Customer Satisfaction in Restaurants free essay sample

Eating is a necessity for all people. Eating together at home with loved ones or relative has been the tradition of Filipinos as derived from the Filipino culture. But why do people still love to eat out in a restaurant? If people eat out it is usually based on the food offered, the ambiance offered and the prices. The food is important because if you feel you could have easily prepared the same meal yourself it is not such an interesting experience. But to some they consider it to be a form of exploration. People have the tendency to go for the food which they would not have access to. For most of the people they love to eat out because sometimes they want to spend time with their family or friends without having to cook, clean, wash the dishes and go through that time consuming and troublesome preparations. For few they love to eat out because they have nothing ready prepared at home or probably they are out in the road so it is rather more convenient to eat in a restaurant. Depending on what reason an individual has on why he or she would prefer to eat in a restaurant, there would always be a set of reasons in his or her mind ahead of choosing what restaurant to go to. Most often than not, the significant characteristics were based on reviews published for these restaurants or probably based on the personal experience gained on their last visit or shared through word of mouth have already been evaluated in the mind of the customers leading to a decision of dining. In the year 2013, restaurant industry has undoubtedly not been free from either very stiff competition or from increasing and very highly demanding customers’ expectations on food quality and customers service. Thus, in this greatly competitive food industry, those businessmen who are capable of capitalizing on cost of leadership, marketing strategy and image upgrade benefits through differentiation over smaller independent restaurants. Branding keeps on gaining importance in the marketing of restaurant services as manifested in the various airing of commercials on television, radio and print media which attracts the customers through their marketing service and by making their customers gain brand loyalty. Some of these are Max’s, Barrio Fiesta, Mesa and more. In a way, this contributes to the increase in customer satisfaction which is manifested in their continuous patronage of the restaurant and its products. I. 2 PROBLEM STATEMENT This study will explore the factors affecting customers satisfaction in restaurants situated in the business district of Pasig City. The study will answer the following questions: 1. What are the factors that influence customers’ satisfaction and how will these eventually lead to significant increase in business profit? 2. Identify the processes involved to achieve food quality and its effect on customers’ satisfaction. 3. What are the significant attributes that leads to effective customer service in a restaurant setting and how does it affect customer satisfaction? I. 3 PURPOSE STATEMENT The purpose of the study is to relate the importance of dining attributes in terms of food quality and customers service in achieving customers satisfaction. The role of food quality and customer service is very important for knowing the effects in customers satisfaction. Customer satisfaction is the manifestation of whether customers will come back again to patronize the restaurant. Customer satisfaction shall then be a strong performance indicator which will eventually can be translated to profit by the restaurant owners. I. 4 RESEARCH QUESTION EFFECTS OF FOOD AND SERVICE QUALITY ON CUSTOMERS SATISFACTION IN A FILIPINO RESTAURANT Name (optional): __________________________________ Age: _____ Gender: _____ 1. Name of the Filipino Restaurant ________________________________ 2. Location of the restaurant________________________________ 3. How often do you visit this restaurant? A. Everyday B. 2 or 3 times a week C. Others ____________ 4. For how long have you been a regular client of this restaurant? __________________________________________ 5. Is there a particular product or services of this restaurant that you keep coming back for? __________________________________________ 6. What makes you comeback to this restaurant? Encircle as many answers as possible. A. FoodG. Special promo deals, Discounts B. AmbianceH. Basic facilities inside the restaurant C. Location I. Cleanliness of the restaurant D. Accessibility J. Payment Convenience E. Friendly, Accommodating and Helpful staffK. Convenience in terms of area size F. Easy and fast Order Taking processL. Freebies, Promo packs 7. To what extent from 1 to 10 (10 means the most important) does the following attributes influence your decision to continue to go to the restaurant? __ A. Food __ B. Friendly, Accommodating and Helpful staff __ C. Restaurant Ambiance __ D. Service delivery speed __ E. Location of the restaurant __ F. Accessibility in the public __ G. Price __ H. F. Easy and fast Order Taking process __ I. Easy table reservation process __ J. Recognition by staff CHAPTER II REVIEW OF RELATED LITERATURE This study aims to unveil the effects and