Analysis of Customer Retention Strategies for Australian Restaurants

This report focuses on customer retention within the restaurant industry, specifically examining the issues faced by Dick Smith Foods. It identifies the decline in customer satisfaction due to factors like poor food quality, inadequate customer service, and management problems. The report explores research questions concerning the key contributors to customer retention, factors affecting business performance, and strategies to enhance customer focus. The objectives include analyzing these contributors, understanding the performance of Dick Smith Foods, and recommending strategies to improve customer satisfaction and business structure. The report highlights the importance of addressing these issues to improve the business of the Australian food industry.

IDENTIFYING THE MAJOR CONTRIBUTORS REGARDING
CONSUMER RETENTION IN THE RESTAURANTS
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Table of Contents
Identification of Background Issue..................................................................................................3
Definition of Management Problem................................................................................................3
Research Questions..........................................................................................................................3
Research Objectives.........................................................................................................................4
Reference List..................................................................................................................................5
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Identification of Background Issue
The attraction of any customer towards the restaurant is for food. An Australian food industry
had a pleasing time when they used to serve one of the best qualities of food for the customers.
Consumers were served delicious and healthy food that was the center of attraction for the
business. The selling of products of the industry hiked nearly by 30% as the industry business
was getting high profit; the industry started to focus on the flow of business for high revenue and
overlooked the preference of the customers by decreasing the quality of the food1. Thereby,
customers were agitated and they started to revert back from this sector. This can be considered
as the major issue that led to bring downfall in this industry.
Definition of Management Problem
Dick Smith Food lost the charm among the customers as the management services were found
unsatisfactory. Ill-behaviour by the staff of the company towards the customers irritated them.
They failed to deal with the consumers on time as the lack of coordination was seen in working
activity of the management. This problem also created the food safety problem for the
consumers. Unhygienic foods were given to the buyers that raised the question about the food
safety and management2. The company failed to provide the suitable place for the customers as
the place of the company was found dirty. This management problem brought low ratio of the
consumer.
Research Questions
What are the major contributors that assist in retaining customers for Australian food industry?
1. What are the factors that are affecting the performance of Dick Smith Foods in recent
years?
1 Australia, D, "Dick Smith | The Best in Tech at Amazing Prices.". in Dicksmith Australia, ,
(2017), <https://www.dicksmith.com.au/da/> [Accessed on 24 August 2017].
2W, Beaumont, "Smith's to close WA crisps plant - Convenience & Impulse Retailing.".
in Convenience & Impulse Retailing, , 2017, <http://c-store.com.au/2015/10/14/smiths-to-close-
wa-crisps-plant/> [accessed on 24 August 2017].
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2. How can the customers be provided utmost importance in Australian food industry?
3. What strategies can be recommended to this particular food sector for up heaving its
business structure in order to incline more buyers towards its services?
Research Objectives
● To analyse the different contributors that aids in retention of customers in Australian food
industry
● To demonstrate the underlying factors in Dick Smith Foods that is affecting the business
performance in recent years
● To understand the importance of customers in the business of Australian food industry
● To recommend different strategies that can help this food sector to renovate their
business structure for inclining more customers towards their services
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Reference List
Australia, D, "Dick Smith | The Best in Tech at Amazing Prices.". in Dicksmith Australia, ,
(2017), <https://www.dicksmith.com.au/da/> [Accessed on 24 August 2017].
Beaumont, W, "Smith's to close WA crisps plant - Convenience & Impulse Retailing.".
in Convenience & Impulse Retailing, , 2017, <http://c-store.com.au/2015/10/14/smiths-to-close-
wa-crisps-plant/> [accessed on 24 August 2017].
.
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