Service Quality and Customer Satisfaction in the Hospitality Sector

This report discusses the service quality and customer satisfaction in the hospitality sector, specifically focusing on Grapevine, Shoreditch. It covers the issues faced by Grapevine, current trends in the industry, potential for improvement, and includes case studies and literature on service quality and customer satisfaction.

Consultancy Report
(Service quality for the Grapevine, Shoreditch.)

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Service quality related issues faced by Grapevine.................................................................3
Current trends in hospitality industry (Restaurants)...............................................................3
Potential for the Grapevine, Shoreditch to measure and improve their quality.....................4
Current literature and case studies on service quality and customer satisfaction in the
hospitality sector.....................................................................................................................4
Potential audience and market competition............................................................................7
Recommendations and a feasible proposal for The Grapevine, Shoreditch...........................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
In present time, customers mainly has number of ideal expectation from the service
providers. Basically, their expectations stays really very high when they visit a restaurant, hotel
or any other hospitality organisation. This is where, it is needed for a restaurant to measure the
service quality so that they could effectively see that, how well they are delivering number of
services as compared to customer expectations(Burry and et. al., 2019).
Under this report, hospitality organisation that has been taken into consideration is
Grapevine, which is one of the famous restaurant and a coffee shop that is located in heart of
Shoreditch, London, United Kingdom. This assignment is going to be enclosed with service
quality related issues faced by Grapevine, potential for Grapevine, Shoreditch to measure,
current literature of service quality and customer satisfaction, potential audience along with the
market competition within United Kingdom. Lastly, recommendations along with feasible
proposal is also going to be formulated for Grapevine, Shoreditch.
MAIN BODY
Service quality related issues faced by Grapevine
In present time, Grapevine is considered to be one of the crucial and famous independent
Italian restaurant, which is located in the middle of Shoreditch, London. It also consists of a
coffee shop and the whole staff members of this organisation are directly committed to offering
best service along with the quality as well. Over the years, Grapevine has made commitment
towards delivering appropriate quality service to consumers to improve their goodwill within the
society. But, the way time has changed it also brought alterations among customer's expectation
as well. This impacted upon Grapevine's quality service as they had to make modifications based
on the services specifications and customer's need and requirements as well. Along with this,
menu related decisions are specifically being made by head chef along with skilled manager as
well (Butler and Hammer, 2019).
Current trends in hospitality industry (Restaurants)
Customers in this modern time expects more, because tastes has changed and they are
also growing as well because of new cuisines and flavour combinations. These has affected
quality services given by number of restaurants that are coming under hospitality industry. Under
this, some of these trends are mentioned underneath:

Food Trends Changing the Restaurant Industry: Fusion along with the flavoured
combination and more are said to be some of the major alterations that restaurant industry has
brought in it. Including this, it is also said that demand of deliciousness has also got increased,
which raised opportunities for small food outlets to perform and operate in all over the world.
Including this, it is said that they also have their eyes on rising trends in health-conscious eating
such as fermented foods, vegetarian and vegan options, cannabidiol (CBD)-infused delights and
so on (Ghadiyali, 2017).
The Expansion of Global Flavours: Developing complicated flavours considering
different dishes that belongs to Middle East, Africa, Philippines or any other country. It has been
found that, preferences of customers are spreading into new global regions. In particular areas,
countries modify sauces based on their own tastes like pomegranate molasses, S’chug, Tahini,
Toum and Labneh are effectively been developed in their dishes.
Henceforth, these are said to be some of the crucial trends that requires proper attention
so that global activities along with the quality could effectively gets fulfilled right on time.
Potential for the Grapevine, Shoreditch to measure and improve their quality
Hospitality Service Quality Gap:
Gap 1: Customers' expectation versus management perceptions: Basically, when it
comes to improve quality then this is said to be one of the primal most gap that is required to be
fulfilled right on time. If it is talked about Grapevine Shoreditch, the customer expects that food
which is provided to them is of high quality and is delivered on time. The restaurant fails to fulfil
expectations of customer as they think good service is not what a customer looks for as they are
focusing on providing good ambience to them. This creates gap between the expectations of
customer and the perception of customers and decline sales as well as market reputation of
company.
Gap 2: Management perceptions versus service specifications: This gap is also known
as standard gap that arises when there is a difference between the perception of management
regarding customer requirements and service standards. This gap also arises when restaurants did
not continuously update service standards and levels. With reference to Grapevine Shoreditch,
the restaurant can decline the occurrence of gap by offering standard service and to update its
service levels. In addition to this, standard gap can be reduced when they provide better and
advanced services to its customers effectively.

