IM – THC5 – FIRST SEM.

20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE

VI. LEARNING ACTIVITIES

Case Studies

Try Before You Buy: The Service Guarantee

Ed Jennings had never stayed at Super 10 Suites before, but he

hadn’t been very satisfied with the only other lodging establishment in Grover,
Montana, a regular stop in his western sales territory, so he decided to try
Super 10. The guarantee of service offered by Super 10 persuaded him to
make the switch. It was basic, but it offered all that Ed wanted: “Try before
you buy. We guarantee that your rooms will be cleaned, inspected and ready,
with all amenities in place, or you pay nothing! No questions asked. We want
you to be happy in your choice of Super 10 Suites, Grover’s finest.” Ed
checked in late in the evening after a hard day on the road, went to his room,
and looked around. The room wasn’t exactly dirty, but it wasn’t exactly clean
either. There were small scraps of paper on the floor, some hair in the sink,
and mold in the shower. He sat down in a chair, opened the complimentary
bag of pretzels, and chewed on one while he thought about whether to stay or
to leave. “Oh, well, if it doesn’t get any worse than this, I guess I can take it.”
Without going into all the details, it did get worse. The hot water didn’t work,
the bed was lumpy, and the air conditioner failed during the night. A
screaming baby in the next room kept Ed awake for several hours. When Ed
checked out the next day, he informed the clerk that he was exercising his
service guarantee; he wasn’t going to pay. Of course the clerk asked why,
and Ed explained the problems he had experienced. “Your guarantee said the
room would be clean and inspected, and it was not clean. There was hair in
the sink, paper scraps on the floor, and mold in the shower.” “No,” said the
clerk. “The guarantee says that the room will be cleaned, and it was cleaned,
last week. As for inspection, I inspected it myself.” Ed said, “When you
inspected it, didn’t you notice the scraps, the hair, and the mold?” “This
guarantee doesn’t say anything about what I noticed or didn’t notice. It just
says the room was inspected. And before you even ask about the amenities,
that’s what the pretzels are—amenities.” “All that may be true,” said Ed, “but
this guarantee says ‘No questions asked.’ “Didn’t you see the asterisk by
that? Didn’t you see the fine print?” asked the clerk. “The asterisk refers to
our statement at the bottom that if you ask questions, this guarantee is null
and void. This other asterisk, which apparently you didn’t see either, says that
‘This guarantee and the terms thereof shall be valid and its terms exercisable
with respect to the cost of one night’s room only, with all the covenants
appertaining thereunto. Management shall retain its sole and exclusive right
to interpret the terms of the guarantee.’ In my opinion, and I’m the
management this morning, we fulfilled our guarantee to you the guest, and
 IM – THC5 – FIRST SEM. 20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE
then some.” Ed Jennings gave it up. He had sales calls to make. Mighty tired
and upset, he headed out into the day.

What was wrong with this guarantee? Indicate as many faults as you
can.
- The guarantee alone is misleading, almost as it seems like it is made to
lure people in, yes that is what it is because, of course, the business
needs clients to avail what they have.
- The guarantee only covers specified aspects which are then not exercised
nor even checked on.
- The asterisk of “No questions asked” in which according to the information
presented, will void the guarantee itself.
- The statement “or you pay nothing”, which was then turned around by the
asterisk of “No questions asked” which voids the guarantee, basically, it is
a scam.
- It is also mentioned that the guarantee is only specified to the things that
was mentioned in it, and not to any more things that will go unnoticed or
noticed, which is also a thing that basically makes the guarantee itself
useless when there are many more aspects that are not maintained and
prepared in the unit.
- “This guarantee and the terms thereof shall be valid and its terms
exercisable with respect to the cost of one night’s room only, with all the
covenants appertaining thereunto. Management shall retain its sole and
exclusive right to interpret the terms of the guarantee.”, the other asterisk
which supports and makes the first one unquestionable because of the
facilitation of the management.
Standard Times at Happy’s Restaurant

