Service Design Management: Evaluating Service Quality Standard and Management Strategies of a Hypothetical Restaurant

The report evaluates the service quality standard and management strategies of a hypothetical restaurant based in Sydney, Australia. It includes an analysis of the challenges faced by the restaurant in terms of their services offered to customers and quality of food provided. The report also incorporates recommendations for new service management strategies that should be employed by the organization.

Running Head: SERVICE DESIGN MANAGEMENT
Service design management
Name of the Student
Name of the University
Author Note

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Executive summary:
The report is prepared for evaluating a service quality standard and management strategies of a
hypothetical restaurant based in Sydney, Australia. Analysis is based on the case study
illustrating the challenges faced by restaurant in terms of their services offered to customers and
quality of food provided. Evaluation of service quality dimensions of flagship restaurant is done
by the application of SERVQUAL model. In the later part of report, analysis of existing
strategies of management of restaurant is done by using fish bone analysis. Furthermore, report
also incorporates discussion on recommendation concerning new service management strategies
that should be employed by organization.

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Table of Contents
Introduction:..............................................................................................................................2
Discussion:.................................................................................................................................2
Evaluation of key service dimensions:......................................................................................2
Analysis and identification of existing service management strategies:...................................5
Recommendation of new service management strategies:........................................................8
Conclusion:................................................................................................................................9
References list:.........................................................................................................................10

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Introduction:
The report is prepared for reviewing the current state of management strategies and
service operations of a restaurant chain Al Dente Primo Restorante in Australia. This particular
restaurant operates in five of its city based outlets and with the evolving needs of customers, they
are facing some challenges in its service design. It is ascertained from the case study that
restaurant provides immaculate service to its targeted customers and has a monthly rotating
menu. Due to increased competition in restaurant business in Australia, the management is
concerned about service quality, as they perceive that the quality standard id deteriorating
compared to other players in the market (Dehury & Sahoo, 2016). In this report, service quality
dimension of flagship restaurant is evaluated along with the analysis of existing management
strategies. Report also incorporates discussion on recommendation on new service management
strategies for Al Dente for improving standards of service quality.
Discussion:
Evaluation of key service dimensions:
It is essential for organization to understand the perception of their quality of services that
are being delivered and the way they are evaluated by customers. Service quality dimensions
demonstrated at the flagship restaurant is evaluated by the application of service quality model
that explores the case and effect relationship between variables involved in service. The gap in
the management of service quality of restaurant is SERVQUAL model that deals with the
identification of five dimensions such as reliability, tangibles, responsiveness, assurance and
empathy (Berry et al., 1985).

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Reliability- This particular dimension deals with the ability of restaurant to deliver the
promised services accurately and dependably. Feedback provided from customers is the
illustration of the fact that quality of foods served is average and is not worthy of the price
charged from customers (Arvola & Holmlid, 2016). Moreover, management expects a high rate
of table turnover but the dining facilities lacks in terms of limited seats available that make
customers visiting to wait for loner time. Therefore, the service offered Al Dente is not reliable
as evaluated from customer feedback.
Tangibles- The tangibles of restaurant service are related to physical facilities,
appearance of personnel and equipment. Analysis of customer feedback from depicts that
employees are arrogant at the greet table service. Staffs serving foods to customers could barely
speak English and they are not attentive. Waiters serving food were not acquainted with the
knowhow of serving customers. While only few customers highly recommended restaurant
service by point staffs to be amazingly attentive. Feedback from some senior employees doubted
recruitment system of organization as it lacks in employing right people with the right fit for job.
Persons not having experience in customer services are hired and these results in poor tangibles
of restaurant business (Dabholkar, 2015). Moreover, the infrastructural facilities of restaurant
and can accommodate only sixty people in one particular time.
Responsiveness- It is about willingness of service providers to provide customers with
prompt service and help when they require by properly assisting them. Waiters and ground staffs
of Al Dente are not responsiveness as evaluated from employees and customer feedback. Lack
of communication between the evening team and day managers left customers annoyed. This
disappointed the customers because of lack of coordination made them unclear about the pre paid
and the amount to be paid by customers (Teo, 2017). This made employees appear

