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Restaurants Business Successful And Failures

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Question:

Explain On Restaurants Business Successful and Failures?

 

Answer:

Introduction

Hotels and restaurants are leading service industries in Switzerland, as it is one of the major tourist places in world (Yap, 2007). It is a fastest growing sector of their economy too due to high amounts of tourist influx. Consumers demand for better service creates the challenges between competitors. Continuous innovations in terms of service and technology are required to overcome such conditions. Growth prospect is very high due to millions of people visit Switzerland every year. Digital presence like attractive Hotel website along with its information on Social media Like Facebook and Twitter for online offers, information and other factors support the robust growth within the country. Physical Evidence is the primary part of any hotel that customer’s sees and get attracts to. Therefore, Physical evidence is the atmosphere in which the service is delivered and where the hotel and the customer interrelate. Thus discussion states that physical evidence has immense benefits for restaurants and sometimes does not affect the business. Architecture of hotel should be attractive. Impression created by physical appearance helps to run their business successfully. Lobby, room and interiors are part of catching consumer’s eye and attracting them (Chen, 2010). Consumer’s observation of the physical appearance influences them to choose the selected hotels. Hotels interiors are an important element for customer’s satisfaction. It is not just quality food and services but along with that different physical environment like theme-based restaurants along with latest interiors draws customers. Several research works done in the area of hospitality management reflects that physical evidence acts as a predominant factor that affects customer satisfaction. As competition becomes immense and intense in nature it become impertinent to analyse the various aspects of physical evidences that can impact customer satisfaction rates (Nam, 2011). The scope of this essay analyses findings from various research and scholarly articles to evaluate the impact that physical evidence might actually have on customer satisfaction rates. Thus, essay argues for the fact that physical evidence does act as an important factor in influencing of customer satisfaction.  

 

Findings and Analysis

Restaurants business is successful and failures depending on the value proposition that they offer their clients (Han H. B., 2009). As customers are offered a large number of alternatives with a varied number of cuisines from around the world, it becomes imperative to evaluate and understand the predominant factors that might actually have an effect on customer satisfaction and attract them. From discussion we can analyze that pros and cons of physical evidence are immense. Success of restaurants is totally based on numbers of customers they cater to. Quality food is utmost essential of any renowned and well branded restaurant. People demand for service as per price paid. Good ambience, latest technology facilities like Wi-Fi is attractions for customers. Parking facility in hotels is also strength of restaurants (Dutta, 2007). Luxury hotels restaurants strength is their beautiful ambience and high quality food and services. Stars rated hotels have multiple cuisines with the ambience of same country at one stop attracts high standard people.

Restaurants of Switzerland have several drawbacks as owners not aware of few laws, rules and regulations of business. Management is not able to meet customers demand and choice. Poor finance act as hurdle to renovate interiors to overcome competitors along with same menu.  Customers get bored with the same ambience and food; to feel the change as per mood they switch to try new restaurants with updated new food items. Globalization has changed and impacted the working style of businesses (Namkung, 2007). To expand business and its recognition owners makes deals via tie up with other companies. Multinational or many big companies frequently conduct training and meetings at hotels. They tie up with few hotels by providing conference room along with room service. This is one kind of advertising and marketing to attract local people as well as tourist visit on business purposes. Guest are provided with best of room services and other facilities like good food, Wi-Fi facility, ambience and other services to draw their attention to visit again and recommending to friends, family and colleague. Restaurant business faces several challenges as high competition with other hotels in terms of price, quality and services (He, 2011). Customers visit restaurant for many purpose depending on their choice, young couple  visit for romantic date, for that their first preference will be ambience, so if competitor has better physical ambience and decor, they will choose that type of restaurant, so it’s a threat for restaurant with only good, quality food , they lacks behind due to poor ambience. Bad testimonials from customers act as threat by minimizing other customers visit. Increasing rates of interiors and other related items stops owners to go for further renovations to meet the ever-changing choice of people. Low profitability restaurant has less finance to change the interiors, along with increasing service staff and other technology facility (Lee, 2009).