importance of customer service and food quality in a restaurant setting. In this study, the researchers would like to expound on the following issues: First, What are the factors that influence customers’ satisfaction and how will these eventually lead to significant increase in business profit? Second, Identify the processes involved to achieve food quality and its effect on customers’ satisfaction. Third, What are the significant attributes that leads to effective customer service in a restaurant setting and how does it affect customer satisfaction? In order to accomplish these objectives, this Chapter reviews the concept of customer service through quality service and the different factors that contributes to customer satisfaction. II. 1 FOREIGN RELATED STUDIES GOOD QUALITY SERVICE AND CUSTOMER SATISFACTION IN A RESTAURANT During the age of age everybody has seen that business is rapidly growing day by day and with concerning with business there are always two parties called buyers and sellers, and buyers are concerned with quality and sellers are always concerned with money. Customer satisfaction is the result of the correlation between a customer’s assumption and a customer’s feelings. By the way of explanation, customer satisfaction is identified as the distinction between assumed quality of service and the customer’s involvement or feelings after having perceived the service. Customer satisfaction depends on such dimension as assurance, responsiveness, reliability, empathy and tangibles, and further components such as personal, price and situational factors that may arise as the service quality. (Bateson Hoffman 2000. ) Customer satisfaction helps customers to communicate their straight to the sellers. Customer satisfaction is very important because it helps to learn about the business’s strengths and weaknesses. Also customer satisfaction also helps to appropriate resources for eventual strike or satisfaction. Furthermore, it supports to show calmness about making better quality products and services to both the employees and the customers. At last, customer satisfaction helps to accommodate the system for informing management of problems or situation requiring actual promotion. (ICR 2011. ) All restaurant managers need now to understand the uniqueness of their customers and what contributes to their value to retain existing customers and attract new customers while at the same time still remain competitive and profitable as compared to other competitors in the restaurant business (Walter, Edvardsson et al. 2010) The customer is always right is a famous business slogan. The underlying truth behind this statement is recognizing that customers are the life blood for any business. Understanding the importance of good customer service is essential for a healthy business in creating new customers, keeping loyal customers, and developing referrals for future customers. Good customer service leads to many benefits. Not only will you gain trust with your current clients, theyll also become a wonderful referral system as they spread the word about your business to other prospects. Especially with any internet business transactions, product reviews are quite common. Whether its positive or negative feedback about a product or service, people are writing freely about their shopping experiences. In the long run, treating people fairly and with respect will bring business to your company today and in the future. With the uprising statistics on restaurants being established nowadays, the belt-tightening or any other form of intense competition comes greater pressure on businesses to do more and more to keep their customers coming back. Its one thing to meet a customers expectations, but its quite another to exceed those expectations at every turn. And it is precisely through the exceeding of your customers expectations that your reputation will be established as an excellent customer service provider (Tom Colicchio, Alessandro Strata et al, 2011). Service is extremely important in a restaurant. People will come to the restaurant for food, but theyll come back for service. The number one reason someone comes back to a restaurant is recognition. Service can be broken down into two things. Theres service, which is all the nuts and bolts around service, clearing and serving from the right side of the guest, making sure wines filled at the proper level, waters filled at the proper level, wine at the proper time, making sure that silver is on the table for the correct course. Those are all the mechanics of service. But then theres the other side of it, and thats the hospitality side of it. And most of the time when people mention service, theyre talking about hospitality (Monica Parpal et al 2002). When customers come through any restaurant, they expect quality in every aspect. Guests are looking for a value in the things they see, taste and touch, and so providing them with exceptional quality will certainly leave a good taste in their mouths. Customer satisfaction refers to the extent to which a customer is happy with the products and services provided by a particular business firm. In other words, it is a measure of how the goods or services