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unresponsiveness to customers. On other hand, one feedback by particular customers viewed that
staffs were amazingly attentive and they took efforts to meticulously explain every items
presented on the dish. Employees provided feedback that staffs did not have experience in
creating guest experience as the empowerment and trust policy of management did not provide
guidance on creating such experience (Grenha et al., 2017).
Assurance- This particular dimension deals with the courtesy and knowledge of
employees so that they are capable of inspiring confidence and trust among employees. Al Dente
entrusts customers with immaculate service, but with increasing competitors in the restaurant
industry this particular service standard is perceived to be slipping. Feedback from employees
suggests that there exist some personality conflicts between Evening manger and day managers
that leads to lack of inspiration and trust among employees. Gap between employees acts as
barriers in getting suitable suggestions from the management of restaurant (Calabretta et al.,
2016).
Empathy- Empathy is about understanding and providing service to customers
individually. Caring for customers and giving them, adequate attention on individual basis is the
empathy dimension of service quality model. Al Dente lacks in this particular dimension and the
reason is attributable to existing flaws in the recruitment and training and employee development
system. There exist apparent difference between expected delivery on art of each employees and
training provides and resources available. Creativity and motivation of employees is limited by
the prevalence of bureaucracy in restaurant (Fargnoli et al. 2014).

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Equipment Personnel Others
Procedures Food quality Poor facilities
Lack of communication Arrogant behavior
Average food flavor
Oily
Longer waiting time
Higher food price
Conflict between
managers
Operational process
breakdown
Doubtful
recruitment
system Poor
service
Analysis and identification of existing service management strategies:
The existing service management strategies of Al Dente can be analyzed and identified
by the application of the concept of fish bone analysis that helps in establishing cause an effect
relationship. Fish bone analysis is a tool for analyzing the process of business and its
effectiveness (Dehury & Sahoo, 2016). Several factors in the service process of restaurant might
be related to cause and effect. The inside picture of particular issue faced by restaurant is
revealed using fish bone analysis. All the factors that lead to poor performance of restaurant are
considered. Referring to the given case study, fish bone analysis is done for the potential
situation such as complaints of customers.

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Fish bone analysis of issues faced by restaurant:
(Source: Created by author)
The major problems faced by Al Dente is associated with its service and quality standard.
Fish bone analysis is employed for ascertaining the factors that are making restaurant inefficient
in serving quality food to their customers. It has been analyzed from the case study that the
operation process of restaurant is quite inefficient in terms of food served and service given by
waiters (Grant et al., 2016). The evaluation of the service standard of restaurant is done into
categories such as personnel, food quality, poor facilities, equipment, procedures and others.
Poor infrastructural facilities- The restaurant is opened only for two meal periods and
can accommodate only sixty persons at a time. This means that if more than sixty customers visit
at a time, they need to wait for until one table service is completed. Customer feedback provided
that, they had to wait for an hour for getting a table and waiting list was the most annoying
factors among the customers. It is essential for restaurant to enhance their infrastructure to ensure
high rate of table turnover at a given point of time (Lert et al., 2015).
Procedures- The procedures are poorly executed that leads to increased waiting time for
customers and late arrival of food on table. Poor execution of the procedures is attributable to the
factors such as lack of specification, higher cost and faulty ordering system. Hiring system of
employees is doubtful, as there is a difference between training and resources provided to
employees and managers expectation from such staff members (Radnor & Bateman, 2016).
Therefore, there is fault in the recruitment process of restaurant. Recruitment system of

