Service Industry Marketing: Friends Restaurant Australia

pages Pages: 4word Words: 890

Question :

Course: Master of Marketing


Task Details: 

Details — Written assessment 

As a consumer, you have experienced at least one service such a visiting a doctor, a local restaurant or a tourist attraction. 

Your task is to write a report to address the following questions for any service of your choice with which you were not happy:

• Describe the service and discuss the reason(s) why you were not happy; 

• Discuss the importance of customer service for that service provider; 

• Identify and discuss ways how service quality and productivity can be improved for that particular service. 

• Finally, you are to provide a statement to reflect on how the Service Industry Marketing Unit has been valuable to you so far. 

Your arguments and analysis in this report require theoretical support from a minimum of 15 academic references. Your report should follow the subsequent structure: 

• title page; 

• executive summary; 

Your arguments and analysis in this report require theoretical support from a minimum of 15 table of contents; introduction; • service description and reasons for dissatisfaction; • importance of customer service; • ways to improve service quality and productivity • reflection statement on the value of studying the Service Industry Marketing Unit • reference list.

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Answer :


Executive Summary

The entire study deals with the improvement of the customer services for enhancing business profitability, brand image and staying competitive. In this regard, the study focuses on the services provided Friends Restaurant, Australia, which is one of the leading restaurants in the Australian market. The study identifies the reasons why said restaurant is unable to meet the customer satisfaction level through their services. In addition, the study gives an understanding regarding the importance of customer service, which can initiate the organisation in increasing profitability. Besides, a discussion is made on the enhancement of service quality and productivity that needs to be improved in few services.

For heightening business growth in terms financial profitability and brand image, it is essential for the business enterprises to deliver improved customer services in order to dominate the preferred market. In case of restaurants, customers expected to be valued by the service providers and hence, it is essential for the restaurants to improve the hospitality and other customer services for retaining the customers to stay competitive in the existing market (Boo, 2017). Apart from this, the business enterprises contemplating their focus on the marketing for formulating the recent trends and preferences of the customers through which it becomes possible for the organizational entity to deliver required services to the customers to improve brand awareness. In this regard, the study seeks to identify the importance of the customer service for improving business growth, maintaining brand image and gaining competitive advantage. In this regard, the study selects ‘Friends Restaurants’ as the concerned organization and seeks to identify the reasons why the restaurant needs to improve its customer service. Hence, the study will significantly focus on the importance of customer service and how the aforementioned organization becomes able to improve the quality of the services to stay productive. Throughout the study, researcher focuses on the recent customer trends and preferences to escalate the objective in some of the effective ways.  

Service Description and reason for dissatisfaction 

Reputation and the profitability of business enterprises especially for restaurants depend on satisfied customers. When the service providers treat the customers with care and respect, it makes the customers feel valuable and not just the source of income and hence, this kind of feelings of the customers has that potential to retain the customers to visit the place once and again. Thereby, in terms of service description of the restaurants, it can be stated that high quality food and drink services are the main aspects of guest satisfactions. However, the trends and the preferences of the customers are changing and thereby, it becomes essential for the restaurants to add more professionalism in order to improve the customer satisfaction. In this regard, it can be stated that, Friends restaurant provides quality services to the customers. It is worth mentioning that, the aforementioned restaurants prefers to establish a string relationship between the quality and the mode of payment. Hence, the company believes that, the customer service can be enhanced if the mode of payment can be improved. Further, the restaurant believes that, if the ambiance is nice then it becomes possible to deliver improved customer service. In this regard, it can be stated that, the ambience of the restaurant is high and the upper-middle class people like to visit the place as the restaurant offers hygienic food, smart appearance and the excellent interaction with the customers. Further, the company offers free Wi-Fi services to the customers and thus, customers can be able to spend elongated hours in the restaurant with a glass of wine or other beverages as per the preferences. 

However, being a customer of the restaurant, it can be stated that, the restaurant has to improve the quality of the service for practicing significant customer retention. One of the pitfalls of the services provided by the aforementioned restaurant is the waiting hours. Customers have to wait a long time after placing their orders and this kind of practice is ambiguous for the customers who come to visit the place to have tasty food. Apart from this, it can be stated that the lack of offerings is another pitfalls of the services provided by the company. In such situation, it can be marked that the company does not offer any kind of complementary beverage with the food orderings. According to the viewpoint of Dabholkar (2015), when the customers are dealt with attractive offerings, a business enterprise becomes able to attract a wide range of customers. From this perspective, it can be stated that the restaurant does not offer any form of special services to the regular or the potential customers and this kind of practices often used to offend the customers.