provided by the said company meet the customers expectations. There exist some basic rules about customer satisfaction which are applicable to all business firms irrespective of whether its just a small eatery or some five star restaurants. Repeat business, i. e. the customer availing your services again and again, makes up a major chunk of any business. If your customers walk away unhappy, the chances of them coming back to you are as good as none, as they are bound to look for the same services elsewhere. If you happen to be in a monopoly market with no competition whatsoever, you can take the risk of being liberal. However, that is seldom the case in a competition driven economy that we are a part of, and thats the reason why customer satisfaction in terms of service, quality, price, value, etc. , is important for your business. It is obvious that word of mouth can help your business grow or bring it down. If your customers are satisfied with the services you provide, they will not just give you repeat business but will also give you new business by referring your firm to their friends and family. Again, they need not specifically refer to your firms name, as the mere mention of their experience in the middle of the conversation can work wonders for your business. On the contrary, a dissatisfied customer will spread bad word about you if not intentionally, then by sharing his bad experience with others. So also the advent of Internet has made business firms even more vulnerable to bad publicity owing to the boom of social networking websites, blogs and online complaints forum. The simplest way to make sure that your client base is not hampered owing to lack of customer satisfaction is to make sure that you stick to the quality of products or services that you have to offer, and create a customer focused environment as the latter plays the most important role in improving customer satisfaction. Being a business firm, you must be well versed with the fact that you need to give due importance to quality. As far as customer focused environment is concerned, simple steps like making sure that you pay personal attention to their needs, following up with after sales service and maintenance support (as and when required), interacting with your customers, paying attention to their queries and problems, etc. , can be of a great help. One thing is for sure that your customers will appreciate the fact that you make them feel special, and putting in some effort to do the same is bound to reap rich dividends for you, (Sam and Irene Black School of Business, Penn State Erie, The Behrend College, Erie, Pennsylvania, USA) II. 2 LOCAL RELATED STUDIES According to (Bacnis, Clarete, Manzano Ermino, 2011) there are Seven (7) Commandments of Customer Service 1. Tell the truth. When it comes to Customer Service, honesty is the best policy. 2. Bend the rules. Learn why rule is a rule in the first place. Once you know the reason for the rule and its boundaries, go ahead and bend it if that’s what it takes to make the system better to serve your customer. 3. Listen actively, almost aggressively. Customers are ready, willing and are able to tell you everything you need to know, all you need to do is listen. 4. Put pen into paper. A letter or e-mail after a conversation can be a terrific way to confirm facts and details or just so say thanks. 5. Master the moment of truth. If you pay attention to details- the promises made in your advertisement, how long your phone rings before being answered; the look of your parking lot- Customers will notice. 6. Be a fantastic fixer. An effective customer service recovery process includes these components: apologize, listen and emphasize, fix the problem quickly and fairly, offer atonement, keep your promise, follow-up. 7. Never underestimate the value of sincere thank you. It’s easier to take regular and walk-in customers for granted. Remember that customers have the option every time they need a service or product; thank them for choosing to do business with you. FOOD QUALITY Food and beverages are probably the biggest indicator of quality that a customer notices. Food quality is not only important to the customers impressions of the overall restaurant experience, but it is important for their health, as well. Guests health should never be compromised. Although not all restaurants can boast the best quality food in town, they can still take measures to ensure that food is stored and prepared safely. QUALITY ATMOSPHERE AND CLEANLINESS Every guest who enters a restaurant should feel as though they are in a special, comfortable place. It is of vital importance that manager of a restaurant sets the tone for the atmosphere and attitude of the staff there. Remember you are in food service and that happy customers are repeat customers and free advertising. (Monica Parpal et al, 2011). Keeping your restaurant clean is a large part of good service. If your customer discovers your bathroom hasnt been touched in the last century, it is likely they will assume the food is just as neglected. It doesnt take a lot of effort to keep your restaurant clean and will help you pass the health inspectors test as well. On average, a person