MRS301: Analysis & Strategies for Quality Customer Service

This report provides an analysis of a restaurant's financial performance and customer service strategies. It begins by evaluating the actual versus budgeted profit and loss statements, identifying discrepancies, and attributing them to factors such as increased food and labor costs. The report then recommends strategies to address the budget deficit, including cost-cutting measures, strategic hiring practices, and wholesale purchasing. Furthermore, it suggests adopting democratic and consultative leadership styles to improve employee engagement and decision-making. Finally, the report offers recommendations for enhancing the customer experience through personalized service, proactive management presence, and consistent feedback collection. This comprehensive analysis aims to provide actionable insights for improving the restaurant's overall performance and customer satisfaction. Desklib provides similar solved assignments and resources for students.

Running head: REPORT
REPORT
Name of the Student
Name of the University
Author Note

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Executive Summary
The business environment is highly competitive in nature and with respect to this, it can be
considered to be very important for the different firms in the hospitality industry to ensure that
they are successfully able to meet the needs of the customer and build customer loyalty which
would allow them to attain success in the long run. The report is based on a similar context
whereby the Introduction sets the background of the paper which is then followed by the analysis
of the profit and loss statements of the firm, suggestions for the improvement, recommendations
for the appropriate leadership style and lastly, recommendations to improve the customer
experience have also been provided. The conclusion summarizes the analysis.

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Table of Contents
Introduction......................................................................................................................................3
Analysis...........................................................................................................................................3
Evaluating the actual and the budgeted performance of the Profit and Loss and a brief analysis
of the current scenario.................................................................................................................3
Recommending four strategies to overcome the current scenario and improve the budget
deficit...........................................................................................................................................4
Identifying and discussing leadership styles to be adopted.........................................................6
Suggestions to improve customer experience at the restaurant...................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................9

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Introduction
The leadership tends to form an essential part of the workplace and hence, it is for this
purpose, that it becomes considerably important for all the managers to portray the right
leadership skills which will not only go a long way in assisting the management to make a fair
deal with the different customers as present but also improve upon the overall operations of the
business as well (Sureshchandar, Rajendran & Anantharaman, 2002). In a restaurant it becomes
considerably important for the management to take considerable steps so as to ensure that they
will be able to meet the needs of the customers but at the same time, also meet the cost and
financial obligations of the business (Wall & Berry, 2007). This becomes important because, the
restaurant can be stated to be a profit oriented entity and it must ensure that it is able to engage in
considerable profits. The given report is based on the business issues and related areas which will
help in the identification of a probable solution for the different issues which are being faced by
the organization. The report will be analyzing the actual budget and then compare it with real
budget and identify the differences in the performance and determine the reasons for the same.
Moreover, certain strategies to improve upon the same shall also be provided. Lastly, a
leadership style will also be recommended which will assist to manage the restaurant relevantly.
Analysis
Evaluating the actual and the budgeted performance of the Profit and Loss and a brief
analysis of the current scenario
It can be observed from the given budget which has been provided that, the actual
revenue which has been earned by the firm can be stated to be $225000 whereas the estimated
revenue was $240000 which can be stated to be $15000 more than the actual revenue. Hence, it
can be clearly observed that the firm has not been able to earn the budgeted revenue. The

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primary reason, why the business has been unable to earn the designated value can be largely
contributed to the fact that, the firm`s food costs have increased considerably. The firm had
estimated a food cost of $85500 whereas it has only been able to spend $88156. This reflects that
the firm has spent an extravagant amount on the food costs which is much more than what is
expected and this can be stated to be the main area where the firm has lost a considerable amount
of its earnings. In a similar manner, the Beverage costs of the firm have also been more than the
expected figure. Hence, it can be state that the firm has not been able to estimate its costs
adequately and has taken a lower figure than what will actually be incurred. Additionally, the
cost of labor as well as Linen have also been considerably very high. The labor cost has
increased by $2000 and the cost of Linen has also increased considerably.
Hence, in conclusion it can be rightfully mentioned that the firm has not been able to
estimate its costs accurately and has underestimate them whereas on the other hand, the revenue
has been over estimated. Hence, it is recommended that the firm makes use of a sound system of
estimating the costs and the profits of the firm as it will help them to make accurate estimations
and ensure long run success for the organization.
Recommending four strategies to overcome the current scenario and improve the budget
deficit
Therefore from the previous section, it can be rightfully understood that, there exists a
budget deficit in the profit and loss statement of the organization. The costs which have been
estimated can be states to be quite low and the revenue has been estimated at a high. Therefore,
from the given analysis, the following strategies are recommended to improve the budget deficit
and to overcome the current scenario.
1. The restaurant needs to cut down its spending’s.

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As it can be reflected from the previous section, it can be rightfully understood that, the
restaurant will be required to cut down on its spending and ensure that it does not engage in costs
which are more than its estimated budget (Van der Wage & Goonetilleke, 2011). Costs savings
form a crucial part of the firm and to ensure success with respect to this, if the restaurant is able
to maintain a low cost system, then it will save considerable expenses and then be able to ensure
that the profits at the end of the year are in alignment with the planned profits of the firm.
2. Hire contractual and part time laborers
As it can be observed, the labor costs of the firm are at a considerable high and with respect
to this, it can be largely understood that if the firm wants to ensure success in the long run, then it
needs to hire a combination of the contractual, fixed and part time laborers. In this manner, they
will be able to reduce the different labor costs of the organization and engage in profitable
operations (Wall & Berry, 2007).
3. Engage in wholesale purchasing
In order to control the food and beverage costs which have been incurred by the firm, it is
important for the restaurant to make the estimations at the right time and then, order the goods
accordingly. In this manner, if the restaurant engages in wholesale purchasing, then, it is
important for them to engage in wholesale purchasing which will help them to engage in the
economy of scales and in a similar manner, save considerable costs of the restaurant which will
assist them in meeting up with the daily requirements of the restaurant (Namkung & Jang, 2010).
4. Making use of trend analysis

