Sunshine Coast University: Restaurant Management Issues Report

This report is a research proposal analyzing management issues within the restaurant industry, with a specific focus on customer satisfaction and retention. It begins with an introduction and background, highlighting the importance of customer satisfaction for business success and the specific context of Dick Smith's food. The report outlines project objectives, scope, and a literature review exploring topics such as menu management, organizational theory, and the impact of customer service on revenue. It identifies customer retention as a key factor, emphasizing the significance of employee training, customer relationship management (CRM), and customer feedback. Research questions and hypotheses are presented, followed by a discussion of the research design and methodology, specifically focusing on qualitative research. The report concludes with a time schedule and references, providing a comprehensive overview of the research plan and its potential impact on understanding and improving restaurant management practices.

Running head: Management issues in restaurant 1
Student Name-Mirza Shahid
Student ID- 1106232
University Name- Sunshine Coast

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Managing Research
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Contents
Introduction and background.......................................................................................................................3
Project objective..........................................................................................................................................5
Project scope...............................................................................................................................................6
Literature review.........................................................................................................................................7
Research questions and hypothesis............................................................................................................10
Research questions................................................................................................................................10
Hypotheses............................................................................................................................................11
Research Design and methodology............................................................................................................12
Limitations................................................................................................................................................16
Time Schedule...........................................................................................................................................17
Conclusion.................................................................................................................................................19
References.................................................................................................................................................20

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Introduction and background
Customer satisfaction is necessary for every industry because customer is the key of
success. It keeps importance in the business because it offers marketers and owners of business
with a metric that they can utilize and measure the performance of their products and services in
the market (Huang, 2017). Customers are considered as a resource upon which the growth of the
business depends. It is necessary for the organization to develop the loyalty of customer and
satisfaction, if they do not so, lose their customers. Restaurant involves a group of people that are
connected with one another to satisfy a particular aim to satisfy a customer. Restaurant is the
Food Industry which success is depending on its food. It is a research proposal which film focus
on the issue statement about the restaurant industry. It reflects the importance of customer
satisfaction in the restaurant. It will help to know about the reorganization of employee
performance technique in the restaurant (Chavez-Diaz, Rojas and Orozco, 2015). The
management problem of dick smith's food will be discussed. Food safety issues, unhygienic
foods and unsatisfactory taste of food of Dick smith's food will be reflected. Literature review
about the customer satisfaction in the restaurant will be described in this research. Literature
review will tell about the importance of the customer in comparison of high revenue.
Food is an integral part to attract the customer towards the restaurant. The food industry
of Australia had amazing time when it served quality food to its customer. The quantity of the
selling products was progressing and due to this reason the industry of restaurant has changed its
perception and started to focus on the flow of business for generating more revenue. This review
of them had impacted on the quality of the food which started to unsatisfied customers towards
the food. Therefore, the perceptions of the customers were agitated and they started to revert

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back from this industry. It can be evaluated as the major problem that led to bring downfall in
this industry. The management issues of dick smith's lost the charm among the customers due to
their unsatisfactory Management Services. The employees of the company did not work well and
there ill behaviour started to irritate customers. The coordination among employees was not in
well manner and due to lack of coordination they were not able to deal with the customer within
time frame. The customer of this restaurant was getting unhygienic foods that raised question
about the food safety and management.

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Project objective
The main objective of this research is to find out the importance of the customer
satisfaction in the restaurant industry. A management issue is a major issue which has the ability
to have impact on the customers. Secondary sources are being used to collect the relevant
information regarding the topic of research. It is the aim of this research to provide the relevant
information about the food safety.

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Project scope
The research program will describe the importance of customer satisfaction in the
industry of restaurant. Various aspects regarding customer satisfaction will be discussed under
the program of research. The main objective and scope of research proposal is to make better
understanding about the customer retention and engagement.

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Literature review
There are so many issues in management of restaurant such as which may impact the
entire services of the industry. These management issues are food delivery, employee’s
coordination, HR services, management of stock and checking about the quality of food.
Management of the restaurant play a major role in the progress of the restaurant.In the context of
management of restaurant, the management of menu is a comprehensive concept that defines an
ongoing process including planning, pricing, operating, designing and developing the menu of a
restaurant (Aragon-Correa, Martin-Tapia and Torre-Ruiz, 2015).
There are various theories of organizational, marketing and strategic management that are
able to provide reliable theoratical groundwork to know the importance of aspects of managerial.
Organizational theory is able to emphasize the impact of external environments as well as the
decision of managers. External environment is specifically reliable for the organizational theory
and reliable studies (Kandampully, Zhang, and Bilgihan, 2015). It has been considered that
managers necessary consider the effectual factors of external that build uncertainty, volatility and
diversity while making decisions. Planning and operating the services and products of restaurant
include the factors of external such as rivals, customers and vendors that have the effective
potential in building vitality and diversity in the industry of restaurants and its immediate
environment of business (Min and Lee, 2014).
Customer satisfaction should be the first focus of the company to inspire for earning revenues
(Law, Buhalis and Cobanoglu, 2014). Dick Smith is famous brand of Australia and the trust of
the people of Australia over this brand is higher. It has been found that Dick Smith was able to
get sufficient position by 30% and earned a huge income. To get more revenue it started to