Gap 3: Service specifications versus service delivery: This gap is termed as Delivery gap
as it arises when the difference occur between service standards & actual service delivered to
customers. The reason behind occurrence of this gap is deficiencies in HR policies, lack of
teamwork, less knowledge about product and service given to customers. In the restaurants, the
quality service given to customers is totally depend on the staff members. If staff members did
not give services as per set standards this creates gap due to which the image of restaurant
declines. In context to Grapevine Shoreditch, its managers can reduce this gap by providing
training to all employees which increases their skills as well as capabilities. In addition to this, all
the staff members get to know service standards and levels that automatically raise their
performance as well as productivity.
Gap 4: Service delivery versus external communication: This gap is also known as
communication gap. This gap occurs when customers did not get services which is being
promised to them by company. In addition to this, communication gap arises when organisation
over promising to customers and dis not provide sufficient information to them. It also leads to
customer satisfaction due to which they shifts to take alternative services. If it is talked about a
restaurant, this gap arises when food that is served to them is not as per their taste or order given
by them. With reference to Grapevine Shoreditch, this gap declines when top level management
checks the food before serving it to customer table. This will help them to satisfy customers
which in turn leads to enhancement of number of loyal customers of restaurant.
Gap 5: The discrepancy between customer expectations and customer perception: This
gap is known as customer gap and arises when customers misinterpret service. Due to this,
negative image of an organisation is develop in the mindset of customers that leads to decline in
sales as well as profitability level of restaurants. In context to Grapevine Shoreditch, this gap
can be reduce when management team maintains effective relationship with its customers that
helps them to retain customer for longer time period.
Gap 6: The discrepancy between customer expectations and employees' perceptions:
This gap takes place when there is a difference between the expectation of customers and
employee perception. One of the reason is customers misinterpret quality or did not like
behaviour of staff members who has given services to them. Occurrence of this gap develops
negative word of mouth that directly affect on sales of restaurant negatively. If it is talked about
Grapevine Shoreditch, its higher authorities can decline this gap by identifying needs of

customers properly and give training sessions to employees regarding how they behave and
handle grievances of customer's properly.
Gap 7: The discrepancy between employees perceptions and management perceptions:
The gap among the staff members and top level management of company arises when employees
did not feel satisfied at the time of working or did not treated equally by higher authorities. With
reference to Grapevine Shoreditch, its management team reduce the level of gap by maintaining
healthy relationship with customers and make them feel important part of restaurant. In addition
to this, they can also give rewards and incentives for the good performance of employees that
assist them to increase performance and productivity of all the staff members.
Current literature and case studies on service quality and customer satisfaction in the hospitality
sector
According to Giebelhausen, Chan and Sirianni, (2016), dealing with both the elements
like service quality and customer satisfaction has become hard for hospitality industry, because
of the rapid change among perceptions, trends and the taste of individuals. Including this, it is
said that some of the trends within restaurant industry related to food gets changes every year,
which directly modifies the existing cuisines or offered new food items based on necessities of
customers and the trends as well. Based on the information given by Gumus, Bubou and
Oladeinde, (2017), restaurant business sector has directly managed to fulfil the needs and
requirements of customers, which impacts positively on overall performance level of the
business firms that are already dealing within this sector. Under this, some of case studies that
has been taken into consideration for deeper understanding of both service quality and customer
satisfaction : Snacks that are healthy in nature- Based on the information given in the survey, it has
directly been observed that individuals that belongs to United Kingdom in relation to
snacks. It has been computed that, approximately 95% of the adults are found that they
consume snacks daily, which means if the service quality gets improvised then it will
directly put positive impact over customer's satisfaction level in restaurant industry
(Zeller and Drescher, 2017). Away with this, it is also said that through maintaining
health issues, it will directly lead the restaurants to get profit as maximum as possible
because through this they can effectively sustain within the market for a longer period of
time. Including this, it is also said that through introducing number of healthy snacks, it

will directly raise maximum benefits for both restaurant and for customers as well,
because it will put positive impact upon customer's health and on profit margins as well
of the restaurant. With healthy and rich nutrients offered by restaurant within the food
items offered by them could effectively grab the attention of customers from all over the
areas. Including this, offering appropriate quality based service, a restaurant like
Grapevine, Shoreditch would sustain within the market for a longer period of time. Drive and Go take out foods- According to Jha and Bhattacharyya, (2018), restaurant
industry has led number of clients who simply look forward to improve the nourishment
while eating food. Including this, it is said that nourishment specifically raised number of
benefits in advantageous manner in order to make it simple for the buyers. Including this,
it is also said that there is no constraint of time to have food, where at the end of the day,
the purchaser can expend the nourishment as indicated by their desire. It offers numerous
advantages, for example, surge at the restaurant and other nourishment points could
effectively maintain a strategic distance from with this pattern. In such a case, this can
disadvantageous for restaurant which can prompt decrease in benefit. Hence, giving this
choice will help occupied individuals to gather their most loved and eat any place they
like.
Case Study 1 :Service quality and customers’ satisfaction of the food and beverage industry:
Basically, researcher has mentioned about number of technological entry barriers within
the F&B Industry (Restaurants), is really very low and this helps the business restaurants to
specifically raise number of benefits. Away with this, it is said that because of ease within the
limitations along with low competition restaurants with new and unique tastes has survived.
Including this, it is said that restaurants have faced number of uncertainties and due to
engagement of customers towards offered food gets changes regularly (Khan, 2018).
Including this, researcher has utilised primary investigation and within the conclusion, it
was shared that number of differences within service quality sensed by customers and the reality
based on the assessments concerning the levels of satisfaction and emphasis. This is where,
priorities took place in relation to satisfaction of consumers when it comes to deliver appropriate
service quality considering various factors like environmental cleanliness, high comfort level
based sitting areas, safety along with the hygiene as well. With the help of this, it can be said that
customers would directly get satisfied if, restaurant owners will keep their focus on all the

