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.

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Research Design and methodology
Research methodologies are considered as the accumulation of several and various
techniques and methods which is being taken and used in the research together the specific
requirements and formation from the various available sources. There are numerous methods and
approaches have been taken to implement the research.
Research methods
There is number of methods of resources available which could be used in researching.
The main consideration is kept on the qualitative research which is able to gather the relevant
information for the selected topic. It is able to analyze the importance of the customer
satisfaction and retention in the industry of restaurant. Qualitative data has been used to analyze
the influence of customer retention and satisfaction on the restaurant industry. It facilitates to
manage the quality of the research by collecting the quality data (Ryan, 2015).
Research approaches
Two different approaches used to analyze the selected topic of the research that is
qualitative approaches and quantitative approaches to implement the research. Qualitative
approach is able to find out the reasons, opinion and views behind the customer retention. To
make effective the qualitative data, primary and secondary data has been taken to explore the
various aspects related to the research topic. Qualitative data has been major approach for
gathering the information related to the topic and it has been collected from the published
journals, articles, website and the research task of other authors. This gathered information from
the sources will be helpful to maintain the quality of the research (Smith, 2015).

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Data collection
The procedure of Data Collection is done with enthusiasm so that relevancy in the
information can be remained and the needed information related to the research topic can be
collected effectively and the program of research implemented in the appropriate manner.
Primary and secondary information has been taken and used to accumulate the information about
the topic. The main aim behind the conducted research is to make better understanding about the
importance of customer retention in the restaurant industry. Primary sources are considered as a
raw material which comes from directly respondent (Thomas, 2015). It is able to provide the
latest information about the selected topic. To get the direct information questionnaire will be
made in front of them who are the part of the restaurant industry. Along with that the interview
procedure has been used to know the view about the restaurant industry in Australia from the
users or customers of that industry. Along with that the use of secondary sources are also being
used in the research because it is more reliable. It is the data which gives the relevant information
about the selected topic because it is used data for someone for their researching (Turkenburg &
McAuley, 2013).
Sample and technique
Data has been collected in enormous way so it is the difficulty to analyze and evaluate the
entire data effectively. That is why to give importance each data, random sampling technique has
been taken in use for evaluating and analyzing.
Strategy of research
The program of research needs to be done on time for ensuring the effectiveness of the
program. The role of research program is vital for the attainment of this goal. A systematic

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approach has been taken in use for this research will have helped in the implementation of every
activity in the sequence manner. An action plan has been made for the recognition of the various
activities of the research.
Targeted market
Target market is the area where the relevant information related to the topic is being
collected. The target marketing platform needs to be set where specific information about the
research is to be collected. Primary sources have been utilized for this research. Primary source
is being used to gather the information and the information is collected from questionnaires and
interviews. The questionnaire about the customer retention will be presented to the customer of
the restaurant of the Australia. Secondary sources have been collected from the Internet and it is
able to make ensure the reliable articles, journal and other sources are used which are published
after 2009.
Choice
There are various alternatives are available which is able to give contribution for completion of
the research program. The selection of them has been prepared after analyzing and evaluating the
requirement of the research program.
Ethical consideration
During the implementation of the research program, implementation of ethical has been followed
in proper manner. It helps you know about the right and wrong in the entire research program.
The main focus of research program is on collecting data on a loyal and fair manner, setting the
data in a factual basis and conducting research in an unbiased manner. There are certain rules

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and regulation has been followed by researcher and there is no authorization to disclose
alternation regarding the research stopping while executing the research program. Data
Protection Act is presentable therefore those who will break the rules and policies.

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Limitations
There are certain limitations have been found while researching about the management issues of
restaurant. Some limitations are described below:
1- due to lack of availability of time and having enormous gathered data, random sampling
technique has been chosen because it is able to give opportunity to every sample for getting
selected.
2- Another limitation has been found in the context of access over the data. It prevents to gather
more data about the research topic.
3- lack of resource of data collection is also considered as the point of view of limitation, that is
why qualitative approaches is being used to gather the relevant data from the journal, books,
websites and over the internet.

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Time Schedule
Serial
number
Activities Starting
date
Duration Attainment
date
Description
1 Discussion for
research topic
2 October,
2017
2 3 October,
2017
Selection of the
topic will be
done.
2 Plan for the
research
4 October,
2017
3 6 October,
2017
Plans will be
made.
3 Implementation
of the plan
7 October,
2017
4 10 October,
2017
Plans will be
implemented.
4 Data collection 11 October,
2017
4 14 October,
2017
The methods
will be selected.
5 Analyzing
collected data
15 October,
2017
5 19 October,
2017
Data regarding
topic will be
analyzed.
6 Interpretation of
the outcomes
20 October,
2017
3 22 October,
2017
Results will be
drawn from the
analyzed
information.
7 Drawing
conclusion ad
recommendations
23 October,
2017
2 24 October,
2017
The conclusion
and
recommendation

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will be made.
Serial no. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
1
2
3
4
5
6
7
October

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Conclusion
It can be concluded that customer retention and satisfaction is vital for the restaurant
industry. The customer attitude towards the Dick Smith has been discussed. Various issues have
been discussed in the research proposal in the context of the Dick Smith's restaurant. The
Importance of customer retention has been mentioned which will be helpful for further study.
Qualitative and quantitative approaches have been used to determine the several aspects of
selected topic. The recommendation has been provided in the research proposal to improve the
productivity of the employees and to offer the effective services and product to the customer.
Customer satisfaction is necessary component for the restaurant industry so it is required for the
Australian Food Industry to provide the effective services with good quality food to the customer
so that they could not preferred another restaurant for having food.

