Service Management Analysis: Café 63 Raison in Tourism & Hospitality

This report provides a service management analysis of Café 63 Raison, a franchise within the tourism and hospitality sector. It examines the organization's overview, core and peripheral services, and target market segment, focusing on youngsters. The report identifies three current issues—long me...Read More

Service management for tourism and
hospitality

EXECUTIVE SUMMARY
Service management has a great aspect for both manufacturers as well as service
industry. However, businesses need to be focused towards the package of services so that
strategies can be shaped accordingly. In order to carry out study on service management, a
franchise store as Café 63 Raison of Café 63 has been taken and accordingly service
management has been explained. For this purpose, potential issues which are affecting the
present business have been analyzed because it has future implication on the franchise business.
This tends to affect the stakeholders of the corporation and also affect its overall brand image in
the long-term. However, it might be possible that new business overcome those issue through the
application of suitable strategies and meeting the expectations of customers in an effectual
manner. In this context, detailed analysis has been carried out so as to successfully operate the
business in the new marketplace.
The new business targets youngsters due to inclusion of varied type of dishes in
accordance with their taste or preferences. However, other groups including families and other
age related also come but specific focus has been laid on the selected target market. At this
juncture, customers will be provided good ambiance and variety of dishes so as to grab their
attention. However, the aspect of offering services would be quick and fine which increases the
satisfaction level of buyers. Owing to this, service bundle is designed in such a manner that
existing issues do not create future implication on the business.

Table of Contents
INTRODUCTION...........................................................................................................................1
ORGANIZATION OVERVIEW.....................................................................................................1
Core and Peripheral services.......................................................................................................1
TARGET MARKET SEGMENT....................................................................................................2
THREE CURRENT ISSUES AND FUTURE IMPLICATIONS...................................................3
Long menu...................................................................................................................................3
Booking related issue...................................................................................................................4
Low environmental awareness....................................................................................................4
SERVICE CONCEPT.....................................................................................................................5
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
List of tables
Table 1: Heskett's strategic service vision framework....................................................................3

