CHAPTER 1

Introduction
Quality
Quality is a key requirement in every field. In terms of Industrial growth quality plays an important role
& so should be understood and defined properly. Different management Gurus in different ways defines
quality. But the basic concept remains same i.e. Meeting to the Need of Customer. In most generalized
way the Quality term can be defined as The inclusion of all specified features and characteristics as
defined for product or service and its ability to satisfy the given needs as per the requirement of user
while using it.

A modern definition of quality derives from Juran's "fitness for intended use." This definition basically
says that quality is "meeting or exceeding customer expectations." Deming states that the customer's
definition of quality is the only one that matters.

Service quality
Service quality is nothing but the difference between the service expectation & service actually received
by the customer. Customer has certain expectation about the service. If the customer experience the same
service as they expect then this difference will be zero and we can say that the service quality is very
good. Higher the difference of above equation lower will be the service quality.

Service Quality = Perception Expectation

Service Quality & Customer Satisfaction

Service Quality and customer satisfaction are two closely related terms. Service quality can be assessed
in two ways : 1) Is it meeting to standard? & 2) Is it satisfying the customer?.

As defined by Oliver Satisfaction is the consumers fulfillment response. It is a judgment that a product
or service feature , or the product or service itself, provides a pleasurable level of consumption-related
fulfillment.14 Customer satisfactions is related with the type of service quality, if the quality of service
provided by the service provider is good then this leads to the higher customer satisfaction. As defined by
Parasuraman, Zeithaml & Berry the service quality depends upon customer perception & customer
expectation. for measuring the service quality, it is necessary that the service provider with respect to the
customer expectation as well as the customer perception should understand the service quality
parameters. This will help in getting the better service quality and hence higher level of customer
satisfaction.
Customer satisfaction
Customer satisfaction is a business philosophy which tends to the creation of value for customers,
anticipating and managing their expectations, and demonstrating ability and responsibility to satisfy their
needs. Quality of service and customer satisfaction is critical factors for success of any business
(Gronoos, 1990; Parasuraman etal., 1988). As Valdani (2009) points out: enterprises exist because they
have a customer to serve. The key to achieve sustainable advantage lies in delivering high quality service
that results in satisfied customers (Shem wellet al, 1998). Service quality and customer satisfaction are
key factors in the battle to obtain competitive advantage and customer retention. Customer satisfaction is
the outcome of customers perception of the value received in a transaction or relationship, where value
equals perceived service quality, compared to the value expected from transactions or relationships with
competing vendors (Blanchard & Galloway, 1994; Heskett et al., 1990; Zeithaml et al., 1990). In order to
achieve customer satisfaction, it is important to recognize and to anticipate customers' needs and to be
able to satisfy them. Enterprises which are able to rapidly understand and satisfy customers' needs, make
greater profits than those which fail to understand and satisfy them (Barsky & Nash, 2003).

Many researchers (Oliver, 1981; Brady and Robertson, 2001; Lovelock, Patterson and Walker, 2001)
conceptualize customer satisfaction as an individuals feeling of pleasure or disappointment resulting
from comparing a products perceived performance (or outcome) in relation to his or her expectations.

Factors affecting service quality

Tangibility
The tangible Service Quality Dimension refers to the appearance of the physical surroundings and
facilities, equipment, personnel and the way of communication. In other words, the tangible dimension is
about creating first hand impressions. A company should want all their customers to get a unique positive
and never forgetting first hand impression, this would make them more likely to return in the future
(Delgado and Ballester, 2004).

Reliability
The reliability Service Quality refers to how the company are performing and completing their promised
service, quality and accuracy within the given set requirements between the company and the customer.
Reliability is just as important as a goof first hand impression, because every customer want to know if
their supplier is reliable and fulfill the set requirements with satisfaction (Delgado and Ballester, 2004).
Responsiveness
The responsiveness Service Quality refers to the willingness of the company to help its customers in
providing them with a good, quality and fast service. This is also a very important dimension, because
every customer feels more valued if they get the best possible quality in the service (Delgado and
Ballester, 2004).

Assurance
The assurance Service Quality refers to the company's employees. Are the employees skilled workers
which are able to gain the trust and confidence of the customers? If the customers are not comfortable
with the employees, there are a rather large chance that the customers will not return to do further
business with the company (Delgado and Ballester, 2004).