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References
Aragon-Correa, J.A., Martin-Tapia, I. and de la Torre-Ruiz, J., 2015, Sustainability issues and
hospitality and tourism firms’ strategies: Analytical review and future directions, International
Journal of Contemporary Hospitality Management, 27(3), pp.498-522.
Bunakov, O.A., Zaitseva, N.A., Larionova, A.A., Chudnovskiy, A.D., Zhukova, M.A. and
Zhukov, V.A., 2015, Research on the evolution of management concepts of sustainable tourism
and hospitality development in the regions, Journal of Sustainable Development, 8(6), p.39.
Chadha, A., 2015, Case Study of Hotel Taj in the Context of CRM and Customer
Retention. Kuwait Chapter of Arabian Journal of Business and Management Review, 4(7), pp.1-
8.
Chavez-Diaz, L., Rojas, O. and Orozco, F., 2015, May. Factors for a customer satisfaction index
applied to the Mexican restaurant industry: A partial least squares-path modeling approach,
In International Interdisciplinary Business-Economics Advancement Conference (p. 154).
Ennew, C.T., Binks, M.R. and Chiplin, B., 2015, Customer satisfaction and customer retention:
An examination of small businesses and their banks in the UK, In Proceedings of the 1994
Academy of Marketing Science (AMS) Annual Conference (pp. 188-192), Springer, Cham.
Fullerton, G., 2014, The moderating effect of normative commitment on the service quality-
customer retention relationship. European Journal of Marketing, 48(3/4), pp.657-673.
Han, H. and Hyun, S.S., 2015, Customer retention in the medical tourism industry: Impact of
quality, satisfaction, trust, and price reasonableness, Tourism Management, 46, pp.20-29.

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Han, H. and Yoon, H., 2015, Customer retention in the eco-friendly hotel sector: examining the
diverse processes of post-purchase decision-making, Journal of Sustainable Tourism, 23(7),
pp.1095-1113.
Huang, G., 2017, The Impact of Store Image on Brand Loyalty Among Thai Customers to Use
the Service of Japanese Restaurant in Bangkok District.
Kandampully, J., Zhang, T. and Bilgihan, A., 2015, Customer loyalty: a review and future
directions with a special focus on the hospitality industry, International Journal of
Contemporary Hospitality Management, 27(3), pp.379-414.
Law, R., Buhalis, D. and Cobanoglu, C., 2014, Progress on information and communication
technologies in hospitality and tourism, International Journal of Contemporary Hospitality
Management, 26(5), pp.727-750.
Liu, C.M., Huang, C.J. and Chen, M.L., 2014, Relational benefits, customer satisfaction, and
customer loyalty in chain store restaurants, International Journal of Organizational Innovation
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McPhail, R., Patiar, A., Herington, C., Creed, P. and Davidson, M., 2015, Development and
initial validation of a hospitality employees’ job satisfaction index: Evidence from Australia,
International Journal of Contemporary Hospitality Management, 27(8), pp.1814-1838.
Min, K.H. and Lee, T.J., 2014, Customer satisfaction with Korean restaurants in Australia and
their role as ambassadors for tourism marketing, Journal of Travel & Tourism Marketing, 31(4),
pp.493-506.

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Murali, S., Pugazhendhi, S. and Muralidharan, C., 2016, Modelling and Investigating the
relationship of after sales service quality with customer satisfaction, retention and loyalty–a case
study of home appliances business, Journal of Retailing and Consumer Services, 30, pp.67-83.
Neuman, W.L. and Robson, K., 2014, Basics of social research, Pearson Canada.
Ryan, C., 2015, Trends in hospitality management research: a personal reflection, International
Journal of Contemporary Hospitality Management, 27(3), pp.340-361.
Smith, N.L., 2015,Using Action Design Research to Research and Develop Evaluation
Practice,New Directions for Evaluation, vol. 2015, no. 148, pp. 57-72.
Thomas, J. A., 2015, Using unstructured diaries for primary data collection, Nurse researcher,
vol. 22, no. 5, pp. 25.
Tripathi, M.N., 2014, Customer Satisfaction and Engagement-Customer Retention strategies for
brand manager, Vilakshan: The XIMB Journal of Management, 11(1).
Turkenburg, J. P. & McAuley, K. E., 2013, Data collection and processing, Acta
Crystallographica Section D, vol. 69, no. 7, pp. 1193-1194.

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