INTRODUCTION
Service management refers to the integration of the services offered by the organization
for products and services (Kusluvan and et al., 2010; Mok, Sparks and Kadampully, 2013). The
primary objective of the service management is to collaborate all the services, maintain less
inventory and minimize the cost of services. The current report is based on the service
management of tourism and hospitality industry. In this regard, the café 63 Raison has taken the
franchise of Café 63 in the city of Melbourne. The café 63 facilitates the various core and
peripheral services to the target customers. In this context, appropriate target market has been
selected along with the focus on key issues which are being faced by the business. Further,
youngsters have been selected as a target customer and for the analysis of specified market
different journals and academic resources have been used.
ORGANIZATION OVERVIEW
The Café 63 is regularly dealing its business in the Brisbane of previous seven years
(Café 63, 2018). Further, it serves the 4,500,000 customers every year and generating huge
revenue with the creation of brand image. The company is operating across several locations
such as Bakery 63, Monk & Grind 63, Ann Street etc. in Brisbane and other locations. Owing to
this, A franchise has been taken for the Raison as a Café 63 for the location of Melbourne. It
generally deals in the coffee, several breakfasts and other food items (Café 63, 2018). The Café
63 Raison will offer the same services along with the option of home delivery services. With the
unique internal environment of the café and special services, the business will attract customers.
Core and Peripheral services
The services offered by the Café 63 are different such as welcome, unique fragrance in
the environment, specific table arrangement and treating customers as special (Café 63, 2018).
The Café 63 Raison will also provide the several types of services to make customers feel
comfortable. The Cafe 63 is already dealing with the various snakes and dinner systems to attract
the more customers with a variety of taste (Cafe 63, 2017). This will be adopted by the business
but with the great focus on the service management. For this purpose, every new customer will
be treated quickly but they will be provided such a pleasant environment where they can spend
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long time. However, fast services will be offered; still they would not feel the hastiness. The
restaurant will offer the specific services relate to the surroundings and make them aware
regarding running offers to get discounts and acquire the membership cards on the basis of
regularity.
Although, the culture of the Melbourne is multi-layered such as Europe, Africa and Asia
that reflects the cultural diversity in the environment (City of Melbourne, 2018). Therefore, the
Café 63 Raison will offer the variety of food items including the healthy burger, health-
conscious salad and special types of melted cheese with sandwich and beverages etc. Moreover,
all these items will be based on the cultural differentiation so the higher number of customers
will be attracted towards the new Cafe 63 Raison. Further, it will provide the facility to stay in
the cafe for a long time on the basis customer’s desire and provide the special place and sitting
arrangement. Thus, the Café 63 Raison will create the different scenario which would help in
increasing their satisfaction level.
TARGET MARKET SEGMENT
Target market refers to the particular group of the population and focuses on the group to
attract towards products and services offered by the organization (Tsiotsou and Goldsmith,
2012). On the basis of demographic segmentation, target customers will be youngsters and
children for the Cafe 63 Raison and deal in the variety of products as per the individual
preference. In this context, youngsters usually go to the café on a small or big event and have a
desire to celebrate with friends and colleagues. Owing to this, mentioned café will be helpful in
grabbing the attraction of potential buyers through offering them quality information regarding
the service package and ambiance etc.
In order to describe target market, various process and service concept, the ‘Hesketts
strategic service vision framework' has been applied. This also helps in analyzing the target
market of Café 63 Raison. This model includes the quality services on the basis of market
segments, service concepts and various processes for the delivery of quality services to target
customers (Sasser, Schlesinger and Heskett, 1997).
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Table 1: Heskett's strategic service vision framework
Target market segments Service concepts Various processes
 Youngsters will be
target customers
 Family, friends and
relatives
 Great ambiance
 Better welcome and
exit service
 Convenient to reach
 Food items as per
culture
 Areas of malls,
educational institutes
and auditoriums
 Quick response
 Feedback on query
notes
(Source: Partovi, 2001)
As per the target customers, Café 63 will open its restaurant to close areas of malls,
auditorium, educational institutes and parks. So, it will be feasible for the customers to reach at
the cafe quickly and enjoy the moments. In this manner, with the help of the target market an
organization can put more efforts on the promotion, pricing and distribution strategies for the
products and services offered by it (Weinstein, 2013). In this context, Café 63 Raison will decide
the lower price on the basis of customer demand and emphasis on the promotional activities for
the identification of the café for unknown customers. On the other hand, Café 63 Raison will be
able to save the time and money on the marketing strategies by focusing on the target market
(youngsters and children). Similarly, it will not emphasize on the other population groups such as
elder age because it will have a focus on youngster’s demand and expectations. However,
customers will also get an opportunity to provide their valuable feedback through which
company can effectively work on the service loopholes and offering quality experience to
buyers.
THREE CURRENT ISSUES AND FUTURE IMPLICATIONS
On the basis of research on Café 63, it has been discovered that following three issues are
currently faced by Café 63 such as long menu, poor service delivery and less environmental
awareness.
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Long menu
Quality refers to a benchmark and standard of the products and services delivered to the
customers (Goetsch and Davis, 2014; Bergman and Klefsjö, 2010). The Café 63 offers the
variation free products to acquire the uniformity among the rivalries. Therefore, quality is the
main aspect to maintain the existing customers and generate new. In this context, the Café 63 is
facing the quality related issues currently because of the long menus (Trip Advisor, 2018).
Similarly, the quality control aspect is product-centered and it has the main emphasis on the
better results instead of produce in large (Mitra, 2016). Further, the variety of products and
services including food, breakfast and beverages but the long menu might create confusion
among customers while selecting the dish (Cranage, Conklin and Lambert, 2005). Therefore, due
to lengthy menus staff become unable to concentrate on the quality and just provide the quantity
in the specified price. However, the Café 63 Raison might face the respective issue with the