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Lastly, it is also recommended that, the restaurant will be required to use trend analysis,
in order to estimate the costs as well as the revenues of the restaurant in the right manner. In a
similar way, they will also be able to ensure that, the estimates are accurate.
Identifying and discussing leadership styles to be adopted
As mentioned before, the Leadership forms a critical part of the organization and with
respect to this, it becomes critically important for the firm to ensure that, they are successfully
able to meet with the different needs of the firm and engage in strong relationships with the
customers (Susskind, Kacmar & Borchgrevink, 2007). The two different leadership styles which
are required to be adopted can be stated to be as follows:
1. Democratic Leadership Style: In the democratic leadership style, the leader will be
required to meet up with the employees regularly and ensure that, they are being involved
regularly in the Daily course of the business (Garcia‐Prieto, Bellard & Schneider, 2003).
This will ensure that the employees will be successful in managing their operations well
and that their views and perceptions will be given adequate importance.
2. Consultative Leadership Style: The next type of leadership style which can be followed
by the management can be stated to be the Consultative Leadership style. In this kind of a
leadership style, the style follows a combination of the democratic and autocratic
leadership style whereby the employees are given the power to make certain decisions
and the senior management tends to engage in the decision which is of utmost importance
(Martin, 2009).
These leadership styles will ensure that the firm is able to undertake the right kind of
decision at the right time and ensure long term success.

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Suggestions to improve customer experience at the restaurant
The customer experience forms a crucial part of the organization and with respect to this,
the following initiatives can be taken up by the restaurant.
The managers should be present to greet the customers or to see them off: It is important
for the different managers to be present in front of the different customers as it increases their
interest in the restaurant and they are made to feel considerably important (Customer input
Ltd. ,2017). Moreover, the managers should respect customer views which reflects good
management in the eyes of the customers.
They should engage in taking regular feedback from the customers: Taking regular
feedback forms a crucial part of the firm and in addition to this, it becomes considerable
important for the firm to ensure that the manager is able to undertake consistent analysis of what
the customer liked about the restaurant and what is it about the restaurant that they did not like
(Fripp, 2017). This will then assist the restaurant in incorporating a culture which is beneficial
for the restaurant in the long run.
They can be provided with complimentary dishes: The different customers as a token of
appreciation, can be offered with certain complimentary dishes as well as drinks which will then
assist them in appreciating the efforts of the restaurants and become quite loyal customers of the
restaurant (Harrington et al., 2012).
Conclusion
Therefore from the given analysis it can be rightfully understood that, in order to ensure
success in the long run, any restaurant will be required to take considerable steps and initiatives

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which will allow them to see to it that, they are successfully able to manage the different
customers and serve them in the right manner. In addition to this, they will also be required to
reflect the right kind of leadership skills which will then allow them to become successful. The
given report laid down the different reasons why the budget deficit is being observed, analyzed
the issue and provided suggestions with respect to the same. In addition to this, the leadership
recommendations were given and this was followed by certain recommendations on how the
restaurant can improve upon the customer experience in the restaurant.

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References
Customer Experience Lifecycle Audit | Customer input Ltd. (2017).Customerinput.com.
Retrieved 4 November 2017, from
http://www.customerinput.com/customerexperience/experience-lifecycle-audit
Fripp, G. (2017).SERVQUAL's 22 Questions -THE Marketing Study Guide.THE Marketing
Study Guide. Retrieved 4 November 2017, from
http://www.marketingstudyguide.com/servquals-22-questions/
Garcia‐Prieto, P., Bellard, E., & Schneider, S. C. (2003). Experiencing diversity, conflict, and
emotions in teams. Applied psychology, 52(3), 413-440.
Harrington, R. J., Ottenbacher, M. C., Staggs, A., & Powell, F. A. (2012). Generation Y
consumers: Key restaurant attributes affecting positive and negative experiences. Journal
of Hospitality & Tourism Research, 36(4), 431-449.
Martin, W. B. (2009).Quality Customer Service : Satisfy Customers--it's Everybody's Job.
[Rochester, N.Y.]: AxzoPress.
Namkung, Y., & Jang, S. (2010). Service failures in restaurants: which stage of service failure is
the most critical?. Cornell Hospitality Quarterly, 51(3), 323-343.
Sureshchandar, G., Rajendran, C., & Anantharaman, R. (2002). The relationship between service
quality and customer satisfaction –a factor specific approach.Journal Of Services

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Susskind, A. M., Kacmar, K. M., & Borchgrevink, C. P. (2007). How organizational standards
and coworker support improve restaurant service. Cornell Hotel and Restaurant
Administration Quarterly, 48(4), 370-379.
Van der Wagen, L., & Goonetilleke, A. (2011).Hospitality management : Strategy and
operations(3rd ed. ed.). Frenchs Forest, N.S.W.: Pearson Australia.
Wall, E. A., & Berry, L. L. (2007). The combined effects of the physical environment and
employee behavior on customer perception of restaurant service quality. Cornell hotel
and restaurant administration quarterly, 48(1), 59-69.