Analysis of several factors that impact customers and help create a brand name or brand identity, it has been found that physical evidence can have significant impacts (Ali, 2014). While physical evidences alone cannot create impact alone but it might act as an integral aspect that makes recall value for the restaurant higher in minds of customers. Physical evidences like lobby, which is waiting area for customers, makes first impression of hotel. Interior design, Reception desk for enquiry, Staff uniforms, their cordial behavior, entry space and surrounding ambience like swimming pool, lightings, music and so on are the main attractions for people.

 

Interior Design: Hotels and Restaurants owners and managers should target first on enhancing service quality in terms of interiors, which is essential element, which affects customer’s satisfaction (Wall, 2007). People choose restaurants for dinning considering physical environment, which plays an important role in taking decision. For example, Business people will select ambience with less choice, for fewer disturbances in operating meeting with clients. Couples choose romantic ambience and family get together function for dinner and lunch chose formal interiors. Therefore, restaurants should have physical environment in terms of interiors and stylish ambience suitable to every type of guests. So overall stylish decor, Good architecture, pleasing environment and fancy atmosphere is part of people attractions (Ryu K. &., 2010). Above Findings proves how Physical ambience acts as pros for customer satisfaction.

Colors, shape and size of sitting arrangements: Guests consider these primary rudiments for dinning (Jani, 2011). Comfortable sitting with proper and comfortable which customer’s demand in general. Other settings like waiting area-sitting arrangements, Menu card design, cutlery used and many others. Colors have immense impact on customer satisfaction rates, as soothing and pleasant colors are known to have a good effect on customers. Colors add to customer appeasements hence all contours and colors are made in such a way that customers can be attracted and satisfied consecutively.   

Sounds: Demand and choice also depends on sound atmosphere of the restaurant, sounds can be of various types as music, noise and others (Kayaman, 2007).

Music: People choose few restaurants for dinning due to its soothing sound ambience. People’s mood changes with the atmosphere. Quality time spends with friends and family prefers light romantic music along with good food and ambience to enjoy at fullest.  Announcement style should be in a professional way as a part of good hospitality.

Sensory soothing atmosphere: The analysis found that how fragrance acts as cons or dissatisfy customer.  Certain restaurants are famous for good atmosphere created by spreading attracted fragrance to change the mood of diners. Some restaurants smell always of food aroma, which is not liked by few clients. Hotel lobby should have different scent as it a waiting area, which is people’s first attraction. Rooms should be spread with light perfume as customer spends maximum time in room (Liu, 2009). Coffee area or Bar area should smell accordingly to make customers feels the presence of elements choose for entertainment. Thus, foul smell and odor might distract customers and lead to their dissatisfaction rates.

Typology of service scapes:  Let us find how Customers as well as consumers both are affected by management interior facilities. In service industry physical surroundings and ambience are the primarily factor for attraction and branding. Physical facility provided to staff helps to build friendly environment within the restaurant. Pleasant physical environment and activities created by management is service scape. Facilities such as good music, aroma, lightings, designs, paintings, showpiece models and so on. Service scape has great impact on consumer experiences (Jang, 2009). Interaction between service staff and customers represents consumer’s satisfaction. Restaurants management and owners should study deeply the effect of service space on hotel success. Like colors on the wall, flooring, background music at lobby, restaurants, themes, comfort level, unique in decor and ambience that makes restaurant different from others. Interior designed as per food specialty attracts and makes positive impact on guest. Therefore, service scape is totally based on physical environment and strong ambience within which factors service take place. Human psychology is good relationship and behavior by staff is a crucial part of physical environment.

Uniforms: Staff’s uniform represents restaurant and hotel class and group it belongs. Luxury class or average can be analyzing through dress code according to Hoffman and Bateson (Kim, 2009). Dress code as per restaurant theme is an additional element for people’s enjoyment for instance, new concept like railway theme restaurant where along with ambience of train, particular uniform of train staff is provided to feel exactly like travelling experience, prison based restaurant where staff wear such uniform attracts people to visit for such adventures specially for kids.

