Chapters

Chapters
1. Introduction to food & beverage

2. Food production
3. Purchasing food & beverage
4. Food service delivery
5. Beverages
6. Menu planning
7. Service quality in food & beverage
8. Conference & banqueting
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Chapter 7 – Service quality in food and beverage
Objectives
In this chapter you will learn to :-

● Explain the importance of quality to a food and beverage operation
● Discuss a range of methods operators can use to improve quality
● Evaluate a range of approaches to measure and maintain quality

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Introduction to quality
1. Introduction to quality
1.1 What is quality
1.2 Importance of quality
1.3 Importance of customer satisfaction

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1.1 What is quality?
It is difficult to accurately define quality, but in general quality perceptions is based on things such
as our experiences, our expectations and our particular needs at that time.
‘To consistently meet or exceed consumer expectations by providing products and services at prices that
creates value for customers and profit for the company’. Woods & King (2002)
‘The totality of features and characteristics of a product or service that bear on its ability to satisfy a stated or implied
need’ British standards 4778 (1987)
‘Freedom from defects’ Kotler & Brown (2003)
‘Delighting the customer by fully meeting their needs and expectations’. These may include performance,
appearance, availability, delivery, reliability, maintainability, cost effectiveness and price.

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1.2 Importance of quality
High quality Low quality

Happy customers Unhappy customers
Retain customers Lose customers
Meet budget Under budget
No discounts Discounts
Employee gratuities and recognition No gratuities and recognition
Attract customers Hard to attract customers
Positive image Poor image
Growth Decline
Retain employees Lose employees
Market share Decrease market share
Owners satisfied Unsatisfied owners
Good public relations Bad public relations
Profit Loss
Competitive Not competitive
Open Close
Wuest as cited kadampully et al. (2001) notes ‘poor service leaves a guest unimpressed, discouraged and unsatisfied’

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1.2.1 Quality challenges and issues in hospitality operations
z Fast production to sale cycle- hard to check quality

z People factor- hard to standardise
z Highly perishable product- pressure to sell
z Complexity- multiple moments of truth
z Variety of stakeholders, with differing expectations
z People deliver service and people think differently
z Perception of quality are highly subjective
z Future cost of dissatisfied customers
z Bad news travels faster than good ones
z 100% staff/customer retention is unrealistic probably 80/85% is possibly achievable

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1.3 Importance of customer satisfaction
z The cost of gaining a new customer is around six times the cost to retain an existing one.
z A dissatisfied guest will tell ten other people about the complaint.
z 91% of customers who have an unresolved complaint will not return.
z 65% to 85% switchers are dissatisfied guests.
z Only 4% of dissatisfied guests will complain.
Rowe (1998)

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Quality tools
2. Quality tools
2.1 Effective leadership
2.2 Effective market segmentation
2.3 Expectations
2.4 2.4 Standards of performance or ‘ standard operating procedures”
2.5 Effective human resource management
2.6 Training
2.7 Quality sourcing
2.8 Quality schemes
2.9 Service recovery and complaint handling

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Chapter 7– Service quality in food and beverage
Quality tools
Figure 7.2: Integrated service quality management
1. Determine customer service specification in terms of:

z Level of service
z Availability of service
z standards
z Reliability of the service
z Flexibility of the service
2. Check the operation is physically capable of supporting the
service specification at given volume of business
3. Check that the service systems and the staff are able
to deliver to the customer the totality of the service specification
(Including maintaining the desired service relationship)
4. Monitor operational aspects
5. Monitor customer satisfaction
6. Feed back to original service specification and alter as appropriate

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Quality tools
There are many actions that food and beverage operators can take to improve their service
quality.
Figure 7.3: Standards for effective service quality
Quality
sourcing
Effective
Effective
human
leadership and
resource
supervision
management
Quality tools
Quality
Standards of
feedback and
performance
monitoring
(SOP’s)
systems
Effective market
segmentation,
Quality
meeting their
schemes
needs, wants and
expectations