The top management at Happy’s Restaurants, Inc., had assigned its new
Work
Methods and Standards Department the task of establishing “standard times”
for the chain’s units. Work Methods personnel went out into the restaurants
as mystery shoppers and observed operations carefully. Work Methods then
reported to management that the speed and efficiency of service in virtually
all of the restaurants was in need of improvement. Laura Martin, manager of a
very successful and profitable Happy’s Restaurant in South Carolina, got the
e-mailed memo about the new “standard times for food and cocktail service”
late one afternoon. A highly experienced server herself and a respected
manager, Martin just laughed at the proposed standards and set the memo
aside. She thought she had noticed some mystery shoppers making secret
notes, so she had expected some kind of ivory-tower memo like this. It might
look good on paper, but it just couldn’t be done. Next day at the afternoon
meeting, Martin told her servers: “If you hear anything about new standard
times and methods for serving food and drinks, don’t pay any attention. As
 IM – THC5 – FIRST SEM. 20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE
you know, we have all committed ourselves to getting the entrées to guests
within eighteen minutes of taking their orders, but our average is sixteen
minutes. We’ve been averaging sixteen for all the years I’ve been here, and
our comment-card results on promptness are excellent. Because you are all
terrific at your jobs, I’d say fifteen minutes is the absolute best we could do.
But those bozos at headquarters say the new standard is all entrées to guests
within fourteen minutes of taking the order.” The servers looked at each other
with disbelief, then they started to laugh. “And they also think we can have the
drinks on the tables within three minutes of first guest contact.” The servers
just rolled their eyes and smiled. “Don’t worry,” said Laura Martin. “I’ll
straighten this out in a hurry.” Martin sent her boss an e-mail telling him that
the new standards had to be a mistake because they were entirely unrealistic.
Her boss soon called her and straightened her out in a hurry: “Laura, the new
standards will go into effect tomorrow. Work Methods has achieved improved
results in several of our other chains already, and now all Happy’s branches
must conform. Sure, servers always resist at first, but they can meet the
standards if you lay down the law, and if they use more efficient methods.”
“Maybe that’s true elsewhere,” said Laura, “but I know my restaurant, my
kitchen staff, my servers, and my guests, and I know we can’t make fourteen
minutes, even with these new methods they want us to use. Things can only
be done so fast.” “Martin, call a meeting of your staff, explain that the new
standard times will be met, teach your people the new methods, stick to
managing your unit, and leave methods and times to the Work Methods and
Standards Department. That’s what we pay you for, and that’s what we pay
them for.” Martin tried her best, but her restaurant knew how she felt about
the situation. The servers at this South Carolina Happy’s Restaurant failed to
meet the new work standards, and the head of the Work Methods and
Standards Department blamed Laura Martin. He recommended that new
talent should be located for her position.

1. What is the problem here?

- We could see the versatility of management not being practiced, and just
because some ways actually work for most of the branches, that does not
mean that it will work for each of them with subject to forcing that branch
to conform to the imposition of such standards. I am not saying that the
problem here is the higher management, we could see that the imposition
of the standards could also be lead slowly with subject to the capabilities
of the unit in which it will take place, a good form of transition could be
devised more effectively than suddenly imposing it and expecting for an
outcome to be great.
- Meanwhile, on the side of Laura Martin, she understood her branch more
than the higher ups, but then in my perspective, the imposition of the new
standards did not bloom well because of her attachment to the family of
the branch which lead her taking the side of the branch instead of
mediating the orders effectively to take effect.
2. Under what circumstances can such “by the minute” standards be made
to work?
 IM – THC5 – FIRST SEM. 20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE
- By the minute standards could be seen as a very rapid or almost
instantaneous imposition of standards, which is not in favour of coupled
processes taking a change instantly, especially with the inclusion of a
team that is accustomed to the old processes. These standards could
only be advisable to an aspect that is known to be highly versatile to avoid
the pushbacks that could happen, because as we all know, pushing
something that does not fit the mould would not yield great results.
Another thing to consider is how great of a change the “by the minute”
standards will bring, because if it happens to be comparable to a
complete overhaul, then it would not be advisable, as what I have seen
personally, by the minute standards are mostly imposed if it brings
minimal and manageable changes to the processes that are already in
place to which will make little to no apparent drawbacks.
3. How would you determine service standards at your restaurant?

Consider Staff Suggestions

- You know your customers well, but your employees, especially front-of-
house personnel, probably know them much better. Look to your
personnel, who are continuously engaging with your clients, for ideas on
how to present your restaurant's finest face. Your criteria should
encompass everything your visitors encounter in your restaurant, leaving
plenty of opportunity for recommendations.

- Whether your team believes that the table presentation may be better or
that you should run with a lower workforce during sluggish lunch periods,
you must listen to their suggestions. Not every recommendation must be
used, but including your employees in the process tells them that their
input is valued and motivates them to take pleasure in their job.

Throughout the process, be true to your restaurant's values.