First Impression: Love at first sight also works on entertainment part of people’s life. Impression created by restaurant at first visit due to high and attractive ambience will be long lasting. Facilities provided by restaurant like warm welcome by service staff, music, and atmosphere physiologically draw customers attentions.

Comfort and pleasant atmosphere: The advantage for restaurant by providing best of facility of physical evidence to visitors .Hotel lobby is the area where people prefer good ambience, as they need to sit long during waiting (Ryu K. L., 2012). Poor sitting arrangements as well as stale smell feel uncomfortable and do not prefer second time to visit. This can create permanent bad perception about restaurant. Clean and pleasing atmosphere creates optimistic mood for customers and change the view about restaurant service. Many customers will switch to competitor restaurant if they feel discomfort with services and facilities. Negative impression created at first visit will takes time to recover until other customers shares their experiences of changes.

Customer’s choice preferably relies on tangible physical evidences (Zhang, 2013). Along with all interior attribute like design, layout, decor, exterior characteristics like good parking facility and space, landscape are also incorporated. Culinary industry is going through tough competitions. Existence in such industry needs uniqueness from others for long-term success and profit. Distinctive exterior and interior facilities should be there for any restaurants to serve the customers. There are theme restaurants a new concept of modern industry should convey people through proper physical evidences from every view of designing. Physical evidence for service industry is important as customer evaluate their satisfaction after and before purchase of their service. Bad experience takes away existing customers permanently along with putting stop for new customers.

 


Physical evidence even in service industry like Restaurant can differentiate nature of its business (Han H. &., 2009). For example ambience and facility of services can give idea to people whether it’s a fast food restaurant or fine dining. Restaurant cutlery is facilitated as per different country cuisine for example Japanese restaurant will keep chopstick for customers on serving table to enjoy that particular food. Menu card with design for different segments like starters, main menu, drinks etc. On the table along with menu card, tissue paper, instant water serve, pen and paper to make more easily for people to order. If restaurant famous for candle light dining, ambience must be decor as per the theme. Candle lighting along with soft music attracts customers to visit frequently to feel relax.

Sign Board: Signboard well designed with attractive logo and color tells about restaurant theme and its ambience and class (Ekinci, 2008). Example, If it’s a Chinese restaurant, than logo should be designed in such a way people can judge from sign board only like, writing in Chinese language with other traditional one, Chinese chef picture, so on. Chinese costumes provided to staff to make people feel totally experiencing dining in China. While various factors act for the restaurant, physical evidence can add to the experience that the business wants to generate for its customers. Predominance of such physical evidences is more prominent amongst fine dining restaurants that cater to upper consumer target segment. Upper segment of customers from high income group gives immense importance to such factors as it is an integral aspect in their society. Restaurants in order to create an influence and attract these levels for customers adopt varied strategies one of which makes impact is physical evidences.  Thus, from above findings and analyses it can easily be argued that physical evidences does act as necessary parameters that induces and impacts customer satisfaction rates as against any other factors.

 

Conclusion

From the above discussion, we can conclude that Physical evidence plays important role in service industry like hotels and restaurants. Advantages and disadvantages of physical evidence found through analysis and discussions on above detailed marketing research. Is it a small restaurant, famous branded star restaurant or theme restaurants all requires beautiful decor and ambience  .Uniqueness makes them different from others. Competition can only be conquering through innovations and quality services. Importance of any type of restaurant is depends on service scape   usage and conveying customers through restaurants physical evidences, so that customers recognize the themes and specialty clearly. Physical Evidences covers every factors like Interiors, Decor , Staff service and behavior, Lobby appearance , music, atmosphere, flooring, color, flooring, cutlery, staff uniform, parking facility, temperature, comfort, waiting area sitting arrangement, aroma as per selection of entertainment like, Bars, Coffee shop and so on. Long-term success of any restaurant depends on all these physical evidences. As service cannot be touch, or smell, it depends on tangible evidences. Customers can only rate restaurant after use of its service. Design, Sight, Sound, touch and taste demands from customers consider by management to create a renowned and successful restaurant. Thus, restaurants in order to increase their scopes of business and become more competitive in nature need to adopt and apply physical evidences such that they are able to extend their core competency and establish market share.

