Paco Group of Restaurants

The Paco’s, Rebane restaurants is an expanding, family-run group of hotels in

Italy. The management was surprised to see the decline in their sales and decided
to get the customer feedback. The customer feedback cards at Paco’s Rebane
restaurant reveal that an increasing number of customers are unhappy with their
dining experience. Sixty-five of 100 feedback cards received last month specify
slow service as a major problem. (Note: Each feedback card contains 20 specific
areas for customers to provide feedback on). Those customers report the
problem is bad enough that they may not return to the restaurant again.
Seventy percent of the Rebane location’s $1 million dollar annual revenue is
based on repeat business. Paco’s management also believes, but doesn’t have the
data to confirm, that word of mouth referrals from repeat customers lead to a
significant amount of new business.
Survey analysts project that for every complaint received, there are at least 10
other customers with the same problem. Monthly transactions at the Rebane
store reflect about 1,000 diners per month.
The Venice District Manager has asked you, the Rebane General Manager to
investigate and then resolve the issues causing the slow service. He has given
you three months to research the problems, resolve them and show results.
Results will be measured via improved customer comment card feedback that at
least matches the average rate of slow service complaints in 2007 (25%).