Empathy
The empathy Service Quality refers to how the company cares and gives individualized attention to their
customers, to make the customers feeling extra valued and special. The fifth dimension are actually
combining the second, third and fourth dimension to a higher level, even though the really cannot be
compared as individuals. If the customers feel they get individualized and quality attention there is a very
big chance that they will return to the company and do business there again (Delgado and Ballester,
2004).
Majestic plaza

Address: Tilak Ganj, Sagar, Madhya Pradesh 470001

Phone: 075822 20388
Owner Mr.Kapil malaiya
Majestic plaza is among most popular restaurant in Sagar. It is located near railway station road
One of the busiest road that give the extra push to its business. Majestic plaza was set up near
about 8 years ago with the capital of 80 lakhs.at the time of establishment around 10-12
employees. Majestic plaza always been known for its fresh quality food every day they prepare
necessary base gravys for variety of dishes. It is proud for majestic plaza to have experienced
work force that contributed vastly in their success.
Today they have more than 40 employees with unmatched experience from other competitors.
There earning for the month be around 8 lakh.some of the factors which influence customers
towards majestic plaza are:
Location
Parking facility
Fresh food
Service
Piece full environment
Affordable.
Licensing

Legalities & Licenses For Restaurant Business

In starting the restaurant business in India, you will need to obtain necessary licenses and permits
from the local organizations responsible for governance. Here are the following licenses that you
must procure from Government Authorities:

Enterprise Registration: First of all, you must register your firm with Register Of Companies
according to your ownership pattern.
Trade License: You will need to procure Trade License from local Municipal Authority.
Health Certificate: You can obtain this permission from local Municipal Heath Department.
Food Business Operating License: Restaurants need to obtain a Food Business Operator license
from the Food Safety and Standards Authority of India. You will need to obtain this license from
state level licensing authority. Generally, the food business operator license comes for 1 year and it
is renewable.
Vat Registration: You must apply to your local Sales Tax Department for Vat Registration
Number. Also, you will need to file returns quarterly to Sales Tax department. You can apply for
Vat Registration online also.
Service Tax Registration: According to the latest rule restaurants that are air-conditioned are
required to obtain service tax registration if their annual sales will be more than Rs.10 lakhs.
Currently, service tax is chargeable at 4.94% in air-conditioned restaurants.
P Tax: P tax stands for professional tax. You will need to have registration and will need to
submit fees once in a year.
Shops & Establishment License: Registration with shops & establishment act is mandatory in
starting a restaurant business in India.
Labour License: You must apply for labor license from Labor Department.
Trademark Registration: In starting a restaurant business in India, Trademark registration in
beneficial for the entrepreneurs.
Restaurant Industry in India
The Indian restaurant industry is worth Rs.75,000 crores and is growing at an annual rate of 7%.
The industry is highly fragmented with 1.5 million eating outlets, of which a little more than
3,000 outlets form the organized segment. However, the organized segment is rapidly growing at
an annual rate of 16%. Quick service segment is the clear winner in the eating out market with a
growth rate of 21%.
Organized Segment is expected to reach Rs.22,000 crore by 2017, driven by:
Rising disposable income
Nuclear family structure
Increasing working population
Rapid urbanization and consumerism
Increased private equity interest
RESTAURANT DEFINITION
A Restaurant is a place usually inside a building where you go to eat food, which, most of the
time, you must pay for.
Restaurant comes from the French restaurer, which means "to provide food for." Restaurants will
provide food for you if you've got the cash, and most of the time they'll even let you sit down
right there and eat it. Common examples of restaurants include burger joints, cafeterias,
pizzerias, sandwich shops, steak houses, seafood shacks, (some) hot-dog stands, ice cream
parlors, taquerias, Chinese takeout, (some) bakeries, and fine-dining establishments.

Different Types of Restaurant Concepts

Fast Casual

One of the hottest trends at the moment is fast casual, which is a slightly more upscale (and
therefore more expensive) than fast food. Fast casual restaurants offer disposable dishes and
flatware, but their food tends to be presented as more upscale, such as gourmet breads and
organic ingredients. Open kitchens are popular with fast casual chains, where customers can see
their food being prepared.

Family Style
Family style dining, also known as casual style dining in the United States, offers moderately
priced entrees from menus featuring a mix of classics cuisines, individualized with signature
sauces, dips or other toppings cuisine. Causal style dining can be any number of themes, Casual
style restaurants offer table side service, non-disposable dishes, while still keeping the menu
moderately priced. Inexpensive, low-key setting.

Fine Dining

The term Fine Dining brings to mind all kinds of images, from crisp white table cloths to waiters
in tuxedos. Fine dining, just as the name suggests, offers patrons the finest in food, service, and
atmosphere. It is also the highest priced type of restaurant you can operate. Fine
dining restaurants are usually are unique, even if they are owned by the same person or
company.
Caf or Bistro

caf is a restaurant that does not offer table service. Customers order their food from a counter
and serve themselves. A caf menu traditionally offers things such as coffee, espresso, pastries
and sandwiches. Cafes originated in Europe and are strongly associated with France. They are
known for their intimate, relaxed atmosphere. Outdoor seating is another trademark of a caf. A
bistro is similar top a caf, in that the food is simple, basic fare served in a casual setting.
However, where a caf may only serve coffee, breads, and pastries, a bistro may offer entire
meals.

