HM601 Consultancy Project: Analyzing Managerial Issues in Hospitality

This consultancy report examines the managerial challenges faced by The Big Easy Chelsea, a prominent London restaurant, within the broader hospitality sector. It identifies key issues such as customer satisfaction, maintenance costs, staff skill gaps, lack of knowledge regarding safety regulations, and increasing food costs. The report delves into the causes and effects of these challenges, highlighting the impact on customer experience, profitability, and the restaurant's reputation. Management theories, including Theory X and Theory Y, are applied to interpret and address these problems. The study emphasizes the importance of initiatives, responsibilities, and evaluation to improve decision-making and proposes actions to overcome these managerial hurdles. This report is ideal for students seeking information and solutions to hospitality management challenges; Desklib provides many similar solved assignments and past papers for students.

HM601 Consultancy
Project for Hospitality
Management

EXECUTIVE SUMMARY
Hospitality sector consists of all customer related services among various businesses,
hotel, restaurants etc. This proposal study conducted to understand the managerial
challenges The Big Easy Chelsea had been facing. All the challenges with their cause
and effects also had been discussed in this proposal. Different management theories
also had been added further. In the end, various competencies also had been described
to support the recommendation to overcome the managerial challenge in the hospitality.

Table of Contents
INTRODUCTION...............................................................................................................3
MAIN BODY.......................................................................................................................3
1. Managerial challenges within a hospitality sector- Causes and Effects...................3
2. Management theory and its interpretation with the restaurant managerial problems
and issue.......................................................................................................................7
3. Initiatives and the responsibilities, evaluation of the impact towards the decision
outcome as well as proposed actions parallelly..........................................................10
REFERENCES................................................................................................................12

INTRODUCTION
The hospitality as well as the businesses dealing with food are facing numerous
challenges across the world. The main reason behind all these challenges can be
defined as per the rise in customer demand, the challenges from the competitors are
increasing day by day (Higgins-Desbiolles, Moskwa and Wijesinghe, 2019). As per the
changes in hospitality service within the food business such as restaurants, these
changes are positively affecting the business to remain viable. As for the sustainable
performance and remain scale, the challenges within the services are beneficial to be
faced. Although, adopting the changes within the managerial practices as well as the
hospitality services never been that easy for a restaurant but somehow it became
compulsory for a business to follow all the changes for the growth as well as expansion
of a business in the positive manner (Brown, Buhalis and Beer, 2020).
In this business proposal, Big Easy Chelsea have been considered as the study.
The Big Easy Chelsea is one of the top three restaurants situated in London.
Furthermore, This business proposal will highlight the managerial challenges, their root
causes as well as the effects upon business after implementing all the occurred
changes. The management theory will also add to be analysed for the interpretation of
complex managerial problems (Lee, Hallak, and Sardeshmukh, 2019). The way all
these specific managerial problems are affecting the Big Easy Chelsea will also add in
this proposal.

MAIN BODY
1. Managerial challenges within a hospitality sector- Causes and Effects
 Customer satisfaction
It is one of the main cause within the Big Easy Chelsea managerial services among the
sector of hospitality. To reach out the customers, understanding their expectation,
provide them the best services with the consistency and treating them with the strategy
of customer first are the main factors within the account of customer satisfaction (Lee
and Kim, 2017). The environment as well as the lighting of the restaurant are designed
by keeping the customer satisfaction in the mind.
The main cause of the customer satisfaction challenge is Halogen lights. The
halogen lights within the Big Easy Chelsea are expected to provide the warm as well as
the comfortable environment to specifically the customers who visited restaurant with
the purpose of takeaway and dine-in. These lights are very bright in nature, so they
provide heating within the environment of the restaurant. These lights have long life as
well as ability to be dimmed, the main reason behind being used in the respective
restaurant.
The main effect of the using halogen light is they are warm as well as bright
enough to make the customer feel uncomfortable within the Big Easy Chelsea. Halogen
bulbs are tend to emit lots of heat in the environment. So it became uncomfortable for
customers to sit under the bulbs in a restaurant. Even they can become dangerous
sometimes if touched with bare hands due to the excessive temperature. This effect
leads the customer towards the dissatisfaction in the terms of hospitality as well as the
managerial services in the restaurant (Nusairat, N. And et. al., 2020).