different factors that are being discussed. Henceforth, service quality will directly get improvised
of Grapevine Shoreditch, if it will consider these factors. Through this, they would effectively
improvise the customer's satisfaction level in a short span (Kurnia, 2019).
Case Study 2 : The Effect of Service and Food Quality on Customer Satisfaction and Hence
Customer Retention:
Primal aim of this investigation is to build up relationship among food and service quality
and satisfaction as well. This specifically carries main focus over customer retention that are
directly linked with all the factors connected to the service, which has been provided by
restaurant along with the quality as well. Basically, researcher has mentioned information in
relation to service quality linked with various attributes. On the other hand, there are few
elements that are considered are: customer satisfaction, key dimensions of food quality along
with the customer retention that needs appropriate concentration by a restaurant when it comes to
improve the performance level or to gain competitive advantages at workplace (Lee, Hallak and
Sardeshmukh, 2019). Service quality has also raised different elements in relation to food quality
have a positive influence on customer satisfaction. In addition, service quality dimensions
besides customer satisfaction have a positive influence on customer retention. Finally, the
outcomes affirmed that consumer loyalty intervenes the connection between client's satisfaction
level along with the food quality as well, when it comes to maintain. Various appropriate
examples that came into existence are directly linked with the primary appearance of customers
(Liu, Cho and Putra, 2017).
Potential audience and market competition
If it is talk about Grapevine Shoreditch, then this restaurant would specifically need to
target the particular audience in relation to fulfil the gaps that has been identified. Since, the
restaurant is already focusing upon delivering the quality service to customers, where there
targeted audience has been families (Wali, 2018). But, since restaurant has made some changes
then it would also need to target youth as well, because they are the individuals who specifically
look forward to try something new. Along with this, if restaurant is not going to make changes
then it may lead restaurant to go through various issues, which could be anything from loss of
goodwill, reduction in the amount of productivity and so on. Including this, since Grapevine
Shoreditch has also kept it's focus on aged people, where there are number of health conscious

individuals that specifically pays high range of prices for the foods which can meet their
demands (Rota-Bartelink, 2016).
Away with this market competition is also something, which plays an important role for
an organisation, where it becomes necessary for them to keep on analysing the market, so that
appropriate modifications could easily be made. It has been analysed, most of the business
organisations has made themselves as operators where number of business organisations are
giving competition to others. Including this, it is also said that these restaurants and hotels also
offers same food along with the drinks, with appropriate prices. If it is talked about Grapevine
Shoreditch, then it is offering Italian food to their potential customers and kept their focus over
satisfying the customers' need and requirements. Including this, Grapevine Shoreditch has
number of competitors within London's business market and these are Bottega Preliabto, Popolo
Shoreditch, Passo Shoreditch, Savure London and so on. These restaurants are giving good
rivalry to Grapevine Shoreditch, which has somewhere affected both productivity and
profitability as well (Ngo, 2019).
Recommendations and a feasible proposal for The Grapevine, Shoreditch
In present context, some of recommendations that are required to be taken into
consideration is that The Grapevine, Shoreditch would need to develop various strategies in
relation to food that has been served to customers. Along with this, technology is also something
which, may lead customers to enhance their engagement towards company (Sinha and et. al.,
2018).
On the other hand, if it is talked about the feasible proposal for The Grapevine Shoreditch
then it is presented underneath:
Basically, Grapevine Shoreditch would require to adopt or opt ethical along with
sustainable approach to reach to a good position within the market of United Kingdom. With the
help of this, The Grapevine, Shoreditch would effectively sustain within the market and attract
and engage consumers (Völgyi, Knd Lukács, 2017). With the help of this, Grapevine Shoreditch
would directly engage customers through start offering millennials with appropriate fusion and
mixed food products. Through this and with other range of experimentation done on coffee beans
and existing food products (Solnet, Ford and McLennan, 2018). Through this, Grapevine
Shoreditch would effectively spend right money on correct ideas, through making appropriate

decisions related to in what and where they have to invest their money. This will help Grapevine
Shoreditch to expand their business among different areas of London.
CONCLUSION
Considering the above mentioned report, it is being concluded that hospitality industry
has made it's contribution towards economy of the whole world through delivering quality
service to customers. It is also summarised that, a restaurant would require to bring appropriate
modifications through developing various strategies that may aid them in meeting the particular
point where, they could understand the customers' expectation and management perceptions as
well. Including this, it is also said that potential audience along with the market competition are
the two major elements that could help an organisation dealing in hospitality industry to
improvise their decision making process.

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