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Quality tools
2.1 Effective leadership
To successfully achieve quality within an organisation it needs to be made clear and driven by the
person at the top. It is their responsibility to ensure that quality is fabricated in to the entire
organisation system. This is achieved through researching the target market needs, introducing
systems of service quality control with an ongoing, strong, quality checking system to monitor and
evaluate.
‘A company must have leaders at the top who are totally committed quality service’
Woods & King (2002)
Wuest as cited in kandampully et al. (2001) ‘management plays a vital role in the delivery of quality
service’

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Quality tools
2.2 Effective market segmentation
Its an important part of quality to consistently satisfy customer needs, wants and expectations .
To establish and maintain needs and wants the following steps are required.
z Research the target markets needs and wants

z Create the standard to meet needs and wants
z Implement the standard
z Supervise and maintain the standard
z Evaluate and adjust the standard.

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Quality tools
Figure 7.4 The market mixes link to quality
The Marketing Mix
Customer needs and

Product
wants
Price Cost to satisfy
Place Convenience to buy
Promotion Communication
Source: http://grey-matter.org

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Quality tools
2.3 Expectations
Linked into needs and wants are expectations. This ensure that you also meet what your customers
expect to receive from their visits. Expectations vary in relation to the type of the customer and
situation.
Figure 7.5 gap analysis model – customers’ expectations
Customer expectation Service delivery
Expectations exceeded
Service performance gap

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2. Quality tools
2.4 Standards of performance or ‘ standard operating procedures’ ( SOPs)
‘Standards of Performance help with consistency because they detail exactly what must be done
and how it should be done’
Ninemieir ( 2000)
Advantages of performance standards for an operation include:

z Consistency of service
z Guides the employee in their work
z Supervisory tool for employees
z Supervisory tool for evaluating employee performance
z Assists in allocating cost per task accurately

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Quality tools
Figure 7.6 the standard process
Standard Implement
training standard
Trial Monitor
standard standard
Customer
Expectations
Create Measure
standard standard
Adjust
standard

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Quality tools
Examples of standards in a food and beverage operation are:
z How to clean cutlery

z How to take a pre-dinner reservation
z How to take a table booking over the phone
z How to complete a charge using a ‘point of sale’ machine
z How to open wine
z How to welcome a customer
z How to deal with complaints
Figure 7.6 the standard process

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Quality tools
The following step-by-step guide can help you to deal with customer complaints.
Step Standard: how to deal with a complaint
1 Listen with concern and empathy.
2 Isolate the guest if possible, so that other customers wont overhear.
3 Stay calm. Avoid responding with hostility or defensiveness. Never argue with the guest.
4 Beware of the guests self esteem, take complaint seriously, use guests name frequently, show a
personal interest in the problem.
5 Give the problem complete attention, and don’t insult the guest.
6 Take notes, write down the key facts.

7 Provide the guest with options, don’t promise the impossible and exceed you authority.
8 Set an time frame for the completion of the corrective actions.

9 Monitor the progress of the corrective action.
10 Follow up on the complaint even if its dealt with by someone else
‘Service standards are only as good as the restaurant performance. Although service policies may
establish guidelines and performance standards, personnel may not perform adequately’.
Wuest cited in kandampully et al. (2001)

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Quality tools
2.5 Effective human resource management
‘Wuest as cited in Kandampully et al. (2001) ‘ Service providers must involve all of their staff in each
department in an in an effort to provide quality service’
There is a clear relationship between quality human resource management and the organisation
achieving quality goals.
Key goals and objectives