products and services because it also has the long menus as per the customer expectations. At
this juncture, it might be possible that customers carry the same perception through initially it
may become hard for business to grab the attention of buyers. Although business will mainly
focus on the variety of drinks and snacks and accordingly sections will be created in the menu.
Booking related issue
Service quality is the major aspect for the organizations and it creates its standard on the
basis of services offered (Pollitt, Birchall and Putman, 2016). However, expectations of the
customers affected by the performance of the products and the difference between expected and
perceived quality create an impact on the consumer interest (Hussain, Al Nasser and Hussain,
2015. The Café 63 prioritize customers with pre-booking which affect the arrival of random
customers. This is because services are dedicated towards the customers with pre-booking which
has direct impact on the brand image (Café 63, 2018). This issue will have impact on the Café 63
Raison because random customers might not like to visit the store. It will have direct impact on
the overall rate of return. Owing to this, it might be possible that future implication of this issue
can be reduced through the equal entertainment of regular customers. This in turn customers
would feel happy and they can spend time in the café.
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Low environmental awareness
Go green concept is related to the environmental awareness that is focused on the
protection of surroundings and enhances the health of the environment (Liu, Anderson and Cruz,
2012; Boztepe, 2012). In this regard, Café 63 is less emphasizing on the environmental issues
because it is using the plenty of plastic water bottles along with food service containers (Trip
Advisor, 2018). The preference of plastics affects the health of humans as well as damage the
environment (Sylla Traore, 2014). Similarly, ethical consideration is affected by the
environmental awareness because in this consumer have knowledge regarding use of non-
disposable goods (Hopkins, 2012). Although, at present ethical consumerism is the major
concern of the business through which it might be possible that customers remain less attracted
towards the Café 63 Raison. At this juncture, corporation can work on those particular issues to
grab the attraction of ethical consumers and make them realize that company is concerned
towards the environment.
SERVICE CONCEPT
The service concept of the Café 63 Raison is professionalized although it personally
attached with customer’s preference and expectations. The service concept of the new business
will also focus on the ethical consumerism in which reusable packaging may be introduced. This
would be helpful for business to increase the brand image. Also, the mobile application will be
provided through which customers can get the discount and special offer provided by the café in
the festive season. This is because technological use is increasing among customers so it
becomes crucial for business to focus on the same and make use of technologies. This in turn
Café 63 Raison would have strong impact on the mind-set of the customers.
CONCLUSION
On the basis of the report, it has been concluded that the Café 63 Raison will particularly
deal with the different flavored coffee and breakfast to attract the customers. It provides the
unique services and better appearance in the restaurant to feel customers as a family.
Additionally, it is emphasizing on the youngsters as target customers so that café might generate
the higher profits. The nearby areas of malls and education institution have been selected as a
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target market. Apart from this, its focus on personalized services and ethical consumerism would
be considered for better output.
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REFERENCES
Bergman, B. and Klefsjö, B., 2010. Quality from customer needs to customer satisfaction.
Studentlitteratur AB.
Boztepe, A., 2012. Green marketing and its impact on consumer buying behavior. European
Journal of Economic & Political Studies, 5(1).
Cafe 63, 2017. Our Menus. [Pdf]. Available at:
<http://cafe63.com.au/wp-content/uploads/2018/05/menu.pdf>. [Accessed on 29th July 2018].
Café 63, 2018. Our Locations. (Online). Available at: <http://cafe63.com.au/our-locations/>.
[Accessed on 28th July 2018].
Café 63, 2018. Our Menus. (Online). Available at: <http://cafe63.com.au/our-menus/>.
[Accessed on: 28th July 2018].
Café 63, 2018. Our story. (Online). Available at: <http://cafe63.com.au/the-cafe63-story/>.
[Accessed on 28th July 2018].
City of Melbourne, 2018. Multicultural communities. (Online). Available at:
<https://www.melbourne.vic.gov.au/about-melbourne/melbourne-profile/multicultural-
communities/Pages/multicultural-communities.aspx>. [Accessed on: 28th July 2018].
Cranage, D.A., Conklin, M.T. and Lambert, C.U., 2005. Effect of nutrition information in
perceptions of food quality, consumption behavior and purchase intentions. Journal of
Foodservice Business Research, 7(1), pp.43-61.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Upper
Saddle River, NJ: pearson.
Hopkins, M., 2012. Corporate social responsibility and international development: Is business
the solution?. Routledge.
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Hussain, R., Al Nasser, A. and Hussain, Y.K., 2015. Service quality and customer satisfaction of
a UAE-based airline: An empirical investigation. Journal of Air Transport Management, 42,
pp.167-175.
Kusluvan, S., Kusluvan, Z., Ilhan, I. and Buyruk, L., 2010. The human dimension: A review of
human resources management issues in the tourism and hospitality industry. Cornell Hospitality
Quarterly, 51(2), pp.171-214.
Liu, Z.L., Anderson, T.D. and Cruz, J.M., 2012. Consumer environmental awareness and
competition in two-stage supply chains. European Journal of Operational Research, 218(3),
pp.602-613.
Mitra, A., 2016. Fundamentals of quality control and improvement. John Wiley & Sons.
Mok, C., Sparks, B. and Kadampully, J., 2013. Service quality management in hospitality,
tourism, and leisure. Routledge.
Partovi, F.Y., 2001. An analytic model to quantify strategic service vision. International Journal
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Pollitt, C., Birchall, J. and Putman, K., 2016. Decentralising public service management.
Macmillan International Higher Education.
Sasser, W.E., Schlesinger, L.A. and Heskett, J.L., 1997. Service profit chain. Simon and
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Sylla Traore, A., 2014. Gender and Plastic Bag Pollution: Consumption, Globalization, and
Environmental Justice in Mali.
Trip Advisor, 2018. Big menu but little quality. (Online). Available at:
<https://www.tripadvisor.in/ShowUserReviews-g255068-d7057658-r452515125-
Cafe_63_Wilston-Brisbane_Brisbane_Region_Queensland.html>. [Accessed on: 28th July 2018].
Trip Advisor, 2018. Don't use plastic bottled water please.
<https://www.tripadvisor.in/Restaurant_Review-g255068-d2090876-Reviews-Cafe_63-
Brisbane_Brisbane_Region_Queensland.html>. [Accessed on 28th July 2018].
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Tsiotsou, R.H. and Goldsmith, R.E., 2012. Strategic marketing in tourism services. Emerald
Group Publishing.
Weinstein, A., 2013. Handbook of market segmentation: Strategic targeting for business and
technology firms. Routledge.
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