As opined by Lai (2015), to improve the customer satisfactions at the present time, the restaurants and hotels are tending to introduce ‘personalized services’ to the customers so that, it becomes possible for the business enterprises to improve customer retention. From this perspective, hotels and restaurants are improving the service qualities on the basis of feedbacks delivered by the customers (Holtom & Burch, 2016). Hence, it can be stated that, the concerned organizational entity does not focus on the feedback provided by the customers and thereby, the restaurant is unable to meet the needs, requirements and the expectation of the consumers. Thereby, it is another weakness of the company and hence, it becomes difficult for Friends restaurant to improve the customer base.  

In addition to this, it can be stated that the company is unable to meet one of its objectives (that is to improve customer satisfaction) and this is because, the company does not offer any seasonal offerings such as any form of winter collection or other services. However, the competitors of the aforementioned restaurant are gaining competitive advantage as they are providing a range of seasonal offerings and personalized services to the customers. From this perspective, it can be stated that, the restaurant is unable to meet all the requirements of delivering proper customers services and thereby, the customer retention level of the company is low (Han, Bonn & Cho, 2016). Hence, it is essential for the company to focus on the introduction of the new approaches to improve the customer satisfaction level. Further, it is worth noting that, the company is losing customers because of their low level of customer services and thus, it can be stated that the company needs to improve the customer services by engaging more employees in the services. Apart from this, the company needs to improve the management and operations to understand the trends and preferences of the customers. Through these practices, the aforementioned restaurant becomes able to enhance the customer satisfaction level through improved personalized services.   

Importance of customer service

In today’s competitive world the business, enterprises are highly facing the competition with an increase in substitute product and services and due to the entry of new markets. The entrepreneurs are also facing constant struggle as they are towards sustaining in the market place through the services. It is important at the same time in getting adapted in the market place for surviving, as it will give them with an endless success in terms of market position and financial aspects. Sustaining in the market place can be achieved through good production as per the requirement of customers and giving effective services to the customers so that they tends to visit the organisation in term of taking the services. Tsaur, Luoh & Syue (2015) stated that giving suitable customer services in the organisation is important in terms of increasing organizational value among the customers and achieve customer loyalty. For the chosen organisation, Friendly Restaurant in Australia needs to focus on improving customer services so that they can retain the customer for long time. Besides, when the customers tend to visit the restaurant more than twice or thrice in helps them in building strong position in the market place and at the same time be successful in attracting new customers (Lau, Tong, Lien, Hsu, & Chong, 2017). This is done when the old customers gives good reviews on the social networking sites or discusses with their friends and families, it instigate the behaviors of others. 

According to Brewster & Rusche (2017), customer service is one of the main ingredients of marketing mix for services and products. High quality of customer services will enable the restaurant in creating customer loyalty. In the world of competition, retaining customers becomes quite difficult because of the emerging number of restaurant business who is coming up with variation in products and services. It is found that the customers are not only satisfied with the product that they are being offered but also looks for some additional elements that should be given along with the product and services. Therefore, the organisation need to make sure that when the customers are provided with services and product from the restaurants they are also provided with some additional benefits so that they feel that it was worthy in investing money. For example, Friendly Restaurant in Australia can undertake the system where they can provide complementary service to the loyal customers. This will also reflect their good hospitality management in terms of handling the customers and their services. Additional of complementary services to the loyal customers will enable them in retaining loyal customers and at the same time the good review from their side will enable them in retaining new customers.  

Besides, there is a necessity of customer service for the service provider in terms of increasing organizational profitability. Swimberghe & Wooldridge (2014) added that when customers are not satisfied with the services they are not likely in taking the services for the second time. In case, if they are happy with the services they are provided tends to make repeat purchase, which leads the business in earning profit. Besides, the happy customers are recommending their associate people to take the services, which help in increasing customer base and thus increase organizational profit. Therefore, good customer service initiates the business in having financial benefits helping the business to grow in enormous way. In addition, Chan, Hsiao & Lee (2016) mentioned that good customer service leads to a number of benefits as it has great impact on returning customers and new customers. Therefore, the organisation need to make sure that their standards of providing services in terms of quality, variation, ambiance and price are suitable enough for enlarging customer base. 

Other than that, it helps business in building awareness about the entity. Building brand awareness in the market place is highly effective in terms of maintaining own position in the market place. In addition, it enables them in maintaining a distinct position from their customers, which is beneficial in presenting an unique place. Brand awareness is initiated through an effective customer service, which enables the business in retaining potential customer at the same time (Kanyan, Ngana & Voon, 2016)

By treating the customers, more likely may also help the organisation in reducing the overall problem that is associated with the business in terms of sales and retention of customers. This is because the more satisfaction the customers will be receiving the more they will be likely in visiting the restaurants. This automatically connects with an increase in sale, as they are sure about the service quality they will be receiving from the particular restaurants. Therefore, gaining trust from the customer is also important in customer awareness and managing the relationship between customers and management. Thienhirun & Chung (2017) stated that taking care of customers enables in setting morale value and beliefs, which enables the company in accomplishing their mission. It also builds up goodwill in the market place. In addition, the necessity of improving customer service will give the restaurants in gaining opportunities from the market place. The opportunity can be in increasing market share and gaining market value which all-together initiates in achieving competitive advantage from the market place. 