- If you just remember one thing while designing your service standards, it
should be the reason you founded your restaurant in the first place. When
developing your service standards, ask yourself and your team, "Does this
match our values?" "If your goal when you first opened your doors was to
deliver a one-of-a-kind eating experience, make sure your standards
reflect that." If you wanted to build a second home for your guests, your
criteria should accommodate everyone from youngsters to grandparents.
- You and your workers should also ensure that your standards are
appropriate for the type of restaurant you operate. If you own a quick-
service restaurant, your service standards should revolve around how
quickly you can serve your customers. If you own a fine dining business,
you may have more time to thrill your clients, but your guests are likely to
spend a large amount of time at your facility and hence demand more
attention.

Keep an eye on Guest Reviews

 IM – THC5 – FIRST SEM. 20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE
- Learn what your customers enjoy and dislike about your restaurant.
Check your restaurant's internet reviews to see what your customers are
saying, and have your employees ask clients for rapid feedback via
comment cards.
- Is there a pattern of complaints about cleanliness, customer service, or
food quality? If so, that's where you should focus your efforts. Once
you've established your new standards, keep an eye on how visitors are
reacting.

Train Your Employees on Your Standards

- Once you've created your service standards, make sure your employees
are aware of them! Make sure they understand your expectations in order
to empower them to reach these standards. All employees, new and old,
should be adequately instructed on these new standards, and they should
be placed somewhere where employees may review them at any time.
- All requirements should be mirrored in any documents used to interact
with your employees, such as training manuals, employee handbooks,
and opening and closing checklists. If you've settled on a new table
setting design, you may utilize photographs to demonstrate how a
beautiful table should seem. If you've settled on a new cleaning
procedure, make sure to update all checklists to reflect the changes so
there's no confusion. Make things as simple as possible so that any new
recruits may learn it quickly.

Check in and Request Feedback

- Aside from providing an excellent client experience, standardizing your
restaurant service helps you to focus on other elements of your business
without micromanaging. However, this does not mean you can be fully
hands-off; you should always check in with your workers on a regular
basis to ensure that your expectations are being fulfilled.
- Request input from your staff on which procedures are and are not
functioning. If your team is having difficulty completing particular
checklists, such as cleaning, it may be a good idea to divide some of your
larger cleaning chores into smaller portions on different days of the week.
Even if you want your kitchen to dazzle, it's unlikely that you need to deep
clean your walk-in every night — instead, create a schedule which
conforms to the capabilities of the staff while also nailing the good state of
the kitchen.

Evaluate and Develop Over Time

- Just because something worked for you in the past does not guarantee that it
will continue to work in the future. As your restaurant evolves and your customers
adapt, make sure your business's standards do as well. For example, if you were a
tiny restaurant that took orders with pen and paper but now serve hundreds of clients
at various locations, you'll need to move to a restaurant system that can manage
your huge volume of orders.
- Your hands will always be busy, but thankfully, your staff can assist you in
raising your game. By listening to the ideas of your staff and customers,
 IM – THC5 – FIRST SEM. 20 – 21
Republic of the Philippines
Blance, Vinzon Dave A. BSTM 2
NUEVA VIZCAYA STATE UNIVERSITY Bayombong,
Nueva Vizcaya

INSTRUCTIONAL MODULE
you will be able to set service standards that go above and beyond the
expectations of your guests.

VII. ASSIGNMENT

Firm-Up Task 1

1. Explain how organization should respond when the guest is not satisfied
with the services rendered
- Working with tough consumers may be difficult. However, if you manage
the issue correctly, you may be able to enhance your connection and
generate new chances. Make an effort to actively listen to their difficulties
or complaints, and avoid the impulse to interrupt or solve the situation
immediately. Make an effort to be sympathetic and understanding, and
make sure your body language reflects this. If you're at a loss for what to
do, ask your customer what will make them pleased. If it's within your
ability, do it as quickly as feasible. Follow up with your customer to ensure
that they were satisfied with the way the matter was addressed.
2. Discuss the importance of fixing service failures quickly
- The finest customer loyalty program that any retail firm can have is a good
customer service failure reaction.  The greatest service recovery solutions
can correct errors, mend relationships, and foster trust. The worst replies
will almost surely result in consumer and brand reputation damage.
- Customer retention is dependent on service recovery. Building a strong
client relationship is one of the most important things you can do as a
company. Customers will be more inclined to remain loyal if they sense an
emotional connection to your company. Even when you fail to meet their
expectations.