Utilising Marketing Communications
Making maximum use of promotions through integrated marketing
communications will help to either stimulate or dampen the demand.
Source

21. 4.
Recommendations
4.1.1 Weekdays Specific Offers
Addressing Service QualityChallenges with
Demand Management
Reliability
Assurance
Responsiveness
Tangibles
Empathy
Service Errors by staff
Delays in order Delivery
Or Issue Resolution
Lack of Hospitality
Experience staff
Undercooked food or
Improper Drinks
Lack of Cheerful
Customer Interactions
by staff

22. 4.
Recommendations
4.2 Resource Management
Herzberg’s Two Factor Theory
Source
Source
Adaption from - Herzberg 2 Factor Theory. (2020). Retrieved 12 November 2020, from
https://koxepemywew.gabrielgoulddesign.com/herzberg-2-factor-theory-17650xj.html

23. 4.
Recommendations
4.2 Resource Management
Service Profit Chain
Source
Source
Heskett, J., Jones, T., Loveman, G., Sasser, Jr.,, W., & Schlesinger, L. (1994). Putting the
Service-Profit Chain to Work. Retrieved 12 November 2020, from
https://hbr.org/1994/03/putting-the-service-profit-chain-to-work-2

24. 4.
Recommendations
4.2 Resource Management
Service Profit Chain
Source
Source
Heskett, J., Jones, T., Loveman, G., Sasser, Jr.,, W., & Schlesinger, L. (1994). Putting the
Service-Profit Chain to Work. Retrieved 12 November 2020, from
https://hbr.org/1994/03/putting-the-service-profit-chain-to-work-2

25. 4.
Recommendations
4.2.1 Employee Training & Development Program
Scholarly Corner
“Acquiring new skills not only provides more flexibility within the workplace,
but can also help staff to become more motivated in their role, with an
increased sense of job satisfaction and self-esteem.”
Facilities,S.(2014). The Importance Of TrainingStaff - SaxonsBlog.
Retrieved12November2020, from
https://www.saxonstrainingfacilities.com.au/blog/human-
resources/the-importance-of-training-staff/
Multi-Skill Training
New skill development amongst employees to manage multiple roles. This will
provide more flexibility to the operations.
Increased job satisfaction and improved motivation.

26. 4.
Recommendations
Addressing Service QualityChallenges with
Staff Management
Reliability
Assurance
Responsiveness
Tangibles
Empathy
Service Errors by staff
Delays in order Delivery
Or Issue Resolution
Lack of Hospitality
Experience staff
Undercooked food or
Improper Drinks
Lack of Cheerful
Customer Interactions
by staff
4.2.1 Employee Training & Development Program

27. 5. Reflection &
Conclusion
Identifying solutionsusing Theory,
Research & Models
Identifying Key Issues through the Lens
of Service Marketing
Proposing Feasible Solutions for
Workplaceproblems

28. Thank You!