Ways to improve service quality and productivity

In a restaurant, the services are generally given by serving food to the customers who are visiting the restaurant to have lunch or dinner. Apart from knowing the importance of customer service, it is also essential in knowing the ways through which the restaurant management can take the initiative to improve quality and productivity. It is essential for the business to focus on improving the quality of services that can be in serving quality of food or handling the customers while taking orders or serving the food. In a restaurant, the management needs to make sure that the customers are having comfortable time while they are having food and not facing any problems while placing orders. The management and the team working along need to find out the gap that is disturbing in delivering customers with suitable services (Colm, Ordanini & Parasuraman, 2017)

For example, the service for managing the customers in giving them with the required number of seats need to managed. Therefore, for this particular service the service quality need to be managed. Managing this service is important so that customers do not turn back and take the services from other restaurants. In addition, the waiter and the management need to take care that the customers are accompanied suitability with good gesture and communication so that they feel comfortable to take services from that particular organisation. Therefore, noting this particular service initiative can be taken for improving that particular service quality. This can be done by recruiting more employees for the organisation so that it can be easier for them in managing the customers. Besides, the management needs to look after in undertaking an effective training program where the employees can be taught about the handling of customers and managing them by giving the required number of seat without letting them wait for long time (Ramanathan, Di & Ramanathan, 2016)

Moreover, the service regarding giving complementary services need to be improved because customers always gets attracted towards those things where extra benefits can be received with the same amount of money. Thus, this service quality can be improved by giving complementary drinks to the loyal customers or on a billing of above $24. In addition, giving butler service to the customers as well as personalized services can be effective in improving the service quality. This will attract the customers in great extent because they will enjoy more services within the given amount. Besides, organizational productivity can also be improved by arranging suitable training program for the employees. Here, the employees can be trained on how the personalized and butler services can be given to the customers. Thus, the company can be successful in giving quality services to the customers and increase productivity due to the skillful customer services from skilled employees. Conway & Briner (2015) stated that productivity can be improved when the employees will be able to carry out their roles and responsibilities according to the organizational objectives. Henceforth, it can be stated that productivity can be enhanced through an enhanced customer service. 

Indeed, the restaurant can improve service quality by monitoring the activities that are carried out inside the restaurants. Monitoring daily activities and developing a checklist plan will help in carrying out the necessary activities within the organisation, which is linked with enhancement of service quality and productivity. Therefore, by reviewing the organizational activities on daily basis can help the management in understanding the strength and loopholes they are having in giving services (Yan, Wang & Chau, 2015). Taking feedback from both employees and the customers can also be an effective way as it will enable in knowing about the problems of employees they are facing while giving services and from the customer’s feedback the restaurant will come to know about the loopholes in services. Therefore, the service quality can be improved by giving suitable theoretical and practical training after every six months to the existing customers so that they can change their services according to the market trend and mitigate the problems. 

Refection statement on studying the Service Industry Marketing Unit

From the above discussion, I have come to know that giving suitable services to the customer is important in this competitive business world. As I have carried out this study by being a consumer therefore, I have identified the loopholes that one can find in the services they get from restaurants. It is important to know the requirement of customer so that the services can be given according to the requirement. This will help the business in retaining mass number of customers. Besides, I have come to know that quality services are also important so that the restaurant can successfully achieve customer loyalty. The study is valuable for me in the respect of working an entrepreneur. If I further take the initiative to open a restaurant then I can focus on of improving customer service so that I build trust on the customers and they avail my restaurant services as well as recommend their friends and families. In addition, if I get the scope to work in leading hotels and restaurants then I can keep these points in my mind in respect of improving quality and services and at the same time increase productivity. Therefore, from the unit of service unity marketing I have gained resourceful information, which I can apply in my professional career. 


In the ever-awaiting conclusion part, it can therefore be concluded that, introduction of the butler services will be only solution for Friends restaurants. From the above held discussion, it has been found that, the company is suffering from the low customer retention and this is because, the company is unable to maintain the customer expectations in their services. The study has significantly provided the loopholes in the services that are provided by the concerned restaurants. From this perspective, it can be recommended to the restaurant to introduce personalized butler services while handling customers and hence, it becomes possible for the concerned restaurant to improve the customer base significantly. Hence, it is essential for the company to improve the customer relationship by implementing effective CRM in the workplace to strategically handle the customers. However, at the same time it is essential for the restaurant to focus on the market research. With the help of effective market research, it becomes possible for Friends Restaurants to understand the recent preferences of the customers and through this way, the business enterprise can improve the customer services significantly and effectively.