will tell 10 or 11 people when they are not happy with their restaurant experience. The effect of word-of-mouth advertising can make or break a company; especially in a volatile market such as the food industry. PRODUCTS, PRICE AND FOOD QUALITY Top of Form Bottom of Form In addition, customers usually assess the quality of both the food and service. Certain groups of people are more likely to consider one factor more important than another, but in general, most people take into account all of these factors and more. Price is a major deciding factor in customer satisfaction. If the food is mediocre but expensive, customer dissatisfaction rises, while if the food is relatively cheap but of high quality, satisfaction increases. This is fairly simple and is also true for the quality of service, general atmosphere of the business, and quickness of service. In general, full-service restaurants are expected to have better food and service than a quick-service restaurant. If the restaurant fails to significantly rise above cheaper alternatives, customers become less satisfied with their purchases and experiences. In general, young adults are concerned about the overall convenience of a restaurant. Many are happiest with businesses that can provide quick service. For example, fast food would appeal to this group more than a five-course meal that takes place over two hours. Of course, the appeal of a quick-service restaurant is not limited to young people. In addition, while such restaurants appeal to many people, they usually have lower satisfaction rates than full-service restaurants because of factors other than convenience. Chapter III III. 1 Methodology This study will explore the factors affecting food quality and customer service in customers satisfaction in restaurant setting. The research design utilized the survey research method by having the observations in other restaurant on how they treat their customer with a hospitable manner and food quality in achieving the goal for customer satisfaction. The descriptive survey method aided the researcher in extracting the factors food quality and customer service to customer satisfaction from the respondents in this study. That this research surveys can served as one of the most fitting methodologies for collecting data. Furthermore, that the articles from the food quality and customer service in customer satisfaction was the main reference for analysis of the study, the researcher to utilized articles as the most suitable research methodology that was expected to gather the desired data of the study. In order for the researcher to determine the customers satisfaction of the respondents in different type restaurant. The researcher aimed to generate an effective food quality in customer service in customer satisfaction by the data gathered by the research method. Therefore, the methods that were employed in this study resulted to more credible research findings. On the one hand, the textual analysis method permitted the researcher to draw together the data. III. 2 Research Locale The researcher also decided to conduct a group of students’ survey research sessions during the data gathering period in La Consolacion College- Pasig City, (LCC-P) depending on their allotted time. The selection of LCC-P as the research locale of the study stemmed from the idea that the researcher wants to know about their satisfaction on the certain restaurant (food quality, ambiance and customer service). In this manner, the researcher became more aware of the proper approach in gathering the data from the students. III. 3 Instrumentation This study utilized the researchers made questionnaire as the main data gathering instrument. The questionnaire is divided into two parts. Part 1 The respondent’s profile which includes personal characteristic such as name, age and gender. Part 2 The name of the restaurant and the answers of the respondents about their opinion on food and service quality. III. 4 Data Collection Procedures Before the actual administration of the questionnaire, pre-trail stage was undertaken to ensure the validity and reliability of the instrument. A group of 50 respondents were randomly selected to answer the questionnaires. In order to ascertain utmost result of the study, the researcher personally administrated and collected the questionnaire. During the data gathering period the respondents were given enough time to answer the instrument. After which the data represented, analyzed and interpreted. III. 5 Data Analysis The data gathered from the subjects’ response were them tallied, analyzed and interpreted. The basic statistical procedure used as basis for interpretation and analysis as are as follows: Percentage ranking and frequency were used to determine the response of the subjects to answer the questions using this formula: P = f / n x 100 Where: P = Percentage f = Frequency n = Number of respondents The weighted mean was utilized also by the researchers as one of the statistical formula in the treatment of data: wm = m / n Where: wm = weighted mean m = Mean n = Number of Respondents Weighted frequency was determined by multiplying the frequency of each item by the weighted of the said item.