 Maintenance
It is the second challenge among managerial services in the Big Easy Chelsea
restaurant. A manager should have to look for various factor under their job duty such
as planned and scheduled maintenance, processes should be manual as well as in
budget. The duties also includes the time management as well as the asset productivity
in the account. The increased budget in the maintenance as well in terms of services
are also comes under the maintenance challenge.
The main cause of maintenance challenge is high electricity bill. For the ease
and comfort of the customer The Big Easy Chelsea restaurant uses lots of lighting in
within their services area so that the customer get attracted towards the lightning as well
as the peaceful environment. In the process of cooking, refrigeration as well as in air-
conditioning (Orynycz, Tucki and Prystasz, 2020), maximum of electricity is being used
in the Big Easy Chelsea. Misuse of the electricity tends to lead towards losses.
Loss of profit is a key result of high electricity bill within the restaurant As thigh
electricity bills also lead budget over the limit, In the calculation of net profit, these
losses are being calculate as expenditure as this calculation leads the restaurant
towards loss of profit (Cho and et. al., 2019). This way managerial services gets
affected and challenges by big electricity bills.
 Lack of skills or incompetence
Skill lacking within the staff employees is also one of the most important challenge
among managerial services (Jogaratnam, 2017). The staff training as well as their skill

improvement also comes under the account of managerial services. Performance
problems and the incompetences are the biggest concern of a manager as this can lead
any of competitor to take the customer business.
Untrained staff is the root cause behind the problem of lacking in skills. In Big
Easy Chelsea, the untrained staff do not have ab idea about the way to handle
customers. The way services are provided to the customers affect the image of
restaurant. An improper training always causes such problems although in the services
there is very limited or no time for the piece of employee training.
Poor performance lead towards the bad impression in front of the customer. The
bad feedback from customer hampers the image of restaurant and became a big
challenge for the manager as this comes under the duty list of a manager. Whenever
the customer feels that the employees are not trained enough and unprofessional in
nature then they leave negative feedback towards the Big Easy Chelsea restaurant. So
it became necessary for the manager to train the employees properly towards the
customer services in the account of hospitality services.
 Lack of knowledge
Knowledge about the regulations in the hospitality as well as in between the managerial
services supports the reputation of a business (Lee, and et.al., 2020). In The Big Easy
Chelsea, unsafe and unhygienic food affects the reputation of restaurant. In the terms of
safety and hygiene there are various regulations approved by government exist that a
restaurant must follow otherwise it became a challenge for the managers and for the
restaurants itself.

The main cause of the lack of knowledge is food safety issue among the Big Easy
Chelsea. In the restaurant business if the employees are not opting proper hygiene in
the food making or serving process then the safety of food will get compromised. The
restaurant has faced food safety issue reported by the customer as well and this way it
became a big challenge for the hospitality services of the restaurant.
Lack of knowledge about the way ingredients should use in the dishes, the way
materials should be deals within the food, cleanliness of utensils, materials, ingredients
are the main factors that have effect on the quality of food. Many of the time the
refrigeration issues also do play role in the compromising condition of the food within a
restaurant. The temperature required or the food as well as for storage also the
refrigeration is properly and effectively play role in the food section. The cleanliness of
the refrigerators also comes under the account of the maintenance. In the big easy
Chelsea, the maintenance of the kitchen as well as refrigeration is very poor. This poor
maintenance also results in the term of food wastage as the wastage affect the costing
of the restaurant and indicates poor management services within the restaurant Big
easy Chelsea. Lack of hygiene also leads the poor maintenance within the respective
restaurant and leads towards the compromised quality of the food available in the
restaurant.
The main effect of food safety issue is risk of poisoning. This effect directly affected the
health of customers. After these consequences, customers of Big Easy Chelsea
became more conscious about the hygiene aspects of all edible items offered by
restaurant. There can be many of reasons behind the food poisoning and because of
that the reputation of the restaurant got affected. The bad publicity as well as the image

became the major consequences of this managerial challenge (Lee, and Sozen, 2018).
This way hospitality services within the Big Easy Chelsea get challenged.
 Increasing cost
Cost increment of food leads the customer to switch their restaurant option and it
became a challenge for the hospitality service as their aim is to provide the best quality
services to customer in a minimum price. Cost factors matters a lot in the terms of
hospitality challenge as the high costing have a negative impact upon the Big Easy
Chelsea in terms of the profit.
The main cause of increasing cost is supplier high cost within Big Easy Chelsea.
It is one of the most prominent restaurant in London. This restaurant has very high
prices in terms of offering eatables due to the costing of suppliers. This leads the
restaurant towards challenging services in the hospitality. As the suppliers cost high for
the materials so the input costing increases for the big easy Chelsea. So as the
expenses of the restaurant increases it results in the terms of the expensive food and
less customers can afford the expensive food of Big easy Chelsea.
The high cost results the restaurant in terms of loss in profit. Due to the
expensive food within the restaurant, customer are unable to afford the expensive food
as well as dine-in experience as well. The average customer who wants to eat in the
restaurant can not afford the costly food within it. So it resulted in the term that only
those customers are able to eat within Big Easy Chelsea who have enough to spend on
that costly food. By this way the customers are already divided in the manner of
average and richer. This results in the term of lesser number of customer walk-in at Big

