strategies in the restaurant sector : an Indo-US comparative study.

A solid service failure response is the best customer loyalty program that any retail organization can have

GROUP MEMBERS Anish gulati Deepak bhatt Karan khara Surya veer singh chauhan Urvashi mishra

7 Ps for pizza hut

PRODUCT Pizza Hut follows a multiple product strategy. appetizers beverages desserts Pasta Pizza - Pan Pizza, Stuffed Crust Pizza, Sausage Crust Pizza, Thin Crust Pizza, Twisted Crust pizza

PRICE

Pizza Hut follows A High/Low Pricing(Price Skimming)strategy as far as its new product are concerned where it fixes the price higher than its competitors and then
gradually lowers the price below the competitors prices.

PLACE

The first method of distribution used by Pizza Hut is delivery customers to dine-in . One of Pizza Hut's largest competitive advantages is its restaurant style facility . The third method of distribution is Online ordering

PEOPLE

Pizza hut have trained employees with them. All the employer who are working there are skilled employees. They always appear clean and well groomed. They maintain the customer and employee relationship in good manner. Deliver consistent standards of hospitality. Pizza hut have a standard uniform for their employers

PROCESS The food manufacturing process at pizza hut is completely transparent. The customers are invited to check the ingredients used in pizza . Delivery on time or free next time. Take away refined carryout procedures to provide faster, more efficient service rapidly expanded the delivery operations throughout the country implementing combination operations.

PROMOTION Advertising Sales Promotion Public Relations Events and experiences Coupons, Discounts. PHYSICAL EVIDENCE They have a pleasing environment, nice interior decoration which looks rich. Pizza hut focuses on neat and clean environment. Pizza hut Staff believes that they are providing the superior quality to their every customer.

Moment of truth: pizza hut

Greeting Taking Orders Menu Delivery The bell- Bye & Thanks.

Customers perception about intensity of service failure

About 48% of the customers in India feel the intensity of their problem encountered in restaurant is extremely serious, US its 41%. Managing customers interest and making them feel their interest is close to heart is a high priority for Indian restaurant, as compared to US. This leads to a state of fear of confronting an irate client, motivational training and support, team structures & team leadesr can be a way out.

Strategies employed for service failure recovery

In India 60%- apology & offering assistance short of compensation. In US 68%- apology & assistance along with compensation. Significant to relate lower percent of complaints in US. Double the % of aggrieved clients in US ready to return to same outlet and recommend as well, compared to India. Indicative of compensation an important service recovery strategy, points towards poor empowerment environment in Indian restaurant, lack of laid down system to handle customer complaints.

ZONE OF TOLERANCE
Desired expectations:

Customers typically hold similar desired expectations across categories of service. A customers desired service expectation for fast food restaurant is quick, convenient, tasty food in a clean setting. Adequate service expectation: It varies for different firms within a category or subcategory. For ex. Within fast-food restaurants, a customer may hold a higher expectation for McDonalds than for Burger King, having experienced consistent service at McDonalds over time and somewhat inconsistent service at Burger King.

RATER
Reliability Perform services right & accurately Provide services on time Assurance Employee behaviour Tangibility Employees appearance Empathy Problem solving Responsiven ess Providing services as promised

Knowledgea Comfortable ble environment employees

Understanding Performing needs of services right customers the first time

Correct mistakes & errors

Timely home delivery Hospitality

courtesy

Ingredients of food
freshness

Caring attitude Providing towards services at the customers right time

Individual attention Convenient business hours Maintaining error free records

attitude

hygiene

SERVICE QUALITY GAPS

Gap1: Customers expectations versus management perceptions

This gap arises in case of pizza hut during peak hours.

Generally a single pizza takes 7 minutes to get prepared but at peak hours service provider takes 3 times more than the usual time.

Gap2: Management perceptions versus service specifications.

Gap3: Service specifications versus service delivery. Gap4: Service delivery versus external communication.

This gap arises when the services are not provided as promised. For example, in one of their ads they talk of pizza in just Rs. 199, but the actual cost of that pizza is more than 199 after including VAT & other taxes.

Customers perception about recovery strategy

Will add later

Example of Service Recovery Strategy by various Restaurants

A solid service failure response is the best customer loyalty program that any retail organization can have. McDonalds replaces your burger if you do not find it good without any questions asked. Rs 300 discount if pizza is not delivered on time by pizza hut.

Some Service failure very common in Indian Restaurants

Slow Service Foreign object in food/beverage (insectrelated; human-related; non human related) Dirty cutlery (greasy) Dirty surroundings (animals; insects; dirt) Dirty seating condition (cutlery left by previous customer) Bad odour (toilet, drain) Poor seating design (crowded; broken table and

chair) Dim lighting Inaccurate menu list Inoperative machinery (water dispenser, roaster, steamer) Inoperative air-conditioning (poor ventilation) Offensive staffs appearance (sweating; without apron) Offensive staffs behaviour (sweeping; smoking)

Some of Service Failure Techniques

Correction Acknowledgement of the problem Apology Empathy Reinstatement Symbolic Assistance Atonement Replacement Follow-up Management/ Compensation employee intervention Empowerment Explanation of the Coupon reason for the Free food failure Discount Correction plus Refund

Service Guarantee
Service guarantee builds trust in customers which is very important for QSVR Restaurants Pizza Hut guarantee that if you are not satisfied with your pizza, well make it right and return your money back. Also if the pizza is not delivered Hot you can always return the pizza. Dominoes gives a 30 min guarantee of pizza delivery
Point of Discussion: Does giving Service Guarantee always benefit the

Customer Feedback

Conclusion

Most of the Indian customers verbalise their complain on the other hand In US customers like to register their complaint Most of the Service failure in India are immediately dealt by an apology and offering assistance while in US apology is followed by a compensation The root cause of inefficient service failure recovery is Indian managers are not empowered enough to deal with situations, also there is no fixed guidelines in most cases Indian consumers do not return back to the restaurant where a service failure has happened while not true with US. Indian customer often feel cheated during a service failure while in US it is considered a one-off mishap

Recommendations
Indian managers should offer compensation more often as compensation works better in getting repeat customers. But before there should be manager empowerment program and manager training must be done. Slowness of service which is a major service failure needs to be resolved by having more operational efficient systems by improving cycle time Also Indian managers need to understand 80% of customers problems are caused by bad systems and not bad people

References
http://retailindustry.about.com/od/retailbe stpractices/a/retailcustomerservicefailure recoverycornerbakery.htm http://www.onlinereview.segi.edu.my/pdf/ vol3-no1-art9.pdf Service recovery strategies in western based fast food restaurants: a structural equation model test by Ernest Cyril de Run and Heriyadi Kusyarnadi Services Marketing By Zeithaml