Restaurants Case Analysis

The hotel and restaurant industries

The hotel and restaurant industries are among the most prosperous. Restaurants are part of the food sector, and it is the responsibility of restaurant management to ensure that all operations in the restaurants are directed at fulfilling and serving customer desires (Al-Ababneh, 2013). This paper focuses on an eatery that has recently had poor results, which has resulted in a decline in its customer base. This discussion entails an evaluation of the issues that this restaurant faces and gives an appropriate response to the decision of the firm’s manager to add a line of upscale alcoholic beverages to the menu with the aim of recapturing their clients and improving the customer base.

Relevant Facts:

The primary facts that created the problems witnessed in the restaurant include a dwindling customer base that might have been caused by different factors including poor customer relations and absenteeism. However, the manager must consider improving the current customer relations training to enhance the retention rate as most employees are moving to other firms with excellent career growth opportunities. Other key facts are that there exist three shifts that ensure most of the employees and the levels of experience range from zero to six years. Lastly, the managers had not sought to satisfy the clients’ wants as there was no preexisting line of alcoholic drinks.

However, the location of the restaurant is perfect

However, the location of the restaurant is perfect, and the area is well-maintained with ample parking and excellent lighting. The manager can consider these positive facts when solving the problem at hand.

Problem(s):

The key challenge that this restaurant faces is the dwindling customer base. The manager has reported that the eatery is having trouble staying competitive. The other surrounding restaurants have thriving businesses. This fact has prompted the manager to visit these neighboring restaurants to explore the atmospheres that make them have a competitive advantage over her firm. If the manager succeeds in solving the issue of a declining customer base, then there is a high probability that the other challenges will be addressed.

The other problems faced by this restaurant can be categorized into employee-related or administrative problems. However, the administrative issues may be the primary cause of the employee-related issues. The manager reports that there is widespread absenteeism in the firm. The failure of employees to turn up causes low customer turnout as there is nobody to serve the clients. Consequently, potential clients may be driven away from the restaurant due to lack of satisfaction. The manager is yet to provide an outlined remedy of dealing with absenteeism.

The principal administrative issue is the failure to understand the client needs. The management would have realized that most customers prefer the alcoholic beverages to other meals and act appropriately to satisfy their needs. However, the manager waited to the point that there was a dwindling customer base before benchmarking other restaurants and realizing customers’ wants. The management also has poor or non-existent guidelines of promoting workplace harmony and boosting employee satisfaction as the manager reported that there was an increase in the number of internal conflicts and the employees leaving the firm to seek employment elsewhere. The management can fix all these problems by finding long-lasting solutions to the explained administrative issues.

Alternatives:

There are three key alternative solutions to the highlighted problems that the restaurant administration can employ.

Alternative #1. The management can employ new techniques of educating its employees on the essence of collaboration and peace in a workplace while maintaining its current menu. The techniques should also encompass training on different aspects other than customer relations so that the employees can have career growth.

Alternative #2. A new line of upscale alcoholic beverages can be included in the menu to attract customers thereby making the firm competitive.

Alternative #3. The administration can employ the democratic leadership style where both the employees and clients have the liberty of communicating their thoughts and wants. Consequently, the manager may realize the areas with loopholes and amend them appropriately.

Recommendations:

The third alternative is the most recommendable. Democratic leadership has proved to be the best style used in achieving a competitive advantage as well as employee and customer satisfaction (Al-Ababneh, 2013). Employees work well in democratic environments where they can air their views and interests. The use of this leadership style will help solve absenteeism as there will be an agreement between the employees and the employer. Internal conflicts will also be prevented since the workplace will be democratic and there will be proper internal communication (Terzi, & Derin, 2016). Lastly, the third alternative will solve the issue of declining customer base as the management will gather the customers’ reviews about the menu and customer services thereby sealing the loopholes.

Implementation:

The implementation of the selected alternative might be tedious and time-consuming but will benefit the restaurant in the long run. The manager can come up with a complaint and complement box where the clients can raise their concerns regarding the services offered by the restaurant. Secondly, the management should hold constant democratic meetings with employees where they will be allowed to air their grievances, concerns, or give their compliments. In the case that the employees feel that the firm is doing nothing regarding career growth, they can give remedies that the firm must implement.

Conclusion:

In summary, there is evidently a big issue with the restaurant that must be solved promptly. Different leadership styles are applicable in solving the customer base menace. However, democratic leadership is the best solution to these issues. This style of leadership will enhance communication between the clients, management, and workers of the firm. In the long run, the management will know the reasons for increased absenteeism and solve this issue, there will be a decrease in internal conflicts, and the employees will be able to notify the administration of the various techniques of improving their career growth. The customers are the primary stakeholders of any firm in the service industry. Consequently, the implementation of the third alternative will give clients a voice that will lead to the satisfaction of their wants.

References

Al-Ababneh, M. (2013). Leadership style of managers in five-star hotels and its relationship with employees’ job satisfaction. Journal of Occupational and Organizational Psychology, 3(2), 94.

Terzi, A. R., & Derin, R. (2016). Relation between Democratic Leadership and Organizational Cynicism. Journal of Education and Learning, 5(3), 193.