z Recruit the right people
z Keep employees happy
z Retain them

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Quality tools
HR Rationale How
Recruit the right people Less complaints Job descriptions and job specifications
Less defects Match the best candidate with job
Less training specification and description
Less risk Complete reference checks
Greater customer satisfaction Paper and pencil tests
Qualified interviewers
Employee trials
Succession planning
Regular training
Regular performance evaluation and
Keep your employees happy Increased job satisfaction appraisal;
Less absence Recognise and reward achievement
Improved team work
Better service to customer Provide regular social events
Sufficient number of tools to their jobs
effectively
Retain them Stronger team Proper work environment
Familiarity with customers’ names Fair and effective leadership
Awareness of customers individual Practice empowerment
needs and wants
‘More than 65% of customers who will not return do so because of the way they were treated, not because of the product’
Rowe (1998)
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Quality tools
2.6 Training
Benefits to employees • Prepares employees to do their job
effectively
• Improves self confidence
• Improves motivation and morale
• Prepares for promotion
• Reduces tension and stress
• Provides an opportunity to succeed
• Provides high quality service

• Provides high quality products
Benefits to the guest • Makes the experience more pleasant
and enjoyable
• Increases productivity
• Reduce costs
Benefits to the operation • Builds a strong team
• Reduces problems and defects
• Creates a better image
• Increases referrals
• Attracts potential employees
www.cthresources.com Page 298 Kavanaaugh & Ninemier (2001)
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Quality tools
2.7 Quality sourcing

It is important that all products sourced, meet the needs of the organisation’s objectives.
z Products should fit the needs of the target market

z Should fit the organisation’s financial requirements
z Meet the desired purchase criteria on arrival
z Should be better than the competitors
Examples of sourced products in a food and beverage operation
z Perishable- food and beverages

z Non-perishable- linen
z Equipment- crockery
z Furniture- tables,
z Fixtures and fittings- lights
Tools to achieve this include:

z Purchase specifications
z Ongoing customer research to determine satisfaction

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Quality tools
2.7.1 Sourcing considerations and limitations
z Budget available
z Availability of suppliers
z Seasonality
z Storage space available

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Quality tools
2.8 Quality schemes
A quality scheme is scheme that is purchased from an external organisation to improve the standard of
products and services. The schemes can be challenging but once successful offer many opportunities.
Figure 7.7 Examples of quality schemes

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Quality tools
Opportunities Challenges
Higher standards Can be expensive!

Customer retention Difficult for small businesses to afford
Reduced complaints Can be difficult to achieve
Increase in profits
Happier employees
Aids ‘ self marketing’
A competitive advantage
A benchmark
Independent assessment of quality

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Quality tools
Most quality schemes are multi-dimensional focusing on different elements that works towards
achieving quality. Schemes vary in cost and depth depending on the size of the operation, their
objectives and current situation.
The process normally consists of:
z Application to the quality organisation

z Visit and assessment
z Goal setting
z Regular assessment
z Award
z Ongoing reassessment

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Quality tools
Figure 7.8: Key areas of ‘hospitality assured’ quality scheme
The Customer
Customer Research Business Planning Operational Planning
Promise
Customer Satisfaction Training and

Improvement Development
Service Delivery Standards of Resources

Service Recovery
Performance
Source: HCIMA

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Quality tools
2.9 Service recovery and complaint handling
One of the goals of any organisation is to minimise the number of complaints it receives.
How ever when complaints do occur:
z Deal with it appropriately
z Ensure the customer leaves happy
z Ensure as on organisation to learn and prevent it from re-occurring.
Steps for dealing with complaints

z Taking the complaint seriously
z Taking the customer to quieter area
z Listen careful whilst being sympathetic
z Get all the facts
z Make notes
z Appologise sincerely
z Provide options
z Use customer name throughout
z Assess level of complaint
z Get customers opinion on how it should be solved
z Thank
z Follow up
z Inform manager on complaint
z Follow up with letter
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Quality monitoring and measurement
3. Quality monitoring and measurement

3.1 Internal customer questionnaires
3.2 face-to-face feedback
3.3 Focus groups
3.4 Observation
3.5 Critical logs
3.6 Management of information
3.7 External methods
3.8 Secondary data