Easy Chelsea and this number have directly relationship with profit range of the
restaurant. The lesser walk-in, the minimum profit fundamental take place in the
account of the Big Easy Chelsea. Lesser profit also can be counted as the challenge
within hospitality sector as well as in the managerial services.
2. Management theory and its interpretation with the restaurant managerial problems
and issue
Management theories are the collective idea based upon the general rules of the
business or organization management. Golden Dragon, restaurant in UK also have
same managerial problems that can have evidence to the hospitality business
challenges same as the Big Easy Chelsea is facing. Food safety as well as hygiene was
not maintained at the level and maintenance was so poor to become a managerial
challenge in the industry and these issue leads the restaurant towards the business
loss. To overcome the challenges, in the account of big easy Chelsea restaurant, there
are two theories exist that are being applicable in the case of restaurant. There two
theories can be defined as:
 X and Y theory: In the Big Easy Chelsea restaurant, there are various
challenges came across the services related to the hospitality sectors and all the
managers have to face the challenges in terms of company. In this theory the
factors and attributes are segregated on the basis of X, Y and Z factors
(Khorasani and Almasifard, 2017). All the issues are occurring in terms of the
challenges in front of the managerial services comes under the theory X.

whereas the theory Y is related to the implemented theory that has all the
advantages as well as the solution of all the occurred challenges.
Moreover, all the benefits after implementing all the challenges comes under the theory
Y and according to the changes, the Big Easy Chelsea is applying this management
theory in the practice of the hospitality services. The Lazy (X) under the theory X and Y
is controlled and the factor Z which is motivated enough as per the Y factor is being
rewarded. In the restaurant Big Easy Chelsea, it had been identified that due to the
challenges and theory causes, all the managers are facing problem in terms of human
administration as well as in terms of management services within the restaurant. As per
the theory X, management of the Big Easy Chelsea implicates this theory towards the
workers of the restaurants and motivate them for the achievement of the objectives of
Big Easy Chelsea. The management rewards the employees in varying kinds and more
likely to become motivator that is most popular among the services.
The theory Y is related to the challenge of management within the process is to
make a proper working culture or the working environment in the manner of the
creativity development in between the employees. All the training sessions are
conducted and all because of these skill development trainings, the employees start to
show theory creativity among the customer services in the restaurant. The skill
development shows the professionalism in their behaviour and as a result, customers of
the Big Easy Chelsea gives positive feedback as per their experience within the
restaurant. The interest of the customers comes at the restaurant either he is average
or not but all of his desired as per the experiences will be fulfilled as per this theory
(Daneshfard and Rad, 2020).

As according to the proposal, better skilled employees, better administrative as
well as the good managerial services in all regarding such as costing management as
well as the customer satisfaction will be improved by keeping this theory in mind. This
Big Easy Chelsea have identified the challenges as well as the problems within the
hospitality services and take actions according to the theory X and Y. As per the
identification the theory Y have been implemented within the service sector and start to
follow the desires of the customer in terms of the ease of these customers while eating
within the restaurant (Prottas, and Nummelin, 2018). Even in the takeaway or the dine-
in experience the customers all expectations are trying to be fulfilled while keeping all
the comfort and ease factor within the mind. After implication of theory Y, in the
restaurant the theory Z have been introduced. According to the theory motivated Z is
rewards as per all the efforts by employees as well as the managers of the Big Easy
Chelsea. Z theory defined the result of human behaviour in the terms of work place
restaurant. All the management as well as the sector of hospitality services got rewards
within the restaurant and in the form of appreciation the staff of the restaurant get
positive feedback from the side of customer. This way the X and Y theory do work in
the theory of management.
 Scientific theory: This theory is totally dependent upon the scientific work
performance (Dźwigoł, 2018). As per the scientific theory, the management need
to simplify the task as well as to divide the work equally. In the Big Easy Chelsea,
management of the restaurant follows the theory to ease the work of employees
by adopting the strategy to simplify the allotted task of the employees that can