Fast Food
Fast food is the most familiar restaurant to most people. Chains like McDonalds and Burger King
became popular in the 1950s, and helped spawn countless other concepts like Taco Bell, KFC
and In-n-Out Burger. Fast food service attracted customers for its speed, convenience, and cheap
prices. Fast food restaurants are typically chains. If you are thinking of opening a fast food
franchise, keep in mind that the initial costs of franchising are more expensive than opening an
independent restaurant.

Food Truck

Food trucks offer low start up costs. A popular food trend across the country is mobile food
truck restaurants. The benefits include low cost and low overhead, making it one of the easier
ways to open a new restaurant. Other advantages of a food truck business include its mobility- it
can go to where the customers are. It also requires far less staff. However, a food truck is still a
business that requires a lot of work and attention- especially in the first couple of years.

Restaurant Buffet
Around since the Middle Ages, the buffet-dining concept has stood the test of time and continues
to be a popular choice for many restaurant customers. By definition, a buffet is a meal where
guests serve themselves from a variety of dishes set out on a table or sideboard. Restaurant
buffets are one type of restaurant concept that includes self-service and catering services. If you
are opening a new restaurant, you can offer a buffet for special occasions or as a restaurant
promotion.

Pop Up Restaurant

. Todays pop-up restaurants have many different looks and functions. They can appear in an unlikely
place, such as an old warehouse or building rooftop. The allure of the pop-up restaurant is the minimal
investment of both time and money.

Top 5 Restaurant in Sagar mp

1. Kuber Restaurant
Making way for a hearty meal is Kuber Restaurant in Sagar. Established in the year 2007, this
place is synonymous with delicious food that can satiate all food cravings. It is home to some of
the most appreciated cuisines. So as to be able to cater to a large number of diners, it occupies a
favorable location at Civil Lines. Opposite V C Bunglow,10 Civil Line, Civil Lines-470001 is
where one can visit the venue. Courtesy to this strategic location, foodies in and around the
neighborhood can walk in to this eating house conveniently without facing any hassles related to
commuting to this part of the city. It is one of the most sought after Restaurants in Civil Lines.
This is a one of the renowned Restaurants in Sagar.

2. Majestic plaza

Sagar is the sure way to refresh and relax after a busy weekday. Explore interesting themes,
fabulous designs, colorful landscapes, amusing characters, ambient music, props and
merchandise available in nearby stores- all at one place. majestic plaza restaurant, Sagar is the
best way to have a memorable time with kids and family.

3. TDC The Dine Culture

Tdc the Dine Culture A Multi Cuisine Restaurant is one of the popular Local Business located in Pili
kothi ,Sagar listed under Local business in Sagar.It fulfills all the desire of the customer. Good
environment modern outlooks

4. Hotel Royal Palace

The Royale palace hotel and Resort welcomes you in the finest resort in sagar.
Unparallel match of beauty and peace, Three acres of land with lush green lawn and
beautiful planted trees. Colored fountain with music express the beauty of nature.
40 well appointed Ac rooms with all modern facilities required by business travelers or a
tourist to the city of peace. A multi cuisine restaurant with prompt service and personal care,
Kids zone with latest swings. Three Banquet lawns for grand wedding and Receptions & all
kinds of parties we managed. The Professional team of hospitality management taking care
of this property.
5. Hotel paradise

Hotel Paradise the best Restaurant and Bar in Sagar features a wide variety of Drinks and Good
Foods, making it the perfect setting for a relaxed evening in a warm and inviting ambience.
Explore the extensive beverage list, imported beers and wines of the world, each with distinctive
histories and flavors perfectly complimenting the cuisine.

Restaurants overview in Sagar

Sagar restaurant market do not enjoy the luxury of outstations tourism hence there are limited
number of customers to cater. Population of sagar town is around 5 lakhs that is low if compared
to metro and Cosmo political cities. Today number of restaurant bubbling in sagar city.

Modern style of living encourages restaurant market to grow since people spend more on outings
and enjoyment. Young are more than 45% of the population under 25 years old. For teens and
young adults, eating out is a popular form of socializing, contributing to the growth of multiple
segments within the expanding market.

Disposable income is on the rise; the educated middle class is growing; and as the country grows
more industrialized and cements its reputation as an IT hub, per capita income stands to grow as
well.
RESTRURANT MARKETING DEFINATION
Restaurant marketing can increase visibility to the general public, attract new customers and
boost sales revenue. Restaurant marketing can also succeed at retaining existing customers who
may be more inclined to return often if they see a special deal or promotion being marketed.
There are several ways to successfully market a restaurant, including running advertisements,
handing out fliers, conducting special promotions and offering tastings. Restaurants make up one
of the biggest businesses in the United States and are one of the largest private-sector employers,
according to the National Restaurant Association, making marketing an important part of any
business plan