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When an organisation has implemented quality tools to achieve quality products and services it
is vital to measure the organisation’s success.
Leaders committed to quality must make sure that tools are in place to measure their staff’s
efforts at providing great service to guests.
Monitoring can be carried out in many ways, whilst one way which it is done is either through
research conducted internally or externally.
Internally Externally
z Customer questionnaires z Mystery guests

z Face-to-face feedback z External surveys
z Focus groups z Secondary data
z Observation
z Critical log books
z Management information

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3.1 Internal customer questionnaires
Customer questionnaires are one of the most frequent research methods adopted by food and
beverage operations.
3.1.1 The customer questionnaire process
Create questionnaires
Distribute questionnaires
Collect questionnaires
Process data
Analyse data
Communicate data to departments

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Tool How it works Advantages Disadvantages
Customer Forms are placed on tables z Easy and z Low response rate
questionnaire or or in bill folds for customers affordable to z Unhappy
feedback form to fill out. create. customers have
Required to provide z Many normally left the
feedback on areas such as customers premises by the
service, atmosphere, food would prefer to time the data is
and beverage write than collected
speak out. z Customers don’t
z Can follow up in have time to
some cases complete
z Easy to organise z Bad feedback
and evaluate does not reach
feedback. management

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Questions that should be addressed when preparing a questionnaire:
z What do we want to find out?

z Who are we targeting to fill out these?
z How will we reach them?
z What questions should we ask?
z How many questions should we ask?
z Do we want to collect any other information? For example name, address or should it be
anonymous?
z Do we want them to rate service and products or give real opinion?
z Where will we distribute or place them?
z How do we achieve a high response rate?
z How many do we want each day? What's our target?
z Who will manage it?
z How will we communicate the findings to our manager?

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3.2 Face- to-face feedback
Face-to-face feedback is normally carried out by the waiter or the manager in a rather informal manner.
The method is quick and cost effective. It is important to frequently check customer satisfaction
throughout the meal as if they are dissatisfied. Whatever feedback is received must be passed on to
the relevant manager.
3.3 Focus groups
A focus group is s set of people invited to a session by the restaurant or hotel, to gather opinions and
suggestions. It normally includes individuals that can provide the best, reliable information for the
desired topic. It usually is hosted by the general Manager or an employee of the Sales/marketing
department, and the meeting is likely to be recorded.

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Aim Focus group members To research

To determine satisfaction levels of Existing restaurant customers Opinions on likes and dislikes in relation to the:
customers •Menu
•Service
•Design
How the restaurant can improve?
•What is their perception or opinion on the

Non-customers/competitor restaurant?
To increase business of Non-customers customers/potential customers •What type of food they like?
through identifying their opinions, dining •What is important to them when eating out?
habits and specific needs •Where do they currently dine out and why?
•What are their favourite dishes on the current menu?
Customers •What new would they like to see o the menu
To gather opinions on customers to use in •Are the prices reasonable?
creating a new menu •Are the portion sizes suitable?
•Do they go to other places for dishes that we don’t
offer?

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3.4 Observation
Within the organisation there is a wealth of information that can be used to improve quality whilst
observation is an effective way of doing so.
Examples Potential reason Effects

Employees chatting Overstaffed, or poor Waste
scheduling of resources High labour cost
Bad impression for diners
Employees rushing around understaffed Customer complaints
Discounts
Slow service
Employee stress
Queuing at a buffet Poor controlling of Customers become dissatisfied
customer traffic Customers arriving go elsewhere
Empty restaurant during peak Poor marketing Loss of revenue
time Poor product and service Poor image
Better competition Hard to attract customers

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3.5 Critical logs
Departmental log books provide information activities which take part within the organisation.
These log books are found in departments and are a tool for supervisors and managers to
exchange information between shifts. The logs consists of items such as complaints and issues,
maintenance defects etc.
3.6 Management of information
Information is in most case logged by computers or past records and can be used effectively to
provide a better service to customers. The following is an example of a restaurant receipt
(figure 7.9) from a regular, local customer Mr. Bridges.