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provide the low quality for making higher incentives. Due to this decision the trust of the clients
over the restaurant has lost and they went back from that industry. Dick Smith does not deal with
the restaurant but also it is famous for providing the different and attractive products of food.
The goodwill of the organization may get influenced on other products as well. It is required for
the organization to provide better services by gaining low margin because without customer and
their trust, no organization would be able to gain the competitive advantages (Tripathi, 2014).
Qualitative and quantitative approaches have been used to determine the various aspects of
selected topic.
Figure 1: Customer retention
Source: (Bunakov, Zaitseva, Larionova, Chudnovskiy, Zhukova and Zhukov, 2015).
The rate of customer retention keeps great importance in the restaurant industry. Dick
Smith should focus on the outstanding customer services. As per McPhail, Patiar, Herington,
Creed, and Davidson (2015), Outstanding Customer services refer to a great food at a reasonable
price, with a good ambiance, fulfill a great dining experience. It is not possible that the demand
and Expectations of customers would be same, but it is the responsibility of the restaurant to
make sure that each customer feels special. It is required to the dick Smith that provides the

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quality of food along with the served quantity and the cost for it is also accountable for an
effective service (Han and Hyun, 2015). The management of the restaurant should be active
because it does not matter that how delicious food are they offering, the customers has to wait for
an hour just to be served entry, they can be annoyed. Customers are bound to go back to a
restaurant where they are treated especially. It is required for dick smith's restaurant to greet the
guest when they walk in. The waiting staff should be familiar with the guest because it brings a
higher customer retention and engagement. Due to this reason the customers feel at home if the
host of the restaurant remembers their names and waiters know their desirable dish and habit of
ordering (Ennew, Binks and Chiplin, 2015). Dick Smith can get back the retention of the
customer if it provides the proper training about the treating with customers while placing the
orders and serving them because training is an integral part of the restaurant. The role of
customer relationship management is vital when it comes to customer retention and engagement.
It is able to acquire the data about the customers along with the details and their birthday and
anniversary. There is POS integrated CRM which is able to describe about the difference of
customer and their target needs which will be helpful to move marketing campaigns and
facilitate to make informed decisions while making and changing the menu or implementing a
new strategy (Murali, Pugazhendhi and Muralidharan, 2016). Customer feedback is considered
as a crucial component for any business because it is a most honest source of feedback that
facilitates to recognize the flaws and gives of organization along with the opportunity to make
right the mistakes. It has been found that customers are using the site of social media and the
review site of restaurant to leave their feedback and reviews about the having experience of
dining. It has been observed that customer of the review before having dinner in a restaurant for
the first time. Therefore the reviews of customer are integral to the reputation and Goodwill of a

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restaurant. Loyalty program is able to attain the customer satisfaction. Database of CRM plays a
major role while developing loyalty programs (Chadha, 2015). CRM integrated with POS can
develop entire report in detail about the preference of customers. As per Han and Yoon, (2015),
enhance in customer loyalty can be able to generate 20 to 80% progress in progress. Customer
retention, customer satisfaction and the quality of service are the prerequisites and significant
influence on the intention of purchase. It would be the best tip for the day Dick smith to focus on
the complaint on retaining customer because a mind that complaints of customer are able to
explore about the product which facilitates keep right and that should always be considered. The
loyalty programs for the customer are going to help the hotel to maintain. An organization can
offer the reward points, discount and customer subscription. Restaurant industry of the Australia
need to keep focus on the customer retention by providing them reviews services with good
quality food (Fullerton, 2014).
Therefore customer retention in the industry of restaurant is an integral part. It is able to
enhance is the profit and generate the more revenue for the success of the hospitality industry.
The business retention is entirely dependent on the image of the hotel or restaurant. It is
necessary for the restaurant to present the positive and real business image in the view of the
customers (Neuman and Robson, 2014). It will enhance the loyalty which will be helpful for the
hotel to maintain the relationship with the customer for a long time. Customers who are ready or
willing to pay higher prices for a product or services, they will tend to be a brand conscious.
Research questions and hypothesis
Research questions
Research questions have been created for this research topic which is defined below:

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 What are the elements which are influencing the image of the hospitality industry?
 How can the food industry treat to make customer feel satisfied about the services and
products?
 What factors need to be considered by the food organization while providing or serving
the products and services to the customers?
Hypotheses
Customer retention is an important part for the hotel industry and to attain this organisation
should develop the focus on the loyalty program.
Customers are the key of success but the focus of an organization should be on the generating the
revenues as well.