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restaurant should be revised and coordination among staffs should be promoted by eliminating
existing conflicts.
Personnel- The quality of service delivered by restaurant is completely dependent upon
employees and personnel of restaurant. Employees do not behave in professional way and lack
experience in customer service (Haddad et al., 2014). Staffs are enthusiastic and friendly but they
are not efficient. It has been found from the feedback provided by customers that staffs were not
able to deliver service as expected by them and employees’ feedback depicted that ground staffs
pain when confronted and cannot answer properly when customers asked something different.
Moreover, there exist personality conflict between evening team manager and day manager.
There is a lack of employee orientation and relationship between employees (Magsanoc, 2016).
Equipment- Inefficient table service due to unavailability of space and poor maintenance
of service areas (Eggert et al., 2014). Moreover, management of restaurant is not able to acquire
and maintain proper equipment. It has been found that restaurant lacks technical support and
there is lack of facilities for managing of the available equipment.
Food quality- The quality of food served by restaurant often receives complains in terms
of oily and dry foods served. Moreover, price charged for the foods served to customers is not
worthy with majority of customers mentioning the same point. It is perceived by customers that
foods are overpriced with the flavors ranked on average. Customers experienced bad service
regarding adding wrong foods and forgetting of placing orders (Elmualim & Gilder, 2014).
Others- Other problems that have been outlined in the case study is associated with
arrogant behavior of ground staffs with the customers and lack of communication among
different staff members. Management is not supportive enough to make ground staffs

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comfortable and they are made to work long hours and are paid below average. All these factors
make staffs lose their motivation and enthusiastic about work.
Recommendation of new service management strategies:
For making improvement in customer service and experience, Al Dente is required to
modify their existing service strategies or they should develop their strategies of managing their
services. Various ways can be used by restaurant to develop new strategies. In the current
scenario, restaurant is facing challenge in terms of maintaining their service quality and the poor
feedback from customers regarding the quality of food and behavior of employees.
Al Dente is required to measure and monitor the customer service and this would
incorporate feedback from customers by identification of service gaps. Employees play a very
crucial role in delivering service to employees and staffs of Al Dente are Al Dente not motivated
enough and lacks experience (Radnor & Bateman, 2016). Therefore, appropriate strategies
should be taken for motivating and managing service providers.
 Effectiveness communication should be established among ground staffs and middle
level managers and between other teams. Some of the strategies that can be used by
organization for establishment of communication are conducting annual meetings,
briefing by managers, video conferences, company newsletter, informal and regular
discussion with the leaders.
 Employees should be involved in performance management. This would enable them
to participate in the decision making process.
 Levels of employee discretion should be properly enabled and defined. There are
three types of employee discretion that can be used by organization such as routine

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discretion, creative discretion and deviant discretion. Empowerment and discretion
comes with many benefits such as it will assist employees in providing autonomy n
their daily task, increasing confidence, self esteem and promoting a culture of
management support.
 Mechanical organizational structure should be used in traditional teams for increasing
efficiency (Gronroos, 2016).
Employees should focus on dimensions of their core job by using motivational
approach for servicing role design. Other strategy that can be used by Al Dente is the
proposing the establishment of service quality and customer satisfaction relationship.
This would comprise of proposition of two relationships. Customer satisfaction in
hospitality industry is affected by service quality. One of the key operational variable of
satisfying is customer service (Reason et al., 2015). Overall perception of service of
organization is service quality. Therefore, organization should formulate the above
strategies for improving the standard of service quality and increase satisfaction of
customers.
Conclusion:
From the analysis of the given case of hypothetical company, Al Dente, it can be inferred
that operations of service and strategies adopted by management is not appropriate for increasing
customer satisfactions. Application of service quality model on the operations of restaurant
business depicts that the service is not reliable enough and they lack adequate infrastructural
facilities. Poor service quality is attributable to many factors associated with the management
strategies such as recruitment process and empowerment program of employees. Employees

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feedback provides with inexperienced ground floor staffs and customers complained about poor
quality of foods and higher price. The developed strategies for establishment of relationship
between customer satisfaction relationship and service quality will help in addressing the
challenges that are faced by organization in the current scenario. Another strategy appointed
concerns improvement in empowerment program, adoption of mechanical organizational
structure and employee discretion. This would help overcoming the challenges faced by
restaurant in service delivery.

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References list:
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and Its Implications for Future Research. Journal Of Marketing, 49, 41- 50
Bihamta, H., Jayashree, S., Rezaei, S., Okumus, F., & Rahimi, R. (2017). Dual pillars of hotel
restaurant food quality satisfaction and brand loyalty. British Food Journal, 119(12),
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Calabretta, G., De Lille, C., Beck, C., & Tanghe, J. (2016, May). Service Design for Effective
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Eggert, A., Hogreve, J., Ulaga, W., & Muenkhoff, E. (2014). Revenue and profit implications of
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