 

References

Ali, F. &. 2014. The influence of physical environment on emotions, customer satisfaction and behavioural intentions in Chinese resort hotel industry. Journal for Global Business Advancement, 249-266.

Chen, P. T. 2010. How determinant attributes of service quality influence customer-perceived value: an empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, 535-551.

Dutta, K. V. 2007. Service failure and recovery strategies in the restaurant sector: An Indo-US comparative study. . International Journal of Contemporary Hospitality Management, 351-363.

Ekinci, Y. D. 2008. An extended model of the antecedents and consequences of consumer satisfaction for hospitality services. European Journal of Marketing, 35-68.

Han, H. &. 2009. The roles of the physical environment, price perception, and customer satisfaction in determining customer loyalty in the restaurant industry. Journal of Hospitality & Tourism Research, 487-510.

Han, H. B. 2009. Influencing factors on restaurant customers’ revisit intention: The roles of emotions and switching barriers. . International Journal of Hospitality Management, 563-572.

He, Y. L. 2011. Service climate, employee commitment and customer satisfaction: evidence from the hospitality industry in China. . International Journal of Contemporary Hospitality Management, 592-607.

Jang, S. S. 2009. Perceived quality, emotions, and behavioral intentions: Application of an extended Mehrabian–Russell model to restaurants. Journal of Business Research, 451-460.

Jani, D. &. 2011. Investigating the key factors affecting behavioral intentions: Evidence from a full-service restaurant setting. . International Journal of Contemporary Hospitality Management, 1000-1018.

Kayaman, R. &. 2007. Customer based brand equity: evidence from the hotel industry. Managing Service Quality: An International Journal, 92-109.

Kim, W. G. 2009. Customers’ cognitive, emotional, and actionable response to the servicescape: A test of the moderating effect of the restaurant type. International journal of hospitality management, 144-156.

Lee, Y. K. 2009. Family restaurant brand personality and its impact on customer's emotion, satisfaction, and brand loyalty. Journal of Hospitality & Tourism Research, 305-328.

Liu, Y. &. 2009. Perceptions of Chinese restaurants in the US: what affects customer satisfaction and behavioral intentions?. International Journal of Hospitality Management, 338-348.

Nam, J. E. 2011. Brand equity, brand loyalty and consumer satisfaction. Annals of Tourism Research, 1009-1030.

Namkung, Y. &. 2007. Does food quality really matter in restaurants? Its impact on customer satisfaction and behavioral intentions. . Journal of Hospitality & Tourism Research, 387-409.

Ryu, K. &. 2010. Influence of the quality of food, service, and physical environment on customer satisfaction and behavioral intention in quick-casual restaurants: Moderating role of perceived price. Journal of Hospitality & Tourism Research, 310-329.

Ryu, K. L. 2012. The influence of the quality of the physical environment, food, and service on restaurant image, customer perceived value, customer satisfaction, and behavioral intentions. . International Journal of Contemporary Hospitality Management, 200-223.

Wall, E. A. 2007. The combined effects of the physical environment and employee behavior on customer perception of restaurant service quality. Cornell Hotel and Restaurant Administration Quarterly, 59-69.

Yap, S. F. 2007. Service quality and customer satisfaction: antecedents of customer's re-patronage intentions. . Sunway Academic Journal, 59-73.

Zhang, Z. Z. 2013. Factors influencing the effectiveness of online group buying in the restaurant industry. . International Journal of Hospitality Management, 237-245.

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