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Jimbaran restaurant at
The Splendid Hotel
Dubai
Table: 24 Date: 22.01.08 Time: 18.47

Server: Rashid
No of Covers: 2
Quantity Item Charge

1 Soup 20Dhs
1 Caesar salad 20Dhs
1 Seafood platter 100Dhs
1 Cheesecake 30Dhs
2 Coffees 30Dhs
1 Sincere wine 80Dhs
280Dhs
Payment Method American Express
Number 87664456696xxxxxx
Customer Name John H. Bridges

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3.7 External methods
Mystery guests or mystery shoppers are employed by companies to visit their

premises to conduct an evaluation of their products or services. These visits are
normally contracted out and are carried out but an external professional company
3.7.1 Mystery guests
z Meeting with owner or operator to discuss the requirements

z Mystery guest company creates measurement tool
z Mystery guest makes reservation like a normal customer
z Mystery guest carries out visit and audits services and products
z Completes a formal report and delivers findings

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Advantages Disadvantages
Unbiased Can be costly
Conducted by experienced individuals
Accurate
Can be used as an development tool
Employees are unaware of the mystery shopper
Many large chains use survey results to compare performance between units.

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3.7.2 External surveys
Professional companies can also be contracted to carry out surveys with members of the public:
z Specific needs and wants
z Likes and dislikes
z Eating and dining preferences
z Dining habits
z Preferred restaurants
z Reasons for eating out
3.8 Secondary data
Food beverage operations can also monitor consumer trends to help them cater to needs by viewing
the following resources
z Academic books and journals
z Industry magazines
z Industry websites
z Industry reports

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Chapter 7 – Introduction to food & beverage
Summary
The importance
of quality
Quality tools Measurement
Leadership Internal External
Meeting needs,
wants and Questionnaires Mystery guests
expectations
Standards of Face to face

External surveys
performance feedback
Quality human
Focus groups
resources
Quality sourcing Observation
Quality schemes Critical logs
Service recovery
Management
and complaint
information
handling

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Chapters

1. Introduction to food & beverage

www.cthresources.com Page 278

In this chapter you will learn to :-

www.cthresources.com Page 279

www.cthresources.com Page 280

1.1 What is quality?

‘Freedom from defects’ Kotler & Brown (2003)

www.cthresources.com Page 281

1.2 Importance of quality

High quality Low quality

www.cthresources.com Page 282

1.2.1 Quality challenges and issues in hospitality operations

z Fast production to sale cycle- hard to check quality

www.cthresources.com Page 283

1.3 Importance of customer satisfaction

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www.cthresources.com Page 285

Figure 7.2: Integrated service quality management

1. Determine customer service specification in terms of:

4. Monitor operational aspects

5. Monitor customer satisfaction

6. Feed back to original service specification and alter as appropriate

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www.cthresources.com Page 287

2.1 Effective leadership

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2.2 Effective market segmentation

z Research the target markets needs and wants

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Figure 7.4 The market mixes link to quality

The Marketing Mix

Customer needs and

Price Cost to satisfy

Place Convenience to buy

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Customer expectation Service delivery

www.cthresources.com Page 291

2.4 Standards of performance or ‘ standard operating procedures’ ( SOPs)

Advantages of performance standards for an operation include:

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Figure 7.6 the standard process

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Examples of standards in a food and beverage operation are:

z How to clean cutlery

Figure 7.6 the standard process

6 Take notes, write down the key facts.

8 Set an time frame for the completion of the corrective actions.

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2.5 Effective human resource management

Key goals and objectives

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• Provides high quality service

2.7 Quality sourcing

z Products should fit the needs of the target market

Examples of sourced products in a food and beverage operation

z Perishable- food and beverages

Tools to achieve this include:

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2.7.1 Sourcing considerations and limitations

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2.8 Quality schemes

Figure 7.7 Examples of quality schemes